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  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>SECURITIES AND EXCHANGE COMMISSION</B></P>
  
  <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>
  
  <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Washington, D.C. 20549</B></P>
  
  <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>______________________</B></P>
  
  <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>
  
  <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>FORM 10-Q</B></P>
  
  <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>
  
  <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>[ X ] Quarterly Report under Section 13 or
  15(d) of the Securities Exchange Act of 1934</B></P>
  
  <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
  
  <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center">For the quarter ended July 31, 2016</P>
  
  <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
  
  <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center">OR</P>
  
  <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
  
  <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>[ ] Transition Report Pursuant to Section
  13 or 15(d) of the Securities Exchange Act of 1934</B></P>
  
  <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
  
  <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center">For the transition period from __________ to
  ___________</P>
  
  <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
  
  <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center">Commission file number: 000-1591157</P>
  
  <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>
  
  <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>POCKET GAMES, INC.</B></P>
  
  <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Exact name of registrant as specified in its
  charter)</P>
  
  <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
  
  <TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 12pt Times New Roman, Times, Serif; border-collapse: collapse">
  <TR>
      <TD STYLE="vertical-align: top; width: 50%; text-align: center"><FONT STYLE="font-size: 11pt"><B>Florida</B></FONT></TD>
      <TD STYLE="vertical-align: bottom; width: 2%">&nbsp;</TD>
      <TD STYLE="vertical-align: top; width: 48%; text-align: center"><FONT STYLE="font-size: 11pt"><B>46-3813936</B></FONT></TD></TR>
  <TR>
      <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 11pt">(State or other jurisdiction of</FONT><BR>
  <FONT STYLE="font-size: 11pt">incorporation or organization)</FONT></TD>
      <TD STYLE="vertical-align: bottom">&nbsp;</TD>
      <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 11pt">(I.R.S. Employer</FONT><BR>
  <FONT STYLE="font-size: 11pt">Identification No.)</FONT></TD></TR>
  <TR>
      <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
      <TD STYLE="vertical-align: bottom">&nbsp;</TD>
      <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
  <TR>
      <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 11pt"><B>445 Central Ave. Suite 355</B></FONT><BR>
  <FONT STYLE="font-size: 11pt"><B>Cedarhurst, New York</B></FONT></TD>
      <TD STYLE="vertical-align: bottom">&nbsp;</TD>
      <TD STYLE="vertical-align: top">
          <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>
          <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>11516</B></P></TD></TR>
  <TR>
      <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 11pt">(Address of principal executive offices) </FONT></TD>
      <TD STYLE="vertical-align: bottom">&nbsp;</TD>
      <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 11pt">(Zip Code)</FONT></TD></TR>
  </TABLE>
  <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(347) 460-9994</B></P>
  
  <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Registrant&rsquo;s telephone number, including
  area code)</P>
  
  <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Not Applicable</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B>(Former Name, former address and
  former fiscal year, if changed since last report)</P>
  
  <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">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.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right">Yes <FONT STYLE="font-family: Times New Roman, Times, Serif">
  &#9746;</FONT> No<FONT STYLE="font-family: Times New Roman, Times, Serif"> &#9744;</FONT></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">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 (&sect;232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant
  was required to submit and post such files).</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right">Yes<FONT STYLE="font-family: Times New Roman, Times, Serif">
  &#9746;</FONT> No<FONT STYLE="font-family: Times New Roman, Times, Serif"> &#9744;</FONT></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Indicate by check mark whether the registrant is a large accelerated
  filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of &quot;large accelerated
  filer,&quot; &quot;accelerated filer&quot; and &quot;smaller reporting company&quot; in Rule 12b-2 of the Exchange Act. (Check
  one):</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 12pt Times New Roman, Times, Serif; border-collapse: collapse">
  <TR>
      <TD STYLE="width: 56%; font-size: 10pt">Large accelerated filer<FONT STYLE="font-family: Times New Roman, Times, Serif"> &#9744;</FONT></TD>
      <TD STYLE="width: 44%; font-size: 10pt">Accelerated filer<FONT STYLE="font-family: Times New Roman, Times, Serif">
      &#9744;</FONT></TD></TR>
  <TR>
      <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD>
      <TD STYLE="font-size: 10pt">&nbsp;</TD></TR>
  <TR>
      <TD>
          <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Non-accelerated filer<FONT STYLE="font-family: Times New Roman, Times, Serif">
          &#9744;</FONT></P>
          <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">(Do
  not check if a smaller reporting company)</FONT></P></TD>
      <TD STYLE="font-size: 10pt">Smaller reporting company <FONT STYLE="font-family: Times New Roman, Times, Serif">&#9746;</FONT></TD></TR>
  </TABLE>
  
  <P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Indicate by check mark whether the registrant is a shell company
  (as defined in Rule 12b-2 of the Exchange Act) Yes <FONT STYLE="font-family: Times New Roman, Times, Serif">&#9744;</FONT> No
  <FONT STYLE="font-family: Times New Roman, Times, Serif">&#9746;</FONT></P>
  
  <P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Indicate the number of shares outstanding of
  each of the issuer's classes of common stock, as of the latest practicable date: 7,866,905,522 shares of common stock are issued
  and outstanding as of September 11, 2018.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  
  <!-- Field: Page; Sequence: 1 -->
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  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>POCKET GAMES, INC.</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>FORM 10-Q</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>July 31, 2016</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="TableOfContents"></A><B>TABLE OF CONTENTS</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
      <TD COLSPAN="2">&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: center">Page No.</TD></TR>
  <TR STYLE="vertical-align: top">
      <TD COLSPAN="5" STYLE="text-align: center"><B><A HREF="#a_001">PART I. - FINANCIAL INFORMATION</A></B></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD>Item 1.</TD>
      <TD COLSPAN="3" STYLE="text-align: justify"><A HREF="#a_002">Financial Statements.</A></TD>
      <TD STYLE="text-align: right">3</TD></TR>
  <TR STYLE="vertical-align: top">
      <TD>&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: justify"><A HREF="#a_003">Balance Sheets</A> as of July 31, 2016 (Unaudited) and October 31, 2015</TD>
      <TD STYLE="text-align: right">3</TD></TR>
  <TR STYLE="vertical-align: top">
      <TD>&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: justify"><A HREF="#a_004">Statements of Operations</A> for the Three and Nine Months Ended July 31, 2016 and 2015 (Unaudited)</TD>
      <TD STYLE="text-align: right">4</TD></TR>
  <TR STYLE="vertical-align: top">
      <TD>&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: justify"><A HREF="#a_005">Statements of Cash Flows</A> for the Nine Months Ended July 31, 2016 and 2015 (Unaudited)</TD>
      <TD STYLE="text-align: right">5</TD></TR>
  <TR STYLE="vertical-align: top">
      <TD>&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: justify"><A HREF="#a_006">Notes to Unaudited Financial Statements</A></TD>
      <TD STYLE="text-align: right">6-22</TD></TR>
  <TR STYLE="vertical-align: top">
      <TD>Item 2.</TD>
      <TD COLSPAN="3" STYLE="text-align: justify"><A HREF="#a_007">Management's Discussion and Analysis of Financial Condition and Results of Operations.</A></TD>
      <TD STYLE="text-align: right">23</TD></TR>
  <TR STYLE="vertical-align: top">
      <TD>Item 3.</TD>
      <TD COLSPAN="3" STYLE="text-align: justify"><A HREF="#a_008">Quantitative and Qualitative Disclosures About Market Risk.</A></TD>
      <TD STYLE="text-align: right">27</TD></TR>
  <TR STYLE="vertical-align: top">
      <TD>Item 4.</TD>
      <TD COLSPAN="3" STYLE="text-align: justify"><A HREF="#a_009">Controls and Procedures.</A></TD>
      <TD STYLE="text-align: right">27</TD></TR>
  <TR STYLE="vertical-align: top">
      <TD COLSPAN="5">
          <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
          <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>PART II - OTHER INFORMATION</B></P></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD>Item 1.</TD>
      <TD COLSPAN="3"><A HREF="#a_011">Legal Proceedings.</A></TD>
      <TD STYLE="text-align: right">28</TD></TR>
  <TR STYLE="vertical-align: top">
      <TD>Item 1A.</TD>
      <TD COLSPAN="3"><A HREF="#a_012">Risk Factors.</A></TD>
      <TD STYLE="text-align: right">28</TD></TR>
  <TR STYLE="vertical-align: top">
      <TD>Item 2.</TD>
      <TD COLSPAN="3"><A HREF="#a_013">Unregistered Sales of Equity Securities and Use of Proceeds</A>.</TD>
      <TD STYLE="text-align: right">28</TD></TR>
  <TR STYLE="vertical-align: top">
      <TD>Item 3.</TD>
      <TD COLSPAN="3"><A HREF="#a_014">Defaults Upon Senior Securities</A>.</TD>
      <TD STYLE="text-align: right">28</TD></TR>
  <TR STYLE="vertical-align: top">
      <TD>Item 4.</TD>
      <TD COLSPAN="3"><A HREF="#a_015">Mine Safety Disclosures.</A></TD>
      <TD STYLE="text-align: right">28</TD></TR>
  <TR STYLE="vertical-align: top">
      <TD>Item 5.</TD>
      <TD COLSPAN="3"><A HREF="#a_016">Other Information.</A></TD>
      <TD STYLE="text-align: right">28</TD></TR>
  <TR STYLE="vertical-align: top">
      <TD>Item 6.</TD>
      <TD COLSPAN="3"><A HREF="#a_017">Exhibits.</A></TD>
      <TD STYLE="text-align: right">29</TD></TR>
  <TR>
      <TD STYLE="width: 8%">&nbsp;</TD>
      <TD STYLE="width: 4%">&nbsp;</TD>
      <TD STYLE="width: 80%">&nbsp;</TD>
      <TD STYLE="width: 4%">&nbsp;</TD>
      <TD STYLE="width: 4%">&nbsp;</TD></TR>
  </TABLE>
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  
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      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><A NAME="a_001"></A>PART 1 - FINANCIAL INFORMATION</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><A NAME="a_002"></A><B>ITEM 1. FINANCIAL STATEMENTS.</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt"></P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
      <TD COLSPAN="9" STYLE="font-weight: bold; text-align: center">POCKET GAMES, INC.</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD COLSPAN="9" STYLE="text-align: center"><A NAME="a_003"></A>CONDENSED BALANCE SHEETS</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD COLSPAN="9">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD COLSPAN="9" STYLE="text-align: center"><U>ASSETS</U></TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center">July 31,</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center">October 31,</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2016</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2015</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center">(Unaudited)</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">CURRENT ASSETS</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="width: 63%; text-align: left; padding-left: 10pt">Cash and cash equivalents</TD><TD STYLE="width: 1%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">13</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">24,404</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-left: 10pt">Loan origination costs</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">25,675</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 10pt">Other assets</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">1,745</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 20pt">Total Current Assets</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">13</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">51,824</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 10pt">Fixed assets</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">4,420</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 2.5pt; padding-left: 20pt">TOTAL ASSETS</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">13</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">56,244</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD COLSPAN="9" STYLE="text-decoration: underline; text-align: center">LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">CURRENT LIABILITIES</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
      <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
      <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 10pt">Accounts payable</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">43,709</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">49,834</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-left: 10pt">Accrued expenses, related parties</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15,062</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13,224</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 10pt">Accrued expenses</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">56,752</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">31,762</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-left: 10pt">Accrued compensation</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">28,023</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">131,923</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 10pt">Loans payable, related parties</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">36,106</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">14,781</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-left: 10pt">Derivative liability</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">374,356</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,369,662</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 10pt">Convertible debenture, net of discount of</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 10pt">&nbsp;&nbsp;$101,534 and $298,497, respectively</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">661,119</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">240,452</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 20pt">Total Current Liabilities</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">1,215,127</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">1,851,638</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
      <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 20pt">TOTAL LIABILITIES</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">1,215,127</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">1,851,638</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">STOCKHOLDERS' EQUITY (DEFICIT)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="padding-left: 10pt">Preferred stock, $0.0001 par value; 1,000,000,000 shares authorized</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 10pt">Preferred stock designated, Series AA, $0.0001 par value, 1,000 and -0-</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-left: 10pt">&nbsp;shares issued and outstanding, respectively</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 10pt">Preferred stock designated, Series B, $0.0001 par value, -0- and 320,000</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-left: 10pt">&nbsp;shares issued and outstanding, respectively</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 10pt">Preferred stock designated, Series C, $0.0001 par value, -0- and 270,000</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-left: 10pt">&nbsp;shares issued and outstanding, respectively</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="padding-left: 10pt">Common stock, $0.0001 par value; 50,000,000,000 shares authorized,</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-left: 10pt">&nbsp;647,701,647 and 24,339,929 shares issued and outstanding, respectively</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">64,770</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,434</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 10pt">Additional paid-in capital</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,722,133</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,821,210</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-left: 10pt">Subscriptions payable</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,500</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 10pt">Accumulated deficit</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(6,003,517</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(5,618,984</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 10pt">Accumulated other comprehensive loss</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(54</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 20pt">Total Stockholders' Equity (Deficit)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(1,215,114</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(1,795,394</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 2.5pt; padding-left: 20pt">TOTAL LIABILITIES AND STOCKHOLDERS'&nbsp;&nbsp;EQUITY (DEFICIT)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">13</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">56,244</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD COLSPAN="9" STYLE="text-align: center">The accompanying notes are an integral part of these unaudited financial statements.</TD></TR>
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  <TR STYLE="vertical-align: bottom">
      <TD COLSPAN="17" STYLE="font-weight: bold; text-align: center">POCKET GAMES, INC.</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD COLSPAN="17" STYLE="text-align: center"><A NAME="a_004"></A>CONDENSED STATEMENTS OF OPERATIONS</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD COLSPAN="17" STYLE="text-align: center">(Unaudited)</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD COLSPAN="17" STYLE="text-align: center">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="7" STYLE="text-align: center">For the Three Months Ended</TD><TD>&nbsp;</TD>
      <TD COLSPAN="7" STYLE="text-align: center">For the Nine Months Ended</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="7" STYLE="text-align: center; border-bottom: Black 1pt solid">July 31,</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="7" STYLE="text-align: center; border-bottom: Black 1pt solid">July 31,</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2016</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2015</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2016</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2015</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3">&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD>REVENUES</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="width: 48%; text-align: left; padding-left: 10pt">Revenues, related parties</TD><TD STYLE="width: 1%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">102</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">3,300</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="padding-bottom: 1pt; padding-left: 10pt">Cost of revenues</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(10,942</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 20pt">Gross profit (loss)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">102</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(7,642</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">OPERATING EXPENSES</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-left: 10pt">General and administrative</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">40,268</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">47,417</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">220,267</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">88,385</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 10pt">Officer compensation</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">30,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">60,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">115,606</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">180,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 10pt">Professional fees</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">33,541</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">14,046</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">389,936</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">137,239</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 20pt">Total Operating Expenses</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">103,809</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">121,463</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">725,809</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">405,624</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">LOSS FROM OPERATIONS</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(103,707</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(121,463</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(733,451</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(405,624</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">OTHER INCOME (EXPENSES)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-left: 10pt">Gain (Loss) on change in fair value of derivative liability</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">189,055</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(763,148</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,239,931</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(763,148</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 10pt">Interest expense</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(331,513</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(280,235</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(730,724</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(374,006</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 10pt">Loss on settlement of debt</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(19,982</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(26,530</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(160,285</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(24,460</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 20pt">Total Other Income (Expenses)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(162,440</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(1,069,913</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">348,922</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(1,161,614</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">NET LOSS BEFORE INCOME TAXES</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(266,147</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,191,376</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(384,529</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,567,238</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 1pt">PROVISION FOR INCOME TAXES</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 2.5pt">NET LOSS</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(266,147</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(1,191,376</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(384,529</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(1,567,238</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 2.5pt">NET LOSS PER SHARE, BASIC AND FULLY DILUTED</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(0.00</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(0.06</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(0.00</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(0.09</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>WEIGHTED AVERAGE NUMBER OF</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;SHARES OUTSTANDING, BASIC AND FULLY DILUTED</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">363,995,274</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">20,776,308</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">235,314,747</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">17,951,430</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD COLSPAN="17" STYLE="text-align: center">The accompanying notes are an integral part of these unaudited financial statements.</TD></TR>
  </TABLE>
  
  
  
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  <TR STYLE="vertical-align: bottom">
      <TD COLSPAN="9" STYLE="font-weight: bold; text-align: center">POCKET GAMES, INC.</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD COLSPAN="9" STYLE="text-align: center"><A NAME="a_005"></A>CONDENSED STATEMENTS OF CASH FLOWS</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD COLSPAN="9" STYLE="text-align: center">(Unaudited)</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD COLSPAN="9" STYLE="text-align: center">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="7" STYLE="text-align: center">For the Nine Months Ended</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="7" STYLE="text-align: center; border-bottom: Black 1pt solid">July 31,</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2016</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2015</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: right">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">CASH FLOWS FROM OPERATING ACTIVITIES</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="width: 63%; text-align: left">Net loss</TD><TD STYLE="width: 1%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">(384,529</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 8%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">(1,567,238</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">Adjustments to reconcile net loss to net cash</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">&nbsp;used by operating activities:</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-left: 10pt">Amortization of loan origination costs</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,277</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">14,314</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 10pt">Amortization of discount on convertible debenture</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">684,649</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">166,487</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-left: 10pt">Amortization of original issue discount</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,460</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 10pt">Amortization of derivative liabilities</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">12,888</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-left: 10pt">Shares issued for services</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">315,075</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">95,455</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 10pt">Interest expense for note derivative</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,850</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-left: 10pt">Interest expense for warrants derivative</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">164,434</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 10pt">(Gain) Loss on settlement of debt</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">160,285</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-left: 10pt">(Gain) Loss on change in fair value of derivative liabilities</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,239,931</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">763,148</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">Changes in operating assets and liabilities:</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-left: 10pt">Other current assets</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,745</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 10pt">Accounts payable</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(5,322</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">12,208</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-left: 10pt">Accrued expenses, related parties</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,840</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,193</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 10pt">Accrued expenses</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">24,990</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,676</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-left: 10pt">Accrued officer compensation</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(103,900</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">16,891</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 10pt">Deferred revenues</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">8,983</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 20pt">Net Cash Used by Operating Activities</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(536,821</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(292,251</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">CASH FLOWS FROM INVESTING ACTIVITIES</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 10pt">Net affect of unwinding of acquisitions</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">219,951</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 20pt">Net Cash Provided by Investing Activities</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">219,951</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">CASH FLOWS FROM FINANCING ACTIVITIES</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 10pt">Loan origination costs</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(29,500</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-left: 10pt">Original issue discount on promissory notes</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(8,100</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 10pt">Payments on convertible debt</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(27,500</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(76,000</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-left: 10pt">Payments on loans payable, related parties</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(10,875</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(5,500</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 10pt">Proceeds from loans payable, related parties</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">17,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,492</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-left: 10pt">Proceeds from sale of common stock</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">12,300</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 10pt">Proceeds from convertible debenture</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">313,800</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">437,600</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 20pt">Net Cash Provided by Financing Activities</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">292,425</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">335,292</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 10pt">Foreign currency translation</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">54</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">DECREASE IN CASH AND CASH EQUIVALENTS</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(24,391</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">43,041</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 1pt">CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">24,404</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">430</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 2.5pt">CASH AND CASH EQUIVALENTS AT END OF PERIOD</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">13</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">43,471</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">SUPPLEMENTAL DISCLOSURES:</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="font-size: 10pt">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 10pt">Cash paid for interest</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-left: 10pt">Cash paid for income taxes</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="font-size: 10pt">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">Non-cash investing and financing activities:</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="font-size: 10pt">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-left: 10pt">Derivative on convertible notes</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">154,595</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">56,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 10pt">Stock issued for conversion of debt</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">245,532</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">50,168</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-left: 10pt">Stock issued for accrued compensation</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">67,190</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 10pt">Discount on beneficial conversion feature of convertible debentures</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">343,458</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-left: 10pt">Stock issued for stock payable</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">10,878</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 10pt">Derivative settlements</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">243,866</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-left: 10pt">Issuance of debt discounts</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">333,896</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 10pt">Accounts payable and warrants converted to notes payable</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">216,339</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD COLSPAN="9" STYLE="text-align: center">The accompanying notes are an integral part of these unaudited financial statements.</TD></TR>
  </TABLE>
  
  
  
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  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B></B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>POCKET GAMES, INC.</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><A NAME="a_006"></A>Notes to Condensed Financial Statements</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>July 31, 2016</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Unaudited)</P>
  
  
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B></B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Note 1 - Nature of Business and Significant
  Accounting Policies</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><U>Nature of Business</U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Pocket Games, Inc. (the &ldquo;Company&rdquo;)
  was incorporated on October 4, 2013 (&ldquo;Inception&rdquo;) under the laws of the State of Florida. The Company is engaged in
  the development, marketing and sale of interactive games for mobile devices, tablets and computers. The Company has limited customers
  and products and revenues to date.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We develop games and provide end-end services
  for software and application development. We also have a dedicated division for server support and cloud management.&nbsp;Our clients
  rely on us to support their core IT architecture and&nbsp;provide 24/7 support for&nbsp;their business critical infrastructure</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has adopted a fiscal year end of
  October 31.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>JOBS Act</U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company is an &ldquo;emerging growth company&rdquo;
  as defined in the recently-enacted JOBS Act, and is eligible to take advantage of certain exemptions from various reporting and
  disclosure requirements that are applicable to public companies that are not &ldquo;emerging growth companies.&rdquo; As an &ldquo;emerging
  growth company&rdquo; under the JOBS Act, the Company is permitted to, and intends to, rely on exemptions from certain reporting
  and disclosure requirements, which may make our future public filings different than that of other public companies.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Section 107 of the JOBS Act provides that an
  &ldquo;emerging growth company&rdquo; can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the
  Securities Act for complying with new or revised accounting standards. In other words, an &ldquo;emerging growth company&rdquo;
  can delay the adoption of certain new accounting standards until those standards would otherwise apply to private companies. The
  Company has elected to use the extended transition period for complying with new or revised accounting standards under Section
  102(b)(2) of the JOBS Act, that allows the Company to delay the adoption of new or revised accounting standards that have different
  effective dates for public and private companies until those standards apply to private companies. As a result of this election,
  the Company&rsquo;s financial statements may not be comparable to companies that comply with public company effective dates.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company will remain an &ldquo;emerging
  growth company&rdquo; until the earliest of: (i) the last day of the fiscal year during which we had total annual gross revenues
  of $1 billion or more, (ii) the last day of the fiscal year following the fifth anniversary of the date of the first sale of our
  common stock pursuant to an effective registration statement, (iii) the date on which the Company has, during the previous 3-year
  period, issued more than $1 billion in non-convertible debt or (iv) the date on which the Company is deemed a &ldquo;large accelerated
  filer&rdquo; as defined under the federal securities laws.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Use of Estimates</U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The preparation of financial statements in
  conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions
  that affect the reported amounts of assets and liabilities, and the disclosure of contingent assets and liabilities at the date
  of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could
  differ from those estimates.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Segment Reporting</U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Under FASB ASC 280-10-50, the Company operates
  as a single segment and will evaluate additional segment disclosure requirements as it expands its operations.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Fair Value of Financial Instruments</U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Under FASB ASC 820-10-05, the Financial Accounting
  Standards Board establishes a framework for measuring fair value in generally accepted accounting principles and expands disclosures
  about fair value measurements. This Statement reaffirms that fair value is the relevant measurement attribute. The adoption of
  this standard did not have a material effect on the Company&rsquo;s financial statements as reflected herein. The carrying amounts
  of cash, accounts payable and accrued interest reported on the balance sheet are estimated by management to approximate fair value
  primarily due to the short term nature of the instruments. The Company also had debt instruments that required fair value measurement
  on a recurring basis.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Foreign Currency Transactions</U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company translates foreign currency transactions
  to the Company's functional currency (United States Dollar), at the exchange rate effective on the invoice date. If the exchange
  rate changes between the time of purchase and the time actual payment is made, a foreign exchange transaction gain or loss results
  which is included in determining net income for the period.</P>
  
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  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>POCKET GAMES, INC.</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Notes to Condensed Financial Statements</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>July 31, 2016</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Unaudited)</P>
  
  
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Cash and Cash Equivalents</U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Cash and cash equivalents consist of cash and
  short-term highly liquid investments purchased with original maturities of three months or less. Cash and cash equivalents at July
  31, 2016 and October 31, 2015 were $13 and $24,404, respectively.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Accounts Receivable and Allowance for Doubtful
  Accounts</U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Accounts receivable may result from our product
  sales or outsourced application development services. Management must make estimates of the uncollectability of accounts receivables.
  Management specifically analyzed customer concentrations, customer credit-worthiness, current economic trends and changes in customer
  payment terms when evaluating the adequacy of the allowance for doubtful accounts.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Loan Origination Costs</U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Loan origination costs consist of legal fees
  and the associated costs of debt financing. The costs are being amortized over the life of the debt associated with each cost.
  During the nine months ended July 31, 2016, the Company recorded amortization expense of $8,277 which is included in interest expense
  on the statement of operations. As of July 31, 2016, the Company had $17,398 of unamortized loan origination costs.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Revenue Recognition</U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company generates revenue from three sources;
  sale of game applications, sale of advertising provided with games, and outsourced application development services. The Company
  recognizes revenue using four basic criteria that must be met before revenue can be recognized: (1) persuasive evidence of an arrangement
  exists; (2) delivery has occurred; (3) the selling price is fixed and determinable; and (4) collectability is reasonably assured,
  which is typically after receipt of payment and delivery, net of any credit card charge-backs and refunds. Determination of criteria
  (3) and (4) are based on management&rsquo;s judgment regarding the fixed nature of the selling prices of the products delivered
  and the collectability of those amounts. Provisions for discounts and rebates to customers, estimated returns and allowances, and
  other adjustments are provided for in the same period the related sales are recorded. The Company defers any revenue for which
  the product has not been delivered or is subject to refund until such time that the Company and the customer jointly determine
  that the product has been delivered or no refund will be required. Revenues on advertising are deferred and recognized ratably
  over the advertising period.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><U>Concentration of
  Revenue</U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Total revenue recognized were $3,300 and $-0-
  for the nine months ended July 31, 2016 and 2015, respectively. The Company entered into a contract with a related party during
  the fiscal year ended October 31, 2015, whereby, the Company will perform testing on games and application. The revenue recognized
  as a result of this agreement is $-0- for the nine months ended July 31, 2016 and 2015, respectively.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Advertising and Promotion</U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">All costs associated with advertising and promoting
  products are expensed as incurred.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Research and Development</U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Expenditures for research and product development
  costs are expensed as incurred. The Company has expensed development costs of $-0- during the nine months ended July 31, 2016 and
  2015, respectively.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Income Taxes</U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company recognizes deferred tax assets
  and liabilities based on differences between the financial reporting and tax basis of assets and liabilities using the enacted
  tax rates and laws that are expected to be in effect when the differences are expected to be recovered. The Company provides a
  valuation allowance for deferred tax assets for which it does not consider realization of such assets to be more likely than not.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><U>Basic and Diluted
  Loss Per Share</U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The basic net loss per common share is computed
  by dividing the net loss by the weighted average number of common shares outstanding. Diluted net loss per common share is computed
  by dividing the net loss adjusted on an &ldquo;as if converted&rdquo; basis, by the weighted average number of common shares outstanding
  plus potential dilutive securities. For the periods presented, there were no outstanding potential common stock equivalents and
  therefore basic and diluted earnings per share result in the same figure.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">&nbsp;</P>
  
  
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  <P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>POCKET GAMES, INC.</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Notes to Condensed Financial Statements</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>July 31, 2016</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Unaudited)</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><U>Stock-Based Compensation</U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company adopted FASB guidance on stock
  based compensation. Under FASB ASC 718-10-30-2, all share-based payments to employees, including grants of employee stock options,
  to be recognized in the income statement based on their fair values. Pro forma disclosure is no longer an alternative. The Company
  recognized $315,075 and $95,455 for services and compensation for the nine months ended July 31, 2016 and 2015, respectively.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; letter-spacing: -0.15pt; text-align: justify"><FONT STYLE="letter-spacing: 0pt">&nbsp;</FONT></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; letter-spacing: -0.15pt; text-align: justify"><FONT STYLE="letter-spacing: 0pt"><U>Derivative
  Liability</U></FONT></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company evaluates its convertible instruments,
  options, warrants or other contracts to determine if those contracts or embedded components of those contracts qualify as derivatives
  to be separately accounted for under ASC Topic 815, &ldquo;Derivatives and Hedging.&rdquo; The result of this accounting treatment
  is that the fair value of the derivative is marked-to-market each balance sheet date and recorded as a liability. In the event
  that the fair value is recorded as a liability, the change in fair value is recorded in the statement of operations as other income
  (expense). Upon conversion or exercise of a derivative instrument, the instrument is marked to fair value at the conversion date
  and then that fair value is reclassified to equity. Equity instruments that are initially classified as equity that become subject
  to reclassification under ASC Topic 815 are reclassified to liabilities at the fair value of the instrument on the reclassification
  date. We analyzed the derivative financial instruments (the Convertible Note and tainted Warrant), in accordance with ASC 815.
  The objective is to provide guidance for determining whether an equity-linked financial instrument is indexed to an entity&rsquo;s
  own stock. This determination is needed for a scope exception which would enable a derivative instrument to be accounted for under
  the accrual method. The classification of a non-derivative instrument that falls within the scope of ASC 815-40-05 &ldquo;Accounting
  for Derivative Financial Instruments Indexed to, and Potentially Settled in, a Company&rsquo;s Own Stock&rdquo; also hinges on
  whether the instrument is indexed to an entity&rsquo;s own stock. A non-derivative instrument that is not indexed to an entity&rsquo;s
  own stock cannot be classified as equity and must be accounted for as a liability. There is a two-step approach in determining
  whether an instrument or embedded feature is indexed to an entity&rsquo;s own stock. First, the instrument's contingent exercise
  provisions, if any, must be evaluated, followed by an evaluation of the instrument's settlement provisions. The Company utilized
  multinomial lattice models that value the derivative liability within the notes based on a probability weighted discounted cash
  flow model. The Company utilized the fair value standard set forth by the Financial Accounting Standards Board, defined as the
  amount at which the assets (or liability) could be bought (or incurred) or sold (or settled) in a current transaction between willing
  parties, that is, other than in a forced or liquidation sale.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; letter-spacing: -0.15pt; text-align: justify"><FONT STYLE="letter-spacing: 0pt">&nbsp;</FONT></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; letter-spacing: -0.15pt; text-align: justify"><U>Recent Accounting
  Pronouncements</U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In June 2014, the Financial Accounting Standards
  Board (FASB) issued Accounting Standards Update (ASU) No. 2014-12, <I>Compensation &ndash; Stock Compensation (Topic 718): Accounting
  for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service
  Period</I>. The new guidance requires that share-based compensation that require a specific performance target to be achieved in
  order for employees to become eligible to vest in the awards and that could be achieved after an employee completes the requisite
  service period be treated as a performance condition. As such, the performance target should not be reflected in estimating the
  grant-date fair value of the award. Compensation costs should be recognized in the period in which it becomes probable that the
  performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite
  service has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite
  service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service
  period. The total amount of compensation cost recognized during and after the requisite service period should reflect the number
  of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The requisite service
  period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target
  is achieved. This new guidance is effective for fiscal years and interim periods within those years beginning after December 15,
  2015. Early adoption is permitted. Entities may apply the amendments in this Update either (a) prospectively to all awards granted
  or modified after the effective date or (b) retrospectively to all awards with performance targets that are outstanding as of the
  beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. The
  adoption of ASU 2014-12 is not expected to have a material impact on our financial position or results of operations.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In June 2014, the FASB issued ASU No. 2014-10:
  <I>Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable
  Interest Entities Guidance in Topic 810, Consolidation</I>, to improve financial reporting by reducing the cost and complexity
  associated with the incremental reporting requirements of development stage entities. The amendments in this update remove all
  incremental financial reporting requirements from U.S. GAAP for development stage entities, thereby improving financial reporting
  by eliminating the cost and complexity associated with providing that information. The amendments in this Update also eliminate
  an exception provided to development stage entities in Topic 810, Consolidation, for determining whether an entity is a variable
  interest entity on the basis of the amount of investment equity that is at risk. The amendments to eliminate that exception simplify
  U.S. GAAP by reducing avoidable complexity in existing accounting literature and improve the relevance of information provided
  to financial statement users by requiring the application of the same</P>
  
  
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  <P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>POCKET GAMES, INC.</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Notes to Condensed Financial Statements</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>July 31, 2016</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Unaudited)</P>
  
  
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">consolidation guidance by all reporting entities.
  The elimination of the exception may change the consolidation analysis, consolidation decision, and disclosure requirements for
  a reporting entity that has an interest in an entity in the development stage. The amendments related to the elimination of inception-to-date
  information and the other remaining disclosure requirements of Topic 915 should be applied retrospectively except for the clarification
  to Topic 275, which shall be applied prospectively. For public companies, those amendments are effective for annual reporting periods
  beginning after December 15, 2014, and interim periods therein. The Company has elected to early adopt these amendments and accordingly
  have not labeled the financial statements as those of a development stage entity and have not presented inception-to-date information
  on the respective financial statements.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Note 2 - Going Concern</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As shown in the accompanying financial statements,
  the Company has incurred continuous losses from operations, has an accumulated deficit of $6,003,517, has a negative working capital
  of $1,215,114 and has cash on hand of $13 as of July 31, 2016, and has generated minimal revenues to date, all of which are from
  a related party. These factors raise substantial doubt about the Company&rsquo;s ability to continue as a going concern. Management
  is currently seeking additional sources of capital to fund short term operations through debt or equity investments, including
  loans from Officers and Directors. The Company, however, is dependent upon its ability to secure equity and/or debt financing and
  there are no assurances that the Company will be successful, therefore, without sufficient financing it would be unlikely for the
  Company to continue as a going concern.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The financial statements do not include any
  adjustments that might result from the outcome of any uncertainty as to the Company&rsquo;s ability to continue as a going concern.
  The financial statements also do not include any adjustments relating to the recoverability and classification of recorded asset
  amounts, or amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going
  concern.</P>
  
  <P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0"><B>Note 3 -  Fair Value of Financial Instruments</B></P>
  
  <P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Under FASB ASC 820-10-5, fair value is defined
  as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants
  at the measurement date (an exit price). The standard outlines a valuation framework and creates a fair value hierarchy in order
  to increase the consistency and comparability of fair value measurements and the related disclosures. Under GAAP, certain assets
  and liabilities must be measured at fair value, and FASB ASC 820-10-50 details the disclosures that are required for items measured
  at fair value.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has convertible notes that must
  be measured under the new fair value standard. The Company&rsquo;s financial assets and liabilities are measured using inputs from
  the three levels of the fair value hierarchy. The three levels are as follows:</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 30.6pt; text-align: justify">Level 1 - Inputs are unadjusted
  quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement
  date.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 30.6pt; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 30.6pt; text-align: justify">Level 2 - Inputs include quoted
  prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets
  that are not active, inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates, yield
  curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means
  (market corroborated inputs).</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 30.6pt; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 30.6pt; text-align: justify">Level 3 - Unobservable inputs that
  reflect our assumptions about the assumptions that market participants would use in pricing the asset or liability.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 30.6pt; text-align: justify">&nbsp;</P>
  
  
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  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 0"><B>POCKET
  GAMES, INC.</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Notes to Condensed Financial Statements</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>July 31, 2016</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Unaudited)</P>
  
  
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following schedule summarizes the valuation
  of financial instruments at fair value on a non-recurring basis in the balance sheets as of July 31, 2016 and October 31, 2015,
  respectively:</P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
      <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="11" STYLE="text-align: center; border-bottom: Black 1pt solid">Fair Value Measurements at July 31, 2016</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Level 1</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Level 2</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Level 3</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="font-weight: bold; text-indent: 31.5pt; padding-left: 5.4pt">Assets</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="width: 46%; padding-bottom: 1pt; padding-left: 5.4pt">Cash</TD><TD STYLE="width: 5%; padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="width: 1%; border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="width: 11%; border-bottom: Black 1pt solid; text-align: right">13</TD><TD STYLE="width: 1%; padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="width: 5%; padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="width: 1%; border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="width: 11%; border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="width: 5%; padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="width: 1%; border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="width: 11%; border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: 10.25pt; padding-left: 5.4pt">Total assets</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">13</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="font-weight: bold; text-indent: 32.75pt; padding-left: 5.4pt">Liabilities</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 5.4pt">Loans payable, related parties</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">36,106</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; text-indent: 1.25pt; padding-left: 5.4pt">Convertible debentures, net of discount of $101,534</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">661,119</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: 1.25pt; padding-left: 5.4pt">Derivative liabilities</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">374,356</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: 1.25pt; padding-left: 5.4pt">Total Liabilities</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(36,106</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(1,034,475</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="padding-bottom: 2.5pt; padding-left: 5.4pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">13</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(36,106</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(1,034,475</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD></TR>
  </TABLE>
  
  
  <P STYLE="margin: 0">&nbsp;</P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
      <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="11" STYLE="text-align: center; border-bottom: Black 1pt solid">Fair Value Measurements at October 31, 2015</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Level 1</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Level 2</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Level 3</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="font-weight: bold; text-indent: 31.5pt; padding-left: 5.4pt">Assets</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="width: 46%; padding-bottom: 1pt; padding-left: 5.4pt">Cash</TD><TD STYLE="width: 5%; padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="width: 1%; border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="width: 11%; border-bottom: Black 1pt solid; text-align: right">24,404</TD><TD STYLE="width: 1%; padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="width: 5%; padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="width: 1%; border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="width: 11%; border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="width: 5%; padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="width: 1%; border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="width: 11%; border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: 10.25pt; padding-left: 5.4pt">Total assets</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">24,404</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="font-weight: bold; text-indent: 32.75pt; padding-left: 5.4pt">Liabilities</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 5.4pt">Loans payable, related parties</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">14,781</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; text-indent: 1.25pt; padding-left: 5.4pt">Convertible debentures, net of discount of $298,497</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">240,452</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: 1.25pt; padding-left: 5.4pt">Derivative liabilities</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">1,369,662</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Total liabilities</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(14,781</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(1,610,114</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="padding-bottom: 2.5pt; padding-left: 5.4pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">24,404</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(14,781</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(1,610,114</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD></TR>
  </TABLE>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">There were no transfers of financial assets
  or liabilities between Level 1 and Level 2 inputs for the nine months ended July 31, 2016 and the year ended October 31, 2015.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Level 2 liabilities consist of short term unsecured
  loans payable to related parties. No fair value adjustment was necessary during the nine months ended July 31, 2016 and the year
  ended October 31,&nbsp;2015.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Level 3 liabilities consist of a total of $661,119
  of convertible debentures and related derivative liability of $374,356 as of July 31, 2016. Level 3 liabilities consist of a total
  of $240,452 of convertible debentures and related derivative liability of $1,369,662 as of October 31, 2015. A discount of $101,534
  and $298,497 was recognized at July 31, 2016 and October 31, 2015, respectively.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Note 4  - Related Party
  Transactions</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Promissory Note</U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">From time to time the Company received unsecured
  loans, bearing interest at 12% per annum, maturing on December 31, 2014 (in default) from one of the Company&rsquo;s Directors
  and Treasurer, as disclosed in Note 5.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Stock Issuances</U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On November 6, 2014, the Company issued 350,000
  shares to a related party of the Company as payment for compensation in lieu of cash. The fair value of the common stock was $29,750
  based on closing stock price of the Company&rsquo;s common stock on the date of grant which is the best evidence of fair value.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On February 17, 2015, the Company issued 478,850
  shares of common stock to an officer of the Company as payment for accrued compensation in lieu of cash. The fair value of the
  common stock was $47,885 based on the closing stock price of the Company&rsquo;s common stock on the date of grant which is the
  best evidence of fair value.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On June 4, 2015, the Company issued 429,000
  shares of common stock to an officer of the Company as payment for accrued compensation in lieu of cash. The fair value of the
  common stock was $19,305 based on the closing stock price of the Company&rsquo;s common stock on the date of grant which is the
  best evidence of fair value.</P>
  
  
  <!-- Field: Page; Sequence: 10 -->
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      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>POCKET GAMES, INC.</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Notes to Condensed Financial Statements</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>July 31, 2016</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Unaudited)</P>
  
  
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On September 9, 2015, the Company issued 300,000
  shares to employees of the Company as payment for compensation in lieu of cash. The fair value of the common stock was $50,550
  based on closing stock price of the Company&rsquo;s common stock on the date of grant which is the best evidence of fair value.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On October 20, 2015, the Company issued 1,000,000
  shares to employees of the Company as payment for compensation in lieu of cash. The fair value of the common stock was $80,000
  based on closing stock price of the Company&rsquo;s common stock on the date of grant which is the best evidence of fair value.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Revenues</U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Total revenue recognized were $3,300 and $-0-
  for the nine months ended July 31, 2016 and 2015, respectively. The Company entered into a contract with a related party during
  the fiscal year ended October 31, 2015, whereby, the Company will perform testing on games and applications. The revenue recognized
  as a result of this agreement is $-0- for the nine months ended July 31, 2016 and 2015, respectively.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Employment Contracts</U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On October 4, 2013, the Company entered into
  two employment agreements with the two officers of the Company. Both agreements are for a term of three years and require monthly
  payments of $10,000 to each officer. Accrued compensation was $28,023 and $131,923 at July 31, 2016 and October 31, 2015, respectively.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Rents</U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company leases office space from a shareholder
  and consultant (the &ldquo;Landlord&rdquo;). The amounts due to the Landlord were $3,500 and $2,000 as of July 31, 2016 and October
  31, 2015, respectively. These amounts are included in accrued expenses, related parties on the accompanying balance sheets.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Note 5 -  Loans Payable, Related
  Parties</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Loans payable, related parties, consists of
  the following at July 31, 2016 and October 31, 2015, respectively:</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center">July 31,</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center; vertical-align: bottom">October 31,</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2016</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2015</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="width: 70%; text-align: left; text-indent: -17.1pt; padding-left: 17.1pt">12% unsecured promissory note, bearing interest at 12% per annum from a related party, one of the Company&rsquo;s Directors and Treasurer, maturing on December 31, 2014 (in default).</TD><TD STYLE="width: 1%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">9,500</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">9,500</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -17.1pt; padding-left: 17.1pt">Miscellaneous loans, non-interest bearing, due on demand</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">26,606</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">5,281</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="padding-bottom: 2.5pt; text-indent: -17.1pt; padding-left: 17.1pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">36,106</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">14,781</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company recognized interest expense of
  $1,183 and $853 during the nine months ended July 31, 2016 and 2015, respectively. No interest has been paid to date.</P>
  
  
  <!-- Field: Page; Sequence: 11 -->
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      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B></B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>POCKET GAMES, INC.</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Notes to Condensed Financial Statements</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>July 31, 2016</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Unaudited)</P>
  
  
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B></B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Note 6 -  Convertible
  Debenture</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Convertible debentures consist of the following
  at July 31, 2016 and October 31, 2015, respectively:</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="text-align: justify">&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center">July 31,</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center">October 31,</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="text-align: justify">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2016</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2015</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="text-align: justify">&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: right">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="width: 70%; text-align: justify; padding-left: 5.4pt">Originated June 8, 2015, unsecured $53,000 convertible promissory note, which carries an 8% interest rate and matures on March 8, 2016 (&ldquo;Vis Vires Note #2&rdquo;). The principal and interest is convertible into shares of common stock at the discretion of the note holder at a price equal to fifty-eight percent (58%) of the average of the three lowest closing bid prices of the Company&rsquo;s common stock for the ten (10) trading days prior to the conversion date. In the event of default, the minimum amount due is 150% x (outstanding principal plus unpaid interest), and the debt holder is limited to owning 4.99% of the Company&rsquo;s issued and outstanding shares. The Company paid total debt issuance cost of $4,000 that is being amortized over the life of the loan on the straight line method, which approximates the effective interest method. (less unamortized discount of $-0- and $22,791, respectively).</TD><TD STYLE="width: 1%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">30,209</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: justify; padding-left: 5.4pt">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: justify; padding-left: 5.4pt">Originated July 22, 2015, unsecured $38,000 convertible promissory note,
      which carries an 8% interest rate and matures on April 22, 2016 (&ldquo;Vis Vires Note #3&rdquo;). The principal and interest
      is convertible into shares of common stock at the discretion of the note holder at a price equal to fifty-eight percent (51%)
      of the average of the three lowest closing bid prices of the Company&rsquo;s common stock for the thirty (30) trading days
      prior to the conversion date. In the event of default, the minimum amount due is 150% x (outstanding principal plus unpaid
      interest), and the debt holder is limited to owning 9.99% of the Company&rsquo;s issued and outstanding shares. The Company
      paid total debt issuance cost of $3,000 that is being amortized over the life of the loan on the straight line method, which
      approximates the effective interest method. (less unamortized discount of $-0- and $24,873, respectively).</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13,127</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: justify; padding-left: 5.4pt">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: justify; padding-left: 5.4pt">Originated August 17, 2015, unsecured $48,000 convertible promissory note, which carries an 8% interest rate and matures on May 20, 2016 (&ldquo;Vis Vires Note #4&rdquo;). The principal and interest is convertible into shares of common stock at the discretion of the note holder at a price equal to fifty-eight percent (51%) of the average of the three lowest closing bid prices of the Company&rsquo;s common stock for the thirty (30) trading days prior to the conversion date. In the event of default, the minimum amount due is 150% x (outstanding principal plus unpaid interest), and the debt holder is limited to owning 9.99% of the Company&rsquo;s issued and outstanding shares. The Company paid total debt issuance cost of $5,500 that is being amortized over the life of the loan on the straight line method, which approximates the effective interest method. (less unamortized discount of $-0- and $35,003, respectively).</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">12,997</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: justify; padding-left: 5.4pt">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: justify; padding-left: 5.4pt">Originated May 7, 2015, unsecured $10,000 convertible promissory note, which carries an 8% interest rate and matures on February 8, 2016 (&ldquo;145 Carroll Note #1&rdquo;). The principal and interest is convertible into shares of common stock at the discretion of the note holder at a price equal to fifty-eight percent (58%) of the average of the three lowest closing bid prices of the Company&rsquo;s common stock for the ten (10) trading days prior to the conversion date. The note carries a twenty two percent (22%) interest rate in the event of default, and the debt holder is limited to owning 4.99% of the Company&rsquo;s issued and outstanding shares.(less unamortized discount of $-0- and $2,311, respectively).</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,689</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: justify; padding-left: 5.4pt">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  </TABLE>
  
  <P STYLE="margin: 0"></P>
  
  <!-- Field: Page; Sequence: 12 -->
      <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->12<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
      <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A>&nbsp;</TD></TR></TABLE></DIV>
      <!-- Field: /Page -->
  
  <P STYLE="margin: 0">&nbsp;</P>
  
  <P STYLE="margin: 0"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>POCKET GAMES, INC.</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Notes to Condensed Financial Statements</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>July 31, 2016</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Unaudited)</P>
  
  
  
  <P STYLE="margin: 0">&nbsp;</P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: justify; padding-left: 5.4pt; width: 70%">Originated May 8, 2015, unsecured $110,000 convertible promissory note, which carries a 10% interest rate and matures on May 8, 2016 (&ldquo;JDF Note #1&rdquo;). The principal and interest is convertible into shares of common stock at the discretion of the note holder at a price equal to fifty-eight percent (58%) of the average of the three lowest closing bid prices of the Company&rsquo;s common stock for the ten (10) trading days prior to the conversion date. The note carries a twenty two percent (22%) interest rate in the event of default, and the debt holder is limited to owning 4.99% of the Company&rsquo;s issued and outstanding shares. The Company paid total debt issuance cost of $6,000 that is being amortized over the life of the loan on the straight line method, which approximates the effective interest method. (less unamortized discount due to derivative of $5,447 and $62,146, respectively).</TD><TD STYLE="width: 1%">&nbsp;</TD>
      <TD STYLE="text-align: left; width: 1%">&nbsp;</TD><TD STYLE="text-align: right; width: 12%">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left; width: 1%">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
      <TD STYLE="text-align: left; width: 1%">&nbsp;</TD><TD STYLE="text-align: right; width: 12%">47,854</TD><TD STYLE="text-align: left; width: 1%">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: justify; padding-left: 5.4pt">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: justify; padding-left: 5.4pt">Originated August 26, 2015, unsecured $110,000 convertible promissory note, which carries a 10% interest rate and matures on May 8, 2016 (&ldquo;JDF Note #3 &ndash; part of JDF Note #1&rdquo;). The principal and interest is convertible into shares of common stock at the discretion of the note holder at a price equal to fifty-eight percent (58%) of the average of the three lowest closing bid prices of the Company&rsquo;s common stock for the ten (10) trading days prior to the conversion date. The note carries a twenty two percent (22%) interest rate in the event of default, and the debt holder is limited to owning 4.99% of the Company&rsquo;s issued and outstanding shares.</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">48,400</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: justify; padding-left: 5.4pt">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: justify; padding-left: 5.4pt">Originated October 9, 2015, unsecured $61,600 convertible promissory note, which carries a 10% interest rate and matures on October 9, 2016 (&ldquo;JDF Note #2&rdquo;). The principal and interest is convertible into shares of common stock at the discretion of the note holder at a price equal to fifty-eight percent (58%) of the average of the three lowest reported sales prices of the Company&rsquo;s common stock for the ten (10) trading days prior to the conversion date. The note carries a twenty two percent (22%) interest rate in the event of default, and the debt holder is limited to owning 4.99% of the Company&rsquo;s issued and outstanding shares. The Company paid total debt issuance cost of $6,000 that is being amortized over the life of the loan on the straight line method, which approximates the effective interest method. (less unamortized discount due to derivative of $20,698 and $57,897, respectively).</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,442</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,703</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: justify; padding-left: 5.4pt">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: justify; padding-left: 5.4pt">Originated January 5, 2016, unsecured $30,800 convertible promissory note ($8,000 received as of January 31, 2016), which carries a 8% interest rate and matures on January 5, 2017 (&ldquo;JDF Note #4&rdquo;). The principal and interest is convertible into shares of common stock at the discretion of the note holder at a price equal to fifty-eight percent (58%) of the average of the three lowest reported sales prices of the Company&rsquo;s common stock for the ten (10) trading days prior to the conversion date. The note carries a twenty two percent (22%) interest rate in the event of default, and the debt holder is limited to owning 4.99% of the Company&rsquo;s issued and outstanding shares. The Company paid total debt issuance cost of $3,000 that is being amortized over the life of the loan on the straight line method, which approximates the effective interest method. (less unamortized discount due to derivative of $-0- and $-0-, respectively). In conjunction with this note, the company issued 1,512,500 common stock warrants with an exercise price of $0.011 per share with a term of 5 years.</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: justify; padding-left: 5.4pt">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: justify; padding-left: 5.4pt">Originated May 27, 2015, unsecured $74,500 convertible promissory note, which carries an 8% interest rate and matures on November 27, 2015 (&ldquo;Minerva Note #1&rdquo;). The principal and interest is convertible into shares of common stock at the discretion of the note holder at a price equal to fifty-eight percent (58%) of the average of the three lowest closing bid prices of the Company&rsquo;s common stock for the ten (10) trading days prior to the conversion date. The note carries a twenty two percent (22%) interest rate in the event of default, and the debt holder is limited to owning 4.99% of the Company&rsquo;s issued and outstanding shares. The Company paid total debt issuance cost of $4,500 that is being amortized over the life of the loan on the straight line method, which approximates the effective interest method. (less unamortized discount of $-0- and $3,563, respectively).</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">74,500</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">70,937</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: justify; padding-left: 5.4pt">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  </TABLE>
  
  <P STYLE="margin: 0"></P>
  
  <!-- Field: Page; Sequence: 13 -->
      <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->13<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
      <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A>&nbsp;</TD></TR></TABLE></DIV>
      <!-- Field: /Page -->
  
  <P STYLE="margin: 0">&nbsp;</P>
  
  <P STYLE="margin: 0"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>POCKET GAMES, INC.</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Notes to Condensed Financial Statements</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>July 31, 2016</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Unaudited)</P>
  
  
  
  <P STYLE="margin: 0">&nbsp;</P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: justify; padding-left: 5.4pt; width: 70%">Originated June 29, 2015, unsecured $10,000 convertible promissory note, which carries an 8% interest rate and matures on February 28, 2016 (&ldquo;Minerva Note #2&rdquo;). The principal and interest is convertible into shares of common stock at the discretion of the note holder at a price equal to fifty-eight percent (58%) of the average of the three lowest closing bid prices of the Company&rsquo;s common stock for the ten (10) trading days prior to the conversion date. The note carries a twenty two percent (22%) interest rate in the event of default, and the debt holder is limited to owning 4.99% of the Company&rsquo;s issued and outstanding shares. (less unamortized discount due to derivative of $408 and $2,974, respectively).</TD><TD STYLE="width: 1%">&nbsp;</TD>
      <TD STYLE="text-align: left; width: 1%">&nbsp;</TD><TD STYLE="text-align: right; width: 12%">9,592</TD><TD STYLE="text-align: left; width: 1%">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
      <TD STYLE="text-align: left; width: 1%">&nbsp;</TD><TD STYLE="text-align: right; width: 12%">7,026</TD><TD STYLE="text-align: left; width: 1%">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: justify; padding-left: 5.4pt">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: justify; padding-left: 5.4pt">Originated July 9, 2015, unsecured $53,000 convertible promissory note, which carries a 10% interest rate and matures on July 9, 2016 (&ldquo;First Essex Note&rdquo;). The principal and interest is convertible into shares of common stock at the discretion of the note holder at a price equal to fifty-eight percent (58%) of the lowest closing price of the Company&rsquo;s common stock for the ten (10) trading days prior to the conversion date. The Company paid total debt issuance cost of $3,000 that is being amortized over the life of the loan on the straight line method, which approximates the effective interest method. (less unamortized discount due to derivative of $-0- and $17,160, respectively).</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">35,840</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: justify; padding-left: 5.4pt">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: justify; padding-left: 5.4pt">Originated August 4, 2015 unsecured $20,350 convertible promissory note,
      which carries an 8% interest rate and matures on August 6, 2016 (&ldquo;First Abramowitz Note&rdquo;). The principal and
      interest is convertible into shares of common stock at the discretion of the note holder at a price equal to fifty-eight
      percent (58%) of the average of the (3) lowest closing prices of the Company&rsquo;s common stock, or $0.00005 per share, for
      the ten (10) trading days prior to the conversion date. The Company paid total debt issuance cost of $2,000 that is being
      amortized over the life of the loan on the straight line method, which approximates the effective interest method. (less
      unamortized discount due to derivative of $3,933 and $15,457, respectively).&nbsp;&nbsp;In conjunction with this note, the
      company issued 203,500 common stock warrants with an exercise price of $0.011 per share with a term of 5 years.</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">16,394</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,893</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: justify; padding-left: 5.4pt">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: justify; padding-left: 5.4pt">Originated September 10, 2015, unsecured $30,250 convertible promissory
      note, which carries an 8% interest rate and matures on September 10, 2016 (&ldquo;Vigere Capital Note #1&rdquo;). The
      principal and interest is convertible into shares of common stock at the discretion of the note holder at a price equal to
      fifty-eight percent (58%) of the average of the (3) lowest closing prices of the Company&rsquo;s common stock for the ten
      (10) trading days prior to the conversion date. The Company paid total debt issuance cost of $2,500 that is being amortized
      over the life of the loan on the straight line method, which approximates the effective interest method. (less unamortized
      discount due to derivative of $8,625 and $26,035, respectively).&nbsp;&nbsp;In conjunction with this note, the company issued
      298,029 common stock warrants (see note 7) with an exercise price of $0.11165 per share with a term of 5 years.</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">21,316</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,215</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: justify; padding-left: 5.4pt">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: justify; padding-left: 5.4pt">Originated October 15, 2015, unsecured $30,250 convertible promissory
      note, which carries an 8% interest rate and matures on October 15, 2016 (&ldquo;Vigere Capital Note #2&rdquo;). The principal
      and interest is convertible into shares of common stock at the discretion of the note holder at a price equal to fifty-eight
      percent (58%) of the average of the (3) lowest closing prices of the Company&rsquo;s common stock for the ten (10) trading
      days prior to the conversion date. The Company paid total debt issuance cost of $2,500 that is being amortized over the life
      of the loan on the straight line method, which approximates the effective interest method. (less unamortized discount due to
      derivative of $11,588 and $28,298, respectively).&nbsp;&nbsp;In conjunction with this note, the company issued 263,043 common
      stock warrants (see note 7) with an exercise price of $0.1265 per share with a term of 5 years.</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">18,090</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,962</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: justify; padding-left: 5.4pt">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  </TABLE>
  
  <P STYLE="margin: 0">&nbsp;</P>
  
  <P STYLE="margin: 0"></P>
  
  <!-- Field: Page; Sequence: 14 -->
      <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->14<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
      <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A>&nbsp;</TD></TR></TABLE></DIV>
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  <P STYLE="margin: 0"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>POCKET GAMES, INC.</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Notes to Condensed Financial Statements</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>July 31, 2016</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Unaudited)</P>
  
  
  
  <P STYLE="margin: 0">&nbsp;</P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: justify; padding-left: 5.4pt; width: 70%">Originated February 8, 2016, unsecured $17,000 convertible promissory note, which carries a 10% interest rate and matures on February 8, 2017 (&ldquo;Essex Global Note #2&rdquo;). The principal and interest is convertible into shares of common stock at the discretion of the note holder at a price equal to forty-two percent (42%) of the lowest closing price of the Company&rsquo;s common stock for the ten (10) trading days prior to the conversion date.</TD><TD STYLE="width: 1%">&nbsp;</TD>
      <TD STYLE="text-align: left; width: 1%">&nbsp;</TD><TD STYLE="text-align: right; width: 12%">17,000</TD><TD STYLE="text-align: left; width: 1%">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
      <TD STYLE="text-align: left; width: 1%">&nbsp;</TD><TD STYLE="text-align: right; width: 12%">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left; width: 1%">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: justify; padding-left: 5.4pt">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: justify; padding-left: 5.4pt">Originated February 8, 2016, unsecured $7,000 convertible promissory note, which carries a 10% interest rate and matures on February 8, 2017 (&ldquo;Grant Note #1&rdquo;). The principal and interest is convertible into shares of common stock at the discretion of the note holder at a price equal to forty-two percent (42%) of the lowest closing price of the Company&rsquo;s common stock for the ten (10) trading days prior to the conversion date.</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: justify; padding-left: 5.4pt">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: justify; padding-left: 5.4pt">Originated February 8, 2016, unsecured $17,000 convertible promissory note, which carries a 10% interest rate and matures on February 8, 2017 (&ldquo;Minerva Note #3&rdquo;). The principal and interest is convertible into shares of common stock at the discretion of the note holder at a price equal to forty-two percent (42%) of the lowest closing bid prices of the Company&rsquo;s common stock for the ten (10) trading days prior to the conversion date. The note carries a twenty two percent (22%) interest rate in the event of default, and the debt holder is limited to owning 4.99% of the Company&rsquo;s issued and outstanding shares.</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">17,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: justify; padding-left: 5.4pt">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: justify; padding-left: 5.4pt">Originated February 9, 2016, unsecured $143,995 convertible promissory note, which carries an 8% interest rate and is due on demand (&ldquo;Polatoff Note #1&rdquo;). The principal and interest is convertible into shares of common stock at the discretion of the note holder at a price equal to forty-two percent (42%) of the lowest closing bid prices of the Company&rsquo;s common stock for the ten (10) trading days prior to the conversion date. The note carries a twenty two percent (22%) interest rate in the event of default, and the debt holder is limited to owning 4.99% of the Company&rsquo;s issued and outstanding shares.</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">143,995</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: justify; padding-left: 5.4pt">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: justify; padding-left: 5.4pt">Originated February 12, 2016, unsecured $130,007 convertible promissory note, which carries an 5% interest rate and matures on August 12, 2016 (&ldquo;Crown Bridge Note #2&rdquo;). The principal and interest is convertible into shares of common stock at the discretion of the note holder at a price equal to fifty-one percent (51%) of the lowest trading price of the Company&rsquo;s common stock for the twenty (20) trading days prior to the conversion date. The note carries a twenty two percent (22%) interest rate in the event of default, and the debt holder is limited to owning 4.99% of the Company&rsquo;s issued and outstanding shares.</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">69,342</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: justify; padding-left: 5.4pt">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: justify; padding-left: 5.4pt">Originated February 18, 2016, unsecured $26,500 convertible promissory note, which carries an 8% interest rate and matures on February 18, 2017 (&ldquo;Crown Bridge Note #1&rdquo;). The principal and interest is convertible into shares of common stock at the discretion of the note holder at a price equal to fifty-one percent (51%) of the lowest trading price of the Company&rsquo;s common stock for the twenty (20) trading days prior to the conversion date. The note carries a twenty two percent (22%) interest rate in the event of default, and the debt holder is limited to owning 4.99% of the Company&rsquo;s issued and outstanding shares. (less unamortized discount due to derivative of $754 and $-0-, respectively).</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">25,746</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: justify; padding-left: 5.4pt">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: justify; padding-left: 5.4pt">Originated March 24, 2016, unsecured $60,500 convertible promissory note, which carries an 8% interest rate and matures on March 24, 2017 (&ldquo;Vigere Capital Note #3&rdquo;). The principal and interest is convertible into shares of common stock at the discretion of the note holder at a price equal to fifty-eight percent (58%) of the average of the (3) lowest closing prices of the Company&rsquo;s common stock for the ten (10) trading days prior to the conversion date. (less unamortized discount due to derivative of $32,318 and $-0-, respectively).</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">28,182</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: justify; padding-left: 5.4pt">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: justify; padding-left: 5.4pt">Originated March 17, 2016, unsecured $66,550 convertible promissory note, which carries an 8% interest rate and matures on March 17, 2017 (&ldquo;Vigere Capital Note #5&rdquo;). The principal and interest is convertible into shares of common stock at the discretion of the note holder at a price equal to fifty-eight percent (58%) of the average of the (3) lowest closing prices of the Company&rsquo;s common stock for the ten (10) trading days prior to the conversion date.</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">45,655</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  </TABLE>
  
  <P STYLE="margin: 0"></P>
  
  <!-- Field: Page; Sequence: 15 -->
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      <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A>&nbsp;</TD></TR></TABLE></DIV>
      <!-- Field: /Page -->
  
  <P STYLE="margin: 0">&nbsp;</P>
  
  <P STYLE="margin: 0"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>POCKET GAMES, INC.</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Notes to Condensed Financial Statements</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>July 31, 2016</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Unaudited)</P>
  
  
  
  <P STYLE="margin: 0"></P>
  
  <P STYLE="margin: 0">&nbsp;</P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: justify; padding-left: 5.4pt; width: 70%">Originated May 4, 2016, unsecured $30,000 convertible promissory note, which carries a 10% interest rate and matures on May 4, 2017 (&ldquo;Essex Note #3&rdquo;). The principal and interest is convertible into shares of common stock at the discretion of the note holder at a price equal to fifty-eight percent (58%) of the lowest closing price of the Company&rsquo;s common stock for the ten (10) trading days prior to the conversion date. (less unamortized discount due to derivative of $3,366 and $-0-, respectively).</TD><TD STYLE="width: 1%">&nbsp;</TD>
      <TD STYLE="text-align: left; width: 1%">&nbsp;</TD><TD STYLE="text-align: right; width: 12%">26,634</TD><TD STYLE="text-align: left; width: 1%">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
      <TD STYLE="text-align: left; width: 1%">&nbsp;</TD><TD STYLE="text-align: right; width: 12%">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left; width: 1%">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: justify; padding-left: 5.4pt">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: justify; padding-left: 5.4pt">Originated May 19, 2016, unsecured $55,000 convertible promissory note, which carries a 10% interest rate and matures on May 19, 2017 (&ldquo;JDF Note #5&rdquo;). The principal and interest is convertible into shares of common stock at the discretion of the note holder at a price equal to sixty percent (60%) of the lowest reported sale price of the Company&rsquo;s common stock for the twenty (20) trading days prior to the conversion date. The note carries a fifteen percent (15%) interest rate in the event of default, and the debt holder is limited to owning 4.99% of the Company&rsquo;s issued and outstanding shares. The Company paid total debt issuance cost of $6,000 that is being amortized over the life of the loan on the straight line method, which approximates the effective interest method. (less unamortized discount due to derivative of $3,740 and $-0-, respectively).</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">51,260</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: justify; padding-left: 5.4pt">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: justify; padding-left: 5.4pt">Originated June 13, 2016, unsecured $11,100 convertible promissory note, which carries a 10% interest rate and matures on June 13, 2017 (&ldquo;Grant Note #2&rdquo;). The principal and interest is convertible into shares of common stock at the discretion of the note holder at a price equal to forty-two percent (42%) of the lowest closing price of the Company&rsquo;s common stock for the ten (10) trading days prior to the conversion date.</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">11,100</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: justify; padding-left: 5.4pt">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: justify; padding-left: 5.4pt">Originated June 24, 2016, unsecured $27,500 convertible promissory note, which carries a 12.5% interest rate and matures on June 24, 2017 (&ldquo;Essex Note #5&rdquo;). The principal and interest is convertible into shares of common stock at the discretion of the note holder at a price equal to fifty-eight percent (58%) of the lowest closing price of the Company&rsquo;s common stock for the ten (10) trading days prior to the conversion date. (less unamortized discount due to derivative of $4,114 and $-0-, respectively).</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">23,386</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: justify; padding-left: 5.4pt">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt">Originated June 30, 2016, unsecured $11,500 convertible promissory note, which carries an 8% interest rate and matures on June 30, 2017 (&ldquo;Crown Bridge Note #3&rdquo;). The principal and interest is convertible into shares of common stock at the discretion of the note holder at a price equal to fifty-one percent (51%) of the lowest trading price of the Company&rsquo;s common stock for the twenty (20) trading days prior to the conversion date. The note carries a twenty two percent (22%) interest rate in the event of default, and the debt holder is limited to owning 4.99% of the Company&rsquo;s issued and outstanding shares. (less unamortized discount due to derivative of $1,122 and $-0-, respectively).</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">10,378</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: justify; padding-left: 5.4pt">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: justify; padding-left: 5.4pt">Convertible debenture, net</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">661,119</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">240,452</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt">Less: current maturities of convertible debenture, net</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(661,119</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(240,452</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: justify; padding-bottom: 2.5pt; padding-left: 5.4pt">Long term convertible debenture</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company recognized interest expense in
  the amount of $36,188 and $9,721 for the nine months ended July 31, 2016 and 2015, respectively, related to the convertible debentures
  above.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In addition, a total of $62,000 of debt issuance cost were incurred
  pursuant to the closings of the convertible debentures which are being amortized to interest expense over the term of the debentures
  using the straight line method, which approximate the effective interest method. The Company recorded a total of $24,371 of interest
  expense pursuant to the amortization of the issuance cost during the nine months ended July 31, 2016.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">In accordance with
  ASC 815-15, the Company determined that the variable conversion features and shares to be issued represented derivative features,
  and these are shown as derivative liabilities on the balance sheet. The Company calculated the fair value of the compound embedded
  derivative associated with the convertible debentures utilizing a lattice model.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">&nbsp;</P>
  
  
  <!-- Field: Page; Sequence: 16 -->
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      <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A>&nbsp;</TD></TR></TABLE></DIV>
      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>POCKET GAMES, INC.</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Notes to Condensed Financial Statements</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>July 31, 2016</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Unaudited)</P>
  
  
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The aforementioned accounting treatment resulted
  in a total debt discount equal to $101,534 as of July 31, 2016 and $298,497 for the year ended October 31, 2015. The discount is
  amortized on a straight line basis, which approximated the effective interest method due to the short term duration of the note,
  from the dates of issuance until the stated redemption date of the debts, as noted above. During the nine months ended July 31,
  2016 and 2015, the Company recorded debt amortization expense in the amount of $351,558 and $166,487, respectively, attributed
  to the aforementioned debt discount.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">During the nine months
  ended July 31, 2016, the Company converted accrued compensation of $143,995 and warrants of $66,550 into convertible debentures.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">During the nine months
  ended July 31, 2016, a total of $245,532 of debt and accrued interest was converted into 593,961,718 shares of the Company&rsquo;s
  common stock. As a result, a loss of $160,285 was recognized.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><B>Note 7
  - Derivative Liability</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As discussed in Note 6 under Convertible Debentures,
  the Company issued convertible notes payable that provide for the issuance of convertible notes with variable conversion provisions.
  The conversion terms of the convertible notes are variable based on certain factors, such as the future price of the Company&rsquo;s
  common stock. The number of shares of common stock to be issued is based on the future price of the Company&rsquo;s common stock.
  The number of shares of common stock issuable upon conversion of the promissory note is indeterminate. Due to the fact that the
  number of shares of common stock issuable could exceed the Company&rsquo;s authorized share limit, the equity environment is tainted
  and all additional convertible debentures and warrants are included in the value of the derivative. Pursuant to ASC 815-15 Embedded
  Derivatives, the fair values of the variable conversion option and warrants and shares to be issued were recorded as derivative
  liabilities on the issuance date.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The fair values of the Company&rsquo;s derivative
  liabilities were estimated at the issuance date and are revalued at each subsequent reporting date, using a lattice model. The
  Company recognized current derivative liabilities of $374,356 and $1,369,662 at July 31, 2016 and October 31, 2015, respectively.
  The change in fair value of the derivative liabilities resulted in a gain of $1,239,931 and a loss of $763,148 for the nine months
  ended July 31, 2016 and 2015, respectively, which has been reported as other income in the statements of operations.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following presents the derivative liability
  value at July 31, 2016 and October 31, 2015, respectively:</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center">July 31,</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center">October 31,</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2016</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2015</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="width: 56%; text-align: justify">Convertible notes</TD><TD STYLE="width: 8%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">225,877</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">751,505</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: justify; padding-bottom: 1pt">&nbsp;Warrants</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">148,479</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">618,157</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: justify; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">374,356</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">1,369,662</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following is a summary of changes in the fair market value of
  the derivative liability during the nine months ended July 31,&nbsp;2016:</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center">Derivative</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center">Liability</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Total</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="width: 70%">Balance, October 31, 2015</TD><TD STYLE="width: 10%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 18%; text-align: right">1,369,662</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 20pt">Increase in derivative value due to issuances of convertible promissory notes</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">154,595</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 20pt">Increase in derivative value due to issuances of Warrant</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">333,896</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 20pt">Decrease due to debt conversion</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(243,866</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -10pt; padding-left: 20pt">Change in fair market value of derivative liabilities due to the mark to market adjustment</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(1,239,931</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="padding-bottom: 2.5pt">Balance, July 31, 2016</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">374,356</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; color: #222222">&nbsp;</P>
  
  
  <!-- Field: Page; Sequence: 17 -->
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      <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A>&nbsp;</TD></TR></TABLE></DIV>
      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt; color: #222222">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; color: #222222"><U></U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>POCKET GAMES, INC.</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Notes to Condensed Financial Statements</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>July 31, 2016</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Unaudited)</P>
  
  
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; color: #222222"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; color: #222222"><U STYLE="text-decoration: none">&nbsp;</U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; color: #222222"><U>Key inputs and assumptions
  used to value the convertible debentures and warrants issued during the year ended October 31,&nbsp;2015:</U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; color: #222222">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; color: #222222">Convertible notes derivatives:</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; color: #222222">&nbsp;</P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">The stock price would fluctuate with the Company projected volatility. The stock price increased
  in this period ending 10/31/15 from $0.025 to $0.16.</TD></TR></TABLE>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">The projected volatility curve from an annualized analysis for each valuation period was based
  on the historical volatility of the Company and the term remaining for each note.</TD></TR></TABLE>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">The derivative Investor Convertible Notes convert after 90-180 days at the lessor of 51% or 58%
  of the average 3 lows in 10 or 30 trading days or the fixed exercise price set at issuance subject to full ratchet reset provisions;</TD></TR></TABLE>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">Capital raising events are a factor for this Notes full reset provisions.</TD></TR></TABLE>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">An event of default at 15% - 24% interest rate would occur 0% of the time, increasing 1.00%per
  month to a maximum of 10% with a 150% penalty;</TD></TR></TABLE>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">The company would redeem the notes (with a 120% &ndash; 135% &ndash; 145% penalty) projected
                                                                                                               initially at 0% of the time and increase monthly by 10.0% to a maximum of 50.0% (from alternative financing being available
                                                                                                               for a Redemption event to occur);and</TD></TR></TABLE>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">The Holder would automatically convert the note at the maximum of 2 times the conversion price
  or the stock price if the registration was effective (assumed after 180 days) and the Company was not in default with the target
  conversion price dropping as maturity approaches.</TD></TR></TABLE>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Warrant derivatives:</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">The Warrants exercise prices are fixed and subject to full ratchet reset provisions;</TD></TR></TABLE>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">The stock price would fluctuate with the Company projected volatility. The stock price increased
  in this period ending 10/31/15 from <B>$</B>0.025 to $0.16.</TD></TR></TABLE>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; color: #222222">The projected volatility curve from
  an annualized analysis for each valuation period was based on the historical volatility of the Company and the term remaining for
  each note:</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">The Holder would exercise the Warrant as they become exercisable (effective registration is projected 90 days from issuance
  and the earliest exercise is projected 180 days from issuance) at target prices of 2 times the higher of the projected reset price
  or stock price.</TD></TR></TABLE>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">Capital raising events (a single financing at 6 months from the issuance date) are a factor for
  these Warrants &ndash; full reset events projected to occur based on future stock issuance (quarterly) resulting in a reset exercise
  price.</TD></TR></TABLE>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">No Warrants expired nor reset nor exercised in this period ending 10/31/15.</TD></TR></TABLE>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; color: #222222"><U>Key inputs and assumptions used to value the
  convertible debentures and warrants issued during the nine months ended July 31,&nbsp;2016:</U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; color: #222222">Convertible notes derivatives:</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">The stock price of $0.10 - $0.0056 would fluctuate with the Company projected volatility</TD></TR></TABLE>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">The derivative Investor Convertible Notes convert after 90 &ndash; 180 days at the lessor of 51% or 58% of the average 3 lows
  in 10 or 30 trading days or the fixed exercise price set at issuance subject to full ratchet reset provisions.</TD></TR></TABLE>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD>Capital raising events are a factor for this Note full reset provisions.</TD></TR></TABLE>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">An event of default at 15% - 24% interest rate would occur 0% of the time, increasing 1.00% per month to a maximum of 10% with
  a 150% penalty.</TD></TR></TABLE>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">The projected volatility curve from annualized analysis for each valuation period was based on the historical volatility (171%
  - 366%) of the Company and the term for each note.</TD></TR></TABLE>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">The company would redeem the notes (with a 120% &ndash; 135% &ndash; 145% penalty) projected
                                                                                                               initially at 0% of the time and increase monthly by 10.0% to a maximum of 50.0% (from alternative financing being available
                                                                                                               for a Redemption event to occur);and</TD></TR></TABLE>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">The Holder would automatically convert the note at the maximum of 2 times the conversion price
  or the stock price if the registration was effective (assumed after 180 days) and the Company was not in default with the target
  conversion price dropping as maturity approaches.</TD></TR></TABLE>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  
  <!-- Field: Page; Sequence: 18 -->
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      <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A>&nbsp;</TD></TR></TABLE></DIV>
      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>POCKET GAMES, INC.</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Notes to Condensed Financial Statements</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>July 31, 2016</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Unaudited)</P>
  
  
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Warrant derivatives:</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">The stock price would fluctuate with the Company projected volatility. The stock price increased
  in this period ending 10/31/15 from <B>$</B>0.10 to $0.0056.</TD></TR></TABLE>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">The projected volatility curve from an annualized analysis for each valuation period was based
  on the historical volatility (171% - 366%) of the Company and the term remaining for each note</TD></TR></TABLE>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">The Holder would exercise the Warrant as they become exercisable (effective registration is projected 90 days from issuance
  and the earliest exercise is projected 180 days from issuance) at target prices of 2 times the higher of the projected reset price
  or stock price.</TD></TR></TABLE>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">Capital raising events (a single financing at 6 months from the issuance date) are a factor for
  these Warrants &ndash; full reset events projected to occur based on future stock issuance (quarterly) resulting in a reset exercise
  price.</TD></TR></TABLE>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">The Warrants with the fixed exercise prices subject to full ratchet reset provisions.</TD></TR></TABLE>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">No Warrants expired nor exercised in this period ending 7/31/16.</TD></TR></TABLE>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Note 8 -  Changes in
  Stockholders&rsquo; Equity (Deficit)</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Authorized Shares, Common Stock</U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company is authorized to issue 50,000,000,000
  shares of $0.0001 par value common stock. As of July 31, 2016, there were 647,701,647 shares issued and outstanding.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Authorized Shares, Preferred Stock</U></P>
  
  <P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company is also authorized to issue
  1,000,000,000 shares of its preferred stock. On April 25, 2014, the Company designated (the &ldquo;Designation&rdquo;) a series
  of our preferred stock as Series A Preferred Stock, (&ldquo;Series A Preferred Stock&rdquo;) and issued 1,000 shares of the Series
  A Preferred Stock to its chief executive officer and sole director.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As a result of the Designation:</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">The Company is authorized to issue 1,000 shares of Series A Preferred Stock;</TD></TR></TABLE>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">Holders of the A Preferred Stock will not be entitled to receive dividends;</TD></TR></TABLE>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">The holders of the Series A Preferred Stock then outstanding shall not be entitled to receive any
  distribution of Company assets;</TD></TR></TABLE>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">The Series A Preferred Stock will not be convertible into shares of the Company&rsquo;s common
  stock.</TD></TR></TABLE>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">The holders of the Series A Preferred Stock shall have the following voting rights:</TD></TR></TABLE>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(i)</TD><TD STYLE="text-align: justify">To vote together with the holders of the Common Stock as a single class on all matter submitted
  for a vote of holders of Common Stock;</TD></TR></TABLE>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(ii)</TD><TD STYLE="text-align: justify">Each one (1) share of Series A Preferred Stock shall have voting rights equal to 50,000 shares
  of our Common Stock, providing for the holder of the Series A Preferred Stock to have aggregate voting rights equal to 50,000,000
  shares of our Common Stock;</TD></TR></TABLE>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(iii)</TD><TD STYLE="text-align: justify">The holder of the Series A Preferred Stock shall be entitled to receive notice of any stockholders&rsquo;
  meeting in accordance with the Articles of Incorporation and By-laws of the Company.</TD></TR></TABLE>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(iv)</TD><TD STYLE="text-align: justify">So long as any shares of Series A Preferred Stock remain outstanding, we will not, without the
  written consent or affirmative vote of the holders of 100% of the outstanding shares of the Series A Preferred Stock, (i) amend,
  alter, waive or repeal, whether by merger consolidation, combination, reclassification or otherwise, the Articles of Incorporation,
  including this Certificate of Designation, or our By-laws or any provisions thereof (including the adoption of a new provision
  thereof), (ii) create, authorize or issue any class, series or shares of Preferred Stock or any other class of capital stock. The
  vote of the holders of at least one-hundred percent of the outstanding Series A Stock, voting separately as one class, shall be
  necessary to adopt any alteration, amendment or repeal of any provisions of this Resolution, in addition to any other vote of stockholders
  required by law.</TD></TR></TABLE>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Common Stock Issuances, for the Period Ending
  October 31, 2015</U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the year ended October 31, 2015, the
  Company issued 4,295,000 shares of common stock for consulting services. The fair value of the common stock was $471,232 based
  on the market price of the Company&rsquo;s common stock on the date of grant.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the year ended October 31, 2015, the Company issued 907,850
  shares of common stock for payment of accrued compensation to the president of the Company. The fair value of the common stock
  was $67,190 based on the market price of the Company&rsquo;s common stock on the date of grant.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>
  
  <!-- Field: Page; Sequence: 19 -->
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      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>POCKET GAMES, INC.</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Notes to Condensed Financial Statements</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>July 31, 2016</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Unaudited)</P>
  
  
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the year ended October 31, 2015, the
  Company issued 1,230,000 shares of common stock for cash in the amount of $12,300.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the year ended October 31, 2015, the
  Company issued 2,211,679 shares of common stock for the conversion of convertible notes payable in the amount of $50,168. As the
  conversions were within the terms of the agreement, no additional gain or loss on the conversion has been recognized.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Stock Options, for the Period Ending October
  31, 2015</U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the year ended October 31, 2015, the
  Company issued 500,000 stock options to a service provider and exercisable over a 4 year term expiring on April 28, 2019. The values
  of the options were estimated using a Black-Scholes option pricing model equal to $16,614. The key inputs to the model were the
  number of options500,000, share price on the grant date of $0.04, exercise price of $0.20, terms of 4 years, volatility of 211%
  and a discount rate of 0.43%.As the shares are fully vested on the date of agreement, the value of the options of $16,614 was fully
  expensed on the date of grant.</P>
  
  <P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0">The following table summarizes the changes in options outstanding
  as of October 31, 2015 and July 31, 2016:</P>
  
  <P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
      <TD COLSPAN="3" STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Number of Shares</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Weighted Average Exercise Price</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="width: 1%; text-align: left; vertical-align: bottom">&nbsp;</TD><TD STYLE="width: 26%; text-align: left; vertical-align: bottom">Outstanding as of October 31, 2015</TD><TD STYLE="width: 1%; text-align: left; vertical-align: bottom">&nbsp;</TD><TD STYLE="width: 8%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 26%; text-align: right">500,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 26%; text-align: right">0.20</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD><TD STYLE="text-align: left; vertical-align: bottom">Granted</TD><TD STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD><TD STYLE="text-align: left; vertical-align: bottom">Exercised</TD><TD STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD><TD STYLE="text-align: left; vertical-align: bottom">Cancelled</TD><TD STYLE="padding-bottom: 1pt; text-align: left; vertical-align: bottom">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD><TD STYLE="text-align: left; vertical-align: bottom">Outstanding at July 31, 2016</TD><TD STYLE="padding-bottom: 1pt; text-align: left; vertical-align: bottom">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">500,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">0.20</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Common Stock Warrants, for the Period Ending
  October 31, 2015</U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company issued 6,846,394 warrants on May
  8, 2015 with an exercise price of $0.0140 per share and a term of 5 years in conjunction with the convertible debt issuance. The
  exercised price of the warrants is updated to the lowest offering price of common stock based on subsequent equity sales. As such,
  the number of share of common stock issuable upon exercise of the warrants is indeterminate. Pursuant to ASC 815-15 Embedded Derivatives,
  the fair values of the warrants and shares to be exercised were recorded as derivative liabilities on the issuance date.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On August 4, 2015, the Company issued warrants
  of 203,500 with an exercise price of $0.011 per share and a term of 5 years in conjunction with the convertible debt issuance.
  The exercised price of the warrants is updated to the lowest offering price of common stock based on subsequent equity sales. As
  such, the number of share of common stock issuable upon exercise of the warrants is indeterminate. Pursuant to ASC 815-15 Embedded
  Derivatives, the fair values of the warrants and shares to be exercised were recorded as derivative liabilities on the issuance
  date.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On August 17, 2015, the Company issued warrants
  of 486,662 with an exercise price of $0.0580 per share and a term of 5 years in conjunction with the convertible debt issuance.
  The exercised price of the warrants is updated to the lowest offering price of common stock based on subsequent equity sales. As
  such, the number of share of common stock issuable upon exercise of the warrants is indeterminate. Pursuant to ASC 815-15 Embedded
  Derivatives, the fair values of the warrants and shares to be exercised were recorded as derivative liabilities on the issuance
  date.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On September 10, 2015, the Company issued warrants
  of 573,706 with an exercise price of $0.0580per share and a term of 5 years in conjunction with the convertible debt issuance.
  The exercised price of the warrants is updated to the lowest offering price of common stock based on subsequent equity sales. As
  such, the number of share of common stock issuable upon exercise of the warrants is indeterminate. Pursuant to ASC 815-15 Embedded
  Derivatives, the fair values of the warrants and shares to be exercised were recorded as derivative liabilities on the issuance
  date.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On October 9, 2015, the Company issued warrants
  of 560,000 with an exercise price of $0.011 per share and a term of 5 years in conjunction with the convertible debt issuance.
  The exercised price of the warrants is updated to the lowest offering price of common stock based on subsequent equity sales. As
  such, the number of share of common stock issuable upon exercise of the warrants is indeterminate. Pursuant to ASC 815-15 Embedded
  Derivatives, the fair values of the warrants and shares to be exercised were recorded as derivative liabilities on the issuance
  date.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>
  
  <!-- Field: Page; Sequence: 20 -->
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      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>POCKET GAMES, INC.</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Notes to Condensed Financial Statements</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>July 31, 2016</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Unaudited)</P>
  
  
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On October 15, 2015, the Company issued warrants
  of 573,706 with an exercise price of $0.0580per share and a term of 5 years in conjunction with the convertible debt issuance.
  The exercised price of the warrants is updated to the lowest offering price of common stock based on subsequent equity sales. As
  such, the number of share of common stock issuable upon exercise of the warrants is indeterminate. Pursuant to ASC 815-15 Embedded
  Derivatives, the fair values of the warrants and shares to be exercised were recorded as derivative liabilities on the issuance
  date.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><U>Common Stock Warrants, for the Period Ending July 31, 2016</U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On January 5, 2016, the Company issued warrants
  of 1,512,500 with an exercise price of $0.0110 per share and a term of years in conjunction with the convertible debt issuance.
  The exercised price of the warrants is updated to the lowest offering price of common stock based on subsequent equity sales. As
  such, the number of share of common stock issuable upon exercise of the warrants is indeterminate. Pursuant to ASC 815-15 Embedded
  Derivatives, the fair values of the warrants and shares to be exercised were recorded as derivative liabilities on the issuance
  date.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The following table summarizes the changes in warrants outstanding
  as of October 31, 2015 and July 31, 2016:</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
      <TD COLSPAN="3" STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Number of Shares</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Weighted Average Exercise Price</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="width: 1%; text-align: left; vertical-align: bottom">&nbsp;</TD><TD STYLE="width: 26%; text-align: left; vertical-align: bottom">Outstanding as of October 31, 2015</TD><TD STYLE="width: 1%; text-align: left; vertical-align: bottom">&nbsp;</TD><TD STYLE="width: 8%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 26%; text-align: right">9,243,968</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 26%; text-align: right">0.019</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD><TD STYLE="text-align: left; vertical-align: bottom">Granted</TD><TD STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,663,270,612</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.002</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD><TD STYLE="text-align: left; vertical-align: bottom">Exercised</TD><TD STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD><TD STYLE="text-align: left; vertical-align: bottom">Cancelled</TD><TD STYLE="padding-bottom: 1pt; text-align: left; vertical-align: bottom">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD><TD STYLE="text-align: left; vertical-align: bottom">Outstanding at July 31, 2016</TD><TD STYLE="padding-bottom: 1pt; text-align: left; vertical-align: bottom">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">4,672,514,580</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">0.021</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Due to the shares issued during the nine months
  ended July 31, 2016 on debt conversion, a warrant reset feature occurred on May 19, 2016, resulting in the increase of warrants
  issued and valued.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Subscriptions Payable, for the Period Ending
  October 31, 2015</U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On November 6, 2014, the Company issued 155,400
  shares of common stock pursuant to an agreement with a consultant which had previously been recorded as Subscriptions Payable in
  the amount of $10,878 in the accompanying balance sheet at October 31, 2014.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Settlement of convertible debt, for the
  Period Ending October 31, 2015</U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the period, the Company repaid back
  convertible debt in the amount of $134,000 and converted $50,168 of debt for 2,211,679 shares of the common stock. As a result
  of such conversion and repayment, the Company reduced its derivative liability by $66,913.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Debt Discount, for the Period Ending October
  31, 2015</U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the period, the Company issued convertible
  promissory note with a variable conversion price; as a result, the Company recorded $180,959 in discount and amortized the balance
  over the life of the notes.(see Note 6 and Note 7).</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Common Stock Issuances, for the Period Ending
  July 31, 2016</U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the nine months ended July 31, 2016,
  the Company granted 29,900,000 and issued 29,400,000 shares of common stock for consulting services. The fair value of the common
  stock issued was $313,375 based on the market price of the Company&rsquo;s common stock on the date of grant. The 500,000 shares
  authorized but not issued is recorded as $1,500 (based on the market value on the date of grant) stock payable as of July 31, 2016.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Settlement of convertible debt, for the
  Period Ending July 31, 2016</U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the nine months ended July 31, 2016,
  the Company converted $245,532 of debt for 593,961,718 shares of common stock. Due to excess share issuance, the Company recognized
  a loss on conversion of $160,285; the excess shares were valued based on fair market value on the date of conversion.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  
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      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B></B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>POCKET GAMES, INC.</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Notes to Condensed Financial Statements</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>July 31, 2016</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Unaudited)</P>
  
  
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B></B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Note 9  - Subsidiaries </B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As disclosed in our Form 8-K filed with the
  Securities and Exchange Commission, we issued a total of 400,000 shares of our Series B Convertible Preferred Stock in connection
  with our acquisition of 80% of the Class A common stock and 100% of the Class B common stock of Social Technology Holdings, Inc.
  (&ldquo;STH&rdquo;), and reserved an additional 80,000 shares of our Class B voting Convertible Preferred Stock for issuance in
  a contemplated merger transaction to acquire the 20% minority interest in the STH Class A common stock. STH is the owner and operator
  of &ldquo;Viximo&rdquo;, a software platform that allows game providers to access multiple websites from a single source API.&rdquo;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As disclosed in our Form 8-K filed with the
  Securities and Exchange Commission, we issued a total of 270,000 shares of our Series C Convertible Preferred Stock and a $3,960,000
  convertible note due March 31, 2019 in connection with our acquisition of 100% of the outstanding common stock of Kicksend Holdings,
  Inc., a Delaware corporation (&ldquo;Kicksend&rdquo;). Kicksend is engaged in the business of file storage and sharing in real-time
  on digital platforms, including desktop, mobile and webapps, to permit users to organize, download and sent storage files.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Under the terms of these acquisitions, the
  Company was to receive full financial disclosure &nbsp;in order to maintain its &lsquo;fully reporting&rsquo; status with the SEC.
  Subsequent to the closing, neither acquisition target was able to provide full financial disclosure and Pocket Games&rsquo; attorney
  opined that this was a material breach of the contracts and the acquisitions described above were unwound. This resulted in the
  unwinding, return, and cancellation of all items related to the acquisitions. The total net effect of this transaction resulted
  in $219,951 worth of investing activity, as seen on the Company&rsquo;s statement of cash flows for the quarter ended July 31,
  2016. There was no gain or loss associated with these transactions.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Note 10  - Commitments and
  Contingencies</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Intellectual Property Purchase Agreement</U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On February 12, 2014, the Company entered into
  an Intellectual Property Purchase Agreement, whereby the Company purchased from the seller a certain software game application.
  Subject to the terms and conditions of this Agreement, the Company issued to the seller 1,500,000 shares of common shares. Additionally,
  the Company agreed to pay to the Seller the cost for development and modification of $40,000, of which $20,000 was paid during
  the year ended October 31, 2014. The remaining balance of $20,000 shall be paid as the work passes through quality control.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Note 11  - Subsequent Events</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">Subsequent to July
  31, 2016, the Company issued a total of 7,219,203,875 shares of common stock all for the conversion of debt and accrued interest.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>
  
  
  <!-- Field: Page; Sequence: 22 -->
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      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><A NAME="a_007"></A><B>ITEM 2. MANAGEMENT&rsquo;S DISCUSSION AND
  ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><I>The following discussion contains forward-looking
  statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934
  relating to future events or our future performance. Actual results may materially differ from those projected in the forward-looking
  statements as a result of certain risks and uncertainties set forth in this prospectus. Although management believes that the assumptions
  made and expectations reflected in the forward-looking statements are reasonable, there is no assurance that the underlying assumptions
  will, in fact, prove to be correct or that actual results will not be different from expectations expressed in this report.</I></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>Overview</I></B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We were incorporated in the State of Florida
  on October 4, 2013, to engage in the development and distribution of mobile games. We have generated only minimal revenues from
  business operations from a related party. Our independent registered public accounting firm has issued a going concern opinion.
  This means there is substantial doubt that we can continue as an on-going business unless we obtain additional capital to pay our
  ongoing operational costs. Accordingly, we must locate sources of capital to pay our operational costs.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">From our inception on October 4, 2013 through
  July 31, 2015, our business operations have primarily been focused on developing our business plan, developing the features of
  our first mobile game products, and developing a game for DNA Interactive Games Limited (&ldquo;DNAIG&rdquo;), a related party.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the year ended October 31, 2014, we
  ceased all developmental activities related to Pocket Football and do not anticipate completion of the Pocket Games product. We
  directed our efforts to the development of the Idol Hands game under the terms of our March 17, 2014, agreement with Fluid Games
  Limited (&ldquo;FGL&rdquo;), a company formed under the laws of the United Kingdom. During the period ending April 30, 2014, we
  redesigned the Idol Hand's camera operated control system and the menu system control in order to allow the user to control the
  game via an ordinary Keyboard and Mouse, rather than having to buy additional equipment from a third party. During March 2014,
  we tested the game and newly developed control system. In April 2014, the voice over work for the game was recalibrated and recorded.
  These modifications were needed to convert the tutorial voiceover of the hand movements from the &lsquo;camera control system&rsquo;
  to the newly implemented &lsquo;Keyboard and Mouse&rsquo; system.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We completed 100% of the development of the
  Idol Hands game on September 1, 2014 and are currently undergoing quality assurance testing. We are in negotiations with online
  digital download retailers for distribution of the Idol Hands game including Stream, Amazon and Game. There is no assurance we
  will be successful in securing agreements with these retailers to distribute the Idol Hands game.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Idol Hands will initially be sold exclusively
  as a &lsquo;Digital Download&rsquo; for the PC platform through various online stores who will process the purchases from their
  site and pay us between 60 and 75 the purchase price. Purchasers of the game will pay a fee to download the product and own the
  title.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Should we receive $350,000 of sales from the
  sale of the Idol Hands game, we plan to develop applications for iPad and iPhone as well as various Android tablets and phones.
  We plan to interview marketing companies to assist us with the marketing of the Idol Hands game and continue negotiations with
  online digital download retailers to potentially sell the game.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt"><U>Third Party Development</U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On October 22, 2013, we entered into an agreement
  with DNA Interactive Games Limited (the &ldquo;DNA Agreement&rdquo;), a company formed under the laws of the United Kingdom (&ldquo;DNAIG&rdquo;),
  which is controlled by our Chief Executive Officer, David Lovatt, to develop a game known as SH3G for iPad and the Android tablet
  platforms. Through the DNA Agreement, as amended, DNAIG agreed to pay us an aggregate fee of approximately $59,500 as we meet certain
  milestones, as outlined in the chart below. Through July 31, 2014, we have received $45,540. As set forth in the chart below, we
  received or expect to receive the following payments from DNAIG as we meet the milestones:</P>
  
  
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      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
      <TD STYLE="width: 23%; border: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><B>Milestone</B></TD>
      <TD STYLE="width: 27%; border-top: Black 1pt solid; border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><B>Amount Paid</B></TD>
      <TD STYLE="width: 25%; border-top: Black 1pt solid; border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><B>Milestone Date</B></TD>
      <TD STYLE="width: 25%; border-top: Black 1pt solid; border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><B>Status of Milestone</B></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
      <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Submission of Military Campaign to Apple</TD>
      <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">$3,000 Paid</TD>
      <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">May 19, 2014</TD>
      <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">100%</TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
      <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Submission of improved User Interface &amp; game balancing </TD>
      <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">$6,490 Paid</TD>
      <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">May 19, 2014</TD>
      <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">100%</TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
      <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Submission of DLC, Wolfpack content cleared for submission to Apple by QA</TD>
      <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">$3,000</TD>
      <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">June 13<SUP>th</SUP> 2014</TD>
      <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">98%</TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
      <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Android Build Submission</TD>
      <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">$14,000</TD>
      <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">October 1, 2014</TD>
      <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">65%</TD></TR>
  </TABLE>
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Through July 31, 2014, we paid $35,178 to FGL
  to assist us with the development of SH3G.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Meeting the milestones above is dependent upon
  us raising sufficient capital through placement of our common stock or issuance of debt securities. We have not located investors
  to provide us with the capital required to meet these milestones and we may not be successful in locating investors to provide
  us with capital. If we are unable to obtain financing, we will not meet the milestones above and may have to suspend or cease operations.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">From inception on October 4, 2013, through
  July 31, 2016, we incurred an accumulated deficit of $6,003,517, including development costs, professional fees, general and administrative
  fees and interest expense. We have funded our operation through our revenue and through the sale of common stock to our two officers,
  and 35 non-affiliated investors.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of July 31, 2016, we had cash on hand of
  $13 which is not sufficient to pay for our operating costs. If we are unable to generate sufficient revenues or raise additional
  monies to fund our operations we will be unable to complete development of our products and may be forced to cease operations.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We have generated minimal revenues from our
  operations. We cannot guarantee we will be successful in our business operations. Our business is subject to risks inherent in
  the establishment of a new business enterprise, including the financial risks associated with the limited capital resources currently
  available to us for the implementation of our business strategies. To become profitable and competitive, we must develop the business
  plan and execute the plan. Our management will attempt to secure financing through various means including borrowing and investment
  from institutions and private individuals.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Since inception, the majority of our time has
  been spent on organizational matters and development of our first mobile game product, Pocket Football.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>RESULTS OF OPERATIONS FOR THE THREE AND NINE MONTHS ENDED JULY
  31, 2016 AND 2015:</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Revenues:</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Total revenue recognized were $102 and $-0-
  for the three months ended July 31, 2016 and 2015, respectively. Total revenue recognized were $3,300 and $-0- for the nine months
  ended July 31, 2016 and 2015, respectively. The Company entered into a contract with a related party during the fiscal year ended
  October 31, 2015, whereby, the Company will perform testing on games and application. Cost of revenues was $10,942 and $-0- during
  the nine months ended July 31, 2016 and 2015, respectively.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>General and Administrative:</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">General and administrative expense was $40,268
  and $47,417 for the three months ended July 31, 2016 and 2015, respectively. General and administrative expense was $220,267 and
  $88,385 for the nine months ended July 31, 2016 and 2015, respectively. General and administrative expenses consisted of bank fees,
  SEC filing costs and costs associated with the pursuit of getting our stock traded on the OTCBB.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Officer Compensation:</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Officer compensation expense was $30,000 and
  $60,000 for the three months ended July 31, 2016 and 2015, respectively. Officer compensation expense was $115,606 and $180,000
  for the nine months ended July 31, 2016 and 2015, respectively. Officer compensation expense consisted mainly of a monthly fee
  of $10,000 to each of our two officers.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  
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  <P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Professional Fees:</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Professional fees expense was $33,541 and $14,046
  for the three months ended July 31, 2016 and 2015, respectively. Professional fees expense was $389,936 and $137,239 for the nine
  months ended July 31, 2016 and 2015, respectively. Professional fees consisted of legal, consulting, accounting and auditing costs
  necessary to prepare our public filings.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Net Operating Loss:</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Net operating losses were $103,707 and $121,463
  for the three months ended July 31, 2016 and 2015, respectively. Net operating losses were $733,451 and $405,624 for the nine months
  ended July 31, 2016 and 2015, respectively. Net operating losses consisted primarily of fees incurred in connection with the pursuit
  of listing of our Common Stock on the OTCBB and with establishing an account with our transfer agent, as well as legal and audit
  fees related to our SEC filing costs during the nine months ended July 31, 2016 and 2015.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Other Income (Expense):</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Other expense was $162,440 for the three months
  ended July 31, 2016 compared to other expense of $1,069,913 for the three months ended July 31, 2015. Other income was $348,922
  for the nine months ended July 31, 2016 compared to other expense of $1,161,614 for the nine months ended July 31, 2015. For the
  nine months ended July 31, 2016, other income consisted of a gain on the change in fair value of derivative liability in the amount
  of $1,239,931. Other expenses consisted of interest expense in the amount of $730,724 and the loss on settlement of debt of $160,285.
  For the nine months ended July 31, 2015, other expenses consisted of the loss on the change in fair value of derivative liability
  in the amount of $763,148, interest expense in the amount of $374,006 and the loss on settlement of debt of $24,460.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Net Income / Loss:</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Net loss for the three months ended July 31,
  2016 was $266,147, or ($0.00) per share. Net loss for the three months ended July 31, 2015 was $1,191,376, or ($0.06) per share.
  Net loss for the nine months ended July 31, 2016 was $384,529, or ($0.00) per share. Net loss for the nine months ended July 31,
  2015 was $1,567,238, or ($0.09) per share. Net loss consisted primarily of fees incurred in connection with the pursuit of listing
  of our Common Stock on the OTCBB and with establishing an account with our transfer agent, as well as legal and audit fees related
  to our SEC filing costs, along with the development of our software products, interest expense.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>LIQUIDITY AND CAPITAL RESOURCES</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following table summarizes total current
  assets, liabilities, accumulated (deficit) and working capital (deficit) at July 31, 2016 and October 31, 2015.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="text-align: justify">&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center">April 30,</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center">October 31,</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="text-align: justify">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2016</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2015</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="width: 56%; text-align: left">Current Assets</TD><TD STYLE="width: 8%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">13</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">51,824</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">Current Liabilities</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1,215,127</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1,851,638</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">Accumulated (Deficit)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(6,003,517</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(5,618,984</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">Working Capital (Deficit)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(1,215,114</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(1,799,814</TD><TD STYLE="text-align: left">)</TD></TR>
  </TABLE>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Liquidity is the ability of a company to generate
  funds to support its current and future operations, satisfy its obligations, and otherwise operate on an ongoing basis. To date,
  we have funded our operations through the sale of our common stock. Our primary uses of cash have been for the development of games,
  compensation, and professional fees. All funds received have been expended in the furtherance of growing the business and establishing
  brand portfolios. The following trends are reasonably likely to result in a material decrease in our liquidity over the near to
  long term:</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <UL STYLE="margin-top: 0in; list-style-type: disc">
  
  <LI STYLE="text-align: justify; margin: 0">An substantial increase in working capital requirements to finance our operations,</LI>
  
  <LI STYLE="text-align: justify; margin: 0">Addition of administrative and professional personnel as the business grows,</LI>
  
  <LI STYLE="text-align: justify; margin: 0">The cost of being a public company, and</LI>
  
  <LI STYLE="text-align: justify; margin: 0">Payments for development of games.</LI>
  
  </UL>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  
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  <P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Satisfaction of our Cash Obligations for
  the Next 12 Months</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Our current cash on hand as of July 31, 2016
  was $13, which is insufficient to meet our current monthly operating costs of approximately $30,000. As of July 31, 2016, we had
  current liabilities of $1,215,127.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We had net loss and net cash used in operations
  of $384,529 and $536,821, respectively, for the nine months ended July 31, 2016 and our working capital deficit was $1,215,114,
  with an accumulated deficit of $6,003,517 as of July 31, 2016.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We currently have no external sources of liquidity
  such as arrangements with credit institutions or off-balance sheet arrangements that will have or are reasonably likely to have
  a current or future effect on our financial condition or immediate access to capital.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We are dependent on the sale of our securities
  to fund our operations, and will remain so until we generate sufficient revenues to pay for our operating costs. Our officers and
  directors have made no written commitments with respect&nbsp;to providing a source of liquidity in the form of cash advances, loans
  and/or financial guarantees.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">If we are unable to raise the funds we will
  seek alternative financing through means such as borrowings from institutions or private individuals. There can be no assurance
  that we will be able to raise the capital we need for our operations from the sale of our securities. We have not located any sources
  for these funds and may not be able to do so in the future. We expect that we will seek additional financing in the future. However,
  we may not be able to obtain additional capital or generate sufficient revenues to fund our operations. If we are unsuccessful
  at raising sufficient funds, for whatever reason, to fund our operations, we may be forced to cease operations. If we fail to raise
  funds we expect that we will be required to seek protection from creditors under applicable bankruptcy laws.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Going Concern</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Our independent registered public accounting
  firm has expressed doubt about our ability to continue as a going concern and believes that our ability is dependent on our ability
  to implement our business plan, raise capital and generate revenues. See Note 2 of our financial statements.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Critical Accounting Policies and Estimates</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">While our significant accounting policies are
  more fully described in Note 1 to our financial statements for the period ended July 31,&nbsp;2016, we believe that the following
  accounting policies are the most critical to aid you in fully understanding and evaluating this management discussion and analysis.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Our financial statements have been prepared
  in accordance with accounting principles generally accepted in the United States of America. The preparation of these financial
  statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses,
  and related disclosure of contingent assets and liabilities. We continually evaluate our estimates, including those related to
  the accounting for and recovery of long-lived assets including income taxes, and the valuation of equity transactions. We base
  our estimates on historical experience and on various other assumptions that we believed to be reasonable under the circumstances,
  the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily
  apparent from other sources. Any future changes to these estimates and assumptions could cause a material change to our reported
  amounts of revenues, expenses, assets and liabilities. Actual results may differ from these estimates under different assumptions
  or conditions. We believe the following critical accounting policies affect our more significant judgments and estimates used in
  the preparation of the financial statements.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Revenue recognition</U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We recognize revenue when persuasive evidence
  of an arrangement exists, delivery has occurred or services have been rendered, the purchase price is fixed or determinable and
  collectability is reasonably assured. We intend on generating revenue from three sources; sale of game applications, sale of advertising
  provided with games, and outsourced application development services. To date, all revenues have been derived from a related party.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Revenue through October 31, 2013, and to present
  includes only outsourced application development services recognized in accordance with ASC 605-28 &quot;Milestone Method&quot;.
  We may bill for these services prior to attainment of the performance milestones. Receipts in excess of revenue earned as of the
  balance sheet date are included in deferred revenue.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Stock-based compensation</U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We account for stock-based instruments issued
  to employees in accordance with ASC Topic 718. ASC Topic 718 requires companies to recognize in the statement of operations the
  grant-date fair value of stock options and other equity based compensation issued to employees. We account for non-employee share-based
  awards in accordance with ASC Topic 505-50.</P>
  
  
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  <P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Contractual Obligations</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of July 31, 2016, we have no fixed contractual
  obligations or commitments that include future estimated payments.</P>
  
  <P STYLE="font: 10pt/0.05pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Off-Balance Sheet Arrangements</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of the date of this report, we did not have
  any off-balance sheet arrangements that have, or is reasonably likely to have, a current or future effect on our financial condition,
  changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources
  that are material to investors.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><A NAME="a_008"></A><B>ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES
  ABOUT MARKET RISK.</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Not required for smaller reporting companies.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><A NAME="a_009"></A><B>ITEM 4. CONTROLS AND PROCEDURES.</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Management&rsquo;s Report on Disclosure
  Controls and Procedures</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We maintain disclosure controls and procedures
  that are designed to ensure that information required to be disclosed in our reports filed under the <I>Securities Exchange Act
  of 1934</I>, as amended, is recorded, processed, summarized and reported within the time periods specified in the Securities and
  Exchange Commission's rules and forms, and that such information is accumulated and communicated to our management, to allow for
  timely decisions regarding required disclosure.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of July 31, 2016, the end of our second
  quarter covered by this report, we carried out an evaluation, under the supervision of our Chief Executive Officer, of the effectiveness
  of the design and operation of our disclosure controls and procedures. Based on the foregoing, we concluded that our disclosure
  controls and procedures were ineffective as of the end of the period covered by this quarterly report because there was no segregation
  of the duties with only two members in our management team. Our board of directors has only two members. We do not have a formal
  audit committee.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Management&rsquo;s Report on Internal Control
  over Financial Reporting</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Our management is responsible for establishing
  and maintaining adequate internal control over financial reporting (as defined in Rule 13a-15(f) under the Securities Exchange
  Act, as amended). In fulfilling this responsibility, estimates and judgments by management are required to assess the expected
  benefits and related costs of control procedures. The objectives of internal control include providing management with reasonable,
  but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions
  are executed in accordance with management&rsquo;s authorization and recorded properly to permit the preparation of financial statements
  in conformity with accounting principles generally accepted in the United States. Our management assessed the effectiveness of
  our internal control over financial reporting as of July 31, 2016. In making this assessment, our management used the criteria
  set forth by the Committee of Sponsoring Organizations of the Treadway Commission (&ldquo;COSO&rdquo;) in <I>Internal Control-Integrated
  Framework</I>. Our management has concluded that, as of July 31, 2016, our internal control over financial reporting is ineffective
  in providing reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements
  for external purposes in accordance with US generally accepted accounting principles. This annual report does not include an attestation
  report of the Company&rsquo;s registered public accounting firm regarding internal control over financial reporting. Management&rsquo;s
  report was not subject to attestation by the Company&rsquo;s registered public accounting firm pursuant to temporary rules of the
  Securities and Exchange Commission that permit the Company to provide only management&rsquo;s report in this quarterly report.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Inherent limitations on effectiveness of
  controls</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Internal control over financial reporting has
  inherent limitations which include but is not limited to the use of independent professionals for advice and guidance, interpretation
  of existing and/or changing rules and principles, segregation of management duties, scale of organization, and personnel factors.
  Internal control over financial reporting is a process which involves human diligence and compliance and is subject to lapses in
  judgment and breakdowns resulting from human failures. Internal control over financial reporting also can be circumvented by collusion
  or improper management override. Because of its inherent limitations, internal control over financial reporting may not prevent
  or detect misstatements on a timely basis, however these inherent limitations are known features of the financial reporting process
  and it is possible to design into the process safeguards to reduce, though not eliminate, this risk. Therefore, even those systems
  determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  
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  <P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Projections of any evaluation of effectiveness
  to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree
  of compliance with the policies or procedures may deteriorate.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Changes in Internal Control over Financial
  Reporting</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">None.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><A NAME="a_010"></A>PART II - OTHER INFORMATION</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><A NAME="a_011"></A>ITEM 1. LEGAL PROCEEDINGS.</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We are not a party to, and none of our property
  is the subject of, any pending legal proceedings. To our knowledge, no governmental authority is contemplating any such proceedings.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><A NAME="a_012"></A>ITEM 1A. RISK FACTORS.</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Not required to be provided by smaller reporting
  companies.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><A NAME="a_013"></A><B>ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES
  AND USE OF PROCEEDS.</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the nine months ended July 31, 2016,
  the Company granted 29,900,000 and issued 29,400,000 shares of common stock for consulting services. The fair value of the common
  stock issued was $313,375 based on the market price of the Company&rsquo;s common stock on the date of grant. The 500,000 shares
  authorized but not issued is recorded as $1,500 (based on the market value on the date of grant) stock payable as of July 31, 2016.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the nine months ended July 31, 2016,
  the Company converted $245,532 of debt for 593,961,718 shares of common stock. Due to excess share issuance, the Company recognized
  a loss on conversion of $160,285; the excess shares were valued based on fair market value on the date of conversion.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">With respect to the transactions noted above.
  Each of the recipients of securities of the Company was an accredited investor, or is considered by the Company to be a &ldquo;sophisticated
  person&rdquo;, inasmuch as each of them has such knowledge and experience in financial and business matters that they are capable
  of evaluating the merits and risks of receiving securities of the Company. No solicitation was made and no underwriting discounts
  were given or paid in connection with these transactions. The Company believes that the issuance of its securities as described
  above was exempt from registration with the Securities and Exchange Commission pursuant to Section 4(2) of the Securities Act of
  1933.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><A NAME="a_014"></A>ITEM 3. DEFAULTS UPON SENIOR SECURITIES.</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">None.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><A NAME="a_015"></A><B>ITEM 4. MINE SAFETY DISCLOSURES.</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Not applicable.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><A NAME="a_016"></A>ITEM 5. OTHER INFORMATION.</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">None</P>
  
  
  <!-- Field: Page; Sequence: 28 -->
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  <P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><A NAME="a_017"></A>ITEM 6. EXHIBITS.</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
      <TD STYLE="width: 12%"><U>Exhibit No.</U></TD>
      <TD STYLE="width: 88%"><U>Description</U></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD>3.1</TD>
      <TD STYLE="text-align: justify">Articles of Incorporation (incorporated by reference to Exhibit 3.1 of the Form S-1 filed
      with the Securities and Exchange Commission by Pocket Games, Inc. on December 18, 2013)</TD></TR>
  <TR STYLE="vertical-align: top">
      <TD>&nbsp;</TD>
      <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
      <TD>3.2</TD>
      <TD STYLE="text-align: justify">Bylaws (incorporated by reference to Exhibit 3.1 of the Form S-1 filed with the Securities
      and Exchange Commission by Pocket Games, Inc. on December 18, 2013)</TD></TR>
  <TR STYLE="vertical-align: top">
      <TD>&nbsp;</TD>
      <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
      <TD>10.1</TD>
      <TD STYLE="text-align: justify">Executive Employment Agreement with David Lovatt (incorporated by reference to Exhibit 10.1
      of the Form S-1 filed with the Securities and Exchange Commission by Pocket Games, Inc. on December 18, 2013)</TD></TR>
  <TR STYLE="vertical-align: top">
      <TD>&nbsp;</TD>
      <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
      <TD>10.5</TD>
      <TD STYLE="text-align: justify">Rental Agreement with Yaakov Fulda (incorporated by reference to Exhibit 10.6 of the Form
      S-1/A filed with the Securities and Exchange Commission by Pocket Games, Inc. on January 15, 2014)</TD></TR>
  <TR STYLE="vertical-align: top">
      <TD>&nbsp;</TD>
      <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
      <TD>31.1*</TD>
      <TD STYLE="text-align: justify"><A HREF="ex311_302certification.htm">Certification of David Lovatt, CEO and Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act</A></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD>&nbsp;</TD>
      <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
      <TD>32.1*</TD>
      <TD STYLE="text-align: justify"><A HREF="ex321_906certification.htm">Certification of David Lovatt, CEO and Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act</A></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD>&nbsp;</TD>
      <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  </TABLE>
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">* Filed herewith</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  
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      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="a_018"></A>SIGNATURES</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Pursuant to the requirements of the Securities
  Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
      <TD>&nbsp;</TD>
      <TD COLSPAN="2"><B>POCKET GAMES, INC.</B></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD STYLE="width: 56%">&nbsp;</TD>
      <TD STYLE="width: 4%">&nbsp;</TD>
      <TD STYLE="width: 40%">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
      <TD STYLE="border-bottom: white 1pt solid">Date: September 12, 2018</TD>
      <TD STYLE="border-bottom: white 1pt solid">By:</TD>
      <TD STYLE="border-bottom: black 1pt solid">/s/ David Lovatt</TD></TR>
  <TR>
      <TD STYLE="vertical-align: top">&nbsp;</TD>
      <TD STYLE="vertical-align: top">&nbsp;</TD>
      <TD STYLE="vertical-align: bottom">
          <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">David Lovatt, Chief Executive Officer</P>
          <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">(Principal Executive Officer)</P></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
      <TD STYLE="padding-bottom: 1.1pt">Date: September 12, 2018</TD>
      <TD STYLE="padding-bottom: 1.1pt">By:</TD>
      <TD STYLE="border-bottom: black 1pt solid">/s/ David Lovatt</TD></TR>
  <TR STYLE="vertical-align: top">
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD>David Lovatt, Chief Financial Officer and Principal Accounting Officer</TD></TR>
  </TABLE>
  
  
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text: SECURITIES AND EXCHANGE COMMISSION
  Washington, D.C. 20549
  ______________________
  FORM 10-Q
  [ X ] Quarterly Report under Section 13 or
  15(d) of the Securities Exchange Act of 1934
  For the quarter ended July 31, 2016
  OR
  [ ] Transition Report Pursuant to Section
  13 or 15(d) of the Securities Exchange Act of 1934
  For the transition period from __________ to
  ___________
  Commission file number: 000-1591157
  POCKET GAMES, INC.
  (Exact name of registrant as specified in its
  charter)
  Florida
  46-3813936
  (State or other jurisdiction of
  incorporation or organization)
  (I.R.S. Employer
  Identification No.)
  445 Central Ave. Suite 355
  Cedarhurst, New York
  11516
  (Address of principal executive offices)
  (Zip Code)
  (347) 460-9994
  (Registrant's telephone number, including
  area code)
  Not Applicable
  (Former Name, former address and
  former fiscal year, if changed since last report)
  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.
  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 (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant
  was required to submit and post such files).
  Yes
  ☒
  No
  ☐
  Indicate by check mark whether the registrant is a large accelerated
  filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated
  filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act. (Check
  one):
  Large accelerated filer
  ☐
  Accelerated filer
  ☐
  Non-accelerated filer
  ☐
  (Do
  not check if a smaller reporting company)
  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
  ☒
  Indicate the number of shares outstanding of
  each of the issuer's classes of common stock, as of the latest practicable date: 7,866,905,522 shares of common stock are issued
  and outstanding as of September 11, 2018.
  Table of Contents
  POCKET GAMES, INC.
  FORM 10-Q
  July 31, 2016
  TABLE OF CONTENTS
  Page No.
  PART I. - FINANCIAL INFORMATION
  Item 1.
  Financial Statements.
  3
  Balance Sheets
  as of July 31, 2016 (Unaudited) and October 31, 2015
  3
  Statements of Operations
  for the Three and Nine Months Ended July 31, 2016 and 2015 (Unaudited)
  4
  Statements of Cash Flows
  for the Nine Months Ended July 31, 2016 and 2015 (Unaudited)
  5
  Notes to Unaudited Financial Statements
  6-22
  Item 2.
  Management's Discussion and Analysis of Financial Condition and Results of Operations.
  23
  Item 3.
  Quantitative and Qualitative Disclosures About Market Risk.
  27
  Item 4.
  Controls and Procedures.
  27
  PART II - OTHER INFORMATION
  Item 1.
  Legal Proceedings.
  28
  Item 1A.
  Risk Factors.
  28
  Item 2.
  Unregistered Sales of Equity Securities and Use of Proceeds
  .
  28
  Item 3.
  Defaults Upon Senior Securities
  .
  28
  Item 4.
  Mine Safety Disclosures.
  28
  Item 5.
  Other Information.
  28
  Item 6.
  Exhibits.
  29
  2
  Table of Contents
  PART 1 - FINANCIAL INFORMATION
  ITEM 1. FINANCIAL STATEMENTS.
  POCKET GAMES, INC.
  CONDENSED BALANCE SHEETS
  ASSETS
  July 31,
  October 31,
  2016
  2015
  (Unaudited)
  CURRENT ASSETS
  Cash and cash equivalents
  $
  13
  $
  24,404
  Loan origination costs
  —
  25,675
  Other assets
  —
  1,745
  Total Current Assets
  13
  51,824
  Fixed assets
  —
  4,420
  TOTAL ASSETS
  $
  13
  $
  56,244
  LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
  CURRENT LIABILITIES
  Accounts payable
  $
  43,709
  $
  49,834
  Accrued expenses, related parties
  15,062
  13,224
  Accrued expenses
  56,752
  31,762
  Accrued compensation
  28,023
  131,923
  Loans payable, related parties
  36,106
  14,781
  Derivative liability
  374,356
  1,369,662
  Convertible debenture, net of discount of
  $101,534 and $298,497, respectively
  661,119
  240,452
  Total Current Liabilities
  1,215,127
  1,851,638
  TOTAL LIABILITIES
  1,215,127
  1,851,638
  STOCKHOLDERS' EQUITY (DEFICIT)
  Preferred stock, $0.0001 par value; 1,000,000,000 shares authorized
  Preferred stock designated, Series AA, $0.0001 par value, 1,000 and -0-
  shares issued and outstanding, respectively
  —
  —
  Preferred stock designated, Series B, $0.0001 par value, -0- and 320,000
  shares issued and outstanding, respectively
  —
  —
  Preferred stock designated, Series C, $0.0001 par value, -0- and 270,000
  shares issued and outstanding, respectively
  —
  —
  Common stock, $0.0001 par value; 50,000,000,000 shares authorized,
  647,701,647 and 24,339,929 shares issued and outstanding, respectively
  64,770
  2,434
  Additional paid-in capital
  4,722,133
  3,821,210
  Subscriptions payable
  1,500
  —
  Accumulated deficit
  (6,003,517
  )
  (5,618,984
  )
  Accumulated other comprehensive loss
  —
  (54
  )
  Total Stockholders' Equity (Deficit)
  (1,215,114
  )
  (1,795,394
  )
  TOTAL LIABILITIES AND STOCKHOLDERS'  EQUITY (DEFICIT)
  $
  13
  $
  56,244
  The accompanying notes are an integral part of these unaudited financial statements.
  3
  Table of Contents
  POCKET GAMES, INC.
  CONDENSED STATEMENTS OF OPERATIONS
  (Unaudited)
  For the Three Months Ended
  For the Nine Months Ended
  July 31,
  July 31,
  2016
  2015
  2016
  2015
  REVENUES
  Revenues, related parties
  $
  102
  $
  —
  $
  3,300
  $
  —
  Cost of revenues
  —
  —
  (10,942
  )
  —
  Gross profit (loss)
  102
  —
  (7,642
  )
  —
  OPERATING EXPENSES
  General and administrative
  40,268
  47,417
  220,267
  88,385
  Officer compensation
  30,000
  60,000
  115,606
  180,000
  Professional fees
  33,541
  14,046
  389,936
  137,239
  Total Operating Expenses
  103,809
  121,463
  725,809
  405,624
  LOSS FROM OPERATIONS
  (103,707
  )
  (121,463
  )
  (733,451
  )
  (405,624
  )
  OTHER INCOME (EXPENSES)
  Gain (Loss) on change in fair value of derivative liability
  189,055
  (763,148
  )
  1,239,931
  (763,148
  )
  Interest expense
  (331,513
  )
  (280,235
  )
  (730,724
  )
  (374,006
  )
  Loss on settlement of debt
  (19,982
  )
  (26,530
  )
  (160,285
  )
  (24,460
  )
  Total Other Income (Expenses)
  (162,440
  )
  (1,069,913
  )
  348,922
  (1,161,614
  )
  NET LOSS BEFORE INCOME TAXES
  (266,147
  )
  (1,191,376
  )
  (384,529
  )
  (1,567,238
  )
  PROVISION FOR INCOME TAXES
  —
  —
  —
  —
  NET LOSS
  $
  (266,147
  )
  $
  (1,191,376
  )
  $
  (384,529
  )
  $
  (1,567,238
  )
  NET LOSS PER SHARE, BASIC AND FULLY DILUTED
  $
  (0.00
  )
  $
  (0.06
  )
  $
  (0.00
  )
  $
  (0.09
  )
  WEIGHTED AVERAGE NUMBER OF
  SHARES OUTSTANDING, BASIC AND FULLY DILUTED
  363,995,274
  20,776,308
  235,314,747
  17,951,430
  The accompanying notes are an integral part of these unaudited financial statements.
  4
  Table of Contents
  POCKET GAMES, INC.
  CONDENSED STATEMENTS OF CASH FLOWS
  (Unaudited)
  For the Nine Months Ended
  July 31,
  2016
  2015
  CASH FLOWS FROM OPERATING ACTIVITIES
  Net loss
  $
  (384,529
  )
  $
  (1,567,238
  )
  Adjustments to reconcile net loss to net cash
  used by operating activities:
  Amortization of loan origination costs
  8,277
  14,314
  Amortization of discount on convertible debenture
  684,649
  166,487
  Amortization of original issue discount
  —
  1,460
  Amortization of derivative liabilities
  —
  12,888
  Shares issued for services
  315,075
  95,455
  Interest expense for note derivative
  —
  3,850
  Interest expense for warrants derivative
  —
  164,434
  (Gain) Loss on settlement of debt
  160,285
  —
  (Gain) Loss on change in fair value of derivative liabilities
  (1,239,931
  )
  763,148
  Changes in operating assets and liabilities:
  Other current assets
  1,745
  —
  Accounts payable
  (5,322
  )
  12,208
  Accrued expenses, related parties
  1,840
  8,193
  Accrued expenses
  24,990
  6,676
  Accrued officer compensation
  (103,900
  )
  16,891
  Deferred revenues
  —
  8,983
  Net Cash Used by Operating Activities
  (536,821
  )
  (292,251
  )
  CASH FLOWS FROM INVESTING ACTIVITIES
  Net affect of unwinding of acquisitions
  219,951
  —
  Net Cash Provided by Investing Activities
  219,951
  —
  CASH FLOWS FROM FINANCING ACTIVITIES
  Loan origination costs
  —
  (29,500
  )
  Original issue discount on promissory notes
  —
  (8,100
  )
  Payments on convertible debt
  (27,500
  )
  (76,000
  )
  Payments on loans payable, related parties
  (10,875
  )
  (5,500
  )
  Proceeds from loans payable, related parties
  17,000
  4,492
  Proceeds from sale of common stock
  —
  12,300
  Proceeds from convertible debenture
  313,800
  437,600
  Net Cash Provided by Financing Activities
  292,425
  335,292
  Foreign currency translation
  54
  —
  DECREASE IN CASH AND CASH EQUIVALENTS
  (24,391
  )
  43,041
  CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
  24,404
  430
  CASH AND CASH EQUIVALENTS AT END OF PERIOD
  $
  13
  $
  43,471
  SUPPLEMENTAL DISCLOSURES:
  Cash paid for interest
  $
  —
  $
  —
  Cash paid for income taxes
  $
  —
  $
  —
  Non-cash investing and financing activities:
  Derivative on convertible notes
  $
  154,595
  $
  56,000
  Stock issued for conversion of debt
  $
  245,532
  $
  50,168
  Stock issued for accrued compensation
  $
  —
  $
  67,190
  Discount on beneficial conversion feature of convertible debentures
  $
  —
  $
  343,458
  Stock issued for stock payable
  $
  —
  $
  10,878
  Derivative settlements
  $
  243,866
  $
  —
  Issuance of debt discounts
  $
  333,896
  $
  —
  Accounts payable and warrants converted to notes payable
  $
  216,339
  $
  —
  The accompanying notes are an integral part of these unaudited financial statements.
  5
  Table of Contents
  POCKET GAMES, INC.
  Notes to Condensed Financial Statements
  July 31, 2016
  (Unaudited)
  Note 1 - Nature of Business and Significant
  Accounting Policies
  Nature of Business
  Pocket Games, Inc. (the "Company")
  was incorporated on October 4, 2013 ("Inception") under the laws of the State of Florida. The Company is engaged in
  the development, marketing and sale of interactive games for mobile devices, tablets and computers. The Company has limited customers
  and products and revenues to date.
  We develop games and provide end-end services
  for software and application development. We also have a dedicated division for server support and cloud management. Our clients
  rely on us to support their core IT architecture and provide 24/7 support for their business critical infrastructure
  The Company has adopted a fiscal year end of
  October 31.
  JOBS Act
  The Company is an "emerging growth company"
  as defined in the recently-enacted JOBS Act, and is eligible to take advantage of certain exemptions from various reporting and
  disclosure requirements that are applicable to public companies that are not "emerging growth companies." As an "emerging
  growth company" under the JOBS Act, the Company is permitted to, and intends to, rely on exemptions from certain reporting
  and disclosure requirements, which may make our future public filings different than that of other public companies.
  Section 107 of the JOBS Act provides that an
  "emerging growth company" can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the
  Securities Act for complying with new or revised accounting standards. In other words, an "emerging growth company"
  can delay the adoption of certain new accounting standards until those standards would otherwise apply to private companies. The
  Company has elected to use the extended transition period for complying with new or revised accounting standards under Section
  102(b)(2) of the JOBS Act, that allows the Company to delay the adoption of new or revised accounting standards that have different
  effective dates for public and private companies until those standards apply to private companies. As a result of this election,
  the Company's financial statements may not be comparable to companies that comply with public company effective dates.
  The Company will remain an "emerging
  growth company" until the earliest of: (i) the last day of the fiscal year during which we had total annual gross revenues
  of $1 billion or more, (ii) the last day of the fiscal year following the fifth anniversary of the date of the first sale of our
  common stock pursuant to an effective registration statement, (iii) the date on which the Company has, during the previous 3-year
  period, issued more than $1 billion in non-convertible debt or (iv) the date on which the Company is deemed a "large accelerated
  filer" as defined under the federal securities laws.
  Use of Estimates
  The preparation of financial statements in
  conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions
  that affect the reported amounts of assets and liabilities, and the disclosure of contingent assets and liabilities at the date
  of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could
  differ from those estimates.
  Segment Reporting
  Under FASB ASC 280-10-50, the Company operates
  as a single segment and will evaluate additional segment disclosure requirements as it expands its operations.
  Fair Value of Financial Instruments
  Under FASB ASC 820-10-05, the Financial Accounting
  Standards Board establishes a framework for measuring fair value in generally accepted accounting principles and expands disclosures
  about fair value measurements. This Statement reaffirms that fair value is the relevant measurement attribute. The adoption of
  this standard did not have a material effect on the Company's financial statements as reflected herein. The carrying amounts
  of cash, accounts payable and accrued interest reported on the balance sheet are estimated by management to approximate fair value
  primarily due to the short term nature of the instruments. The Company also had debt instruments that required fair value measurement
  on a recurring basis.
  Foreign Currency Transactions
  The Company translates foreign currency transactions
  to the Company's functional currency (United States Dollar), at the exchange rate effective on the invoice date. If the exchange
  rate changes between the time of purchase and the time actual payment is made, a foreign exchange transaction gain or loss results
  which is included in determining net income for the period.
  6
  Table of Contents
  POCKET GAMES, INC.
  Notes to Condensed Financial Statements
  July 31, 2016
  (Unaudited)
  Cash and Cash Equivalents
  Cash and cash equivalents consist of cash and
  short-term highly liquid investments purchased with original maturities of three months or less. Cash and cash equivalents at July
  31, 2016 and October 31, 2015 were $13 and $24,404, respectively.
  Accounts Receivable and Allowance for Doubtful
  Accounts
  Accounts receivable may result from our product
  sales or outsourced application development services. Management must make estimates of the uncollectability of accounts receivables.
  Management specifically analyzed customer concentrations, customer credit-worthiness, current economic trends and changes in customer
  payment terms when evaluating the adequacy of the allowance for doubtful accounts.
  Loan Origination Costs
  Loan origination costs consist of legal fees
  and the associated costs of debt financing. The costs are being amortized over the life of the debt associated with each cost.
  During the nine months ended July 31, 2016, the Company recorded amortization expense of $8,277 which is included in interest expense
  on the statement of operations. As of July 31, 2016, the Company had $17,398 of unamortized loan origination costs.
  Revenue Recognition
  The Company generates revenue from three sources;
  sale of game applications, sale of advertising provided with games, and outsourced application development services. The Company
  recognizes revenue using four basic criteria that must be met before revenue can be recognized: (1) persuasive evidence of an arrangement
  exists; (2) delivery has occurred; (3) the selling price is fixed and determinable; and (4) collectability is reasonably assured,
  which is typically after receipt of payment and delivery, net of any credit card charge-backs and refunds. Determination of criteria
  (3) and (4) are based on management's judgment regarding the fixed nature of the selling prices of the products delivered
  and the collectability of those amounts. Provisions for discounts and rebates to customers, estimated returns and allowances, and
  other adjustments are provided for in the same period the related sales are recorded. The Company defers any revenue for which
  the product has not been delivered or is subject to refund until such time that the Company and the customer jointly determine
  that the product has been delivered or no refund will be required. Revenues on advertising are deferred and recognized ratably
  over the advertising period.
  Concentration of
  Revenue
  Total revenue recognized were $3,300 and $-0-
  for the nine months ended July 31, 2016 and 2015, respectively. The Company entered into a contract with a related party during
  the fiscal year ended October 31, 2015, whereby, the Company will perform testing on games and application. The revenue recognized
  as a result of this agreement is $-0- for the nine months ended July 31, 2016 and 2015, respectively.
  Advertising and Promotion
  All costs associated with advertising and promoting
  products are expensed as incurred.
  Research and Development
  Expenditures for research and product development
  costs are expensed as incurred. The Company has expensed development costs of $-0- during the nine months ended July 31, 2016 and
  2015, respectively.
  Income Taxes
  The Company recognizes deferred tax assets
  and liabilities based on differences between the financial reporting and tax basis of assets and liabilities using the enacted
  tax rates and laws that are expected to be in effect when the differences are expected to be recovered. The Company provides a
  valuation allowance for deferred tax assets for which it does not consider realization of such assets to be more likely than not.
  Basic and Diluted
  Loss Per Share
  The basic net loss per common share is computed
  by dividing the net loss by the weighted average number of common shares outstanding. Diluted net loss per common share is computed
  by dividing the net loss adjusted on an "as if converted" basis, by the weighted average number of common shares outstanding
  plus potential dilutive securities. For the periods presented, there were no outstanding potential common stock equivalents and
  therefore basic and diluted earnings per share result in the same figure.
  7
  Table of Contents
  POCKET GAMES, INC.
  Notes to Condensed Financial Statements
  July 31, 2016
  (Unaudited)
  Stock-Based Compensation
  The Company adopted FASB guidance on stock
  based compensation. Under FASB ASC 718-10-30-2, all share-based payments to employees, including grants of employee stock options,
  to be recognized in the income statement based on their fair values. Pro forma disclosure is no longer an alternative. The Company
  recognized $315,075 and $95,455 for services and compensation for the nine months ended July 31, 2016 and 2015, respectively.
  Derivative
  Liability
  The Company evaluates its convertible instruments,
  options, warrants or other contracts to determine if those contracts or embedded components of those contracts qualify as derivatives
  to be separately accounted for under ASC Topic 815, "Derivatives and Hedging." The result of this accounting treatment
  is that the fair value of the derivative is marked-to-market each balance sheet date and recorded as a liability. In the event
  that the fair value is recorded as a liability, the change in fair value is recorded in the statement of operations as other income
  (expense). Upon conversion or exercise of a derivative instrument, the instrument is marked to fair value at the conversion date
  and then that fair value is reclassified to equity. Equity instruments that are initially classified as equity that become subject
  to reclassification under ASC Topic 815 are reclassified to liabilities at the fair value of the instrument on the reclassification
  date. We analyzed the derivative financial instruments (the Convertible Note and tainted Warrant), in accordance with ASC 815.
  The objective is to provide guidance for determining whether an equity-linked financial instrument is indexed to an entity's
  own stock. This determination is needed for a scope exception which would enable a derivative instrument to be accounted for under
  the accrual method. The classification of a non-derivative instrument that falls within the scope of ASC 815-40-05 "Accounting
  for Derivative Financial Instruments Indexed to, and Potentially Settled in, a Company's Own Stock" also hinges on
  whether the instrument is indexed to an entity's own stock. A non-derivative instrument that is not indexed to an entity's
  own stock cannot be classified as equity and must be accounted for as a liability. There is a two-step approach in determining
  whether an instrument or embedded feature is indexed to an entity's own stock. First, the instrument's contingent exercise
  provisions, if any, must be evaluated, followed by an evaluation of the instrument's settlement provisions. The Company utilized
  multinomial lattice models that value the derivative liability within the notes based on a probability weighted discounted cash
  flow model. The Company utilized the fair value standard set forth by the Financial Accounting Standards Board, defined as the
  amount at which the assets (or liability) could be bought (or incurred) or sold (or settled) in a current transaction between willing
  parties, that is, other than in a forced or liquidation sale.
  Recent Accounting
  Pronouncements
  In June 2014, the Financial Accounting Standards
  Board (FASB) issued Accounting Standards Update (ASU) No. 2014-12,
  Compensation – Stock Compensation (Topic 718): Accounting
  for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service
  Period
  . The new guidance requires that share-based compensation that require a specific performance target to be achieved in
  order for employees to become eligible to vest in the awards and that could be achieved after an employee completes the requisite
  service period be treated as a performance condition. As such, the performance target should not be reflected in estimating the
  grant-date fair value of the award. Compensation costs should be recognized in the period in which it becomes probable that the
  performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite
  service has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite
  service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service
  period. The total amount of compensation cost recognized during and after the requisite service period should reflect the number
  of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The requisite service
  period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target
  is achieved. This new guidance is effective for fiscal years and interim periods within those years beginning after December 15,
  2015. Early adoption is permitted. Entities may apply the amendments in this Update either (a) prospectively to all awards granted
  or modified after the effective date or (b) retrospectively to all awards with performance targets that are outstanding as of the
  beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. The
  adoption of ASU 2014-12 is not expected to have a material impact on our financial position or results of operations.
  In June 2014, the FASB issued ASU No. 2014-10:
  Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable
  Interest Entities Guidance in Topic 810, Consolidation
  , to improve financial reporting by reducing the cost and complexity
  associated with the incremental reporting requirements of development stage entities. The amendments in this update remove all
  incremental financial reporting requirements from U.S. GAAP for development stage entities, thereby improving financial reporting
  by eliminating the cost and complexity associated with providing that information. The amendments in this Update also eliminate
  an exception provided to development stage entities in Topic 810, Consolidation, for determining whether an entity is a variable
  interest entity on the basis of the amount of investment equity that is at risk. The amendments to eliminate that exception simplify
  U.S. GAAP by reducing avoidable complexity in existing accounting literature and improve the relevance of information provided
  to financial statement users by requiring the application of the same
  8
  Table of Contents
  POCKET GAMES, INC.
  Notes to Condensed Financial Statements
  July 31, 2016
  (Unaudited)
  consolidation guidance by all reporting entities.
  The elimination of the exception may change the consolidation analysis, consolidation decision, and disclosure requirements for
  a reporting entity that has an interest in an entity in the development stage. The amendments related to the elimination of inception-to-date
  information and the other remaining disclosure requirements of Topic 915 should be applied retrospectively except for the clarification
  to Topic 275, which shall be applied prospectively. For public companies, those amendments are effective for annual reporting periods
  beginning after December 15, 2014, and interim periods therein. The Company has elected to early adopt these amendments and accordingly
  have not labeled the financial statements as those of a development stage entity and have not presented inception-to-date information
  on the respective financial statements.
  Note 2 - Going Concern
  As shown in the accompanying financial statements,
  the Company has incurred continuous losses from operations, has an accumulated deficit of $6,003,517, has a negative working capital
  of $1,215,114 and has cash on hand of $13 as of July 31, 2016, and has generated minimal revenues to date, all of which are from
  a related party. These factors raise substantial doubt about the Company's ability to continue as a going concern. Management
  is currently seeking additional sources of capital to fund short term operations through debt or equity investments, including
  loans from Officers and Directors. The Company, however, is dependent upon its ability to secure equity and/or debt financing and
  there are no assurances that the Company will be successful, therefore, without sufficient financing it would be unlikely for the
  Company to continue as a going concern.
  The financial statements do not include any
  adjustments that might result from the outcome of any uncertainty as to the Company's ability to continue as a going concern.
  The financial statements also do not include any adjustments relating to the recoverability and classification of recorded asset
  amounts, or amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going
  concern.
  Note 3 -  Fair Value of Financial Instruments
  Under FASB ASC 820-10-5, fair value is defined
  as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants
  at the measurement date (an exit price). The standard outlines a valuation framework and creates a fair value hierarchy in order
  to increase the consistency and comparability of fair value measurements and the related disclosures. Under GAAP, certain assets
  and liabilities must be measured at fair value, and FASB ASC 820-10-50 details the disclosures that are required for items measured
  at fair value.
  The Company has convertible notes that must
  be measured under the new fair value standard. The Company's financial assets and liabilities are measured using inputs from
  the three levels of the fair value hierarchy. The three levels are as follows:
  Level 1 - Inputs are unadjusted
  quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement
  date.
  Level 2 - Inputs include quoted
  prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets
  that are not active, inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates, yield
  curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means
  (market corroborated inputs).
  Level 3 - Unobservable inputs that
  reflect our assumptions about the assumptions that market participants would use in pricing the asset or liability.
  9
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  POCKET
  GAMES, INC.
  Notes to Condensed Financial Statements
  July 31, 2016
  (Unaudited)
  The following schedule summarizes the valuation
  of financial instruments at fair value on a non-recurring basis in the balance sheets as of July 31, 2016 and October 31, 2015,
  respectively:
  Fair Value Measurements at July 31, 2016
  Level 1
  Level 2
  Level 3
  Assets
  Cash
  $
  13
  $
  —
  $
  —
  Total assets
  13
  —
  —
  Liabilities
  Loans payable, related parties
  —
  36,106
  —
  Convertible debentures, net of discount of $101,534
  —
  —
  661,119
  Derivative liabilities
  —
  —
  374,356
  Total Liabilities
  —
  (36,106
  )
  (1,034,475
  )
  $
  13
  $
  (36,106
  )
  $
  (1,034,475
  )
  Fair Value Measurements at October 31, 2015
  Level 1
  Level 2
  Level 3
  Assets
  Cash
  $
  24,404
  $
  —
  $
  —
  Total assets
  24,404
  —
  —
  Liabilities
  Loans payable, related parties
  —
  14,781
  —
  Convertible debentures, net of discount of $298,497
  —
  —
  240,452
  Derivative liabilities
  —
  —
  1,369,662
  Total liabilities
  —
  (14,781
  )
  (1,610,114
  )
  $
  24,404
  $
  (14,781
  )
  $
  (1,610,114
  )
  There were no transfers of financial assets
  or liabilities between Level 1 and Level 2 inputs for the nine months ended July 31, 2016 and the year ended October 31, 2015.
  Level 2 liabilities consist of short term unsecured
  loans payable to related parties. No fair value adjustment was necessary during the nine months ended July 31, 2016 and the year
  ended October 31, 2015.
  Level 3 liabilities consist of a total of $661,119
  of convertible debentures and related derivative liability of $374,356 as of July 31, 2016. Level 3 liabilities consist of a total
  of $240,452 of convertible debentures and related derivative liability of $1,369,662 as of October 31, 2015. A discount of $101,534
  and $298,497 was recognized at July 31, 2016 and October 31, 2015, respectively.
  Note 4  - Related Party
  Transactions
  Promissory Note
  From time to time the Company received unsecured
  loans, bearing interest at 12% per annum, maturing on December 31, 2014 (in default) from one of the Company's Directors
  and Treasurer, as disclosed in Note 5.
  Stock Issuances
  On November 6, 2014, the Company issued 350,000
  shares to a related party of the Company as payment for compensation in lieu of cash. The fair value of the common stock was $29,750
  based on closing stock price of the Company's common stock on the date of grant which is the best evidence of fair value.
  On February 17, 2015, the Company issued 478,850
  shares of common stock to an officer of the Company as payment for accrued compensation in lieu of cash. The fair value of the
  common stock was $47,885 based on the closing stock price of the Company's common stock on the date of grant which is the
  best evidence of fair value.
  On June 4, 2015, the Company issued 429,000
  shares of common stock to an officer of the Company as payment for accrued compensation in lieu of cash. The fair value of the
  common stock was $19,305 based on the closing stock price of the Company's common stock on the date of grant which is the
  best evidence of fair value.
  10
  Table of Contents
  POCKET GAMES, INC.
  Notes to Condensed Financial Statements
  July 31, 2016
  (Unaudited)
  On September 9, 2015, the Company issued 300,000
  shares to employees of the Company as payment for compensation in lieu of cash. The fair value of the common stock was $50,550
  based on closing stock price of the Company's common stock on the date of grant which is the best evidence of fair value.
  On October 20, 2015, the Company issued 1,000,000
  shares to employees of the Company as payment for compensation in lieu of cash. The fair value of the common stock was $80,000
  based on closing stock price of the Company's common stock on the date of grant which is the best evidence of fair value.
  Revenues
  Total revenue recognized were $3,300 and $-0-
  for the nine months ended July 31, 2016 and 2015, respectively. The Company entered into a contract with a related party during
  the fiscal year ended October 31, 2015, whereby, the Company will perform testing on games and applications. The revenue recognized
  as a result of this agreement is $-0- for the nine months ended July 31, 2016 and 2015, respectively.
  Employment Contracts
  On October 4, 2013, the Company entered into
  two employment agreements with the two officers of the Company. Both agreements are for a term of three years and require monthly
  payments of $10,000 to each officer. Accrued compensation was $28,023 and $131,923 at July 31, 2016 and October 31, 2015, respectively.
  Rents
  The Company leases office space from a shareholder
  and consultant (the "Landlord"). The amounts due to the Landlord were $3,500 and $2,000 as of July 31, 2016 and October
  31, 2015, respectively. These amounts are included in accrued expenses, related parties on the accompanying balance sheets.
  Note 5 -  Loans Payable, Related
  Parties
  Loans payable, related parties, consists of
  the following at July 31, 2016 and October 31, 2015, respectively:
  July 31,
  October 31,
  2016
  2015
  12% unsecured promissory note, bearing interest at 12% per annum from a related party, one of the Company's Directors and Treasurer, maturing on December 31, 2014 (in default).
  $
  9,500
  $
  9,500
  Miscellaneous loans, non-interest bearing, due on demand
  26,606
  5,281
  $
  36,106
  $
  14,781
  The Company recognized interest expense of
  $1,183 and $853 during the nine months ended July 31, 2016 and 2015, respectively. No interest has been paid to date.
  11
  Table of Contents
  POCKET GAMES, INC.
  Notes to Condensed Financial Statements
  July 31, 2016
  (Unaudited)
  Note 6 -  Convertible
  Debenture
  Convertible debentures consist of the following
  at July 31, 2016 and October 31, 2015, respectively:
  July 31,
  October 31,
  2016
  2015
  Originated June 8, 2015, unsecured $53,000 convertible promissory note, which carries an 8% interest rate and matures on March 8, 2016 ("Vis Vires Note #2"). The principal and interest is convertible into shares of common stock at the discretion of the note holder at a price equal to fifty-eight percent (58%) of the average of the three lowest closing bid prices of the Company's common stock for the ten (10) trading days prior to the conversion date. In the event of default, the minimum amount due is 150% x (outstanding principal plus unpaid interest), and the debt holder is limited to owning 4.99% of the Company's issued and outstanding shares. The Company paid total debt issuance cost of $4,000 that is being amortized over the life of the loan on the straight line method, which approximates the effective interest method. (less unamortized discount of $-0- and $22,791, respectively).
  $
  —
  $
  30,209
  Originated July 22, 2015, unsecured $38,000 convertible promissory note,
      which carries an 8% interest rate and matures on April 22, 2016 ("Vis Vires Note #3"). The principal and interest
      is convertible into shares of common stock at the discretion of the note holder at a price equal to fifty-eight percent (51%)
      of the average of the three lowest closing bid prices of the Company's common stock for the thirty (30) trading days
      prior to the conversion date. In the event of default, the minimum amount due is 150% x (outstanding principal plus unpaid
      interest), and the debt holder is limited to owning 9.99% of the Company's issued and outstanding shares. The Company
      paid total debt issuance cost of $3,000 that is being amortized over the life of the loan on the straight line method, which
      approximates the effective interest method. (less unamortized discount of $-0- and $24,873, respectively).
  —
  13,127
  Originated August 17, 2015, unsecured $48,000 convertible promissory note, which carries an 8% interest rate and matures on May 20, 2016 ("Vis Vires Note #4"). The principal and interest is convertible into shares of common stock at the discretion of the note holder at a price equal to fifty-eight percent (51%) of the average of the three lowest closing bid prices of the Company's common stock for the thirty (30) trading days prior to the conversion date. In the event of default, the minimum amount due is 150% x (outstanding principal plus unpaid interest), and the debt holder is limited to owning 9.99% of the Company's issued and outstanding shares. The Company paid total debt issuance cost of $5,500 that is being amortized over the life of the loan on the straight line method, which approximates the effective interest method. (less unamortized discount of $-0- and $35,003, respectively).
  —
  12,997
  Originated May 7, 2015, unsecured $10,000 convertible promissory note, which carries an 8% interest rate and matures on February 8, 2016 ("145 Carroll Note #1"). The principal and interest is convertible into shares of common stock at the discretion of the note holder at a price equal to fifty-eight percent (58%) of the average of the three lowest closing bid prices of the Company's common stock for the ten (10) trading days prior to the conversion date. The note carries a twenty two percent (22%) interest rate in the event of default, and the debt holder is limited to owning 4.99% of the Company's issued and outstanding shares.(less unamortized discount of $-0- and $2,311, respectively).
  10,000
  7,689
  12
  Table of Contents
  POCKET GAMES, INC.
  Notes to Condensed Financial Statements
  July 31, 2016
  (Unaudited)
  Originated May 8, 2015, unsecured $110,000 convertible promissory note, which carries a 10% interest rate and matures on May 8, 2016 ("JDF Note #1"). The principal and interest is convertible into shares of common stock at the discretion of the note holder at a price equal to fifty-eight percent (58%) of the average of the three lowest closing bid prices of the Company's common stock for the ten (10) trading days prior to the conversion date. The note carries a twenty two percent (22%) interest rate in the event of default, and the debt holder is limited to owning 4.99% of the Company's issued and outstanding shares. The Company paid total debt issuance cost of $6,000 that is being amortized over the life of the loan on the straight line method, which approximates the effective interest method. (less unamortized discount due to derivative of $5,447 and $62,146, respectively).
  —
  47,854
  Originated August 26, 2015, unsecured $110,000 convertible promissory note, which carries a 10% interest rate and matures on May 8, 2016 ("JDF Note #3 – part of JDF Note #1"). The principal and interest is convertible into shares of common stock at the discretion of the note holder at a price equal to fifty-eight percent (58%) of the average of the three lowest closing bid prices of the Company's common stock for the ten (10) trading days prior to the conversion date. The note carries a twenty two percent (22%) interest rate in the event of default, and the debt holder is limited to owning 4.99% of the Company's issued and outstanding shares.
  48,400
  —
  Originated October 9, 2015, unsecured $61,600 convertible promissory note, which carries a 10% interest rate and matures on October 9, 2016 ("JDF Note #2"). The principal and interest is convertible into shares of common stock at the discretion of the note holder at a price equal to fifty-eight percent (58%) of the average of the three lowest reported sales prices of the Company's common stock for the ten (10) trading days prior to the conversion date. The note carries a twenty two percent (22%) interest rate in the event of default, and the debt holder is limited to owning 4.99% of the Company's issued and outstanding shares. The Company paid total debt issuance cost of $6,000 that is being amortized over the life of the loan on the straight line method, which approximates the effective interest method. (less unamortized discount due to derivative of $20,698 and $57,897, respectively).
  4,442
  3,703
  Originated January 5, 2016, unsecured $30,800 convertible promissory note ($8,000 received as of January 31, 2016), which carries a 8% interest rate and matures on January 5, 2017 ("JDF Note #4"). The principal and interest is convertible into shares of common stock at the discretion of the note holder at a price equal to fifty-eight percent (58%) of the average of the three lowest reported sales prices of the Company's common stock for the ten (10) trading days prior to the conversion date. The note carries a twenty two percent (22%) interest rate in the event of default, and the debt holder is limited to owning 4.99% of the Company's issued and outstanding shares. The Company paid total debt issuance cost of $3,000 that is being amortized over the life of the loan on the straight line method, which approximates the effective interest method. (less unamortized discount due to derivative of $-0- and $-0-, respectively). In conjunction with this note, the company issued 1,512,500 common stock warrants with an exercise price of $0.011 per share with a term of 5 years.
  8,000
  —
  Originated May 27, 2015, unsecured $74,500 convertible promissory note, which carries an 8% interest rate and matures on November 27, 2015 ("Minerva Note #1"). The principal and interest is convertible into shares of common stock at the discretion of the note holder at a price equal to fifty-eight percent (58%) of the average of the three lowest closing bid prices of the Company's common stock for the ten (10) trading days prior to the conversion date. The note carries a twenty two percent (22%) interest rate in the event of default, and the debt holder is limited to owning 4.99% of the Company's issued and outstanding shares. The Company paid total debt issuance cost of $4,500 that is being amortized over the life of the loan on the straight line method, which approximates the effective interest method. (less unamortized discount of $-0- and $3,563, respectively).
  74,500
  70,937
  13
  Table of Contents
  POCKET GAMES, INC.
  Notes to Condensed Financial Statements
  July 31, 2016
  (Unaudited)
  Originated June 29, 2015, unsecured $10,000 convertible promissory note, which carries an 8% interest rate and matures on February 28, 2016 ("Minerva Note #2"). The principal and interest is convertible into shares of common stock at the discretion of the note holder at a price equal to fifty-eight percent (58%) of the average of the three lowest closing bid prices of the Company's common stock for the ten (10) trading days prior to the conversion date. The note carries a twenty two percent (22%) interest rate in the event of default, and the debt holder is limited to owning 4.99% of the Company's issued and outstanding shares. (less unamortized discount due to derivative of $408 and $2,974, respectively).
  9,592
  7,026
  Originated July 9, 2015, unsecured $53,000 convertible promissory note, which carries a 10% interest rate and matures on July 9, 2016 ("First Essex Note"). The principal and interest is convertible into shares of common stock at the discretion of the note holder at a price equal to fifty-eight percent (58%) of the lowest closing price of the Company's common stock for the ten (10) trading days prior to the conversion date. The Company paid total debt issuance cost of $3,000 that is being amortized over the life of the loan on the straight line method, which approximates the effective interest method. (less unamortized discount due to derivative of $-0- and $17,160, respectively).
  —
  35,840
  Originated August 4, 2015 unsecured $20,350 convertible promissory note,
      which carries an 8% interest rate and matures on August 6, 2016 ("First Abramowitz Note"). The principal and
      interest is convertible into shares of common stock at the discretion of the note holder at a price equal to fifty-eight
      percent (58%) of the average of the (3) lowest closing prices of the Company's common stock, or $0.00005 per share, for
      the ten (10) trading days prior to the conversion date. The Company paid total debt issuance cost of $2,000 that is being
      amortized over the life of the loan on the straight line method, which approximates the effective interest method. (less
      unamortized discount due to derivative of $3,933 and $15,457, respectively).  In conjunction with this note, the
      company issued 203,500 common stock warrants with an exercise price of $0.011 per share with a term of 5 years.
  16,394
  4,893
  Originated September 10, 2015, unsecured $30,250 convertible promissory
      note, which carries an 8% interest rate and matures on September 10, 2016 ("Vigere Capital Note #1"). The
      principal and interest is convertible into shares of common stock at the discretion of the note holder at a price equal to
      fifty-eight percent (58%) of the average of the (3) lowest closing prices of the Company's common stock for the ten
      (10) trading days prior to the conversion date. The Company paid total debt issuance cost of $2,500 that is being amortized
      over the life of the loan on the straight line method, which approximates the effective interest method. (less unamortized
      discount due to derivative of $8,625 and $26,035, respectively).  In conjunction with this note, the company issued
      298,029 common stock warrants (see note 7) with an exercise price of $0.11165 per share with a term of 5 years.
  21,316
  4,215
  Originated October 15, 2015, unsecured $30,250 convertible promissory
      note, which carries an 8% interest rate and matures on October 15, 2016 ("Vigere Capital Note #2"). The principal
      and interest is convertible into shares of common stock at the discretion of the note holder at a price equal to fifty-eight
      percent (58%) of the average of the (3) lowest closing prices of the Company's common stock for the ten (10) trading
      days prior to the conversion date. The Company paid total debt issuance cost of $2,500 that is being amortized over the life
      of the loan on the straight line method, which approximates the effective interest method. (less unamortized discount due to
      derivative of $11,588 and $28,298, respectively).  In conjunction with this note, the company issued 263,043 common
      stock warrants (see note 7) with an exercise price of $0.1265 per share with a term of 5 years.
  18,090
  1,962
  14
  Table of Contents
  POCKET GAMES, INC.
  Notes to Condensed Financial Statements
  July 31, 2016
  (Unaudited)
  Originated February 8, 2016, unsecured $17,000 convertible promissory note, which carries a 10% interest rate and matures on February 8, 2017 ("Essex Global Note #2"). The principal and interest is convertible into shares of common stock at the discretion of the note holder at a price equal to forty-two percent (42%) of the lowest closing price of the Company's common stock for the ten (10) trading days prior to the conversion date.
  17,000
  —
  Originated February 8, 2016, unsecured $7,000 convertible promissory note, which carries a 10% interest rate and matures on February 8, 2017 ("Grant Note #1"). The principal and interest is convertible into shares of common stock at the discretion of the note holder at a price equal to forty-two percent (42%) of the lowest closing price of the Company's common stock for the ten (10) trading days prior to the conversion date.
  7,000
  —
  Originated February 8, 2016, unsecured $17,000 convertible promissory note, which carries a 10% interest rate and matures on February 8, 2017 ("Minerva Note #3"). The principal and interest is convertible into shares of common stock at the discretion of the note holder at a price equal to forty-two percent (42%) of the lowest closing bid prices of the Company's common stock for the ten (10) trading days prior to the conversion date. The note carries a twenty two percent (22%) interest rate in the event of default, and the debt holder is limited to owning 4.99% of the Company's issued and outstanding shares.
  17,000
  —
  Originated February 9, 2016, unsecured $143,995 convertible promissory note, which carries an 8% interest rate and is due on demand ("Polatoff Note #1"). The principal and interest is convertible into shares of common stock at the discretion of the note holder at a price equal to forty-two percent (42%) of the lowest closing bid prices of the Company's common stock for the ten (10) trading days prior to the conversion date. The note carries a twenty two percent (22%) interest rate in the event of default, and the debt holder is limited to owning 4.99% of the Company's issued and outstanding shares.
  143,995
  —
  Originated February 12, 2016, unsecured $130,007 convertible promissory note, which carries an 5% interest rate and matures on August 12, 2016 ("Crown Bridge Note #2"). The principal and interest is convertible into shares of common stock at the discretion of the note holder at a price equal to fifty-one percent (51%) of the lowest trading price of the Company's common stock for the twenty (20) trading days prior to the conversion date. The note carries a twenty two percent (22%) interest rate in the event of default, and the debt holder is limited to owning 4.99% of the Company's issued and outstanding shares.
  69,342
  —
  Originated February 18, 2016, unsecured $26,500 convertible promissory note, which carries an 8% interest rate and matures on February 18, 2017 ("Crown Bridge Note #1"). The principal and interest is convertible into shares of common stock at the discretion of the note holder at a price equal to fifty-one percent (51%) of the lowest trading price of the Company's common stock for the twenty (20) trading days prior to the conversion date. The note carries a twenty two percent (22%) interest rate in the event of default, and the debt holder is limited to owning 4.99% of the Company's issued and outstanding shares. (less unamortized discount due to derivative of $754 and $-0-, respectively).
  25,746
  —
  Originated March 24, 2016, unsecured $60,500 convertible promissory note, which carries an 8% interest rate and matures on March 24, 2017 ("Vigere Capital Note #3"). The principal and interest is convertible into shares of common stock at the discretion of the note holder at a price equal to fifty-eight percent (58%) of the average of the (3) lowest closing prices of the Company's common stock for the ten (10) trading days prior to the conversion date. (less unamortized discount due to derivative of $32,318 and $-0-, respectively).
  28,182
  —
  Originated March 17, 2016, unsecured $66,550 convertible promissory note, which carries an 8% interest rate and matures on March 17, 2017 ("Vigere Capital Note #5"). The principal and interest is convertible into shares of common stock at the discretion of the note holder at a price equal to fifty-eight percent (58%) of the average of the (3) lowest closing prices of the Company's common stock for the ten (10) trading days prior to the conversion date.
  45,655
  —
  15
  Table of Contents
  POCKET GAMES, INC.
  Notes to Condensed Financial Statements
  July 31, 2016
  (Unaudited)
  Originated May 4, 2016, unsecured $30,000 convertible promissory note, which carries a 10% interest rate and matures on May 4, 2017 ("Essex Note #3"). The principal and interest is convertible into shares of common stock at the discretion of the note holder at a price equal to fifty-eight percent (58%) of the lowest closing price of the Company's common stock for the ten (10) trading days prior to the conversion date. (less unamortized discount due to derivative of $3,366 and $-0-, respectively).
  26,634
  —
  Originated May 19, 2016, unsecured $55,000 convertible promissory note, which carries a 10% interest rate and matures on May 19, 2017 ("JDF Note #5"). The principal and interest is convertible into shares of common stock at the discretion of the note holder at a price equal to sixty percent (60%) of the lowest reported sale price of the Company's common stock for the twenty (20) trading days prior to the conversion date. The note carries a fifteen percent (15%) interest rate in the event of default, and the debt holder is limited to owning 4.99% of the Company's issued and outstanding shares. The Company paid total debt issuance cost of $6,000 that is being amortized over the life of the loan on the straight line method, which approximates the effective interest method. (less unamortized discount due to derivative of $3,740 and $-0-, respectively).
  51,260
  —
  Originated June 13, 2016, unsecured $11,100 convertible promissory note, which carries a 10% interest rate and matures on June 13, 2017 ("Grant Note #2"). The principal and interest is convertible into shares of common stock at the discretion of the note holder at a price equal to forty-two percent (42%) of the lowest closing price of the Company's common stock for the ten (10) trading days prior to the conversion date.
  11,100
  —
  Originated June 24, 2016, unsecured $27,500 convertible promissory note, which carries a 12.5% interest rate and matures on June 24, 2017 ("Essex Note #5"). The principal and interest is convertible into shares of common stock at the discretion of the note holder at a price equal to fifty-eight percent (58%) of the lowest closing price of the Company's common stock for the ten (10) trading days prior to the conversion date. (less unamortized discount due to derivative of $4,114 and $-0-, respectively).
  23,386
  —
  Originated June 30, 2016, unsecured $11,500 convertible promissory note, which carries an 8% interest rate and matures on June 30, 2017 ("Crown Bridge Note #3"). The principal and interest is convertible into shares of common stock at the discretion of the note holder at a price equal to fifty-one percent (51%) of the lowest trading price of the Company's common stock for the twenty (20) trading days prior to the conversion date. The note carries a twenty two percent (22%) interest rate in the event of default, and the debt holder is limited to owning 4.99% of the Company's issued and outstanding shares. (less unamortized discount due to derivative of $1,122 and $-0-, respectively).
  10,378
  —
  Convertible debenture, net
  661,119
  240,452
  Less: current maturities of convertible debenture, net
  (661,119
  )
  (240,452
  )
  Long term convertible debenture
  $
  —
  $
  —
  The Company recognized interest expense in
  the amount of $36,188 and $9,721 for the nine months ended July 31, 2016 and 2015, respectively, related to the convertible debentures
  above.
  In addition, a total of $62,000 of debt issuance cost were incurred
  pursuant to the closings of the convertible debentures which are being amortized to interest expense over the term of the debentures
  using the straight line method, which approximate the effective interest method. The Company recorded a total of $24,371 of interest
  expense pursuant to the amortization of the issuance cost during the nine months ended July 31, 2016.
  In accordance with
  ASC 815-15, the Company determined that the variable conversion features and shares to be issued represented derivative features,
  and these are shown as derivative liabilities on the balance sheet. The Company calculated the fair value of the compound embedded
  derivative associated with the convertible debentures utilizing a lattice model.
  16
  Table of Contents
  POCKET GAMES, INC.
  Notes to Condensed Financial Statements
  July 31, 2016
  (Unaudited)
  The aforementioned accounting treatment resulted
  in a total debt discount equal to $101,534 as of July 31, 2016 and $298,497 for the year ended October 31, 2015. The discount is
  amortized on a straight line basis, which approximated the effective interest method due to the short term duration of the note,
  from the dates of issuance until the stated redemption date of the debts, as noted above. During the nine months ended July 31,
  2016 and 2015, the Company recorded debt amortization expense in the amount of $351,558 and $166,487, respectively, attributed
  to the aforementioned debt discount.
  During the nine months
  ended July 31, 2016, the Company converted accrued compensation of $143,995 and warrants of $66,550 into convertible debentures.
  During the nine months
  ended July 31, 2016, a total of $245,532 of debt and accrued interest was converted into 593,961,718 shares of the Company's
  common stock. As a result, a loss of $160,285 was recognized.
  Note 7
  - Derivative Liability
  As discussed in Note 6 under Convertible Debentures,
  the Company issued convertible notes payable that provide for the issuance of convertible notes with variable conversion provisions.
  The conversion terms of the convertible notes are variable based on certain factors, such as the future price of the Company's
  common stock. The number of shares of common stock to be issued is based on the future price of the Company's common stock.
  The number of shares of common stock issuable upon conversion of the promissory note is indeterminate. Due to the fact that the
  number of shares of common stock issuable could exceed the Company's authorized share limit, the equity environment is tainted
  and all additional convertible debentures and warrants are included in the value of the derivative. Pursuant to ASC 815-15 Embedded
  Derivatives, the fair values of the variable conversion option and warrants and shares to be issued were recorded as derivative
  liabilities on the issuance date.
  The fair values of the Company's derivative
  liabilities were estimated at the issuance date and are revalued at each subsequent reporting date, using a lattice model. The
  Company recognized current derivative liabilities of $374,356 and $1,369,662 at July 31, 2016 and October 31, 2015, respectively.
  The change in fair value of the derivative liabilities resulted in a gain of $1,239,931 and a loss of $763,148 for the nine months
  ended July 31, 2016 and 2015, respectively, which has been reported as other income in the statements of operations.
  The following presents the derivative liability
  value at July 31, 2016 and October 31, 2015, respectively:
  July 31,
  October 31,
  2016
  2015
  Convertible notes
  $
  225,877
  $
  751,505
  Warrants
  148,479
  618,157
  $
  374,356
  $
  1,369,662
  The following is a summary of changes in the fair market value of
  the derivative liability during the nine months ended July 31, 2016:
  Derivative
  Liability
  Total
  Balance, October 31, 2015
  $
  1,369,662
  Increase in derivative value due to issuances of convertible promissory notes
  154,595
  Increase in derivative value due to issuances of Warrant
  333,896
  Decrease due to debt conversion
  (243,866
  )
  Change in fair market value of derivative liabilities due to the mark to market adjustment
  (1,239,931
  )
  Balance, July 31, 2016
  $
  374,356
  17
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  POCKET GAMES, INC.
  Notes to Condensed Financial Statements
  July 31, 2016
  (Unaudited)
  Key inputs and assumptions
  used to value the convertible debentures and warrants issued during the year ended October 31, 2015:
  Convertible notes derivatives:
  ·
  The stock price would fluctuate with the Company projected volatility. The stock price increased
  in this period ending 10/31/15 from $0.025 to $0.16.
  ·
  The projected volatility curve from an annualized analysis for each valuation period was based
  on the historical volatility of the Company and the term remaining for each note.
  ·
  The derivative Investor Convertible Notes convert after 90-180 days at the lessor of 51% or 58%
  of the average 3 lows in 10 or 30 trading days or the fixed exercise price set at issuance subject to full ratchet reset provisions;
  ·
  Capital raising events are a factor for this Notes full reset provisions.
  ·
  An event of default at 15% - 24% interest rate would occur 0% of the time, increasing 1.00%per
  month to a maximum of 10% with a 150% penalty;
  ·
  The company would redeem the notes (with a 120% – 135% – 145% penalty) projected
                                                                                                               initially at 0% of the time and increase monthly by 10.0% to a maximum of 50.0% (from alternative financing being available
                                                                                                               for a Redemption event to occur);and
  ·
  The Holder would automatically convert the note at the maximum of 2 times the conversion price
  or the stock price if the registration was effective (assumed after 180 days) and the Company was not in default with the target
  conversion price dropping as maturity approaches.
  Warrant derivatives:
  ·
  The Warrants exercise prices are fixed and subject to full ratchet reset provisions;
  ·
  The stock price would fluctuate with the Company projected volatility. The stock price increased
  in this period ending 10/31/15 from
  $
  0.025 to $0.16.
  The projected volatility curve from
  an annualized analysis for each valuation period was based on the historical volatility of the Company and the term remaining for
  each note:
  ·
  The Holder would exercise the Warrant as they become exercisable (effective registration is projected 90 days from issuance
  and the earliest exercise is projected 180 days from issuance) at target prices of 2 times the higher of the projected reset price
  or stock price.
  ·
  Capital raising events (a single financing at 6 months from the issuance date) are a factor for
  these Warrants – full reset events projected to occur based on future stock issuance (quarterly) resulting in a reset exercise
  price.
  ·
  No Warrants expired nor reset nor exercised in this period ending 10/31/15.
  Key inputs and assumptions used to value the
  convertible debentures and warrants issued during the nine months ended July 31, 2016:
  Convertible notes derivatives:
  ·
  The stock price of $0.10 - $0.0056 would fluctuate with the Company projected volatility
  ·
  The derivative Investor Convertible Notes convert after 90 – 180 days at the lessor of 51% or 58% of the average 3 lows
  in 10 or 30 trading days or the fixed exercise price set at issuance subject to full ratchet reset provisions.
  ·
  Capital raising events are a factor for this Note full reset provisions.
  ·
  An event of default at 15% - 24% interest rate would occur 0% of the time, increasing 1.00% per month to a maximum of 10% with
  a 150% penalty.
  ·
  The projected volatility curve from annualized analysis for each valuation period was based on the historical volatility (171%
  - 366%) of the Company and the term for each note.
  ·
  The company would redeem the notes (with a 120% – 135% – 145% penalty) projected
                                                                                                               initially at 0% of the time and increase monthly by 10.0% to a maximum of 50.0% (from alternative financing being available
                                                                                                               for a Redemption event to occur);and
  ·
  The Holder would automatically convert the note at the maximum of 2 times the conversion price
  or the stock price if the registration was effective (assumed after 180 days) and the Company was not in default with the target
  conversion price dropping as maturity approaches.
  18
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  POCKET GAMES, INC.
  Notes to Condensed Financial Statements
  July 31, 2016
  (Unaudited)
  Warrant derivatives:
  ·
  The stock price would fluctuate with the Company projected volatility. The stock price increased
  in this period ending 10/31/15 from
  $
  0.10 to $0.0056.
  ·
  The projected volatility curve from an annualized analysis for each valuation period was based
  on the historical volatility (171% - 366%) of the Company and the term remaining for each note
  ·
  The Holder would exercise the Warrant as they become exercisable (effective registration is projected 90 days from issuance
  and the earliest exercise is projected 180 days from issuance) at target prices of 2 times the higher of the projected reset price
  or stock price.
  ·
  Capital raising events (a single financing at 6 months from the issuance date) are a factor for
  these Warrants – full reset events projected to occur based on future stock issuance (quarterly) resulting in a reset exercise
  price.
  ·
  The Warrants with the fixed exercise prices subject to full ratchet reset provisions.
  ·
  No Warrants expired nor exercised in this period ending 7/31/16.
  Note 8 -  Changes in
  Stockholders' Equity (Deficit)
  Authorized Shares, Common Stock
  The Company is authorized to issue 50,000,000,000
  shares of $0.0001 par value common stock. As of July 31, 2016, there were 647,701,647 shares issued and outstanding.
  Authorized Shares, Preferred Stock
  The Company is also authorized to issue
  1,000,000,000 shares of its preferred stock. On April 25, 2014, the Company designated (the "Designation") a series
  of our preferred stock as Series A Preferred Stock, ("Series A Preferred Stock") and issued 1,000 shares of the Series
  A Preferred Stock to its chief executive officer and sole director.
  As a result of the Designation:
  ·
  The Company is authorized to issue 1,000 shares of Series A Preferred Stock;
  ·
  Holders of the A Preferred Stock will not be entitled to receive dividends;
  ·
  The holders of the Series A Preferred Stock then outstanding shall not be entitled to receive any
  distribution of Company assets;
  ·
  The Series A Preferred Stock will not be convertible into shares of the Company's common
  stock.
  ·
  The holders of the Series A Preferred Stock shall have the following voting rights:
  (i)
  To vote together with the holders of the Common Stock as a single class on all matter submitted
  for a vote of holders of Common Stock;
  (ii)
  Each one (1) share of Series A Preferred Stock shall have voting rights equal to 50,000 shares
  of our Common Stock, providing for the holder of the Series A Preferred Stock to have aggregate voting rights equal to 50,000,000
  shares of our Common Stock;
  (iii)
  The holder of the Series A Preferred Stock shall be entitled to receive notice of any stockholders'
  meeting in accordance with the Articles of Incorporation and By-laws of the Company.
  (iv)
  So long as any shares of Series A Preferred Stock remain outstanding, we will not, without the
  written consent or affirmative vote of the holders of 100% of the outstanding shares of the Series A Preferred Stock, (i) amend,
  alter, waive or repeal, whether by merger consolidation, combination, reclassification or otherwise, the Articles of Incorporation,
  including this Certificate of Designation, or our By-laws or any provisions thereof (including the adoption of a new provision
  thereof), (ii) create, authorize or issue any class, series or shares of Preferred Stock or any other class of capital stock. The
  vote of the holders of at least one-hundred percent of the outstanding Series A Stock, voting separately as one class, shall be
  necessary to adopt any alteration, amendment or repeal of any provisions of this Resolution, in addition to any other vote of stockholders
  required by law.
  Common Stock Issuances, for the Period Ending
  October 31, 2015
  During the year ended October 31, 2015, the
  Company issued 4,295,000 shares of common stock for consulting services. The fair value of the common stock was $471,232 based
  on the market price of the Company's common stock on the date of grant.
  During the year ended October 31, 2015, the Company issued 907,850
  shares of common stock for payment of accrued compensation to the president of the Company. The fair value of the common stock
  was $67,190 based on the market price of the Company's common stock on the date of grant.
  19
  Table of Contents
  POCKET GAMES, INC.
  Notes to Condensed Financial Statements
  July 31, 2016
  (Unaudited)
  During the year ended October 31, 2015, the
  Company issued 1,230,000 shares of common stock for cash in the amount of $12,300.
  During the year ended October 31, 2015, the
  Company issued 2,211,679 shares of common stock for the conversion of convertible notes payable in the amount of $50,168. As the
  conversions were within the terms of the agreement, no additional gain or loss on the conversion has been recognized.
  Stock Options, for the Period Ending October
  31, 2015
  During the year ended October 31, 2015, the
  Company issued 500,000 stock options to a service provider and exercisable over a 4 year term expiring on April 28, 2019. The values
  of the options were estimated using a Black-Scholes option pricing model equal to $16,614. The key inputs to the model were the
  number of options500,000, share price on the grant date of $0.04, exercise price of $0.20, terms of 4 years, volatility of 211%
  and a discount rate of 0.43%.As the shares are fully vested on the date of agreement, the value of the options of $16,614 was fully
  expensed on the date of grant.
  The following table summarizes the changes in options outstanding
  as of October 31, 2015 and July 31, 2016:
  Number of Shares
  Weighted Average Exercise Price
  Outstanding as of October 31, 2015
  500,000
  $
  0.20
  Granted
  —
  —
  Exercised
  —
  —
  Cancelled
  —
  —
  Outstanding at July 31, 2016
  500,000
  $
  0.20
  Common Stock Warrants, for the Period Ending
  October 31, 2015
  The Company issued 6,846,394 warrants on May
  8, 2015 with an exercise price of $0.0140 per share and a term of 5 years in conjunction with the convertible debt issuance. The
  exercised price of the warrants is updated to the lowest offering price of common stock based on subsequent equity sales. As such,
  the number of share of common stock issuable upon exercise of the warrants is indeterminate. Pursuant to ASC 815-15 Embedded Derivatives,
  the fair values of the warrants and shares to be exercised were recorded as derivative liabilities on the issuance date.
  On August 4, 2015, the Company issued warrants
  of 203,500 with an exercise price of $0.011 per share and a term of 5 years in conjunction with the convertible debt issuance.
  The exercised price of the warrants is updated to the lowest offering price of common stock based on subsequent equity sales. As
  such, the number of share of common stock issuable upon exercise of the warrants is indeterminate. Pursuant to ASC 815-15 Embedded
  Derivatives, the fair values of the warrants and shares to be exercised were recorded as derivative liabilities on the issuance
  date.
  On August 17, 2015, the Company issued warrants
  of 486,662 with an exercise price of $0.0580 per share and a term of 5 years in conjunction with the convertible debt issuance.
  The exercised price of the warrants is updated to the lowest offering price of common stock based on subsequent equity sales. As
  such, the number of share of common stock issuable upon exercise of the warrants is indeterminate. Pursuant to ASC 815-15 Embedded
  Derivatives, the fair values of the warrants and shares to be exercised were recorded as derivative liabilities on the issuance
  date.
  On September 10, 2015, the Company issued warrants
  of 573,706 with an exercise price of $0.0580per share and a term of 5 years in conjunction with the convertible debt issuance.
  The exercised price of the warrants is updated to the lowest offering price of common stock based on subsequent equity sales. As
  such, the number of share of common stock issuable upon exercise of the warrants is indeterminate. Pursuant to ASC 815-15 Embedded
  Derivatives, the fair values of the warrants and shares to be exercised were recorded as derivative liabilities on the issuance
  date.
  On October 9, 2015, the Company issued warrants
  of 560,000 with an exercise price of $0.011 per share and a term of 5 years in conjunction with the convertible debt issuance.
  The exercised price of the warrants is updated to the lowest offering price of common stock based on subsequent equity sales. As
  such, the number of share of common stock issuable upon exercise of the warrants is indeterminate. Pursuant to ASC 815-15 Embedded
  Derivatives, the fair values of the warrants and shares to be exercised were recorded as derivative liabilities on the issuance
  date.
  20
  Table of Contents
  POCKET GAMES, INC.
  Notes to Condensed Financial Statements
  July 31, 2016
  (Unaudited)
  On October 15, 2015, the Company issued warrants
  of 573,706 with an exercise price of $0.0580per share and a term of 5 years in conjunction with the convertible debt issuance.
  The exercised price of the warrants is updated to the lowest offering price of common stock based on subsequent equity sales. As
  such, the number of share of common stock issuable upon exercise of the warrants is indeterminate. Pursuant to ASC 815-15 Embedded
  Derivatives, the fair values of the warrants and shares to be exercised were recorded as derivative liabilities on the issuance
  date.
  Common Stock Warrants, for the Period Ending July 31, 2016
  On January 5, 2016, the Company issued warrants
  of 1,512,500 with an exercise price of $0.0110 per share and a term of years in conjunction with the convertible debt issuance.
  The exercised price of the warrants is updated to the lowest offering price of common stock based on subsequent equity sales. As
  such, the number of share of common stock issuable upon exercise of the warrants is indeterminate. Pursuant to ASC 815-15 Embedded
  Derivatives, the fair values of the warrants and shares to be exercised were recorded as derivative liabilities on the issuance
  date.
  The following table summarizes the changes in warrants outstanding
  as of October 31, 2015 and July 31, 2016:
  Number of Shares
  Weighted Average Exercise Price
  Outstanding as of October 31, 2015
  9,243,968
  $
  0.019
  Granted
  4,663,270,612
  0.002
  Exercised
  —
  —
  Cancelled
  —
  —
  Outstanding at July 31, 2016
  4,672,514,580
  $
  0.021
  Due to the shares issued during the nine months
  ended July 31, 2016 on debt conversion, a warrant reset feature occurred on May 19, 2016, resulting in the increase of warrants
  issued and valued.
  Subscriptions Payable, for the Period Ending
  October 31, 2015
  On November 6, 2014, the Company issued 155,400
  shares of common stock pursuant to an agreement with a consultant which had previously been recorded as Subscriptions Payable in
  the amount of $10,878 in the accompanying balance sheet at October 31, 2014.
  Settlement of convertible debt, for the
  Period Ending October 31, 2015
  During the period, the Company repaid back
  convertible debt in the amount of $134,000 and converted $50,168 of debt for 2,211,679 shares of the common stock. As a result
  of such conversion and repayment, the Company reduced its derivative liability by $66,913.
  Debt Discount, for the Period Ending October
  31, 2015
  During the period, the Company issued convertible
  promissory note with a variable conversion price; as a result, the Company recorded $180,959 in discount and amortized the balance
  over the life of the notes.(see Note 6 and Note 7).
  Common Stock Issuances, for the Period Ending
  July 31, 2016
  During the nine months ended July 31, 2016,
  the Company granted 29,900,000 and issued 29,400,000 shares of common stock for consulting services. The fair value of the common
  stock issued was $313,375 based on the market price of the Company's common stock on the date of grant. The 500,000 shares
  authorized but not issued is recorded as $1,500 (based on the market value on the date of grant) stock payable as of July 31, 2016.
  Settlement of convertible debt, for the
  Period Ending July 31, 2016
  During the nine months ended July 31, 2016,
  the Company converted $245,532 of debt for 593,961,718 shares of common stock. Due to excess share issuance, the Company recognized
  a loss on conversion of $160,285; the excess shares were valued based on fair market value on the date of conversion.
  21
  Table of Contents
  POCKET GAMES, INC.
  Notes to Condensed Financial Statements
  July 31, 2016
  (Unaudited)
  Note 9  - Subsidiaries
  As disclosed in our Form 8-K filed with the
  Securities and Exchange Commission, we issued a total of 400,000 shares of our Series B Convertible Preferred Stock in connection
  with our acquisition of 80% of the Class A common stock and 100% of the Class B common stock of Social Technology Holdings, Inc.
  ("STH"), and reserved an additional 80,000 shares of our Class B voting Convertible Preferred Stock for issuance in
  a contemplated merger transaction to acquire the 20% minority interest in the STH Class A common stock. STH is the owner and operator
  of "Viximo", a software platform that allows game providers to access multiple websites from a single source API."
  As disclosed in our Form 8-K filed with the
  Securities and Exchange Commission, we issued a total of 270,000 shares of our Series C Convertible Preferred Stock and a $3,960,000
  convertible note due March 31, 2019 in connection with our acquisition of 100% of the outstanding common stock of Kicksend Holdings,
  Inc., a Delaware corporation ("Kicksend"). Kicksend is engaged in the business of file storage and sharing in real-time
  on digital platforms, including desktop, mobile and webapps, to permit users to organize, download and sent storage files.
  Under the terms of these acquisitions, the
  Company was to receive full financial disclosure  in order to maintain its 'fully reporting' status with the SEC.
  Subsequent to the closing, neither acquisition target was able to provide full financial disclosure and Pocket Games' attorney
  opined that this was a material breach of the contracts and the acquisitions described above were unwound. This resulted in the
  unwinding, return, and cancellation of all items related to the acquisitions. The total net effect of this transaction resulted
  in $219,951 worth of investing activity, as seen on the Company's statement of cash flows for the quarter ended July 31,
  2016. There was no gain or loss associated with these transactions.
  Note 10  - Commitments and
  Contingencies
  Intellectual Property Purchase Agreement
  On February 12, 2014, the Company entered into
  an Intellectual Property Purchase Agreement, whereby the Company purchased from the seller a certain software game application.
  Subject to the terms and conditions of this Agreement, the Company issued to the seller 1,500,000 shares of common shares. Additionally,
  the Company agreed to pay to the Seller the cost for development and modification of $40,000, of which $20,000 was paid during
  the year ended October 31, 2014. The remaining balance of $20,000 shall be paid as the work passes through quality control.
  Note 11  - Subsequent Events
  Subsequent to July
  31, 2016, the Company issued a total of 7,219,203,875 shares of common stock all for the conversion of debt and accrued interest.
  22
  Table of Contents
  ITEM 2. MANAGEMENT'S DISCUSSION AND
  ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
  The following discussion contains forward-looking
  statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934
  relating to future events or our future performance. Actual results may materially differ from those projected in the forward-looking
  statements as a result of certain risks and uncertainties set forth in this prospectus. Although management believes that the assumptions
  made and expectations reflected in the forward-looking statements are reasonable, there is no assurance that the underlying assumptions
  will, in fact, prove to be correct or that actual results will not be different from expectations expressed in this report.
  Overview
  We were incorporated in the State of Florida
  on October 4, 2013, to engage in the development and distribution of mobile games. We have generated only minimal revenues from
  business operations from a related party. Our independent registered public accounting firm has issued a going concern opinion.
  This means there is substantial doubt that we can continue as an on-going business unless we obtain additional capital to pay our
  ongoing operational costs. Accordingly, we must locate sources of capital to pay our operational costs.
  From our inception on October 4, 2013 through
  July 31, 2015, our business operations have primarily been focused on developing our business plan, developing the features of
  our first mobile game products, and developing a game for DNA Interactive Games Limited ("DNAIG"), a related party.
  During the year ended October 31, 2014, we
  ceased all developmental activities related to Pocket Football and do not anticipate completion of the Pocket Games product. We
  directed our efforts to the development of the Idol Hands game under the terms of our March 17, 2014, agreement with Fluid Games
  Limited ("FGL"), a company formed under the laws of the United Kingdom. During the period ending April 30, 2014, we
  redesigned the Idol Hand's camera operated control system and the menu system control in order to allow the user to control the
  game via an ordinary Keyboard and Mouse, rather than having to buy additional equipment from a third party. During March 2014,
  we tested the game and newly developed control system. In April 2014, the voice over work for the game was recalibrated and recorded.
  These modifications were needed to convert the tutorial voiceover of the hand movements from the 'camera control system'
  to the newly implemented 'Keyboard and Mouse' system.
  We completed 100% of the development of the
  Idol Hands game on September 1, 2014 and are currently undergoing quality assurance testing. We are in negotiations with online
  digital download retailers for distribution of the Idol Hands game including Stream, Amazon and Game. There is no assurance we
  will be successful in securing agreements with these retailers to distribute the Idol Hands game.
  Idol Hands will initially be sold exclusively
  as a 'Digital Download' for the PC platform through various online stores who will process the purchases from their
  site and pay us between 60 and 75 the purchase price. Purchasers of the game will pay a fee to download the product and own the
  title.
  Should we receive $350,000 of sales from the
  sale of the Idol Hands game, we plan to develop applications for iPad and iPhone as well as various Android tablets and phones.
  We plan to interview marketing companies to assist us with the marketing of the Idol Hands game and continue negotiations with
  online digital download retailers to potentially sell the game.
  Third Party Development
  On October 22, 2013, we entered into an agreement
  with DNA Interactive Games Limited (the "DNA Agreement"), a company formed under the laws of the United Kingdom ("DNAIG"),
  which is controlled by our Chief Executive Officer, David Lovatt, to develop a game known as SH3G for iPad and the Android tablet
  platforms. Through the DNA Agreement, as amended, DNAIG agreed to pay us an aggregate fee of approximately $59,500 as we meet certain
  milestones, as outlined in the chart below. Through July 31, 2014, we have received $45,540. As set forth in the chart below, we
  received or expect to receive the following payments from DNAIG as we meet the milestones:
  23
  Table of Contents
  Milestone
  Amount Paid
  Milestone Date
  Status of Milestone
  Submission of Military Campaign to Apple
  $3,000 Paid
  May 19, 2014
  100%
  Submission of improved User Interface & game balancing
  $6,490 Paid
  May 19, 2014
  100%
  Submission of DLC, Wolfpack content cleared for submission to Apple by QA
  $3,000
  June 13
  th
  2014
  98%
  Android Build Submission
  $14,000
  October 1, 2014
  65%
  Through July 31, 2014, we paid $35,178 to FGL
  to assist us with the development of SH3G.
  Meeting the milestones above is dependent upon
  us raising sufficient capital through placement of our common stock or issuance of debt securities. We have not located investors
  to provide us with the capital required to meet these milestones and we may not be successful in locating investors to provide
  us with capital. If we are unable to obtain financing, we will not meet the milestones above and may have to suspend or cease operations.
  From inception on October 4, 2013, through
  July 31, 2016, we incurred an accumulated deficit of $6,003,517, including development costs, professional fees, general and administrative
  fees and interest expense. We have funded our operation through our revenue and through the sale of common stock to our two officers,
  and 35 non-affiliated investors.
  As of July 31, 2016, we had cash on hand of
  $13 which is not sufficient to pay for our operating costs. If we are unable to generate sufficient revenues or raise additional
  monies to fund our operations we will be unable to complete development of our products and may be forced to cease operations.
  We have generated minimal revenues from our
  operations. We cannot guarantee we will be successful in our business operations. Our business is subject to risks inherent in
  the establishment of a new business enterprise, including the financial risks associated with the limited capital resources currently
  available to us for the implementation of our business strategies. To become profitable and competitive, we must develop the business
  plan and execute the plan. Our management will attempt to secure financing through various means including borrowing and investment
  from institutions and private individuals.
  Since inception, the majority of our time has
  been spent on organizational matters and development of our first mobile game product, Pocket Football.
  RESULTS OF OPERATIONS FOR THE THREE AND NINE MONTHS ENDED JULY
  31, 2016 AND 2015:
  Revenues:
  Total revenue recognized were $102 and $-0-
  for the three months ended July 31, 2016 and 2015, respectively. Total revenue recognized were $3,300 and $-0- for the nine months
  ended July 31, 2016 and 2015, respectively. The Company entered into a contract with a related party during the fiscal year ended
  October 31, 2015, whereby, the Company will perform testing on games and application. Cost of revenues was $10,942 and $-0- during
  the nine months ended July 31, 2016 and 2015, respectively.
  General and Administrative:
  General and administrative expense was $40,268
  and $47,417 for the three months ended July 31, 2016 and 2015, respectively. General and administrative expense was $220,267 and
  $88,385 for the nine months ended July 31, 2016 and 2015, respectively. General and administrative expenses consisted of bank fees,
  SEC filing costs and costs associated with the pursuit of getting our stock traded on the OTCBB.
  Officer Compensation:
  Officer compensation expense was $30,000 and
  $60,000 for the three months ended July 31, 2016 and 2015, respectively. Officer compensation expense was $115,606 and $180,000
  for the nine months ended July 31, 2016 and 2015, respectively. Officer compensation expense consisted mainly of a monthly fee
  of $10,000 to each of our two officers.
  24
  Table of Contents
  Professional Fees:
  Professional fees expense was $33,541 and $14,046
  for the three months ended July 31, 2016 and 2015, respectively. Professional fees expense was $389,936 and $137,239 for the nine
  months ended July 31, 2016 and 2015, respectively. Professional fees consisted of legal, consulting, accounting and auditing costs
  necessary to prepare our public filings.
  Net Operating Loss:
  Net operating losses were $103,707 and $121,463
  for the three months ended July 31, 2016 and 2015, respectively. Net operating losses were $733,451 and $405,624 for the nine months
  ended July 31, 2016 and 2015, respectively. Net operating losses consisted primarily of fees incurred in connection with the pursuit
  of listing of our Common Stock on the OTCBB and with establishing an account with our transfer agent, as well as legal and audit
  fees related to our SEC filing costs during the nine months ended July 31, 2016 and 2015.
  Other Income (Expense):
  Other expense was $162,440 for the three months
  ended July 31, 2016 compared to other expense of $1,069,913 for the three months ended July 31, 2015. Other income was $348,922
  for the nine months ended July 31, 2016 compared to other expense of $1,161,614 for the nine months ended July 31, 2015. For the
  nine months ended July 31, 2016, other income consisted of a gain on the change in fair value of derivative liability in the amount
  of $1,239,931. Other expenses consisted of interest expense in the amount of $730,724 and the loss on settlement of debt of $160,285.
  For the nine months ended July 31, 2015, other expenses consisted of the loss on the change in fair value of derivative liability
  in the amount of $763,148, interest expense in the amount of $374,006 and the loss on settlement of debt of $24,460.
  Net Income / Loss:
  Net loss for the three months ended July 31,
  2016 was $266,147, or ($0.00) per share. Net loss for the three months ended July 31, 2015 was $1,191,376, or ($0.06) per share.
  Net loss for the nine months ended July 31, 2016 was $384,529, or ($0.00) per share. Net loss for the nine months ended July 31,
  2015 was $1,567,238, or ($0.09) per share. Net loss consisted primarily of fees incurred in connection with the pursuit of listing
  of our Common Stock on the OTCBB and with establishing an account with our transfer agent, as well as legal and audit fees related
  to our SEC filing costs, along with the development of our software products, interest expense.
  LIQUIDITY AND CAPITAL RESOURCES
  The following table summarizes total current
  assets, liabilities, accumulated (deficit) and working capital (deficit) at July 31, 2016 and October 31, 2015.
  April 30,
  October 31,
  2016
  2015
  Current Assets
  $
  13
  $
  51,824
  Current Liabilities
  $
  1,215,127
  $
  1,851,638
  Accumulated (Deficit)
  $
  (6,003,517
  )
  $
  (5,618,984
  )
  Working Capital (Deficit)
  $
  (1,215,114
  )
  $
  (1,799,814
  )
  Liquidity is the ability of a company to generate
  funds to support its current and future operations, satisfy its obligations, and otherwise operate on an ongoing basis. To date,
  we have funded our operations through the sale of our common stock. Our primary uses of cash have been for the development of games,
  compensation, and professional fees. All funds received have been expended in the furtherance of growing the business and establishing
  brand portfolios. The following trends are reasonably likely to result in a material decrease in our liquidity over the near to
  long term:
  An substantial increase in working capital requirements to finance our operations,
  Addition of administrative and professional personnel as the business grows,
  The cost of being a public company, and
  Payments for development of games.
  25
  Table of Contents
  Satisfaction of our Cash Obligations for
  the Next 12 Months
  Our current cash on hand as of July 31, 2016
  was $13, which is insufficient to meet our current monthly operating costs of approximately $30,000. As of July 31, 2016, we had
  current liabilities of $1,215,127.
  We had net loss and net cash used in operations
  of $384,529 and $536,821, respectively, for the nine months ended July 31, 2016 and our working capital deficit was $1,215,114,
  with an accumulated deficit of $6,003,517 as of July 31, 2016.
  We currently have no external sources of liquidity
  such as arrangements with credit institutions or off-balance sheet arrangements that will have or are reasonably likely to have
  a current or future effect on our financial condition or immediate access to capital.
  We are dependent on the sale of our securities
  to fund our operations, and will remain so until we generate sufficient revenues to pay for our operating costs. Our officers and
  directors have made no written commitments with respect to providing a source of liquidity in the form of cash advances, loans
  and/or financial guarantees.
  If we are unable to raise the funds we will
  seek alternative financing through means such as borrowings from institutions or private individuals. There can be no assurance
  that we will be able to raise the capital we need for our operations from the sale of our securities. We have not located any sources
  for these funds and may not be able to do so in the future. We expect that we will seek additional financing in the future. However,
  we may not be able to obtain additional capital or generate sufficient revenues to fund our operations. If we are unsuccessful
  at raising sufficient funds, for whatever reason, to fund our operations, we may be forced to cease operations. If we fail to raise
  funds we expect that we will be required to seek protection from creditors under applicable bankruptcy laws.
  Going Concern
  Our independent registered public accounting
  firm has expressed doubt about our ability to continue as a going concern and believes that our ability is dependent on our ability
  to implement our business plan, raise capital and generate revenues. See Note 2 of our financial statements.
  Critical Accounting Policies and Estimates
  While our significant accounting policies are
  more fully described in Note 1 to our financial statements for the period ended July 31, 2016, we believe that the following
  accounting policies are the most critical to aid you in fully understanding and evaluating this management discussion and analysis.
  Our financial statements have been prepared
  in accordance with accounting principles generally accepted in the United States of America. The preparation of these financial
  statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses,
  and related disclosure of contingent assets and liabilities. We continually evaluate our estimates, including those related to
  the accounting for and recovery of long-lived assets including income taxes, and the valuation of equity transactions. We base
  our estimates on historical experience and on various other assumptions that we believed to be reasonable under the circumstances,
  the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily
  apparent from other sources. Any future changes to these estimates and assumptions could cause a material change to our reported
  amounts of revenues, expenses, assets and liabilities. Actual results may differ from these estimates under different assumptions
  or conditions. We believe the following critical accounting policies affect our more significant judgments and estimates used in
  the preparation of the financial statements.
  Revenue recognition
  We recognize revenue when persuasive evidence
  of an arrangement exists, delivery has occurred or services have been rendered, the purchase price is fixed or determinable and
  collectability is reasonably assured. We intend on generating revenue from three sources; sale of game applications, sale of advertising
  provided with games, and outsourced application development services. To date, all revenues have been derived from a related party.
  Revenue through October 31, 2013, and to present
  includes only outsourced application development services recognized in accordance with ASC 605-28 "Milestone Method".
  We may bill for these services prior to attainment of the performance milestones. Receipts in excess of revenue earned as of the
  balance sheet date are included in deferred revenue.
  Stock-based compensation
  We account for stock-based instruments issued
  to employees in accordance with ASC Topic 718. ASC Topic 718 requires companies to recognize in the statement of operations the
  grant-date fair value of stock options and other equity based compensation issued to employees. We account for non-employee share-based
  awards in accordance with ASC Topic 505-50.
  26
  Table of Contents
  Contractual Obligations
  As of July 31, 2016, we have no fixed contractual
  obligations or commitments that include future estimated payments.
  Off-Balance Sheet Arrangements
  As of the date of this report, we did not have
  any off-balance sheet arrangements that have, or is reasonably likely to have, a current or future effect on our financial condition,
  changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources
  that are material to investors.
  ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES
  ABOUT MARKET RISK.
  Not required for smaller reporting companies.
  ITEM 4. CONTROLS AND PROCEDURES.
  Management's Report on Disclosure
  Controls and Procedures
  We maintain disclosure controls and procedures
  that are designed to ensure that information required to be disclosed in our reports filed under the
  Securities Exchange Act
  of 1934
  , as amended, is recorded, processed, summarized and reported within the time periods specified in the Securities and
  Exchange Commission's rules and forms, and that such information is accumulated and communicated to our management, to allow for
  timely decisions regarding required disclosure.
  As of July 31, 2016, the end of our second
  quarter covered by this report, we carried out an evaluation, under the supervision of our Chief Executive Officer, of the effectiveness
  of the design and operation of our disclosure controls and procedures. Based on the foregoing, we concluded that our disclosure
  controls and procedures were ineffective as of the end of the period covered by this quarterly report because there was no segregation
  of the duties with only two members in our management team. Our board of directors has only two members. We do not have a formal
  audit committee.
  Management's Report on Internal Control
  over Financial Reporting
  Our management is responsible for establishing
  and maintaining adequate internal control over financial reporting (as defined in Rule 13a-15(f) under the Securities Exchange
  Act, as amended). In fulfilling this responsibility, estimates and judgments by management are required to assess the expected
  benefits and related costs of control procedures. The objectives of internal control include providing management with reasonable,
  but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions
  are executed in accordance with management's authorization and recorded properly to permit the preparation of financial statements
  in conformity with accounting principles generally accepted in the United States. Our management assessed the effectiveness of
  our internal control over financial reporting as of July 31, 2016. In making this assessment, our management used the criteria
  set forth by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO") in
  Internal Control-Integrated
  Framework
  . Our management has concluded that, as of July 31, 2016, our internal control over financial reporting is ineffective
  in providing reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements
  for external purposes in accordance with US generally accepted accounting principles. This annual report does not include an attestation
  report of the Company's registered public accounting firm regarding internal control over financial reporting. Management's
  report was not subject to attestation by the Company's registered public accounting firm pursuant to temporary rules of the
  Securities and Exchange Commission that permit the Company to provide only management's report in this quarterly report.
  Inherent limitations on effectiveness of
  controls
  Internal control over financial reporting has
  inherent limitations which include but is not limited to the use of independent professionals for advice and guidance, interpretation
  of existing and/or changing rules and principles, segregation of management duties, scale of organization, and personnel factors.
  Internal control over financial reporting is a process which involves human diligence and compliance and is subject to lapses in
  judgment and breakdowns resulting from human failures. Internal control over financial reporting also can be circumvented by collusion
  or improper management override. Because of its inherent limitations, internal control over financial reporting may not prevent
  or detect misstatements on a timely basis, however these inherent limitations are known features of the financial reporting process
  and it is possible to design into the process safeguards to reduce, though not eliminate, this risk. Therefore, even those systems
  determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation.
  27
  Table of Contents
  Projections of any evaluation of effectiveness
  to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree
  of compliance with the policies or procedures may deteriorate.
  Changes in Internal Control over Financial
  Reporting
  None.
  PART II - OTHER INFORMATION
  ITEM 1. LEGAL PROCEEDINGS.
  We are not a party to, and none of our property
  is the subject of, any pending legal proceedings. To our knowledge, no governmental authority is contemplating any such proceedings.
  ITEM 1A. RISK FACTORS.
  Not required to be provided by smaller reporting
  companies.
  ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES
  AND USE OF PROCEEDS.
  During the nine months ended July 31, 2016,
  the Company granted 29,900,000 and issued 29,400,000 shares of common stock for consulting services. The fair value of the common
  stock issued was $313,375 based on the market price of the Company's common stock on the date of grant. The 500,000 shares
  authorized but not issued is recorded as $1,500 (based on the market value on the date of grant) stock payable as of July 31, 2016.
  During the nine months ended July 31, 2016,
  the Company converted $245,532 of debt for 593,961,718 shares of common stock. Due to excess share issuance, the Company recognized
  a loss on conversion of $160,285; the excess shares were valued based on fair market value on the date of conversion.
  With respect to the transactions noted above.
  Each of the recipients of securities of the Company was an accredited investor, or is considered by the Company to be a "sophisticated
  person", inasmuch as each of them has such knowledge and experience in financial and business matters that they are capable
  of evaluating the merits and risks of receiving securities of the Company. No solicitation was made and no underwriting discounts
  were given or paid in connection with these transactions. The Company believes that the issuance of its securities as described
  above was exempt from registration with the Securities and Exchange Commission pursuant to Section 4(2) of the Securities Act of
  1933.
  ITEM 3. DEFAULTS UPON SENIOR SECURITIES.
  None.
  ITEM 4. MINE SAFETY DISCLOSURES.
  Not applicable.
  ITEM 5. OTHER INFORMATION.
  None
  28
  Table of Contents
  ITEM 6. EXHIBITS.
  Exhibit No.
  Description
  3.1
  Articles of Incorporation (incorporated by reference to Exhibit 3.1 of the Form S-1 filed
      with the Securities and Exchange Commission by Pocket Games, Inc. on December 18, 2013)
  3.2
  Bylaws (incorporated by reference to Exhibit 3.1 of the Form S-1 filed with the Securities
      and Exchange Commission by Pocket Games, Inc. on December 18, 2013)
  10.1
  Executive Employment Agreement with David Lovatt (incorporated by reference to Exhibit 10.1
      of the Form S-1 filed with the Securities and Exchange Commission by Pocket Games, Inc. on December 18, 2013)
  10.5
  Rental Agreement with Yaakov Fulda (incorporated by reference to Exhibit 10.6 of the Form
      S-1/A filed with the Securities and Exchange Commission by Pocket Games, Inc. on January 15, 2014)
  31.1*
  Certification of David Lovatt, CEO and Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act
  32.1*
  Certification of David Lovatt, CEO and Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act
  * Filed herewith
  29
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  SIGNATURES
  Pursuant to the requirements of the Securities
  Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
  POCKET GAMES, INC.
  Date: September 12, 2018
  By:
  /s/ David Lovatt
  David Lovatt, Chief Executive Officer
  (Principal Executive Officer)
  Date: September 12, 2018
  By:
  /s/ David Lovatt
  David Lovatt, Chief Financial Officer and Principal Accounting Officer
  30