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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Washington, D.C. 20549</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>FORM 8-K</B></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Pursuant to Section 13 or 15(d) of the</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Securities Exchange Act of 1934</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Date of Report (Date of earliest event reported):
November 6, 2012</P>

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

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>VITAS GROUP, INC.</B></P>

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

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

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 31%; border-bottom: black 1.5pt solid; font-weight: bold; text-align: center">Nevada</TD>
    <TD STYLE="width: 2%; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="width: 31%; border-bottom: black 1.5pt solid; font-weight: bold; text-align: center">333-175590</TD>
    <TD STYLE="width: 2%; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="width: 34%; border-bottom: black 1.5pt solid; font-weight: bold; text-align: center">90-0724836554</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">(State or other jurisdiction of</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">(Commission File Number)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">(IRS Employer Identification No.)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">incorporation)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR>
    <TD STYLE="vertical-align: bottom; width: 69%; border-bottom: black 1.5pt solid; font-weight: bold; text-align: center">50 W. Liberty Street #880 Reno, Nevada</TD>
    <TD STYLE="vertical-align: top; width: 2%; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 29%; border-bottom: black 1.5pt solid; font-weight: bold; text-align: center">89501</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">(Address of principal executive offices)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">(Zip Code)</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Registrant&rsquo;s telephone number, including
area code: (<B>800) 688-0501</B></P>

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

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 100%; border-bottom: black 1.5pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ITALIA #32-81 Y MARIANA DE JESUS </B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>QUITO, EC 170102 ECUADOR</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Tel. 011-59302-6000404</B></P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">(Former name or former address, if changed since last report)</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Check the appropriate box below if the
Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions
(<U>see</U> General Instruction A.2. below):</P>

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

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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 6%; font-family: Wingdings; text-align: center">&uml;</TD>
    <TD STYLE="width: 94%">Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 6%; font-family: Wingdings; text-align: center">&uml;</TD>
    <TD STYLE="width: 94%">Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a -12)</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 6%; font-family: Wingdings; text-align: center">&uml;</TD>
    <TD STYLE="width: 94%">Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d -2(b))</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 6%; font-family: Wingdings; text-align: center">&uml;</TD>
    <TD STYLE="width: 94%">Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e -4(c))</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">This Current Report on Form 8-K (this &ldquo;Report&rdquo;)
contains forward-looking statements. The forward-looking statements are contained principally in the sections entitled &ldquo;Description
of Business,&rdquo; &ldquo;Risk Factors,&rdquo; and &ldquo;Management&rsquo;s Discussion and Analysis of Financial Condition and
Results of Operations.&rdquo; These statements involve known and unknown risks, uncertainties and other factors which may cause
our actual results, performance or achievements to be materially different from any future results, performances or achievements
expressed or implied by the forward-looking statements. In some cases, you can identify forward-looking statements by terms such
as &ldquo;anticipates,&rdquo; &ldquo;believes,&rdquo; &ldquo;seeks,&rdquo; &ldquo;could,&rdquo; &ldquo;estimates,&rdquo; &ldquo;expects,&rdquo;
&ldquo;intends,&rdquo; &ldquo;may,&rdquo; &ldquo;plans,&rdquo; &ldquo;potential,&rdquo; &ldquo;predicts,&rdquo; &ldquo;projects,&rdquo;
&ldquo;should,&rdquo; &ldquo;would&rdquo; and similar expressions intended to identify forward-looking statements. Forward-looking
statements reflect our current views with respect to future events and are based on assumptions and subject to risks and uncertainties.
These risks and uncertainties include, but are not limited to, the factors described in the section captioned &ldquo;Risk Factors&rdquo;
below. Given these uncertainties, you should not place undue reliance on these forward-looking statements.&nbsp;&nbsp;Such statements
may include, but are not limited to, information related to: anticipated operating results; relationships with our merchants and
subscribers; consumer demand; financial resources and condition; changes in revenues; changes in profitability; changes in accounting
treatment; cost of sales; selling, general and administrative expenses; interest expense; the ability to produce the liquidity
or enter into agreements to acquire the capital necessary to continue our operations and take advantage of opportunities; legal
proceedings and claims.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Also, forward-looking statements represent
our estimates and assumptions only as of the date of this Report. You should read this Report and the documents that we reference
and file or furnish as exhibits to this Report completely and with the understanding that our actual future results may be materially
different from what we expect. Except as required by law, we assume no obligation to update any forward-looking statements publicly,
or to update the reasons actual results could differ materially from those anticipated in any forward-looking statements, even
if new information becomes available in the future.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Except as otherwise indicated by the context,
references in this report to &ldquo;we,&rdquo; &ldquo;us,&rdquo; &ldquo;our,&rdquo; &ldquo;our Company,&rdquo; or &ldquo;the Company&rdquo;
are to the combined business of Vitas Group, Inc. and its consolidated subsidiaries.&nbsp;</P>

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

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

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



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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 10%; font-weight: bold">Item 1.01</TD>
    <TD STYLE="width: 90%; font-weight: bold">Entry into a Material Definitive Agreement.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On November 6, 2012 Vitas Group, Inc. (the
&ldquo;Company&rdquo;), Irina Tchernikova (the &ldquo;Seller&rdquo;) and Greg May and Lars Aarup Poulsen (the &ldquo;Purchasers&rdquo;)
entered into and closed a stock purchase agreement (the &ldquo;Stock Purchase Agreement&rdquo;), whereby the Purchasers purchased
from the Seller, 2,500,000 shares of common stock, par value $0.001 per share, of the Company(the &ldquo;Shares&rdquo;), representing
approximately 83.19% of the issued and outstanding shares of the Company, for an aggregate purchase price of $150,000 (the &ldquo;Purchase
Price&rdquo;). Prior to the closing of the Stock Purchase Agreement, Seller was our President, Chief Executive Officer, Chief Financial
Officer, sole director, and majority shareholder.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The foregoing description of the terms
of the Stock Purchase Agreement is qualified in its entirety by reference to the provisions of the agreement filed as Exhibit 10.1
to this report, which is incorporated by reference herein.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As disclosed elsewhere in this Report,
we acquired the Company pursuant to the Stock Purchase Agreement.&nbsp;&nbsp;Item 5.01(a)(8) of Form 8-K provides that if the Company
was a shell company, other than a business combination related shell company (as those terms are defined in Rule 12b-2 under the
Exchange Act) immediately before the Change of Control, then the Company must disclose the information that would be required if
the Company were filing a general form for registration of securities on Form 10 under the Exchange Act reflecting all classes
of the Company&rsquo;s securities subject to the reporting requirements of Section 13 of the Exchange Act upon consummation of
the Change of Control.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">To the extent that the Company might have
been considered to be a shell company immediately before the Change of Control, we are providing below the information that we
would be required to disclose on Form 10 under the Exchange Act if we were to file such form.&nbsp;&nbsp;Please note that the information
provided below relates to the Company after the Change of Control of Vitas Group, Inc. except that information relating to periods
prior to the date of the Change of Control relate only to the prior operations of Vitas Group, Inc. unless otherwise specifically
indicated.</P>

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Our Corporate History and Background</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">VITAS GROUP, INC. was incorporated in the
State of Nevada on May 13, 2011. We were in the business of placing and operating coin operated boxing machines in public venues
with high traffic flow in Ecuador. Prior to the Change of Control, we had not generated any revenue and our operations were limited
to capital formation, organization and development of our business plan.&nbsp;&nbsp;As a result of the Change of Control, we ceased
our prior operations and we now intent to engage in any lawful corporate undertaking, including, but not limited to, selected mergers
and acquisitions..</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On November 6, 2012, we completed the Change
of Control whereby Greg May and Lars Aarup Poulsen each acquired 1,250,000 shares outstanding capital stock of Vitas Group, Inc.
in exchange for an aggregate amount of $150,000.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In connection with the Change of Control,
Irina Tchernikova resigned as the sole member of our board of directors and chief executive officer of the Company, effective upon
the closing of the Change of Control.&nbsp;&nbsp;Also effective upon closing of the Change of Control, the Board appointed Lars
Aarup Poulsen to serve as the President, Chief Executive Officer, and director of the Company. The Board also appointed Greg May
to serve as Chief Operating Officer, Vice President and director of the Company. The Board also appointed Steve Matteson to serve
as Chief Financial Officer of the Company.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In the future, we plan to change our name
to more accurately reflect our new business operations.</P>

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

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

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

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

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

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

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

<P STYLE="margin: 0pt 0">We will attempt to locate and negotiate with a business entity for the combination of that target company
with us. The combination will normally take the form of a merger, stock-for-stock exchange or stock-for-assets exchange. In most
instances, the target company will wish to structure the business combination to be within the definition of a tax-free reorganization
under Section 351 or Section 368 of the Internal Revenue Code of 1986, as amended. No assurances can be given that we will be successful
in locating or negotiating with any target company.</P>



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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">There are certain perceived benefits to
being a reporting company with a class of publicly- traded securities. These are commonly thought to include the following:</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 7%">*</TD>
    <TD>the ability to use registered securities to make acquisitions of assets or businesses;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>*</TD>
    <TD>increased visibility in the financial community;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>*</TD>
    <TD>the facilitation of borrowing from financial institutions;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>*</TD>
    <TD>improved trading efficiency;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>*</TD>
    <TD>shareholder liquidity;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>*</TD>
    <TD>greater ease in subsequently raising capital;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>*</TD>
    <TD>compensation of key employees through stock options for which there may be a market valuation;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>*</TD>
    <TD>enhanced corporate image;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>*</TD>
    <TD>a presence in the United States capital market.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">A business entity, if any, which may be interested in a business
combination with us may include the following:</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%">*</TD>
    <TD STYLE="width: 97%">a company for which a primary purpose of becoming public is the use of its securities for the acquisition of assets or businesses;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>*</TD>
    <TD>a company which is unable to find an underwriter of its securities or is unable to find an underwriter of securities on terms acceptable to it;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>*</TD>
    <TD>a company which wishes to become public with less dilution of its common stock than would occur upon an underwriting;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>*</TD>
    <TD>a company which believes that it will be able to obtain investment capital on more favorable terms after it has become public;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>*</TD>
    <TD>a foreign company which may wish an initial entry into the United States securities market;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>*</TD>
    <TD>a special situation company, such as a company seeking a public market to satisfy redemption&nbsp;&nbsp;requirements under a qualified Employee Stock Option Plan; or</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>*</TD>
    <TD>a company seeking one or more of the other perceived benefits of becoming a public company.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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

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

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






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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A business combination with a target company
will normally involve the transfer to the target company of the majority of our issued and outstanding common stock, and the substitution
by the target company of its own management and board of directors.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">No assurances can be given that we will
be able to enter into a business combination, as to the terms of a business combination, or as to the nature of the target company.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of the Closing Date, we have no full
time employees. Greg May, Lars Aarup Poulsen, and Steve Matteson, our officers and directors, have agreed to allocate a portion
of their time to business activities.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>An investment in our common stock
involves a high degree of risk. You should carefully consider the risks described below, together with all of the other information
included in this Report, before making an investment decision. If any of the following risks actually occurs, our business, financial
condition or results of operations could suffer. In that case, the trading price of our shares of common stock could decline and
you may lose all or part of your investment. See &ldquo;Cautionary Note Regarding Forward Looking Statements&rdquo; above for a
discussion of forward-looking statements and the significance of such statements in the context of this Report.</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Risks Related to Our Business</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We have a history of operating losses
and there can be no assurance that we can achieve or maintain profitability.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have a history of operating losses and
may not achieve or sustain profitability. We cannot guarantee that we will become profitable.&nbsp;&nbsp;Even if we achieve profitability,
given the competitive and evolving nature of the industry in which we operate, we may be unable to sustain or increase profitability
and our failure to do so would adversely affect the Company&rsquo;s business, including our ability to raise additional funds.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Our independent registered public
accounting firm has expressed doubt about our ability to continue as a going concern.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our financial statements have been prepared
under the assumption that we will continue as a going concern. Our independent registered public accounting firm has issued a report
that included an explanatory paragraph referring to our working capital deficiency, recurring net losses and negative cash flows
from operations and expressing substantial doubt in our ability to continue as a going concern. Our ability to continue as a going
concern is dependent upon our ability to obtain additional equity financing or other capital, attain further operating efficiencies,
reduce expenditures, and, ultimately, to generate revenue. Our financial statements do not include any adjustments that might result
from the outcome of this uncertainty. However, if adequate funds are not available to us when we need it, and we are unable to
enter into some form of strategic relationship that will give us access to additional cash resources, we will be required to even
further curtail our operations which would, in turn, further raise substantial doubt about our ability to continue as a going concern.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Our business depends substantially
on the continuing efforts of our executive management and our business may be severely disrupted if we lost their services.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our future success heavily depends on the
continued service of our executive management. If our executives are unable or unwilling to continue to work for us in their present
positions, we may have to spend a considerable amount of time and resources searching, recruiting, and integrating the replacements
into our operations, which would substantially divert management&rsquo;s attention from our business and severely disrupt our business.
This may also adversely affect our ability to execute our business strategy. Moreover, if any of our executives join a competitor
or forms a competing company, we may lose customers, suppliers, know-how, and key employees.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Our executive management&rsquo;s
limited experience managing a publicly traded company may divert management&rsquo;s attention from operations and harm our business.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our executive management team has relatively
limited experience managing a publicly traded company and complying with federal securities laws, including compliance with recently
adopted disclosure requirements on a timely basis.&nbsp;&nbsp;Our management will be required to design and implement appropriate
programs and policies in responding to increased legal, regulatory compliance and reporting requirements, and any failure to do
so could lead to the imposition of fines and penalties and harm our business.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We may be unable to attract and retain
qualified, experienced, highly skilled personnel, which could adversely affect the implementation of our business plan.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our success depends to a significant degree
upon our ability to attract, retain and motivate skilled and qualified personnel. As we become a more mature company in the future,
we may find recruiting and retention efforts more challenging. If we do not succeed in attracting, hiring and integrating excellent
personnel, or retaining and motivating existing personnel, we may be unable to grow effectively. The loss of any key employee,
including members of our senior management team, and our inability to attract highly skilled personnel with sufficient experience
in our industries could harm our business.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Our inability to protect our intellectual
property rights may force us to incur unanticipated costs.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our success will depend, in part, on our
ability to obtain and maintain<B>&nbsp;</B>protection in the United States and other countries for certain intellectual<B>&nbsp;</B>property
incorporated into our products.&nbsp;&nbsp;Our intellectual properties may be challenged, narrowed, invalidated or<B>&nbsp;</B>circumvented,
which could limit our ability to prevent competitors from<B>&nbsp;</B>marketing similar solutions that limit the effectiveness
of our patent<B>&nbsp;</B>protection and force us to incur unanticipated costs.&nbsp;&nbsp;In addition, existing laws<B>&nbsp;</B>of
some countries in which we may provide services or solutions may offer only<B>&nbsp;</B>limited protection of our intellectual
property rights.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Our products may infringe the intellectual
property rights of third parties, and third parties may infringe our proprietary rights, either of which may result in lawsuits,
distraction of management and the impairment of our business.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As the number of patents, copyrights, trademarks
and other intellectual<B>&nbsp;</B>property rights in our industry increases, products based on our technology may<B>&nbsp;</B>increasingly
become the subject of infringement claims.&nbsp;&nbsp;Third parties could<B>&nbsp;</B>assert infringement claims against us in
the future.&nbsp;&nbsp;Infringement claims with or<B>&nbsp;</B>without merit could be time consuming, result in costly litigation,
cause<B>&nbsp;</B>product shipment delays or require us to enter into royalty or licensing<B>&nbsp;</B>agreements.&nbsp;&nbsp;Royalty
or licensing agreements, if required, might not be available<B>&nbsp;</B>on terms acceptable to us, or at all.&nbsp;&nbsp;We may
initiate claims or litigation against third<B>&nbsp;</B>parties for infringement of our proprietary rights or to establish the
validity<B>&nbsp;</B>of our proprietary rights.&nbsp;&nbsp;Litigation to determine the validity of any claims,<B>&nbsp;</B>whether
or not the litigation is resolved in our favor, could result in<B>&nbsp;</B>significant expense to us and divert the efforts of
our technical and management<B>&nbsp;</B>personnel from productive tasks.&nbsp;&nbsp;If there is an adverse ruling against us in
any<B>&nbsp;</B>litigation, we may be required to pay substantial damages, discontinue the use<B>&nbsp;</B>and sale of infringing
products, and expend significant resources to develop<B>&nbsp;</B>non-infringing technology or obtain licenses to infringing technology.&nbsp;&nbsp;Our<B>&nbsp;</B>failure
to develop or license a substitute technology could prevent us from<B>&nbsp;</B>selling our products.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We will incur increased costs as
a result of being a public company.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We will face increased legal, accounting,
administrative and other costs and expenses as a public company that we did not incur as a private company. The Sarbanes-Oxley
Act of 2002, including the requirements of Section 404, as well as new rules and regulations subsequently implemented by the SEC,
the Public Company Accounting Oversight Board (the &ldquo;PCAOB&rdquo;), impose additional reporting and other obligations on public
companies. We expect that compliance with these public company requirements will increase our costs and make some activities more
time-consuming. A number of those requirements will require us to carry out activities we have not done previously.&nbsp;&nbsp;For
example, we will adopt new internal controls and disclosure controls and procedures. In addition, we will incur additional expenses
associated with our SEC reporting requirements. Furthermore, if we identify any issues in complying with those requirements (for
example, if we or our accountants identify a material weakness or significant deficiency in our internal control over financial
reporting), we could incur additional costs rectifying those issues, and the existence of those issues could adversely affect us,
our reputation or investor perceptions of us. We also expect that it will be difficult and expensive to obtain director and officer
liability insurance, and we may be required to accept reduced policy limits and coverage or incur substantially higher costs to
obtain the same or similar coverage.&nbsp;&nbsp;As a result, it may be more difficult for us to attract and retain qualified persons
to serve on the Company&rsquo;s board of directors or as executive officers. Advocacy efforts by stockholders and third parties
may also prompt even more changes in corporate governance and reporting requirements. We expect that the additional reporting and
other obligations imposed on us by these rules and regulations will increase our legal and financial compliance costs and administrative
fees significantly. These increased costs will require us to divert a significant amount of money that we could otherwise use to
expand our business and achieve our strategic objectives.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Risks Related to Ownership of Our Common
Stock</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Greg May and Lars Aarup Poulsen has
voting control over matters submitted to a vote of the stockholders and he may take actions that conflict with the interests of
our other stockholders and holders of our debt securities.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In connection with the Change of Control,
Greg May and Lars Aarup Poulsen each received a total of 1,250,000 shares of our common stock.&nbsp;&nbsp; Accordingly, Greg May
and Lars Aarup Poulsen, collectively, control more than 50% of the votes eligible to be cast by stockholders in the election of
directors and generally.&nbsp;&nbsp;As a result, Greg May and Lars Aarup Poulsen have the power to control all matters requiring
the approval of our stockholders, including the election of directors and the approval of mergers and other significant corporate
transactions, following the Change of Control.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Our common stock is quoted on the
OTCBB which may have an unfavorable impact on our stock price and liquidity.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our common stock is quoted on the OTCBB,
which is a significantly more limited trading market than the New York Stock Exchange or The NASDAQ Stock Market.&nbsp;&nbsp;The
quotation of the Company&rsquo;s shares on the OTCBB may result in a less liquid market available for existing and potential stockholders
to trade shares of our common stock, could depress the trading price of our common stock and could have a long-term adverse impact
on our ability to raise capital in the future.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>There is limited liquidity on the
OTCBB which may result in stock price volatility and inaccurate quote information.&nbsp;</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">When fewer shares of a security are being
traded on the OTCBB, volatility of prices may increase and price movement may outpace the ability to deliver accurate quote information.&nbsp;&nbsp;Due
to lower trading volumes in shares of our common stock, there may be a lower likelihood of one&rsquo;s orders for shares of our
common stock being executed, and current prices may differ significantly from the price one was quoted at the time of one&rsquo;s
order entry.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>If we are unable to adequately fund
our operations, we may be forced to voluntarily file for deregistration of our common stock with the SEC.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Compliance with the periodic reporting
requirements required by the SEC consumes a considerable amount of both internal, as well external, resources and represents a
significant cost for us.&nbsp;&nbsp;We estimate that we will incur approximately $250,000 in costs in connection with compliance
with the periodic reporting requirements required by the SEC on an annual basis.&nbsp;&nbsp;If we are unable to continue to devote
adequate funding and the resources needed to maintain such compliance, while continuing our operations, we may be forced to deregister
with the SEC.&nbsp;&nbsp;If we file for deregistration, our common stock will no longer be listed The OTC Bulletin Board, and it
may suffer a decrease in or absence of liquidity as after the deregistration process is complete, our common stock will only be
tradable on the &ldquo;Pink Sheets.&rdquo;</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>The sale of securities by us in any
equity or debt financing could result in dilution to our existing stockholders and have a material adverse effect on our earnings.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Any sale of common stock by us in a future
private placement offering could result in dilution to the existing stockholders as a direct result of our issuance of additional
shares of our capital stock.&nbsp;&nbsp;In addition, our business strategy may include expansion through internal growth, by acquiring
subscribers email lists, or by establishing strategic relationships with targeted customers and vendor.&nbsp;&nbsp;In order to
do so, or to finance the cost of our other activities, we may issue additional equity securities that could dilute our stockholders&rsquo;
stock ownership.&nbsp;&nbsp;We may also assume additional debt and incur impairment losses related to goodwill and other tangible
assets if we acquire another company and this could negatively impact our earnings and results of operations.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Future sales of our common stock
in the public market could lower the price of our common stock and impair our ability to raise funds in future securities offerings.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Future sales of a substantial number of
shares of our common stock in the public market, or the perception that such sales may occur, could adversely affect the then prevailing
market price of our common stock and could make it more difficult for us to raise funds in the future through a public offering
of our securities.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Our common stock is thinly traded,
so you may be unable to sell at or near asking prices or at all if you need to sell your shares to raise money or otherwise desire
to liquidate your shares.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Currently, the Company&rsquo;s common stock is quoted in the OTCBB and future trading volume may be limited
by the fact that many major institutional investment funds, including mutual funds, as well as individual investors follow a policy
of not investing in OTCBB stocks and certain major brokerage firms restrict their brokers from recommending OTCBB stocks because
they are considered speculative, volatile and thinly traded.&nbsp;&nbsp;The OTCBB market is an inter-dealer market much less regulated
than the major exchanges and our common stock is subject to abuses, volatility and shorting.&nbsp;&nbsp;Thus, there is currently
no broadly followed and established trading market for the Company&rsquo;s common stock.&nbsp;&nbsp;An established trading market
may never develop or be maintained. Active trading markets generally result in lower price volatility and more efficient execution
of buy and sell orders. Absence of an active trading market reduces the liquidity of the shares traded there.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The trading volume of our common stock
has been and may continue to be limited and sporadic.&nbsp;&nbsp;As a result of such trading activity, the quoted price for the
Company&rsquo;s common stock on the OTCBB may not necessarily be a reliable indicator of its fair market value.&nbsp;&nbsp;Further,
if we cease to be quoted, holders would find it more difficult to dispose of our common stock or to obtain accurate quotations
as to the market value of the Company&rsquo;s common stock and as a result, the market value of our common stock likely would decline.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Our common stock is subject to price
volatility unrelated to our operations.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The market price of our common stock could
fluctuate substantially due to a variety of factors, including market perception of our ability to achieve our planned growth,
quarterly operating results of other companies in the same industry, trading volume in our common stock, changes in general conditions
in the economy and the financial markets or other developments affecting the Company&rsquo;s competitors or the Company itself.
In addition, the OTCBB is subject to extreme price and volume fluctuations in general.&nbsp;&nbsp;This volatility has had a significant
effect on the market price of securities issued by many companies for reasons unrelated to their operating performance and could
have the same effect on our common stock.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We are subject to penny stock regulations
and restrictions and you may have difficulty selling shares of our common stock.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our common stock is subject to the provisions
of Section 15(g) and Rule 15g-9 of the Exchange Act, commonly referred to as the &ldquo;penny stock rule.&rdquo;&nbsp;&nbsp;Section
15(g) sets forth certain requirements for transactions in penny stock, and Rule 15g-9(d) incorporates the definition of &ldquo;penny
stock&rdquo; that is found in Rule 3a51-1 of the Exchange Act.&nbsp;&nbsp;The SEC generally defines a penny stock to be any equity
security that has a market price less than $5.00 per share, subject to certain exceptions. We are subject to the SEC&rsquo;s penny
stock rules.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Since our common stock is deemed to be
penny stock, trading in the shares of our common stock is subject to additional sales practice requirements on broker-dealers who
sell penny stock to persons other than established customers and accredited investors.&nbsp;&nbsp;&ldquo;Accredited investors&rdquo;
are persons with assets in excess of $1,000,000 (excluding the value of such person&rsquo;s primary residence) or annual income
exceeding $200,000 or $300,000 together with their spouse. For transactions covered by these rules, broker-dealers must make a
special suitability determination for the purchase of such security and must have the purchaser&rsquo;s written consent to the
transaction prior to the purchase. Additionally, for any transaction involving a penny stock, unless exempt the rules require the
delivery, prior to the first transaction of a risk disclosure document, prepared by the SEC, relating to the penny stock market.&nbsp;&nbsp;A
broker-dealer also must disclose the commissions payable to both the broker-dealer and the registered representative and current
quotations for the securities.&nbsp;&nbsp;Finally, monthly statements must be sent disclosing recent price information for the
penny stocks held in an account and information to the limited market in penny stocks. Consequently, these rules may restrict the
ability of broker-dealer to trade and/or maintain a market in our common stock and may affect the ability of the Company&rsquo;s
stockholders to sell their shares of common stock.</P>

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">There can be no assurance that our shares
of common stock will qualify for exemption from the Penny Stock Rule. In any event, even if our common stock was exempt from the
Penny Stock Rule, we would remain subject to Section 15(b)(6) of the Exchange Act, which gives the SEC the authority to restrict
any person from participating in a distribution of penny stock if the SEC finds that such a restriction would be in the public
interest.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We do not expect to pay dividends
in the foreseeable future.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We do not intend to declare dividends for
the foreseeable future, as we anticipate that we will reinvest any future earnings in the development and growth of our business.&nbsp;&nbsp;Therefore,
our stockholders will not receive any funds unless they sell their common stock, and stockholders may be unable to sell their shares
on favorable terms or at all.</P>

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>The information and financial data discussed
below is derived from the unaudited financial statements Vitas Group, Inc. for its three month period ended August 31, 2012, three
month period ended August 31, 2011, and from inception to August 31, 2012.&nbsp;&nbsp;The financial statements of Vitas Group,
Inc. were prepared and presented in accordance with generally accepted accounting principles in the United States. The information
and financial data discussed below is only a summary and should be read in conjunction with the historical financial statements
and related notes of Vitas Group, Inc. contained elsewhere in the Company&rsquo;s periodic report; however, they are not indicative
of the Company&rsquo;s future performance.&nbsp;&nbsp;See &ldquo;Cautionary Note Regarding Forward Looking Statements&rdquo; above
for a discussion of forward-looking statements and the significance of such statements in the context of this Report.</I></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Statements made in this Form 8-K that are
not historical or current facts are &quot;forward-looking statements&quot; made pursuant to the safe harbor provisions of Section
27A of the Securities Act of 1933 (the &quot;Act&quot;) and Section 21E of the Securities Exchange Act of 1934. These statements
often can be identified by the use of terms such as &quot;may,&quot; &quot;will,&quot; &quot;expect,&quot; &quot;believe,&quot;
&quot;anticipate,&quot; &quot;estimate,&quot; &quot;approximate&quot; or &quot;continue,&quot; or the negative thereof. We intend
that such forward-looking statements be subject to the safe harbors for such statements. We wish to caution readers not to place
undue reliance on any such forward-looking statements, which speak only as of the date made. Any forward-looking statements represent
management's best judgment as to what may occur in the future. However, forward-looking statements are subject to risks, uncertainties
and important factors beyond our control that could cause actual results and events to differ materially from historical results
of operations and events and those presently anticipated or projected. We disclaim any obligation subsequently to revise any forward-looking
statements to reflect events or circumstances after the date of such statement or to reflect the occurrence of anticipated or unanticipated
events.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>ITEM 2. MANAGEMENT'S DISCUSSION AND
ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Prior to the Change of Control, we were
in the business of placing and operating coin operated boxing machines in public venues with high traffic flow in Ecuador. Following
the Change of Control, we intend to enter into strategic mergers and acquisitions.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We are a development stage company and have not generated any
revenue to date. We have incurred recurring losses to date. Our financial statements have been prepared assuming that we will continue
as a going concern and, accordingly, do not include adjustments relating to the recoverability and realization of assets and classification
of liabilities that might be necessary should we be unable to continue in operation. We expect we will require additional capital
to meet our long term operating requirements. We expect to raise additional capital through, among other things, the sale of equity
or debt securities.</P>

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Three Month Period Ended August 31, 2012 Compared To The
Three Month Period Ended August 31, 2011</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our net loss for the three month period ended August 31, 2012
was $6,100 compared to a net loss of $3,408 &nbsp;during the three months period ended August 31, 2011. During the three month
period ended August 31, 2012, we did not generate any revenue. &nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">During the three month period ended August 31, 2012, we incurred
general and administrative expenses $6,100 compared to $3,408 &nbsp;incurred during the three months period ended to August 31,
2011. General and administrative and professional fee expenses incurred during the three month period ended August 31, 2012 were
generally related to corporate overhead, financial and administrative contracted services, such as legal and accounting and developmental
costs.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The weighted average number of shares outstanding was 3,005,000
for the three month period ended August 31, 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;<BR>
<B>Liquidity and Capital Resources</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Three Month Period Ended August 31, 2012</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As at August 31, 2012, our current assets were $11,855 compared
to $17,955 in current assets at May 31, 2012. Current assets were comprised of $8,293 in cash and $3,562 in prepaid expenses.
As at August 31, 2012, our current liabilities were $3,775. Current liabilities were comprised of $3,775 in loan from Director.
Stockholders&rsquo; equity decreased from $14,180 as of May 31, 2012 to $8,080 as of August 31, 2012.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Cash Flows From Operating Activities</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We have not generated positive cash flows from operating activities.
For the three month period ended August 31, 2012, net cash flows used in operating activities was $4,100 consisting of a net loss
of $6,100 &nbsp;and decrease in prepaid expenses of $2,000. Net cash flows used in operating activities was $23,232 for the period
from inception (May 13, 2011) to August 31, 2012.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Cash Flows From Financing Activities</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We have financed our operations primarily from either advancements
or the issuance of equity and debt instruments. For the three &nbsp;month period ended August 31, 2012 &nbsp;we have not generated
any cash flow provided by financing activities. &nbsp;For the period from inception (May 13, 2011) to August 31, 2012, net cash
provided by financing activities was $31,525 received from proceeds from issuance of common stock and loan from Director.</P>

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Plan Of Operation And Funding</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our cash reserves are not sufficient to meet our obligations
for the next twelve month period. As a result, we will need to seek additional funding in the near future. We currently do not
have a specific plan of how we will obtain such funding; however, we anticipate that additional funding will be in the form of
equity financing from the sale of shares of our common stock. We may also seek to obtain short-term loans from our directors or
unrelated parties, although no such arrangements have been made. We do not have any arrangements in place for any future equity
financing.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As of August 31, 2012, we had no material commitments.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We do not intend to purchase any significant equipment during
the next twelve months.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Off-Balance Sheet Arrangements </I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As of the date of this Quarterly Report, we do not have any
off-balance sheet arrangements that have or are 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: 0pt 0">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The independent auditors' audit report accompanying our May
31, 2012 financial statements contained an explanatory paragraph expressing substantial doubt about our ability to continue as
a going concern. The financial statements have been prepared &quot;assuming that we will continue as a going concern,&quot; which
contemplates that we will realize our assets and satisfy our liabilities and commitments in the ordinary course of business.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">Our principal executive offices
are located in 50 W. Liberty St. #880, Reno, NV, 89501. We use this property pursuant to a lease agreement, whereby we pay
$50 per month. The lease expires on May 31, 2012.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SECURITY OWNERSHIP OF CERTAIN BENEFICIAL
OWNERS AND MANAGEMENT</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table sets forth certain
information regarding our shares of common stock beneficially owned as of the closing of the Stock Purchase Agreement for (i) each
stockholder known to be the beneficial owner of 5% or more of our outstanding shares of common stock, (ii) each named executive
officer and director, and (iii) all executive officers and directors as a group.&nbsp;&nbsp;A person is considered to beneficially
own any shares: (i) over which such person, directly or indirectly, exercises sole or shared voting or investment power, or (ii)
of which such person has the right to acquire beneficial ownership at any time within 60 days through an exercise of stock options
or warrants or otherwise. Unless otherwise indicated, voting and investment power relating to the shares shown in the table for
our directors and executive officers is exercised solely by the beneficial owner or shared by the owner and the owner&rsquo;s spouse
or children.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For purposes of this table, a person or
group of persons is deemed to have &ldquo;beneficial ownership&rdquo; of any shares of common stock that such person has the right
to acquire within 60 days of the closing of the Stock Purchase Agreement.&nbsp;&nbsp;For purposes of computing the percentage of
outstanding shares of our common stock held by each person or group of persons named above, any shares that such person or persons
has the right to acquire within 60 days of the Closing Date is deemed to be outstanding, but is not deemed to be outstanding for
the purpose of computing the percentage ownership of any other person.&nbsp;&nbsp;The inclusion herein of any shares listed as
beneficially owned does not constitute an admission of beneficial ownership.</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="background-color: white">
    <TD STYLE="vertical-align: bottom; width: 12%; border-bottom: black 1.5pt solid; font-weight: bold; text-align: center">Title of Class</TD>
    <TD STYLE="vertical-align: top; width: 1%; border-bottom: black 1.5pt solid; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 51%; border-bottom: black 1.5pt solid; font-weight: bold; text-align: center">Name&nbsp;of&nbsp;Beneficial&nbsp;Owner</TD>
    <TD STYLE="vertical-align: top; width: 1%; padding-bottom: 1.35pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 17%; border-bottom: black 1.5pt solid; font-weight: bold; text-align: center">Amount&nbsp;and&nbsp;Nature of&nbsp;Beneficial Ownership</TD>
    <TD STYLE="vertical-align: top; width: 1%; padding-bottom: 1.35pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 16%; border-bottom: black 1.5pt solid; font-weight: bold; text-align: center">Percent&nbsp;of Common&nbsp;Stock&nbsp;(1)</TD>
    <TD STYLE="vertical-align: top; width: 1%; padding-bottom: 1.35pt">&nbsp;</TD></TR>
<TR STYLE="background-color: #CCFFCC">
    <TD STYLE="vertical-align: bottom; font-style: italic">&nbsp;</TD>
    <TD STYLE="vertical-align: top; font-style: italic">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; font-style: italic">Executive Officers and Directors</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="vertical-align: top">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Common Stock</P></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Lars Aarup Poulsen</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Chief Executive Officer, President and Chairman</P></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right">1,250,000</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">%</TD></TR>
<TR STYLE="background-color: #CCFFCC">
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom"></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right">1,250,000</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">%</TD></TR>
<TR>
    <TD STYLE="text-align: left; background-color: white; vertical-align: top">Common Stock</TD>
    <TD STYLE="vertical-align: top; background-color: white">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; background-color: white">Greg May<BR>
Chief Operating Officer, Vice President, and Director</TD>
    <TD STYLE="vertical-align: top; background-color: white">&nbsp;</TD>
    <TD STYLE="vertical-align: top; background-color: white">&nbsp;</TD>
    <TD STYLE="vertical-align: top; background-color: white">&nbsp;</TD>
    <TD STYLE="vertical-align: top; background-color: white">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: #CCFFCC">
    <TD STYLE="text-align: left; vertical-align: top">Common Stock</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Steve Matteson</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Chief Financial Officer</P></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right">0</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right">0&nbsp;</TD>
    <TD STYLE="vertical-align: top">%</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: #CCFFCC">
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; font-style: italic">Former Executive Officers and Directors</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="text-align: left; vertical-align: top">Common Stock</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Irina Tchernikova</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Former President, Chief Executive Officer, and Chairman</P></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right">0</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right">0%</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: #CCFFCC">
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; font-style: italic">Other 5% Shareholders:&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="vertical-align: bottom">Common Stock</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On August 31, 2012, pursuant to the Stock
Purchase Agreement, Irina Tchernikova resigned from our Board of Directors and as officer of the Company.&nbsp;&nbsp;On the same
date, the Board appointed Lars Aarup Poulsen to serve as the President, Chief Executive Officer, and director of the Company, Greg
May to serve as Chief Operating Officer, Vice President and director of the Company. and Steve Matteson to serve as Chief Financial
Officer of the Company, effective immediately upon the closing of the Change of Control. The following sets forth information about
our directors and executive officers as of the date of this Report and following the closing of the Change of Control:</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 18%; border-bottom: black 1.5pt solid; font-weight: bold">Name</TD>
    <TD STYLE="width: 1%; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="width: 8%; border-bottom: black 1.5pt solid; font-weight: bold; text-align: center">Age</TD>
    <TD STYLE="width: 1%; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="width: 72%; border-bottom: black 1.5pt solid; font-weight: bold">Position</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: bottom">Lars Aarup Poulsen</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">59</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">Chief Executive Officer, President, and Chairman</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: bottom">Greg May</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">49</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">Chief Operating Officer, Vice President, and Director</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: bottom">Steve Matteson</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">41</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">Chief Financial Officer</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Lars Aarup Poulsen, </B>has served as
the Chief Executive Officer, President, and Director of Vitas Group, Inc. since November 6, 2012.&nbsp;&nbsp;Since 2007, Mr. Poulsen
has been the CEO and head of sales of Sealand Living A/S. From 2003 to 2007, Mr. Poulsen was the Executive Director of Marketing
of DK4 Group Broadcast/Network Station Europe. Mr. Poulsen graduated from Graphic Arts Institute of Denmark. Additionally, Mr.
Poulsen graduated from the Copenhagen Business School</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Greg May, </B>has served as the Chief
Operating Officer, Vice President, and Director of Vitas Group, Inc. since November 6, 2012.&nbsp;&nbsp;Since 1987, Mr. May has
been the CEO President of PSP International Inc., a company that manufacturer sporting goods and apparel for domestic and international
sales. Mr. May received his Bachelor of Arts in Education from the United States International University.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Steve Matteson, </B>has served as the
Chief Financial Officer of Vitas Group, Inc. since November 6, 2012. Since 2005, Mr. Matteson has been the President of Twin Tiers
Consulting, a firm that provides advisory and investment management services. In 2000, Mr. Matteson co-founded the boutique financial
planning firm, Burns Matteson Capital Management, and served as its Chief Operations Officer until 2005. Mr. Matteson received
an MBA from the University of South Carolina, a M.A. in International Business from Vienna University of Economic and Business
Administration, and received his Bachelor&rsquo;s degree in Business Administration from Mansfield University.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The business and affairs of the Company
are managed under the direction of the Board of Directors (the &ldquo;Board&rdquo;).</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Directors are appointed for a one-year
term to hold office until the next annual general meeting of stockholders or until removed from office in accordance with our bylaws.
Our officers are appointed by our Board and hold office until removed by our Board.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">All officers and directors listed above
will remain in office until the next annual meeting of our stockholders, and until their successors have been duly elected and
qualified. Our bylaws provide that officers are appointed annually by our Board and each executive officer serves at the discretion
of our Board.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We use the definition of &ldquo;independence&rdquo;
of The NASDAQ Stock Market to make this determination.&nbsp;&nbsp;NASDAQ Listing Rule 5605(a)(2) provides that an &ldquo;independent
director&rdquo; is a person other than an officer or employee of the company or any other individual having a relationship which,
in the opinion of the Company&rsquo;s Board, would interfere with the exercise of independent judgment in carrying out the responsibilities
of a director.&nbsp;&nbsp;The NASDAQ listing rules provide that a director cannot be considered independent if:</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px; text-align: center">&#9679;</TD>
    <TD>the director is, or at any time during the past three years was, an employee of the company;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&#9679;</TD>
    <TD>the director or a family member of the director accepted any compensation from the company in excess of $120,000 during any period of 12 consecutive months within the three years preceding the independence determination (subject to certain exclusions, including, among other things, compensation for board or board committee service);</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px; text-align: center">&#9679;</TD>
    <TD>a family member of the director is, or at any time during the past three years was, an executive officer of the company;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&#9679;</TD>
    <TD STYLE="text-align: justify">the director or a family member of the director is a partner in, controlling stockholder of, or an executive officer of an entity to which the company made, or from which the company received, payments in the current or any of the past three fiscal years that exceed 5% of the recipient&rsquo;s consolidated gross revenue for that year or $200,000, whichever is greater (subject to certain exclusions);</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px; text-align: center">&#9679;</TD>
    <TD STYLE="text-align: justify">the director or a family member of the director is employed as an executive officer of an entity where, at any time during the past three years, any of the executive officers of the company served on the compensation committee of such other entity; or</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&#9679;</TD>
    <TD STYLE="text-align: justify">the director or a family member of the director is a current partner of the company&rsquo;s outside auditor, or at any time during the past three years was a partner or employee of the company&rsquo;s outside auditor, and who worked on the company&rsquo;s audit.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have determined that none of the persons
anticipated to become directors upon the closing of the Change of Control is &ldquo;independent&rdquo; as defined by applicable
SEC rules and NASDAQ Stock Market listing standards.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We do not have an audit, nominating or
compensation committee. We intend, however, to establish an audit committee and a compensation committee of our Board in the future
following the Change of Control. We envision that the audit committee will be primarily responsible for reviewing the services
performed by our independent auditors and evaluating our accounting policies and our system of internal controls. The compensation
committee will be primarily responsible for reviewing and approving our salary and benefits policies (including stock options)
and other compensation of our executive officers.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">There are no family relationships among
any of our officers or directors.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">To our knowledge, none of our current directors
or executive officers has, during the past ten years:</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 3%; text-align: justify">&#9679;</TD>
    <TD STYLE="width: 94%; text-align: justify">been convicted in a criminal proceeding or been subject to a pending criminal proceeding (excluding traffic violations and other minor offenses);</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&#9679;</TD>
    <TD STYLE="text-align: justify">had any bankruptcy petition filed by or against the business or property of the person, or of any partnership, corporation or business association of which he was a general partner or executive officer, either at the time of the bankruptcy filing or within two years prior to that time;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&#9679;</TD>
    <TD STYLE="text-align: justify">been subject to any order, judgment, or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction or federal or state authority, permanently or temporarily enjoining, barring, suspending or otherwise limiting, his involvement in any type of business, securities, futures, commodities, investment, banking, savings and loan, or insurance activities, or to be associated with persons engaged in any such activity;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&#9679;</TD>
    <TD STYLE="text-align: justify">been found by a court of competent jurisdiction in a civil action or by the SEC or the Commodity Futures Trading Commission to have violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended, or vacated;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&#9679;</TD>
    <TD STYLE="text-align: justify">been the subject of, or a party to, any federal or state judicial or administrative order, judgment, decree, or finding, not subsequently reversed, suspended or vacated (not including any settlement of a civil proceeding among private litigants), relating to an alleged violation of any federal or state securities or commodities law or regulation, any law or regulation respecting financial institutions or insurance companies including, but not limited to, a temporary or permanent injunction, order of disgorgement or restitution, civil money penalty or temporary or permanent cease-and-desist order, or removal or prohibition order, or any law or regulation prohibiting mail or wire fraud or fraud in connection with any business entity; or</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&#9679;</TD>
    <TD STYLE="text-align: justify">been the subject of, or a party to, any sanction or order, not subsequently reversed, suspended or vacated, of any self-regulatory organization (as defined in Section 3(a)(26) of the Exchange Act), any registered entity (as defined in Section 1(a)(29) of the Commodity Exchange Act), or any equivalent exchange, association, entity or organization that has disciplinary authority over its members or persons associated with a member.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Except as set forth in our discussion below
in &ldquo;Certain Relationships and Related Transactions,&rdquo; none of our directors or executive officers has been involved
in any transactions with us or any of our directors, executive officers, affiliates or associates which are required to be disclosed
pursuant to the rules and regulations of the SEC.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company has not currently adopted a
code of ethics.</P>

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

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following sets forth information with
respect to the compensation awarded or paid to Lars Aarup Poulsen, our newly appointed President, Chief Executive Officer, , and
Chairman, Greg May, our newly appointed Vice President, Chief Operating Officer, and Director, Steve Matteson, our newly appointed
Chief Financial Officer, as well as our former President, Chief Executive Officer, Chief Financial Officer, and Director, Irina
Tchenikova. These executive officers are referred to as the &ldquo;named executive officers&rdquo; throughout this Report.</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: black 1.5pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Name and Principal Position</B></P></TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; padding-bottom: 1.5pt; font-weight: bold; text-align: center">Year</TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; padding-bottom: 1.5pt; font-weight: bold; text-align: center">Salary</TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; padding-bottom: 1.5pt; font-weight: bold; text-align: center">Bonus</TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; padding-bottom: 1.5pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Stock</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Awards</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>($)</B></P></TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; padding-bottom: 1.5pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Option</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Awards</B></P></TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; padding-bottom: 1.5pt; font-weight: bold; text-align: center">Non-Qualified Deferred Compensation Earnings</TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; padding-bottom: 1.5pt; font-weight: bold; text-align: center">All Other Compensation</TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Totals</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>($)</B></P></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 11%">Lars AarupPoulsen President, Chief Executive Officer, and Chairman</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 7%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">2012</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">2011</P></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">$</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&nbsp;</P></TD>
    <TD STYLE="width: 7%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">0</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">0</P></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">$</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&nbsp;</P></TD>
    <TD STYLE="width: 7%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">0</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">0</P></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">$</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&nbsp;</P></TD>
    <TD STYLE="width: 7%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">0</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">0</P></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">$</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&nbsp;</P></TD>
    <TD STYLE="width: 7%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">0</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">0</P></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">$</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&nbsp;</P></TD>
    <TD STYLE="width: 12%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">0</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">0</P></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">$</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&nbsp;</P></TD>
    <TD STYLE="width: 12%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">0</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">0</P></TD>
    <TD STYLE="width: 1%; text-align: right">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">$</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&nbsp;</P></TD>
    <TD STYLE="width: 7%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">0</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">0&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Greg May</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Vice President, Chief Operating Officer, and Director</P></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">2012</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">2011</P></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">0</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">0</P></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">0</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">0</P></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">0</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">0</P></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">0</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">0</P></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">0</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">0</P></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">0</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">0</P></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">0</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">0</P></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Steve Matteson</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Chief Financial Officer</P></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">2012</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">2011</P></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">0</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">0</P></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">0</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">0</P></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">0</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">0</P></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">0</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">0</P></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">0</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">0</P></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">0</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">0</P></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">0</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">0</P></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Irina Tchernikova,</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Former President, Chief Executive Officer, Chief Financial Officer,
        and Director</P></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">2012</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">2011</P></TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">$</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&nbsp;</P></TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">0</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">0</P></TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">$</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&nbsp;</P></TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">0</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">0</P></TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">$</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&nbsp;</P></TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">0</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">0</P></TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">$</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&nbsp;</P></TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">0</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">0</P></TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">$</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&nbsp;</P></TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">0</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">0</P></TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">$</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&nbsp;</P></TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">0</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">0</P></TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">$</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&nbsp;</P></TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">0</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">0</P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The discussion below pertains to compensation
awarded or paid by Vitas Group, Inc. to Lars Aarup Poulsen, Greg May, Steve Matteson, Irina Tchernikova with respect to Vitas Group,
Inc.&rsquo;s fiscal quarter ended August 31, 2012.</P>



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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Outstanding Equity Awards at Fiscal
Year-End Table</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><BR>
As of August 31, 2012, the Company had no outstanding equity awards.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">There are no employment agreements between
the Company and its officers and directors.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company has not compensated any of
its directors for service on the Board of Directors. Management directors are not compensated for their service as directors; however
they may receive compensation for their services as employees of the Company.</P>

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Transactions with Related Persons</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">None.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">From time to time, we may become involved
in various lawsuits and legal proceedings which arise in the ordinary course of business. However, litigation is subject to inherent
uncertainties and an adverse result in these or other matters may arise from time to time that may harm our business. We are currently
not aware of any such legal proceedings or claims that we believe will have a material adverse affect on our business, financial
condition or operating results.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>MARKET PRICE AND DIVIDENDS ON OUR COMMON
EQUITY</B></P>

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our common stock has been approved for
quotation on The OTCBB under the symbol &ldquo;VAPN.&rdquo;&nbsp;&nbsp;However, no established public market exists for our common
stock.&nbsp;&nbsp;As of the Closing Date, 3,005,000 shares of our common stock were issued and outstanding.</P>



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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Of the 3,005,000 shares of our common stock
issued and outstanding, 2,500,000 of such shares are restricted shares under the Securities Act.&nbsp;&nbsp;None of these restricted
shares are eligible for resale absent registration or an exemption from registration under the Securities Act.&nbsp;&nbsp;As of
the Closing Date, the exemption from registration provided by Rule 144 under the Securities Act is not available for these shares
pursuant to Rule 144(i).</P>



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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of the Closing Date and after
giving effect to the Change of Control, there were <FONT STYLE="background-color: white">approximately 5 holders</FONT> of
record of our common stock, which does not include shares held by brokerage clearing houses, depositories or others in
unregistered form.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have never declared or paid a cash dividend.
Any future decisions regarding dividends will be made by our Board of Directors. We currently intend to retain and use any future
earnings for the development and expansion of our business and do not anticipate paying any cash dividends in the foreseeable future.
Our Board of Directors has complete discretion on whether to pay dividends. Even if our Board of Directors decides to pay dividends,
the form, frequency and amount will depend upon our future operations and earnings, capital requirements and surplus, general financial
condition, contractual restrictions and other factors that the Board of Directors may deem relevant.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our common stock is subject to provisions
of Section 15(g) and Rule 15g-9 of the Exchange Act, commonly referred to as the &ldquo;penny stock rule.&rdquo; Section 15(g)
sets forth certain requirements for transactions in penny stock, and Rule 15g-9(d) incorporates the definition of &ldquo;penny
stock&rdquo; that is found in Rule 3a51-1 of the Exchange Act. The SEC generally defines a penny stock to be any equity security
that has a market price less than $5.00 per share, subject to certain exceptions. The Company is subject to the SEC&rsquo;s penny
stock rules.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Since our common stock is deemed to be
penny stock, trading in the shares of our common stock is subject to additional sales practice requirements on broker-dealers who
sell penny stock to persons other than established customers and accredited investors. &ldquo;Accredited investors&rdquo; are persons
with assets in excess of $1,000,000 or annual income exceeding $200,000 or $300,000 together with their spouse. For transactions
covered by these rules, broker-dealers must make a special suitability determination for the purchase of such security and must
have the purchaser&rsquo;s written consent to the transaction prior to the purchase. Additionally, for any transaction involving
a penny stock, unless exempt the rules require the delivery, prior to the first transaction of a risk disclosure document, prepared
by the SEC, relating to the penny stock market. A broker-dealer also must disclose the commissions payable to both the broker-dealer
and the registered representative and current quotations for the securities. Finally, monthly statements must be sent disclosing
recent price information for the penny stocks held in an account and information to the limited market in penny stocks. Consequently,
these rules may restrict the ability of broker-dealer to trade and/or maintain a market in our common stock and may affect the
ability of the Company&rsquo;s stockholders to sell their shares of common stock.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Securities Authorized for Issuance under
Equity Compensation Plans</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We do not have in effect any compensation
plans under which our equity securities are authorized for issuance.&nbsp;&nbsp;The Company intends to adopt an equity compensation
plan in which its directors, officers, employees and consultants shall be eligible to participate.&nbsp;&nbsp;However, no formal
steps have been taken as of the date of this Report to adopt such a plan.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">None.</P>

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

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In the discussion that follows, we have
summarized selected provisions of our certificate of incorporation, bylaws and the Nevada Corporation Law relating to our capital
stock. This summary is not complete. This discussion is subject to the relevant provisions of Nevada law and is qualified in its
entirety by reference to our certificate of incorporation and our bylaws. You should read the provisions of our certificate of
incorporation and our bylaws as currently in effect for provisions that may be important to you.</P>

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our authorized share capital consists of
75,000,000 shares of common stock, par value $0.0001 per share.&nbsp;&nbsp;As of the Closing Date and after giving effect to the
Change of Control, 3,005,000 shares of our common stock were outstanding.</P>



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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Each share of our common stock entitles
its holder to one vote in the election of each director and on all other matters voted on generally by our stockholders, other
than any matter that (1) solely relates to the terms of any outstanding series of preferred stock or the number of shares of that
series and (2) does not affect the number of authorized shares of preferred stock or the powers, privileges and rights pertaining
to the common stock. No share of our common stock affords any cumulative voting rights. This means that the holders of a majority
of the voting power of the shares voting for the election of directors can elect all directors to be elected if they choose to
do so.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Holders of our common stock will be entitled
to dividends in such amounts and at such times as our Board of Directors in its discretion may declare out of funds legally available
for the payment of dividends. We currently intend to retain our entire available discretionary cash flow to finance the growth,
development and expansion of our business and do not anticipate paying any cash dividends on the common stock in the foreseeable
future. Any future dividends will be paid at the discretion of our Board of Directors after taking into account various factors,
including:</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 3%">&#9679;</TD>
    <TD STYLE="width: 94%">general business conditions;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&#9679;</TD>
    <TD>industry practice;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&#9679;</TD>
    <TD>our financial condition and performance;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&#9679;</TD>
    <TD>our future prospects;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&#9679;</TD>
    <TD>our cash needs and capital investment plans;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&#9679;</TD>
    <TD>our obligations to holders of any preferred stock we may issue;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&#9679;</TD>
    <TD>income tax consequences; and</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&#9679;</TD>
    <TD>the restrictions Nevada Corporation Law and other applicable laws and our credit arrangements then impose.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If we liquidate or dissolve our business,
the holders of our common stock will share ratably in all our assets that are available for distribution to our stockholders after
our creditors are paid in full and the holders of all series of our outstanding preferred stock, if any, receive their liquidation
preferences in full.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our common stock has no preemptive rights
and is not convertible or redeemable or entitled to the benefits of any sinking or repurchase fund.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under our Articles of Incorporation, no
director or officer will be held personally liable to us or our stockholders for damages of breach of fiduciary duty as a director
or officer unless such breach involves intentional misconduct, fraud, a knowing violation of law, or a payment of dividends in
violation of the law. Under our bylaws, directors and officers will be indemnified to the fullest extent allowed by the law against
all damages and expenses suffered by a director or officer being party to any action, suit, or proceeding, whether civil, criminal,
administrative or investigative.&nbsp;&nbsp;This same indemnification is provided pursuant to Nevada Revised Statutes, Chapter
78.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The general effect of the foregoing is
to indemnify a control person, officer or director from liability, thereby making us responsible for any expenses or damages incurred
by such control person, officer or director in any action brought against them based on their conduct in such capacity, provided
they did not engage in fraud or criminal activity.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Any repeal or modification of these provisions
approved by our shareholders shall be prospective only, and shall not adversely affect any limitation on the liability of a director
or officer of ours existing as of the time of such repeal or modification.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Anti-Takeover Effect of Nevada Law,
Certain By-Law Provisions</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Nevada Business Corporation Law contains
a provision governing &ldquo;acquisition of controlling interest&rdquo; (Nevada Revised Statutes 78.378 -78.3793). This law provides
generally that any person or entity that acquires 20% or more of the outstanding voting shares of a publicly-held Nevada corporation
in the secondary public or private market may be denied voting rights with respect to the acquired shares, unless a majority of
the disinterested shareholders of the corporation elects to restore such voting rights in whole or in part. The control share acquisition
act provides that a person or entity acquires &ldquo;control shares&rdquo; whenever it acquires shares that, but for the operation
of the control share acquisition act, would bring its voting power within any of the following three ranges:</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 4%">&#9679;</TD>
    <TD STYLE="width: 96%">20 to 331/3%;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&#9679;</TD>
    <TD>331/3 to 50%; or</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&#9679;</TD>
    <TD>more than 50%.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A &ldquo;control share acquisition&rdquo;
is generally defined as the direct or indirect acquisition of either ownership or voting power associated with issued and outstanding
control shares. The shareholders or board of directors of a corporation may elect to exempt the stock of the corporation from the
provisions of the control share acquisition act through adoption of a provision to that effect in the articles of incorporation
or bylaws of the corporation. Our articles of incorporation and bylaws do not exempt our common stock from the control share acquisition
act.</P>

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The control share acquisition act is applicable
only to shares of &ldquo;Issuing Corporations&rdquo; as defined by the Nevada law. An Issuing Corporation is a Nevada corporation,
which:</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 4%">&#9679;</TD>
    <TD STYLE="width: 96%; text-align: justify">has 200 or more shareholders, with at least 100 of such shareholders being both shareholders of record and residents of Nevada; and</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&#9679;</TD>
    <TD STYLE="text-align: justify">does business in Nevada directly or through an affiliated corporation.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">At this time, we do not have 100 shareholders
of record resident of Nevada. Therefore, the provisions of the control share acquisition act do not apply to acquisitions of our
shares and will not until such time as these requirements have been met. At such time as they may apply, the provisions of the
control share acquisition act may discourage companies or persons interested in acquiring a significant interest in or control
of us, regardless of whether such acquisition may be in the interest of our shareholders.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Nevada &ldquo;Combination with Interested
Shareholders Statute&rdquo; (Nevada Revised Statutes 78.411 -78.444) may also have an effect of delaying or making it more difficult
to effect a change in control of us. This statute prevents an &ldquo;interested shareholder&rdquo; and a resident domestic Nevada
corporation from entering into a &ldquo;combination,&rdquo; unless certain conditions are met. The statute defines &ldquo;combination&rdquo;
to include any merger or consolidation with an &ldquo;interested shareholder,&rdquo; or any sale, lease, exchange, mortgage, pledge,
transfer or other disposition, in one transaction or a series of transactions with an &ldquo;interested shareholder&rdquo; having:&nbsp;</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 4%">&#9679;</TD>
    <TD STYLE="width: 96%">an aggregate market value equal to 5 percent or more of the aggregate market value of the assets of the corporation;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&#9679;</TD>
    <TD>an aggregate market value equal to 5 percent or more of the aggregate market value of all outstanding shares of the corporation; or</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&#9679;</TD>
    <TD>representing 10 percent or more of the earning power or net income of the corporation.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">An &ldquo;interested shareholder&rdquo; means the beneficial
owner of 10 percent or more of the voting shares of a resident domestic corporation, or an affiliate or associate thereof. A corporation
affected by the statute may not engage in a &ldquo;combination&rdquo; within three years after the interested shareholder acquires
its shares unless the combination or purchase is approved by the board of directors before the interested shareholder acquired
such shares. If approval is not obtained, then after the expiration of the three-year period, the business combination may be consummated
with the approval of the board of directors or a majority of the voting power held by disinterested shareholders, or if the consideration
to be paid by the interested shareholder is at least equal to the highest of:</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 4%">&#9679;</TD>
    <TD STYLE="width: 96%; text-align: justify">the highest price per share paid by the interested shareholder within the three years immediately preceding the date of the announcement of the combination or in the transaction in which he became an interested shareholder, whichever is higher;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&#9679;</TD>
    <TD STYLE="text-align: justify">the market value per common share on the date of announcement of the combination or the date the interested shareholder acquired the shares, whichever is higher; or</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 4%">&#9679;</TD>
    <TD STYLE="width: 96%; text-align: justify">if higher for the holders of preferred stock, the highest liquidation value of the preferred stock.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Currently, we have no Nevada shareholders
and since this offering will not be made in the State of Nevada, no shares will be sold to its residents. Further, we do not do
business in Nevada directly or through an affiliate corporation and we do not intend to do so. Accordingly, there are no anti-takeover
provisions that have the affect of delaying or preventing a change in our control.</P>

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

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">None</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 9%; font-variant: small-caps; font-weight: bold">Item 5.01</TD>
    <TD STYLE="width: 91%; font-variant: small-caps; font-weight: bold">Changes in Control of Registrant.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Reference is made to the disclosure set forth under Items 1.01
of this Report, which disclosure is incorporated herein by reference.</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 9%; font-weight: bold">Item 5.02</TD>
    <TD STYLE="width: 91%; font-weight: bold">Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangement of Certain Officers.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In connection with the closing of the Stock
Purchase Agreement, on November 6, 2012, Irina Tchernikova submitted to the Company a resignation letter pursuant to which she
resigned from his position as director of the Company. In addition, Ms. Tchernikova resigned from her position as President, Chief
Executive Officer, and Chief Financial Officer of the Company. The resignation of Ms. Tchernikova was not a result of any disagreements
relating to the Company&rsquo;s operations, policies or practices.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On November 6, 2012, by a consent to action
without meeting by unanimous consent of the board of directors of the Company (the &ldquo;Board&rdquo;), the Board accepted the
resignation of Ms. Tchernikova and appointed Lars Aarup Poulsen to serve as the President, Chief Executive Officer, and director
of the Company. The Board also appointed Greg May to serve as Chief Operating Officer, Vice President and director of the Company.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Lars Aarup Poulsen, 59, </B>has served
as the Chief Executive Officer, President, and Director of Vitas Group, Inc. since November 6, 2012.&nbsp;&nbsp;Since 2007, Mr.
Poulsen has been the CEO and head of sales of Sealand Living A/S. Mr. Poulsen graduated from Graphic Arts Institute of Denmark.
Additionally, Mr. Poulsen graduated from the Copenhagen Business School</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Greg May, 49, </B>has served as the
Chief Operating Officer, Vice President, and Director of Vitas Group, Inc. since November 6, 2012.&nbsp;&nbsp;Since 1987, Mr. May
has been the CEO President of PSP International Inc., a company that manufacturer sporting goods and apparel for domestic and international
sales. Mr. May received his Bachelor of Arts in Education from the United States International University.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Steve Matteson, </B>has served as the
Chief Financial Officer of Vitas Group, Inc. since November 6, 2012. Since 2005, Mr. Matteson has been the President of Twin Tiers
Consulting, a firm that provides advisory and investment management services. In 2000, Mr. Matteson co-founded the boutique financial
planning firm, Burns Matteson Capital Management, and served as its Chief Operations Officer until 2005. Mr. Matteson received
an MBA from the University of South Carolina, a M.A. in International Business from Vienna University of Economic and Business
Administration, and received his Bachelor&rsquo;s degree in Business Administration from Mansfield University.</P>



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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of the date of this Report, there has
not been any material plan, contract or arrangement (whether or not written) to which any of our officers or directors are a party
in connection with their appointments as officers or directors of the Company.</P>

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">There are no family relationships between
Greg May, Lars Aarup Poulsen, and Steve Matteson, and any previous officers or directors of the Company.</P>



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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">There are no related party transactions
reportable under Item 5.02 of Form 8-K or Item 404(a) of Regulation S-K.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company has not entered into any employment
agreements with any of its officers.</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 8%; font-weight: bold">Item&nbsp;9.01</TD>
    <TD STYLE="width: 92%; font-weight: bold">Financial Statements and Exhibits.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 5%">(d)</TD>
    <TD STYLE="width: 95%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Exhibits.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The following exhibit is furnished herewith:</P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 6%; border-bottom: black 1.5pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Exhibit</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Number</B></P></TD>
    <TD STYLE="width: 1%; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="width: 93%; border-bottom: black 1.5pt solid; font-weight: bold">Description</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="border-top: windowtext 1pt solid">10.1</TD>
    <TD STYLE="border-top: windowtext 1pt solid">&nbsp;</TD>
    <TD STYLE="border-top: windowtext 1pt solid; text-align: justify">Stock Purchase Agreement, dated November 6, 2012, by and among Vitas Group, Inc., Irina Tchernikova, Greg May, and Lars Aarup Poulsen.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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

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

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

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify">VITAS GROUP, INC.</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 52%; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 2%; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 35%; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 11%; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-bottom: 1.5pt; text-align: justify">DATED:&nbsp;&nbsp;November 6, 2012</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: justify">By:</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; font-style: italic; text-align: justify">/s/ Lars Aarup Poulsen</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: justify">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">Lars Aarup Poulsen</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">President, Chief Executive Officer, and Chairman</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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














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[{"type": "8-K", "sequence": "1", "filename": "v327608_8k.htm", "description": "FORM 8-K", "secsgml_size_bytes": 170390}]
{"company-data": {"conformed-name": "VITAS GROUP, INC.", "cik": "0001522236", "assigned-sic": "7990", "irs-number": "900724554", "state-of-incorporation": "NV", "fiscal-year-end": "0531"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "333-175590", "film-number": "121184412"}, "business-address": {"street1": "ITALIA #32-81 Y MARIANA DE JESUS", "city": "QUITO", "state": "H1", "zip": "EC 170102", "phone": "011593026000404"}, "mail-address": {"street1": "ITALIA #32-81 Y MARIANA DE JESUS", "city": "QUITO", "state": "H1", "zip": "EC 170102"}}
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
November 6, 2012
VITAS GROUP, INC.
(Exact name of registrant as specified in
its charter)
Nevada
333-175590
90-0724836554
(State or other jurisdiction of
(Commission File Number)
(IRS Employer Identification No.)
incorporation)
50 W. Liberty Street #880 Reno, Nevada
89501
(Address of principal executive offices)
(Zip Code)
Registrant's telephone number, including
area code: (
800) 688-0501
ITALIA #32-81 Y MARIANA DE JESUS
QUITO, EC 170102 ECUADOR
Tel. 011-59302-6000404
(Former name or former address, if changed since last report)
Check the appropriate box below if the
Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions
(
see
General Instruction A.2. below):
¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a -12)
¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d -2(b))
¨
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e -4(c))
CAUTIONARY NOTE REGARDING FORWARD LOOKING
STATEMENTS
This Current Report on Form 8-K (this "Report")
contains forward-looking statements. The forward-looking statements are contained principally in the sections entitled "Description
of Business," "Risk Factors," and "Management's Discussion and Analysis of Financial Condition and
Results of Operations." These statements involve known and unknown risks, uncertainties and other factors which may cause
our actual results, performance or achievements to be materially different from any future results, performances or achievements
expressed or implied by the forward-looking statements. In some cases, you can identify forward-looking statements by terms such
as "anticipates," "believes," "seeks," "could," "estimates," "expects,"
"intends," "may," "plans," "potential," "predicts," "projects,"
"should," "would" and similar expressions intended to identify forward-looking statements. Forward-looking
statements reflect our current views with respect to future events and are based on assumptions and subject to risks and uncertainties.
These risks and uncertainties include, but are not limited to, the factors described in the section captioned "Risk Factors"
below. Given these uncertainties, you should not place undue reliance on these forward-looking statements.  Such statements
may include, but are not limited to, information related to: anticipated operating results; relationships with our merchants and
subscribers; consumer demand; financial resources and condition; changes in revenues; changes in profitability; changes in accounting
treatment; cost of sales; selling, general and administrative expenses; interest expense; the ability to produce the liquidity
or enter into agreements to acquire the capital necessary to continue our operations and take advantage of opportunities; legal
proceedings and claims.
Also, forward-looking statements represent
our estimates and assumptions only as of the date of this Report. You should read this Report and the documents that we reference
and file or furnish as exhibits to this Report completely and with the understanding that our actual future results may be materially
different from what we expect. Except as required by law, we assume no obligation to update any forward-looking statements publicly,
or to update the reasons actual results could differ materially from those anticipated in any forward-looking statements, even
if new information becomes available in the future.
USE OF CERTAIN DEFINED TERMS
Except as otherwise indicated by the context,
references in this report to "we," "us," "our," "our Company," or "the Company"
are to the combined business of Vitas Group, Inc. and its consolidated subsidiaries.
Item 1.01
Entry into a Material Definitive Agreement.
Stock Purchase Agreement
On November 6, 2012 Vitas Group, Inc. (the
"Company"), Irina Tchernikova (the "Seller") and Greg May and Lars Aarup Poulsen (the "Purchasers")
entered into and closed a stock purchase agreement (the "Stock Purchase Agreement"), whereby the Purchasers purchased
from the Seller, 2,500,000 shares of common stock, par value $0.001 per share, of the Company(the "Shares"), representing
approximately 83.19% of the issued and outstanding shares of the Company, for an aggregate purchase price of $150,000 (the "Purchase
Price"). Prior to the closing of the Stock Purchase Agreement, Seller was our President, Chief Executive Officer, Chief Financial
Officer, sole director, and majority shareholder.
The foregoing description of the terms
of the Stock Purchase Agreement is qualified in its entirety by reference to the provisions of the agreement filed as Exhibit 10.1
to this report, which is incorporated by reference herein.
FORM 10 DISCLOSURE
As disclosed elsewhere in this Report,
we acquired the Company pursuant to the Stock Purchase Agreement.  Item 5.01(a)(8) of Form 8-K provides that if the Company
was a shell company, other than a business combination related shell company (as those terms are defined in Rule 12b-2 under the
Exchange Act) immediately before the Change of Control, then the Company must disclose the information that would be required if
the Company were filing a general form for registration of securities on Form 10 under the Exchange Act reflecting all classes
of the Company's securities subject to the reporting requirements of Section 13 of the Exchange Act upon consummation of
the Change of Control.
To the extent that the Company might have
been considered to be a shell company immediately before the Change of Control, we are providing below the information that we
would be required to disclose on Form 10 under the Exchange Act if we were to file such form.  Please note that the information
provided below relates to the Company after the Change of Control of Vitas Group, Inc. except that information relating to periods
prior to the date of the Change of Control relate only to the prior operations of Vitas Group, Inc. unless otherwise specifically
indicated.
DESCRIPTION OF BUSINESS
Our Corporate History and Background
VITAS GROUP, INC. was incorporated in the
State of Nevada on May 13, 2011. We were in the business of placing and operating coin operated boxing machines in public venues
with high traffic flow in Ecuador. Prior to the Change of Control, we had not generated any revenue and our operations were limited
to capital formation, organization and development of our business plan.  As a result of the Change of Control, we ceased
our prior operations and we now intent to engage in any lawful corporate undertaking, including, but not limited to, selected mergers
and acquisitions..
Change of Control
On November 6, 2012, we completed the Change
of Control whereby Greg May and Lars Aarup Poulsen each acquired 1,250,000 shares outstanding capital stock of Vitas Group, Inc.
in exchange for an aggregate amount of $150,000.
In connection with the Change of Control,
Irina Tchernikova resigned as the sole member of our board of directors and chief executive officer of the Company, effective upon
the closing of the Change of Control.  Also effective upon closing of the Change of Control, the Board appointed Lars
Aarup Poulsen to serve as the President, Chief Executive Officer, and director of the Company. The Board also appointed Greg May
to serve as Chief Operating Officer, Vice President and director of the Company. The Board also appointed Steve Matteson to serve
as Chief Financial Officer of the Company.
In the future, we plan to change our name
to more accurately reflect our new business operations.
Plan of Operations
We will attempt to locate and negotiate with a business entity for the combination of that target company
with us. The combination will normally take the form of a merger, stock-for-stock exchange or stock-for-assets exchange. In most
instances, the target company will wish to structure the business combination to be within the definition of a tax-free reorganization
under Section 351 or Section 368 of the Internal Revenue Code of 1986, as amended. No assurances can be given that we will be successful
in locating or negotiating with any target company.
Perceived Benefits
There are certain perceived benefits to
being a reporting company with a class of publicly- traded securities. These are commonly thought to include the following:
*
the ability to use registered securities to make acquisitions of assets or businesses;
*
increased visibility in the financial community;
*
the facilitation of borrowing from financial institutions;
*
improved trading efficiency;
*
shareholder liquidity;
*
greater ease in subsequently raising capital;
*
compensation of key employees through stock options for which there may be a market valuation;
*
enhanced corporate image;
*
a presence in the United States capital market.
Potential Target Companies
A business entity, if any, which may be interested in a business
combination with us may include the following:
*
a company for which a primary purpose of becoming public is the use of its securities for the acquisition of assets or businesses;
*
a company which is unable to find an underwriter of its securities or is unable to find an underwriter of securities on terms acceptable to it;
*
a company which wishes to become public with less dilution of its common stock than would occur upon an underwriting;
*
a company which believes that it will be able to obtain investment capital on more favorable terms after it has become public;
*
a foreign company which may wish an initial entry into the United States securities market;
*
a special situation company, such as a company seeking a public market to satisfy redemption  requirements under a qualified Employee Stock Option Plan; or
*
a company seeking one or more of the other perceived benefits of becoming a public company.
A business combination with a target company
will normally involve the transfer to the target company of the majority of our issued and outstanding common stock, and the substitution
by the target company of its own management and board of directors.
No assurances can be given that we will
be able to enter into a business combination, as to the terms of a business combination, or as to the nature of the target company.
Employees
As of the Closing Date, we have no full
time employees. Greg May, Lars Aarup Poulsen, and Steve Matteson, our officers and directors, have agreed to allocate a portion
of their time to business activities.
RISK FACTORS
An investment in our common stock
involves a high degree of risk. You should carefully consider the risks described below, together with all of the other information
included in this Report, before making an investment decision. If any of the following risks actually occurs, our business, financial
condition or results of operations could suffer. In that case, the trading price of our shares of common stock could decline and
you may lose all or part of your investment. See "Cautionary Note Regarding Forward Looking Statements" above for a
discussion of forward-looking statements and the significance of such statements in the context of this Report.
Risks Related to Our Business
We have a history of operating losses
and there can be no assurance that we can achieve or maintain profitability.
We have a history of operating losses and
may not achieve or sustain profitability. We cannot guarantee that we will become profitable.  Even if we achieve profitability,
given the competitive and evolving nature of the industry in which we operate, we may be unable to sustain or increase profitability
and our failure to do so would adversely affect the Company's business, including our ability to raise additional funds.
Our independent registered public
accounting firm has expressed doubt about our ability to continue as a going concern.
Our financial statements have been prepared
under the assumption that we will continue as a going concern. Our independent registered public accounting firm has issued a report
that included an explanatory paragraph referring to our working capital deficiency, recurring net losses and negative cash flows
from operations and expressing substantial doubt in our ability to continue as a going concern. Our ability to continue as a going
concern is dependent upon our ability to obtain additional equity financing or other capital, attain further operating efficiencies,
reduce expenditures, and, ultimately, to generate revenue. Our financial statements do not include any adjustments that might result
from the outcome of this uncertainty. However, if adequate funds are not available to us when we need it, and we are unable to
enter into some form of strategic relationship that will give us access to additional cash resources, we will be required to even
further curtail our operations which would, in turn, further raise substantial doubt about our ability to continue as a going concern.
Our business depends substantially
on the continuing efforts of our executive management and our business may be severely disrupted if we lost their services.
Our future success heavily depends on the
continued service of our executive management. If our executives are unable or unwilling to continue to work for us in their present
positions, we may have to spend a considerable amount of time and resources searching, recruiting, and integrating the replacements
into our operations, which would substantially divert management's attention from our business and severely disrupt our business.
This may also adversely affect our ability to execute our business strategy. Moreover, if any of our executives join a competitor
or forms a competing company, we may lose customers, suppliers, know-how, and key employees.
Our executive management's
limited experience managing a publicly traded company may divert management's attention from operations and harm our business.
Our executive management team has relatively
limited experience managing a publicly traded company and complying with federal securities laws, including compliance with recently
adopted disclosure requirements on a timely basis.  Our management will be required to design and implement appropriate
programs and policies in responding to increased legal, regulatory compliance and reporting requirements, and any failure to do
so could lead to the imposition of fines and penalties and harm our business.
We may be unable to attract and retain
qualified, experienced, highly skilled personnel, which could adversely affect the implementation of our business plan.
Our success depends to a significant degree
upon our ability to attract, retain and motivate skilled and qualified personnel. As we become a more mature company in the future,
we may find recruiting and retention efforts more challenging. If we do not succeed in attracting, hiring and integrating excellent
personnel, or retaining and motivating existing personnel, we may be unable to grow effectively. The loss of any key employee,
including members of our senior management team, and our inability to attract highly skilled personnel with sufficient experience
in our industries could harm our business.
Our inability to protect our intellectual
property rights may force us to incur unanticipated costs.
Our success will depend, in part, on our
ability to obtain and maintain
protection in the United States and other countries for certain intellectual
property
incorporated into our products.  Our intellectual properties may be challenged, narrowed, invalidated or
circumvented,
which could limit our ability to prevent competitors from
marketing similar solutions that limit the effectiveness
of our patent
protection and force us to incur unanticipated costs.  In addition, existing laws
of
some countries in which we may provide services or solutions may offer only
limited protection of our intellectual
property rights.
Our products may infringe the intellectual
property rights of third parties, and third parties may infringe our proprietary rights, either of which may result in lawsuits,
distraction of management and the impairment of our business.
As the number of patents, copyrights, trademarks
and other intellectual
property rights in our industry increases, products based on our technology may
increasingly
become the subject of infringement claims.  Third parties could
assert infringement claims against us in
the future.  Infringement claims with or
without merit could be time consuming, result in costly litigation,
cause
product shipment delays or require us to enter into royalty or licensing
agreements.  Royalty
or licensing agreements, if required, might not be available
on terms acceptable to us, or at all.  We may
initiate claims or litigation against third
parties for infringement of our proprietary rights or to establish the
validity
of our proprietary rights.  Litigation to determine the validity of any claims,
whether
or not the litigation is resolved in our favor, could result in
significant expense to us and divert the efforts of
our technical and management
personnel from productive tasks.  If there is an adverse ruling against us in
any
litigation, we may be required to pay substantial damages, discontinue the use
and sale of infringing
products, and expend significant resources to develop
non-infringing technology or obtain licenses to infringing technology.  Our
failure
to develop or license a substitute technology could prevent us from
selling our products.
We will incur increased costs as
a result of being a public company.
We will face increased legal, accounting,
administrative and other costs and expenses as a public company that we did not incur as a private company. The Sarbanes-Oxley
Act of 2002, including the requirements of Section 404, as well as new rules and regulations subsequently implemented by the SEC,
the Public Company Accounting Oversight Board (the "PCAOB"), impose additional reporting and other obligations on public
companies. We expect that compliance with these public company requirements will increase our costs and make some activities more
time-consuming. A number of those requirements will require us to carry out activities we have not done previously.  For
example, we will adopt new internal controls and disclosure controls and procedures. In addition, we will incur additional expenses
associated with our SEC reporting requirements. Furthermore, if we identify any issues in complying with those requirements (for
example, if we or our accountants identify a material weakness or significant deficiency in our internal control over financial
reporting), we could incur additional costs rectifying those issues, and the existence of those issues could adversely affect us,
our reputation or investor perceptions of us. We also expect that it will be difficult and expensive to obtain director and officer
liability insurance, and we may be required to accept reduced policy limits and coverage or incur substantially higher costs to
obtain the same or similar coverage.  As a result, it may be more difficult for us to attract and retain qualified persons
to serve on the Company's board of directors or as executive officers. Advocacy efforts by stockholders and third parties
may also prompt even more changes in corporate governance and reporting requirements. We expect that the additional reporting and
other obligations imposed on us by these rules and regulations will increase our legal and financial compliance costs and administrative
fees significantly. These increased costs will require us to divert a significant amount of money that we could otherwise use to
expand our business and achieve our strategic objectives.
Risks Related to Ownership of Our Common
Stock
Greg May and Lars Aarup Poulsen has
voting control over matters submitted to a vote of the stockholders and he may take actions that conflict with the interests of
our other stockholders and holders of our debt securities.
In connection with the Change of Control,
Greg May and Lars Aarup Poulsen each received a total of 1,250,000 shares of our common stock.   Accordingly, Greg May
and Lars Aarup Poulsen, collectively, control more than 50% of the votes eligible to be cast by stockholders in the election of
directors and generally.  As a result, Greg May and Lars Aarup Poulsen have the power to control all matters requiring
the approval of our stockholders, including the election of directors and the approval of mergers and other significant corporate
transactions, following the Change of Control.
Our common stock is quoted on the
OTCBB which may have an unfavorable impact on our stock price and liquidity.
Our common stock is quoted on the OTCBB,
which is a significantly more limited trading market than the New York Stock Exchange or The NASDAQ Stock Market.  The
quotation of the Company's shares on the OTCBB may result in a less liquid market available for existing and potential stockholders
to trade shares of our common stock, could depress the trading price of our common stock and could have a long-term adverse impact
on our ability to raise capital in the future.
There is limited liquidity on the
OTCBB which may result in stock price volatility and inaccurate quote information.
When fewer shares of a security are being
traded on the OTCBB, volatility of prices may increase and price movement may outpace the ability to deliver accurate quote information.  Due
to lower trading volumes in shares of our common stock, there may be a lower likelihood of one's orders for shares of our
common stock being executed, and current prices may differ significantly from the price one was quoted at the time of one's
order entry.
If we are unable to adequately fund
our operations, we may be forced to voluntarily file for deregistration of our common stock with the SEC.
Compliance with the periodic reporting
requirements required by the SEC consumes a considerable amount of both internal, as well external, resources and represents a
significant cost for us.  We estimate that we will incur approximately $250,000 in costs in connection with compliance
with the periodic reporting requirements required by the SEC on an annual basis.  If we are unable to continue to devote
adequate funding and the resources needed to maintain such compliance, while continuing our operations, we may be forced to deregister
with the SEC.  If we file for deregistration, our common stock will no longer be listed The OTC Bulletin Board, and it
may suffer a decrease in or absence of liquidity as after the deregistration process is complete, our common stock will only be
tradable on the "Pink Sheets."
The sale of securities by us in any
equity or debt financing could result in dilution to our existing stockholders and have a material adverse effect on our earnings.
Any sale of common stock by us in a future
private placement offering could result in dilution to the existing stockholders as a direct result of our issuance of additional
shares of our capital stock.  In addition, our business strategy may include expansion through internal growth, by acquiring
subscribers email lists, or by establishing strategic relationships with targeted customers and vendor.  In order to
do so, or to finance the cost of our other activities, we may issue additional equity securities that could dilute our stockholders'
stock ownership.  We may also assume additional debt and incur impairment losses related to goodwill and other tangible
assets if we acquire another company and this could negatively impact our earnings and results of operations.
Future sales of our common stock
in the public market could lower the price of our common stock and impair our ability to raise funds in future securities offerings.
Future sales of a substantial number of
shares of our common stock in the public market, or the perception that such sales may occur, could adversely affect the then prevailing
market price of our common stock and could make it more difficult for us to raise funds in the future through a public offering
of our securities.
Our common stock is thinly traded,
so you may be unable to sell at or near asking prices or at all if you need to sell your shares to raise money or otherwise desire
to liquidate your shares.
Currently, the Company's common stock is quoted in the OTCBB and future trading volume may be limited
by the fact that many major institutional investment funds, including mutual funds, as well as individual investors follow a policy
of not investing in OTCBB stocks and certain major brokerage firms restrict their brokers from recommending OTCBB stocks because
they are considered speculative, volatile and thinly traded.  The OTCBB market is an inter-dealer market much less regulated
than the major exchanges and our common stock is subject to abuses, volatility and shorting.  Thus, there is currently
no broadly followed and established trading market for the Company's common stock.  An established trading market
may never develop or be maintained. Active trading markets generally result in lower price volatility and more efficient execution
of buy and sell orders. Absence of an active trading market reduces the liquidity of the shares traded there.
The trading volume of our common stock
has been and may continue to be limited and sporadic.  As a result of such trading activity, the quoted price for the
Company's common stock on the OTCBB may not necessarily be a reliable indicator of its fair market value.  Further,
if we cease to be quoted, holders would find it more difficult to dispose of our common stock or to obtain accurate quotations
as to the market value of the Company's common stock and as a result, the market value of our common stock likely would decline.
Our common stock is subject to price
volatility unrelated to our operations.
The market price of our common stock could
fluctuate substantially due to a variety of factors, including market perception of our ability to achieve our planned growth,
quarterly operating results of other companies in the same industry, trading volume in our common stock, changes in general conditions
in the economy and the financial markets or other developments affecting the Company's competitors or the Company itself.
In addition, the OTCBB is subject to extreme price and volume fluctuations in general.  This volatility has had a significant
effect on the market price of securities issued by many companies for reasons unrelated to their operating performance and could
have the same effect on our common stock.
We are subject to penny stock regulations
and restrictions and you may have difficulty selling shares of our common stock.
Our common stock is subject to the provisions
of Section 15(g) and Rule 15g-9 of the Exchange Act, commonly referred to as the "penny stock rule."  Section
15(g) sets forth certain requirements for transactions in penny stock, and Rule 15g-9(d) incorporates the definition of "penny
stock" that is found in Rule 3a51-1 of the Exchange Act.  The SEC generally defines a penny stock to be any equity
security that has a market price less than $5.00 per share, subject to certain exceptions. We are subject to the SEC's penny
stock rules.
Since our common stock is deemed to be
penny stock, trading in the shares of our common stock is subject to additional sales practice requirements on broker-dealers who
sell penny stock to persons other than established customers and accredited investors.  "Accredited investors"
are persons with assets in excess of $1,000,000 (excluding the value of such person's primary residence) or annual income
exceeding $200,000 or $300,000 together with their spouse. For transactions covered by these rules, broker-dealers must make a
special suitability determination for the purchase of such security and must have the purchaser's written consent to the
transaction prior to the purchase. Additionally, for any transaction involving a penny stock, unless exempt the rules require the
delivery, prior to the first transaction of a risk disclosure document, prepared by the SEC, relating to the penny stock market.  A
broker-dealer also must disclose the commissions payable to both the broker-dealer and the registered representative and current
quotations for the securities.  Finally, monthly statements must be sent disclosing recent price information for the
penny stocks held in an account and information to the limited market in penny stocks. Consequently, these rules may restrict the
ability of broker-dealer to trade and/or maintain a market in our common stock and may affect the ability of the Company's
stockholders to sell their shares of common stock.
There can be no assurance that our shares
of common stock will qualify for exemption from the Penny Stock Rule. In any event, even if our common stock was exempt from the
Penny Stock Rule, we would remain subject to Section 15(b)(6) of the Exchange Act, which gives the SEC the authority to restrict
any person from participating in a distribution of penny stock if the SEC finds that such a restriction would be in the public
interest.
We do not expect to pay dividends
in the foreseeable future.
We do not intend to declare dividends for
the foreseeable future, as we anticipate that we will reinvest any future earnings in the development and growth of our business.  Therefore,
our stockholders will not receive any funds unless they sell their common stock, and stockholders may be unable to sell their shares
on favorable terms or at all.
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
The information and financial data discussed
below is derived from the unaudited financial statements Vitas Group, Inc. for its three month period ended August 31, 2012, three
month period ended August 31, 2011, and from inception to August 31, 2012.  The financial statements of Vitas Group,
Inc. were prepared and presented in accordance with generally accepted accounting principles in the United States. The information
and financial data discussed below is only a summary and should be read in conjunction with the historical financial statements
and related notes of Vitas Group, Inc. contained elsewhere in the Company's periodic report; however, they are not indicative
of the Company's future performance.  See "Cautionary Note Regarding Forward Looking Statements" above
for a discussion of forward-looking statements and the significance of such statements in the context of this Report.
FORWARD LOOKING STATEMENTS
Statements made in this Form 8-K that are
not historical or current facts are "forward-looking statements" made pursuant to the safe harbor provisions of Section
27A of the Securities Act of 1933 (the "Act") and Section 21E of the Securities Exchange Act of 1934. These statements
often can be identified by the use of terms such as "may," "will," "expect," "believe,"
"anticipate," "estimate," "approximate" or "continue," or the negative thereof. We intend
that such forward-looking statements be subject to the safe harbors for such statements. We wish to caution readers not to place
undue reliance on any such forward-looking statements, which speak only as of the date made. Any forward-looking statements represent
management's best judgment as to what may occur in the future. However, forward-looking statements are subject to risks, uncertainties
and important factors beyond our control that could cause actual results and events to differ materially from historical results
of operations and events and those presently anticipated or projected. We disclaim any obligation subsequently to revise any forward-looking
statements to reflect events or circumstances after the date of such statement or to reflect the occurrence of anticipated or unanticipated
events.
ITEM 2. MANAGEMENT'S DISCUSSION AND
ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION
Prior to the Change of Control, we were
in the business of placing and operating coin operated boxing machines in public venues with high traffic flow in Ecuador. Following
the Change of Control, we intend to enter into strategic mergers and acquisitions.
Results of Operation
We are a development stage company and have not generated any
revenue to date. We have incurred recurring losses to date. Our financial statements have been prepared assuming that we will continue
as a going concern and, accordingly, do not include adjustments relating to the recoverability and realization of assets and classification
of liabilities that might be necessary should we be unable to continue in operation. We expect we will require additional capital
to meet our long term operating requirements. We expect to raise additional capital through, among other things, the sale of equity
or debt securities.
Three Month Period Ended August 31, 2012 Compared To The
Three Month Period Ended August 31, 2011
Our net loss for the three month period ended August 31, 2012
was $6,100 compared to a net loss of $3,408  during the three months period ended August 31, 2011. During the three month
period ended August 31, 2012, we did not generate any revenue.
During the three month period ended August 31, 2012, we incurred
general and administrative expenses $6,100 compared to $3,408  incurred during the three months period ended to August 31,
2011. General and administrative and professional fee expenses incurred during the three month period ended August 31, 2012 were
generally related to corporate overhead, financial and administrative contracted services, such as legal and accounting and developmental
costs.
The weighted average number of shares outstanding was 3,005,000
for the three month period ended August 31, 2012.
Liquidity and Capital Resources
Three Month Period Ended August 31, 2012
As at August 31, 2012, our current assets were $11,855 compared
to $17,955 in current assets at May 31, 2012. Current assets were comprised of $8,293 in cash and $3,562 in prepaid expenses.
As at August 31, 2012, our current liabilities were $3,775. Current liabilities were comprised of $3,775 in loan from Director.
Stockholders' equity decreased from $14,180 as of May 31, 2012 to $8,080 as of August 31, 2012.
Cash Flows From Operating Activities
We have not generated positive cash flows from operating activities.
For the three month period ended August 31, 2012, net cash flows used in operating activities was $4,100 consisting of a net loss
of $6,100  and decrease in prepaid expenses of $2,000. Net cash flows used in operating activities was $23,232 for the period
from inception (May 13, 2011) to August 31, 2012.
Cash Flows From Financing Activities
We have financed our operations primarily from either advancements
or the issuance of equity and debt instruments. For the three  month period ended August 31, 2012  we have not generated
any cash flow provided by financing activities.  For the period from inception (May 13, 2011) to August 31, 2012, net cash
provided by financing activities was $31,525 received from proceeds from issuance of common stock and loan from Director.
Plan Of Operation And Funding
Our cash reserves are not sufficient to meet our obligations
for the next twelve month period. As a result, we will need to seek additional funding in the near future. We currently do not
have a specific plan of how we will obtain such funding; however, we anticipate that additional funding will be in the form of
equity financing from the sale of shares of our common stock. We may also seek to obtain short-term loans from our directors or
unrelated parties, although no such arrangements have been made. We do not have any arrangements in place for any future equity
financing.
Material Commitments
As of August 31, 2012, we had no material commitments.
Purchase Of Significant Equipment
We do not intend to purchase any significant equipment during
the next twelve months.
Off-Balance Sheet Arrangements
As of the date of this Quarterly Report, we do not have any
off-balance sheet arrangements that have or are 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.
Going Concern
The independent auditors' audit report accompanying our May
31, 2012 financial statements contained an explanatory paragraph expressing substantial doubt about our ability to continue as
a going concern. The financial statements have been prepared "assuming that we will continue as a going concern," which
contemplates that we will realize our assets and satisfy our liabilities and commitments in the ordinary course of business.
DESCRIPTION OF PROPERTY
Our principal executive offices
are located in 50 W. Liberty St. #880, Reno, NV, 89501. We use this property pursuant to a lease agreement, whereby we pay
$50 per month. The lease expires on May 31, 2012.
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL
OWNERS AND MANAGEMENT
The following table sets forth certain
information regarding our shares of common stock beneficially owned as of the closing of the Stock Purchase Agreement for (i) each
stockholder known to be the beneficial owner of 5% or more of our outstanding shares of common stock, (ii) each named executive
officer and director, and (iii) all executive officers and directors as a group.  A person is considered to beneficially
own any shares: (i) over which such person, directly or indirectly, exercises sole or shared voting or investment power, or (ii)
of which such person has the right to acquire beneficial ownership at any time within 60 days through an exercise of stock options
or warrants or otherwise. Unless otherwise indicated, voting and investment power relating to the shares shown in the table for
our directors and executive officers is exercised solely by the beneficial owner or shared by the owner and the owner's spouse
or children.
For purposes of this table, a person or
group of persons is deemed to have "beneficial ownership" of any shares of common stock that such person has the right
to acquire within 60 days of the closing of the Stock Purchase Agreement.  For purposes of computing the percentage of
outstanding shares of our common stock held by each person or group of persons named above, any shares that such person or persons
has the right to acquire within 60 days of the Closing Date is deemed to be outstanding, but is not deemed to be outstanding for
the purpose of computing the percentage ownership of any other person.  The inclusion herein of any shares listed as
beneficially owned does not constitute an admission of beneficial ownership.
Title of Class
Name of Beneficial Owner
Amount and Nature of Beneficial Ownership
Percent of Common Stock (1)
Executive Officers and Directors
Common Stock
Lars Aarup Poulsen
Chief Executive Officer, President and Chairman
1,250,000
%
1,250,000
%
Common Stock
Greg May
Chief Operating Officer, Vice President, and Director
Common Stock
Steve Matteson
Chief Financial Officer
0
0
%
Former Executive Officers and Directors
Common Stock
Irina Tchernikova
Former President, Chief Executive Officer, and Chairman
0
0%
Other 5% Shareholders:
Common Stock
DIRECTORS AND EXECUTIVE OFFICERS
On August 31, 2012, pursuant to the Stock
Purchase Agreement, Irina Tchernikova resigned from our Board of Directors and as officer of the Company.  On the same
date, the Board appointed Lars Aarup Poulsen to serve as the President, Chief Executive Officer, and director of the Company, Greg
May to serve as Chief Operating Officer, Vice President and director of the Company. and Steve Matteson to serve as Chief Financial
Officer of the Company, effective immediately upon the closing of the Change of Control. The following sets forth information about
our directors and executive officers as of the date of this Report and following the closing of the Change of Control:
Name
Age
Position
Lars Aarup Poulsen
59
Chief Executive Officer, President, and Chairman
Greg May
49
Chief Operating Officer, Vice President, and Director
Steve Matteson
41
Chief Financial Officer
Lars Aarup Poulsen,
has served as
the Chief Executive Officer, President, and Director of Vitas Group, Inc. since November 6, 2012.  Since 2007, Mr. Poulsen
has been the CEO and head of sales of Sealand Living A/S. From 2003 to 2007, Mr. Poulsen was the Executive Director of Marketing
of DK4 Group Broadcast/Network Station Europe. Mr. Poulsen graduated from Graphic Arts Institute of Denmark. Additionally, Mr.
Poulsen graduated from the Copenhagen Business School
Greg May,
has served as the Chief
Operating Officer, Vice President, and Director of Vitas Group, Inc. since November 6, 2012.  Since 1987, Mr. May has
been the CEO President of PSP International Inc., a company that manufacturer sporting goods and apparel for domestic and international
sales. Mr. May received his Bachelor of Arts in Education from the United States International University.
Steve Matteson,
has served as the
Chief Financial Officer of Vitas Group, Inc. since November 6, 2012. Since 2005, Mr. Matteson has been the President of Twin Tiers
Consulting, a firm that provides advisory and investment management services. In 2000, Mr. Matteson co-founded the boutique financial
planning firm, Burns Matteson Capital Management, and served as its Chief Operations Officer until 2005. Mr. Matteson received
an MBA from the University of South Carolina, a M.A. in International Business from Vienna University of Economic and Business
Administration, and received his Bachelor's degree in Business Administration from Mansfield University.
Corporate Governance
The business and affairs of the Company
are managed under the direction of the Board of Directors (the "Board").
Term of Office
Directors are appointed for a one-year
term to hold office until the next annual general meeting of stockholders or until removed from office in accordance with our bylaws.
Our officers are appointed by our Board and hold office until removed by our Board.
All officers and directors listed above
will remain in office until the next annual meeting of our stockholders, and until their successors have been duly elected and
qualified. Our bylaws provide that officers are appointed annually by our Board and each executive officer serves at the discretion
of our Board.
Director Independence
We use the definition of "independence"
of The NASDAQ Stock Market to make this determination.  NASDAQ Listing Rule 5605(a)(2) provides that an "independent
director" is a person other than an officer or employee of the company or any other individual having a relationship which,
in the opinion of the Company's Board, would interfere with the exercise of independent judgment in carrying out the responsibilities
of a director.  The NASDAQ listing rules provide that a director cannot be considered independent if:
●
the director is, or at any time during the past three years was, an employee of the company;
●
the director or a family member of the director accepted any compensation from the company in excess of $120,000 during any period of 12 consecutive months within the three years preceding the independence determination (subject to certain exclusions, including, among other things, compensation for board or board committee service);
●
a family member of the director is, or at any time during the past three years was, an executive officer of the company;
●
the director or a family member of the director is a partner in, controlling stockholder of, or an executive officer of an entity to which the company made, or from which the company received, payments in the current or any of the past three fiscal years that exceed 5% of the recipient's consolidated gross revenue for that year or $200,000, whichever is greater (subject to certain exclusions);
●
the director or a family member of the director is employed as an executive officer of an entity where, at any time during the past three years, any of the executive officers of the company served on the compensation committee of such other entity; or
●
the director or a family member of the director is a current partner of the company's outside auditor, or at any time during the past three years was a partner or employee of the company's outside auditor, and who worked on the company's audit.
We have determined that none of the persons
anticipated to become directors upon the closing of the Change of Control is "independent" as defined by applicable
SEC rules and NASDAQ Stock Market listing standards.
Board Committees
We do not have an audit, nominating or
compensation committee. We intend, however, to establish an audit committee and a compensation committee of our Board in the future
following the Change of Control. We envision that the audit committee will be primarily responsible for reviewing the services
performed by our independent auditors and evaluating our accounting policies and our system of internal controls. The compensation
committee will be primarily responsible for reviewing and approving our salary and benefits policies (including stock options)
and other compensation of our executive officers.
Family Relationships
There are no family relationships among
any of our officers or directors.
Involvement in Certain Legal Proceedings
To our knowledge, none of our current directors
or executive officers has, during the past ten years:
●
been convicted in a criminal proceeding or been subject to a pending criminal proceeding (excluding traffic violations and other minor offenses);
●
had any bankruptcy petition filed by or against the business or property of the person, or of any partnership, corporation or business association of which he was a general partner or executive officer, either at the time of the bankruptcy filing or within two years prior to that time;
●
been subject to any order, judgment, or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction or federal or state authority, permanently or temporarily enjoining, barring, suspending or otherwise limiting, his involvement in any type of business, securities, futures, commodities, investment, banking, savings and loan, or insurance activities, or to be associated with persons engaged in any such activity;
●
been found by a court of competent jurisdiction in a civil action or by the SEC or the Commodity Futures Trading Commission to have violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended, or vacated;
●
been the subject of, or a party to, any federal or state judicial or administrative order, judgment, decree, or finding, not subsequently reversed, suspended or vacated (not including any settlement of a civil proceeding among private litigants), relating to an alleged violation of any federal or state securities or commodities law or regulation, any law or regulation respecting financial institutions or insurance companies including, but not limited to, a temporary or permanent injunction, order of disgorgement or restitution, civil money penalty or temporary or permanent cease-and-desist order, or removal or prohibition order, or any law or regulation prohibiting mail or wire fraud or fraud in connection with any business entity; or
●
been the subject of, or a party to, any sanction or order, not subsequently reversed, suspended or vacated, of any self-regulatory organization (as defined in Section 3(a)(26) of the Exchange Act), any registered entity (as defined in Section 1(a)(29) of the Commodity Exchange Act), or any equivalent exchange, association, entity or organization that has disciplinary authority over its members or persons associated with a member.
Except as set forth in our discussion below
in "Certain Relationships and Related Transactions," none of our directors or executive officers has been involved
in any transactions with us or any of our directors, executive officers, affiliates or associates which are required to be disclosed
pursuant to the rules and regulations of the SEC.
Code of Ethics
The Company has not currently adopted a
code of ethics.
EXECUTIVE COMPENSATION
The following sets forth information with
respect to the compensation awarded or paid to Lars Aarup Poulsen, our newly appointed President, Chief Executive Officer, , and
Chairman, Greg May, our newly appointed Vice President, Chief Operating Officer, and Director, Steve Matteson, our newly appointed
Chief Financial Officer, as well as our former President, Chief Executive Officer, Chief Financial Officer, and Director, Irina
Tchenikova. These executive officers are referred to as the "named executive officers" throughout this Report.
Name and Principal Position
Year
Salary
Bonus
Stock
Awards
($)
Option
Awards
Non-Qualified Deferred Compensation Earnings
All Other Compensation
Totals
($)
Lars AarupPoulsen President, Chief Executive Officer, and Chairman
2012
2011
$
0
0
$
0
0
$
0
0
$
0
0
$
0
0
$
0
0
$
0
0
Greg May
Vice President, Chief Operating Officer, and Director
2012
2011
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Steve Matteson
Chief Financial Officer
2012
2011
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Irina Tchernikova,
Former President, Chief Executive Officer, Chief Financial Officer,
        and Director
2012
2011
$
0
0
$
0
0
$
0
0
$
0
0
$
0
0
$
0
0
$
0
0
The discussion below pertains to compensation
awarded or paid by Vitas Group, Inc. to Lars Aarup Poulsen, Greg May, Steve Matteson, Irina Tchernikova with respect to Vitas Group,
Inc.'s fiscal quarter ended August 31, 2012.
Outstanding Equity Awards at Fiscal
Year-End Table
As of August 31, 2012, the Company had no outstanding equity awards.
Employment Agreements
There are no employment agreements between
the Company and its officers and directors.
Compensation of Directors
The Company has not compensated any of
its directors for service on the Board of Directors. Management directors are not compensated for their service as directors; however
they may receive compensation for their services as employees of the Company.
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS,
AND DIRECTOR INDEPENDENCE
Transactions with Related Persons
None.
LEGAL PROCEEDINGS
From time to time, we may become involved
in various lawsuits and legal proceedings which arise in the ordinary course of business. However, litigation is subject to inherent
uncertainties and an adverse result in these or other matters may arise from time to time that may harm our business. We are currently
not aware of any such legal proceedings or claims that we believe will have a material adverse affect on our business, financial
condition or operating results.
MARKET PRICE AND DIVIDENDS ON OUR COMMON
EQUITY
AND RELATED STOCKHOLDER MATTERS
Market Information
Our common stock has been approved for
quotation on The OTCBB under the symbol "VAPN."  However, no established public market exists for our common
stock.  As of the Closing Date, 3,005,000 shares of our common stock were issued and outstanding.
Of the 3,005,000 shares of our common stock
issued and outstanding, 2,500,000 of such shares are restricted shares under the Securities Act.  None of these restricted
shares are eligible for resale absent registration or an exemption from registration under the Securities Act.  As of
the Closing Date, the exemption from registration provided by Rule 144 under the Securities Act is not available for these shares
pursuant to Rule 144(i).
Holders
As of the Closing Date and after
giving effect to the Change of Control, there were
approximately 5 holders
of
record of our common stock, which does not include shares held by brokerage clearing houses, depositories or others in
unregistered form.
Dividends
We have never declared or paid a cash dividend.
Any future decisions regarding dividends will be made by our Board of Directors. We currently intend to retain and use any future
earnings for the development and expansion of our business and do not anticipate paying any cash dividends in the foreseeable future.
Our Board of Directors has complete discretion on whether to pay dividends. Even if our Board of Directors decides to pay dividends,
the form, frequency and amount will depend upon our future operations and earnings, capital requirements and surplus, general financial
condition, contractual restrictions and other factors that the Board of Directors may deem relevant.
Penny Stock
Our common stock is subject to provisions
of Section 15(g) and Rule 15g-9 of the Exchange Act, commonly referred to as the "penny stock rule." Section 15(g)
sets forth certain requirements for transactions in penny stock, and Rule 15g-9(d) incorporates the definition of "penny
stock" that is found in Rule 3a51-1 of the Exchange Act. The SEC generally defines a penny stock to be any equity security
that has a market price less than $5.00 per share, subject to certain exceptions. The Company is subject to the SEC's penny
stock rules.
Since our common stock is deemed to be
penny stock, trading in the shares of our common stock is subject to additional sales practice requirements on broker-dealers who
sell penny stock to persons other than established customers and accredited investors. "Accredited investors" are persons
with assets in excess of $1,000,000 or annual income exceeding $200,000 or $300,000 together with their spouse. For transactions
covered by these rules, broker-dealers must make a special suitability determination for the purchase of such security and must
have the purchaser's written consent to the transaction prior to the purchase. Additionally, for any transaction involving
a penny stock, unless exempt the rules require the delivery, prior to the first transaction of a risk disclosure document, prepared
by the SEC, relating to the penny stock market. A broker-dealer also must disclose the commissions payable to both the broker-dealer
and the registered representative and current quotations for the securities. Finally, monthly statements must be sent disclosing
recent price information for the penny stocks held in an account and information to the limited market in penny stocks. Consequently,
these rules may restrict the ability of broker-dealer to trade and/or maintain a market in our common stock and may affect the
ability of the Company's stockholders to sell their shares of common stock.
Securities Authorized for Issuance under
Equity Compensation Plans
We do not have in effect any compensation
plans under which our equity securities are authorized for issuance.  The Company intends to adopt an equity compensation
plan in which its directors, officers, employees and consultants shall be eligible to participate.  However, no formal
steps have been taken as of the date of this Report to adopt such a plan.
RECENT SALES OF UNREGISTERED SECURITIES
None.
DESCRIPTION OF SECURITIES
Introduction
In the discussion that follows, we have
summarized selected provisions of our certificate of incorporation, bylaws and the Nevada Corporation Law relating to our capital
stock. This summary is not complete. This discussion is subject to the relevant provisions of Nevada law and is qualified in its
entirety by reference to our certificate of incorporation and our bylaws. You should read the provisions of our certificate of
incorporation and our bylaws as currently in effect for provisions that may be important to you.
Authorized Capital Stock
Our authorized share capital consists of
75,000,000 shares of common stock, par value $0.0001 per share.  As of the Closing Date and after giving effect to the
Change of Control, 3,005,000 shares of our common stock were outstanding.
Common Stock
Each share of our common stock entitles
its holder to one vote in the election of each director and on all other matters voted on generally by our stockholders, other
than any matter that (1) solely relates to the terms of any outstanding series of preferred stock or the number of shares of that
series and (2) does not affect the number of authorized shares of preferred stock or the powers, privileges and rights pertaining
to the common stock. No share of our common stock affords any cumulative voting rights. This means that the holders of a majority
of the voting power of the shares voting for the election of directors can elect all directors to be elected if they choose to
do so.
Holders of our common stock will be entitled
to dividends in such amounts and at such times as our Board of Directors in its discretion may declare out of funds legally available
for the payment of dividends. We currently intend to retain our entire available discretionary cash flow to finance the growth,
development and expansion of our business and do not anticipate paying any cash dividends on the common stock in the foreseeable
future. Any future dividends will be paid at the discretion of our Board of Directors after taking into account various factors,
including:
●
general business conditions;
●
industry practice;
●
our financial condition and performance;
●
our future prospects;
●
our cash needs and capital investment plans;
●
our obligations to holders of any preferred stock we may issue;
●
income tax consequences; and
●
the restrictions Nevada Corporation Law and other applicable laws and our credit arrangements then impose.
If we liquidate or dissolve our business,
the holders of our common stock will share ratably in all our assets that are available for distribution to our stockholders after
our creditors are paid in full and the holders of all series of our outstanding preferred stock, if any, receive their liquidation
preferences in full.
Our common stock has no preemptive rights
and is not convertible or redeemable or entitled to the benefits of any sinking or repurchase fund.
Indemnification of Directors and Officers
Under our Articles of Incorporation, no
director or officer will be held personally liable to us or our stockholders for damages of breach of fiduciary duty as a director
or officer unless such breach involves intentional misconduct, fraud, a knowing violation of law, or a payment of dividends in
violation of the law. Under our bylaws, directors and officers will be indemnified to the fullest extent allowed by the law against
all damages and expenses suffered by a director or officer being party to any action, suit, or proceeding, whether civil, criminal,
administrative or investigative.  This same indemnification is provided pursuant to Nevada Revised Statutes, Chapter
78.
The general effect of the foregoing is
to indemnify a control person, officer or director from liability, thereby making us responsible for any expenses or damages incurred
by such control person, officer or director in any action brought against them based on their conduct in such capacity, provided
they did not engage in fraud or criminal activity.
Any repeal or modification of these provisions
approved by our shareholders shall be prospective only, and shall not adversely affect any limitation on the liability of a director
or officer of ours existing as of the time of such repeal or modification.
Anti-Takeover Effect of Nevada Law,
Certain By-Law Provisions
The Nevada Business Corporation Law contains
a provision governing "acquisition of controlling interest" (Nevada Revised Statutes 78.378 -78.3793). This law provides
generally that any person or entity that acquires 20% or more of the outstanding voting shares of a publicly-held Nevada corporation
in the secondary public or private market may be denied voting rights with respect to the acquired shares, unless a majority of
the disinterested shareholders of the corporation elects to restore such voting rights in whole or in part. The control share acquisition
act provides that a person or entity acquires "control shares" whenever it acquires shares that, but for the operation
of the control share acquisition act, would bring its voting power within any of the following three ranges:
●
20 to 331/3%;
●
331/3 to 50%; or
●
more than 50%.
A "control share acquisition"
is generally defined as the direct or indirect acquisition of either ownership or voting power associated with issued and outstanding
control shares. The shareholders or board of directors of a corporation may elect to exempt the stock of the corporation from the
provisions of the control share acquisition act through adoption of a provision to that effect in the articles of incorporation
or bylaws of the corporation. Our articles of incorporation and bylaws do not exempt our common stock from the control share acquisition
act.
The control share acquisition act is applicable
only to shares of "Issuing Corporations" as defined by the Nevada law. An Issuing Corporation is a Nevada corporation,
which:
●
has 200 or more shareholders, with at least 100 of such shareholders being both shareholders of record and residents of Nevada; and
●
does business in Nevada directly or through an affiliated corporation.
At this time, we do not have 100 shareholders
of record resident of Nevada. Therefore, the provisions of the control share acquisition act do not apply to acquisitions of our
shares and will not until such time as these requirements have been met. At such time as they may apply, the provisions of the
control share acquisition act may discourage companies or persons interested in acquiring a significant interest in or control
of us, regardless of whether such acquisition may be in the interest of our shareholders.
The Nevada "Combination with Interested
Shareholders Statute" (Nevada Revised Statutes 78.411 -78.444) may also have an effect of delaying or making it more difficult
to effect a change in control of us. This statute prevents an "interested shareholder" and a resident domestic Nevada
corporation from entering into a "combination," unless certain conditions are met. The statute defines "combination"
to include any merger or consolidation with an "interested shareholder," or any sale, lease, exchange, mortgage, pledge,
transfer or other disposition, in one transaction or a series of transactions with an "interested shareholder" having:
●
an aggregate market value equal to 5 percent or more of the aggregate market value of the assets of the corporation;
●
an aggregate market value equal to 5 percent or more of the aggregate market value of all outstanding shares of the corporation; or
●
representing 10 percent or more of the earning power or net income of the corporation.
An "interested shareholder" means the beneficial
owner of 10 percent or more of the voting shares of a resident domestic corporation, or an affiliate or associate thereof. A corporation
affected by the statute may not engage in a "combination" within three years after the interested shareholder acquires
its shares unless the combination or purchase is approved by the board of directors before the interested shareholder acquired
such shares. If approval is not obtained, then after the expiration of the three-year period, the business combination may be consummated
with the approval of the board of directors or a majority of the voting power held by disinterested shareholders, or if the consideration
to be paid by the interested shareholder is at least equal to the highest of:
●
the highest price per share paid by the interested shareholder within the three years immediately preceding the date of the announcement of the combination or in the transaction in which he became an interested shareholder, whichever is higher;
●
the market value per common share on the date of announcement of the combination or the date the interested shareholder acquired the shares, whichever is higher; or
●
if higher for the holders of preferred stock, the highest liquidation value of the preferred stock.
Currently, we have no Nevada shareholders
and since this offering will not be made in the State of Nevada, no shares will be sold to its residents. Further, we do not do
business in Nevada directly or through an affiliate corporation and we do not intend to do so. Accordingly, there are no anti-takeover
provisions that have the affect of delaying or preventing a change in our control.
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS
ON ACCOUNTING AND FINANCIAL DISCLOSURE
None
Item 5.01
Changes in Control of Registrant.
Reference is made to the disclosure set forth under Items 1.01
of this Report, which disclosure is incorporated herein by reference.
Item 5.02
Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangement of Certain Officers.
In connection with the closing of the Stock
Purchase Agreement, on November 6, 2012, Irina Tchernikova submitted to the Company a resignation letter pursuant to which she
resigned from his position as director of the Company. In addition, Ms. Tchernikova resigned from her position as President, Chief
Executive Officer, and Chief Financial Officer of the Company. The resignation of Ms. Tchernikova was not a result of any disagreements
relating to the Company's operations, policies or practices.
On November 6, 2012, by a consent to action
without meeting by unanimous consent of the board of directors of the Company (the "Board"), the Board accepted the
resignation of Ms. Tchernikova and appointed Lars Aarup Poulsen to serve as the President, Chief Executive Officer, and director
of the Company. The Board also appointed Greg May to serve as Chief Operating Officer, Vice President and director of the Company.
Lars Aarup Poulsen, 59,
has served
as the Chief Executive Officer, President, and Director of Vitas Group, Inc. since November 6, 2012.  Since 2007, Mr.
Poulsen has been the CEO and head of sales of Sealand Living A/S. Mr. Poulsen graduated from Graphic Arts Institute of Denmark.
Additionally, Mr. Poulsen graduated from the Copenhagen Business School
Greg May, 49,
has served as the
Chief Operating Officer, Vice President, and Director of Vitas Group, Inc. since November 6, 2012.  Since 1987, Mr. May
has been the CEO President of PSP International Inc., a company that manufacturer sporting goods and apparel for domestic and international
sales. Mr. May received his Bachelor of Arts in Education from the United States International University.
Steve Matteson,
has served as the
Chief Financial Officer of Vitas Group, Inc. since November 6, 2012. Since 2005, Mr. Matteson has been the President of Twin Tiers
Consulting, a firm that provides advisory and investment management services. In 2000, Mr. Matteson co-founded the boutique financial
planning firm, Burns Matteson Capital Management, and served as its Chief Operations Officer until 2005. Mr. Matteson received
an MBA from the University of South Carolina, a M.A. in International Business from Vienna University of Economic and Business
Administration, and received his Bachelor's degree in Business Administration from Mansfield University.
As of the date of this Report, there has
not been any material plan, contract or arrangement (whether or not written) to which any of our officers or directors are a party
in connection with their appointments as officers or directors of the Company.
Family Relationships
There are no family relationships between
Greg May, Lars Aarup Poulsen, and Steve Matteson, and any previous officers or directors of the Company.
Related Party Transactions
There are no related party transactions
reportable under Item 5.02 of Form 8-K or Item 404(a) of Regulation S-K.
Employment Agreement
The Company has not entered into any employment
agreements with any of its officers.
Item 9.01
Financial Statements and Exhibits.
(d)
Exhibits.
The following exhibit is furnished herewith:
Exhibit
Number
Description
10.1
Stock Purchase Agreement, dated November 6, 2012, by and among Vitas Group, Inc., Irina Tchernikova, Greg May, and Lars Aarup Poulsen.
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 hereunto duly authorized
VITAS GROUP, INC.
DATED:  November 6, 2012
By:
/s/ Lars Aarup Poulsen
Lars Aarup Poulsen
President, Chief Executive Officer, and Chairman