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<P STYLE="margin-top: 0; text-align: center; margin-bottom: 0"><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&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Washington, D.C. 20549</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: center"><B>FORM 8-K</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: center"><B>CURRENT REPORT</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: center"><B>Pursuant to Section 13 OR 15(d) of The
Securities Exchange Act of 1934</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: center">Date of Report (Date of earliest event reported):
<B>July 12, 2012</B></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 100%; border-bottom: windowtext 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">BOLDFACE GROUP, INC.</TD></TR>
</TABLE>
<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; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 30%; border-bottom: windowtext 1pt solid; text-align: center">Nevada</TD>
    <TD STYLE="width: 2%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 30%; border-bottom: windowtext 1pt solid; text-align: center">333-148722</TD>
    <TD STYLE="width: 2%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 36%; border-bottom: windowtext 1pt solid; text-align: center">02-0811868</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">(State or other jurisdiction of incorporation)</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">(Commission File Number)</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">(IRS Employer Identification No.)</TD></TR>
</TABLE>
<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">1309 Pico Blvd., Suite A</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Santa Monica, CA 90405&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">(Address of principal
executive offices) (Zip Code)</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">(310) 581-4652</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Registrant&rsquo;s telephone number, including
area code)</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">50 Brompton Road, Apt. 1X</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Great Neck, NY 11021&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">(Former name or former
address, if changed since last report)</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">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
(<I>see</I> General Instruction A.2. below):</P>

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

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<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-family: Wingdings">&uml;</FONT></TD><TD STYLE="text-align: justify">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; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-family: Wingdings">&uml;</FONT></TD><TD STYLE="text-align: justify">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; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-family: Wingdings">&uml;</FONT></TD><TD STYLE="text-align: justify">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; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-family: Wingdings">&uml;</FONT></TD><TD STYLE="text-align: justify">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; text-align: justify">&nbsp;</P>

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<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"><B>Cautionary Note Regarding Forward-Looking Statements</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">This Current Report on Form 8-K (this &ldquo;Current
Report&rdquo;) contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995.
These statements relate to anticipated future events, future results of operations or future financial performance. These forward-looking
statements include, but are not limited to, statements relating to the adequacy of our capital to finance our planned operations,
market acceptance of our services and product offerings, our ability to attract and retain key personnel, and our ability to protect
our intellectual property. In some cases, you can identify forward-looking statements by terminology such as &ldquo;may,&rdquo;
&ldquo;might,&rdquo; &ldquo;will,&rdquo; &ldquo;should,&rdquo; &ldquo;intends,&rdquo; &ldquo;expects,&rdquo; &ldquo;plans,&rdquo;
&ldquo;goals,&rdquo; &ldquo;projects,&rdquo; &ldquo;anticipates,&rdquo; &ldquo;believes,&rdquo; &ldquo;estimates,&rdquo; &ldquo;predicts,&rdquo;
&ldquo;potential,&rdquo; or &ldquo;continue&rdquo; or the negative of these terms or other comparable terminology.</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">These forward-looking statements are only
predictions, are uncertain and involve substantial known and unknown risks, uncertainties and other factors which may cause our
(or our industry&rsquo;s) actual results, levels of activity or performance to be materially different from any future results,
levels of activity or performance expressed or implied by these forward-looking statements. The &ldquo;Risk Factors&rdquo; section
of this Current Report sets forth detailed risks, uncertainties and cautionary statements regarding our business and these 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">We cannot guarantee future results, levels
of activity or performance. You should not place undue reliance on these forward-looking statements, which speak only as of the
date that they were made. These cautionary statements should be considered with any written or oral forward-looking statements
that we may issue in the future. Except as required by applicable law, including the securities laws of the United States, we do
not intend to update any of the forward-looking statements to conform these statements to reflect actual results, later events
or circumstances or to reflect the occurrence of unanticipated events.</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>Explanatory Note</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 May 21, 2012, we filed the Amended and
Restated Articles of Incorporation with the Nevada Secretary of State to, among other things, (i) change our name from Max Cash
Media, Inc. to BOLDFACE Group, Inc.; (ii) increase our authorized capitalization from 110,000,000 shares, consisting of 100,000,000
shares of common stock, $0.001 par value per share, and 10,000,000 shares of preferred stock, $0.001 par value per share, to 310,000,000
shares, consisting of 300,000,000 shares of common stock, $0.001 par value per share (the &ldquo;Common Stock&rdquo;), and 10,000,000
shares of blank check preferred stock, $0.001 par value per share; and (iii) limit the liability of our officers and directors
to us, our stockholders and our creditors to the fullest extent permitted by Nevada law.</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 July 12, 2012 BOLDFACE Acquisition Corp.
(&ldquo;Acquisition Corp.&rdquo;), a wholly owned Nevada subsidiary of BOLDFACE Group, Inc., a Nevada corporation (&ldquo;BGI&rdquo;
or the &ldquo;Company&rdquo;), merged (the &ldquo;Merger&rdquo;) with and into BOLDFACE licensing + branding, a Nevada corporation
(&ldquo;BLB&rdquo;). In connection with the Merger, each share of BLB common stock was cancelled and converted into the right to
receive 200 shares of our Common Stock. BLB was the surviving corporation of the Merger. As a result of the Merger, BGI acquired
the business of BLB, and will continue the existing business operations of BLB, as its wholly owned subsidiary.</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 used in this Current Report, the terms
the &ldquo;BGI&rdquo;, the &ldquo;Company&rdquo;, &ldquo;we,&rdquo; &ldquo;us,&rdquo; and &ldquo;our&rdquo; refer to BOLDFACE Group,
Inc., a Nevada corporation, and its wholly owned subsidiary BLB, after giving effect to the Merger, unless otherwise stated or
the context clearly indicates otherwise. The term &ldquo;Pubco&rdquo; refers to BOLDFACE Group, Inc., a Nevada corporation, before
giving effect to the Merger, and the term &ldquo;BLB&rdquo; refers to BOLDFACE licensing + branding, a Nevada corporation, both
before and after giving effect to the Merger.</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">This Current Report contains summaries
of the material terms of various agreements executed in connection with the Merger and other related transactions described herein.
The summaries of these agreements are subject to, and are qualified in their entirety by, reference to these agreements, all of
which are incorporated herein by reference.</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">This Current Report is being filed with
the U.S. Securities and Exchange Commission (the &ldquo;SEC&rdquo;) in connection with a series of transactions consummated by
the Company and certain related events and actions taken by the Company.</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">&nbsp;</P>

<P STYLE="color: #365F91; font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="color: Black">Table
of Contents</FONT></P>

<P STYLE="color: #365F91; font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="width: 10%; text-decoration: none">Item 1.01.</TD>
    <TD STYLE="width: 80%; text-decoration: none">Entry into a Material Definitive Agreement</TD>
    <TD STYLE="width: 10%; text-align: right; vertical-align: bottom">4</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none; text-align: right; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="text-decoration: none">Item 2.01.</TD>
    <TD STYLE="text-decoration: none">Completion of Acquisition or Disposition of Assets</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">4</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none; text-align: right; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD>&nbsp;</TD>
    <TD STYLE="padding-left: 0.25in; text-decoration: none">The Merger and Related Transactions</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">4</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="padding-left: 0.25in; text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none; text-align: right; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD>&nbsp;</TD>
    <TD STYLE="padding-left: 0.25in; text-decoration: none">Description Of Business</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">8</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="padding-left: 0.25in; text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none; text-align: right; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD>&nbsp;</TD>
    <TD STYLE="padding-left: 0.25in; text-decoration: none">Risk Factors</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">11</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="padding-left: 0.25in; text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none; text-align: right; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD>&nbsp;</TD>
    <TD STYLE="padding-left: 0.25in; text-decoration: none">Management's Discussion and Analysis of Financial Condition and Results of Operations</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">16</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="padding-left: 0.25in; text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none; text-align: right; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD>&nbsp;</TD>
    <TD STYLE="padding-left: 0.25in; text-decoration: none">Securities Ownership of Certain Beneficial Owners and Management</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">20</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="padding-left: 0.25in; text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none; text-align: right; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD>&nbsp;</TD>
    <TD STYLE="padding-left: 0.25in; text-decoration: none">Directors and Executive Officers</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">21</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="padding-left: 0.25in; text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none; text-align: right; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD>&nbsp;</TD>
    <TD STYLE="padding-left: 0.25in; text-decoration: none">Executive Compensation</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">22</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="padding-left: 0.25in; text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none; text-align: right; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD>&nbsp;</TD>
    <TD STYLE="padding-left: 0.25in; text-decoration: none">Market Price of and Dividends on Common Equity and Related Stockholder Matters</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">24</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="padding-left: 0.25in; text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none; text-align: right; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD>&nbsp;</TD>
    <TD STYLE="padding-left: 0.25in; text-decoration: none">Certain Relationships And Related Transactions</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">26</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="padding-left: 0.25in; text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none; text-align: right; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD>&nbsp;</TD>
    <TD STYLE="padding-left: 0.25in; text-decoration: none">Description of Capital Stock</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">27</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="padding-left: 0.25in; text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none; text-align: right; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD>&nbsp;</TD>
    <TD STYLE="padding-left: 0.25in; text-decoration: none">Recent Sales of Unregistered Securities</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">29</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="padding-left: 0.25in; text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none; text-align: right; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD>&nbsp;</TD>
    <TD STYLE="padding-left: 0.25in; text-decoration: none">Indemnification of Officers and Directors</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">30</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="padding-left: 0.25in; text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none; text-align: right; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD>&nbsp;</TD>
    <TD STYLE="padding-left: 0.25in; text-decoration: none">Financial Statements and Supplemental Data</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">30</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="padding-left: 0.25in; text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none; text-align: right; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD>&nbsp;</TD>
    <TD STYLE="padding-left: 0.25in; text-decoration: none">Index to Exhibits</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">31</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="padding-left: 0.25in; text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none; text-align: right; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD>&nbsp;</TD>
    <TD STYLE="padding-left: 0.25in; text-decoration: none">Description of Exhibits</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">31</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none; text-align: right; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="text-decoration: none">Item 3.02.</TD>
    <TD STYLE="text-decoration: none">Unregistered Sales of Equity Securities.</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">31</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none; text-align: right; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="text-decoration: none">Item 5.01.</TD>
    <TD STYLE="text-decoration: none">Changes in Control of Registrant.</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">31</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none; text-align: right; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="text-decoration: none">Item 5.02.</TD>
    <TD STYLE="text-decoration: none">Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">31</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none; text-align: right; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="text-decoration: none">Item 5.03.</TD>
    <TD STYLE="text-decoration: none">Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year.</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">31</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none; text-align: right; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="text-decoration: none">Item 5.06.</TD>
    <TD STYLE="text-decoration: none">Change in Shell Company Status.</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">31</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none; text-align: right; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="text-decoration: none">Item 9.01.</TD>
    <TD STYLE="text-decoration: none">Financial Statements and Exhibits.</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">31</TD></TR>
</TABLE>
<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">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 1in; text-align: left">Item 1.01.</TD><TD STYLE="text-align: justify">Entry into a Material Definitive Agreement</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">On July 12, 2012, we entered into an Agreement
and Plan of Merger and Reorganization with Acquisition Corp. and BLB, which we refer to in this Current Report as the &ldquo;Merger
Agreement&rdquo;, and completed the Merger. For a description of the Merger, the Merger Agreement and the material agreements entered
into in connection with the Merger, please see the disclosures set forth in Item 2.01 to this Current Report, which disclosures
are incorporated into this item by reference.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 1in; text-align: left">Item 2.01.</TD><TD STYLE="text-align: justify">Completion of Acquisition or Disposition of Assets</TD>
</TR></TABLE>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: justify">The Merger
and Related Transactions</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>The Merger</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 July 12, 2012, which we refer
to as the &ldquo;Closing Date&rdquo;, Pubco, BLB and Acquisition Corp. entered into the Merger Agreement and completed
the Merger. As a result of the Merger, we acquired the business of BLB and will continue the existing business operations of
BLB as our wholly owned subsidiary. With the exception of the Bridge Financing (as defined below), before their entry into the
Merger Agreement, no material relationship existed between Pubco or Acquisition Corp. and BLB. A copy of the Merger
Agreement is attached as Exhibit 2.1 to this Current Report and is incorporated herein by reference.</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"><FONT STYLE="font-size: 10pt">Pursuant
to the Merger Agreement, on the Closing Date, Acquisition Corp., a wholly owned subsidiary of Pubco, merged with and into BLB,
with BLB remaining as the surviving entity. As a result of the Merger, each share of BLB common stock outstanding was cancelled
and converted into the right to receive 200 shares of our Common Stock.</FONT> <FONT STYLE="font-size: 10pt">In addition, as part
of the Merger, we also issued 5,000,000 shares of our Common Stock to stockholders of BLB (the &ldquo;Additional Merger Shares&rdquo;)
in proportion with their ownership of the Company Shares, in connection with the execution of the Lopez License Agreement (as defined
below).</FONT></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">Immediately prior to the Merger, BLB had
no outstanding securities other than shares of its 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">The Merger Agreement contains customary
representations, warranties and covenants of Pubco, BLB, and, as applicable, Acquisition Corp., for like transactions. Breaches
of representations and warranties are secured by indemnification provisions. The Merger Agreement provides for a post-closing adjustment
in an aggregate amount of up to 1,000,000 additional shares of our Common Stock issuable pro rata to BLB&rsquo;s pre-Merger stockholders
for any breach of the Merger Agreement by us that is discovered during the two-year period following the Closing Date. The Merger
Agreement also provides that 5% of the shares of our Common Stock (or 1,000,000 shares) (the &ldquo;BLB Escrowed Shares&rdquo;)
that BLB&rsquo;s pre-Merger stockholders received in the Merger in exchange for their shares of BLB common stock are to be held
in escrow for any breach of the Merger Agreement by BLB that is discovered during the two years following the Closing Date pursuant
to the terms of an Escrow Agreement dated as of July 3, 2012, among us, the pre-Merger stockholders of BLB, and Gottbetter &amp;
Partners, LLP, as Escrow Agent.</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 financial reporting purposes, the Merger
represents a capital transaction of BLB or a &ldquo;reverse merger&rdquo; rather than a business combination, because the sellers
of BLB effectively control the combined company immediately following the completion of the Merger. As such, BLB is deemed to be
the accounting acquirer in the transaction and, consequently, the transaction is being treated as a recapitalization of BLB. Accordingly,
the assets and liabilities and the historical operations that will be reflected in Pubco&rsquo;s ongoing financial statements will
be those of BLB and will be recorded at the historical cost basis of BLB. Pubco&rsquo;s assets, liabilities and results of operations
will be consolidated with the assets, liabilities and results of operations of BLB after consummation of the Merger. Pubco's historic
capital accounts will be retroactively adjusted to reflect the equivalent number of shares issued by Pubco in the Merger while
BLB's historical retained earnings will be carried forward. The historical financial statements of Pubco before the Merger will
be replaced with the historical financial statements of BLB before the Merger in all future filings with the SEC. The Merger is
intended to be treated as a tax-free exchange under Section 368(a) of the Internal Revenue Code of 1986, as amended.</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">Following the closing of the Merger, our
board of directors consists of two members. In connection with the foregoing, on the Closing Date, Noah Levinson and Irv Pyun,
the directors of Pubco before the Merger, appointed Ronald S. Altbach, as Chairman of the Board, and Nicole Ostoya to fill two
of the vacancies on the board of directors, and Messrs. Levinson and Pyun resigned their positions as directors. We anticipate
that we will add up to three additional independent directors. Also on the Closing Date, Messrs. Levinson and Pyun, the executive
officers of Pubco, resigned from all of their positions held with Pubco and Nicole Ostoya was appointed as our Chief Executive
Officer and President and Ashumi Kothary was appointed as our Chief Financial Officer and Secretary. The executive officers and
directors of the Company following the closing of the Merger are also identified in this Current Report under the heading &ldquo;Directors
and Executive Officers.&rdquo;</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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt">Before the
Merger, Pubco&rsquo;s board of directors and shareholders owning a majority of its outstanding common stock adopted the 2012 Equity
Incentive Plan, which became effective on the Closing Date. The 2012 Equity Incentive Plan provides for the issuance of up to 20,000,000
shares of our Common Stock as incentive awards to be granted to executive officers, key employees, consultants and directors of
the Company; provided, that awards for a maximum of 4,000,000 shares of our Common Stock may be granted during the first 12 months
following the Closing Date; provided, however that post-Merger our board of directors may grant awards in excess of 4,000,000 shares
of our</FONT> <FONT STYLE="font-size: 10pt">Common Stock solely to any of our newly appointed independent directors.</FONT></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>The Offering</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">Concurrently with the closing of the Merger
and in contemplation of the Merger, we completed an initial closing of a private offering (the &ldquo;Offering&rdquo;) of 500,000
units of our securities (the &ldquo;PPO Units&rdquo;), at a price of $0.25 per PPO Unit, for a total cash consideration of $125,000.
Each PPO Unit consists of one share of our Common Stock and a redeemable warrant (each an &ldquo;Investor Warrant&rdquo; and collectively,
the &ldquo;Investor Warrants&rdquo;) to purchase one share of our Common Stock. The Investor Warrants are exercisable for a period
of five years at a purchase price of $1.00 per share of our Common Stock. If at any time during the two year period following the
Closing Date we issue additional shares of our Common Stock for a consideration per share less than $0.25 (the &ldquo;Reduced Price&rdquo;),
then we will issue to the purchasers in the Offering, concurrently with such issue and without any additional consideration from
the purchasers, the number of additional shares of our Common Stock and Investor Warrants equal to the difference between (A) the
purchase price of the PPO Units being subscribed for divided by the Reduced Price and (B) the number of shares of our Common Stock
included in the units being subscribed for in the Offering. For purposes of clarity, if an investor subscribed to purchase 10 PPO
Units and we sold additional shares of common stock within two years following the initial closing of the offering for $0.20 per
share, the number of additional shares of our Common Stock and Investor Warrants due to such investor would be three shares and
three Investor Warrants calculated as follows: the purchase price of $2.50 divided by the Reduced Price of $0.20 (which equals
12.5) less the PPO Units subscribed for (10), rounded up to the nearest whole share.</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 Offering was made on an &ldquo;all
or nothing&rdquo; basis with respect to a minimum of 8,000,000 PPO Units (the &ldquo;Minimum Offering Amount&rdquo;) and is being
made on a &ldquo;best efforts&rdquo; basis with respect to a maximum of 20,000,000 PPO Units (the &ldquo;Maximum Offering Amount&rdquo;).
In addition, in the event the maximum number of PPO Units is sold, we and the Placement Agent (as defined below) have the option
to offer an additional 3,000,000 PPO Units (the &ldquo;Over-Allotment PPO Units&rdquo;). The closing of at least the Minimum Offering
Amount of 8,000,000 PPO Units and the closing of the Merger were conditioned upon each other.</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 the Closing Date, the investors in the
Offering collectively subscribed for 8,200,120 PPO Units for total consideration of $2,050,030, which includes the conversion of
$1,925,030 of principal of the Bridge Notes sold in the Bridge Financing (as described below). The Offering for the remaining 11,799,880
PPO Units (not including any Over-Allotment PPO Units) will continue after the closing of the Merger. The net cash proceeds from
the sale of the PPO Units, after deducting fees and expenses related to the Offering, will be used for working capital purposes.</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 paid the placement
agent, Gottbetter Capital Markets, LLC (the &ldquo;Placement Agent&rdquo;), in connection with the initial closing of the
Offering a commission of 8% of the funds raised from investors in the Offering that were directly introduced to us by the
placement agent (or $10,000), excluding funds attributable to converted bridge notes. The Placement Agent received an additional cash
commission of 4%, or approximately $77,000, with respect to the principal amount of Bridge Notes converted into PPO Units.
Prior to the commencement of the Offering, we also paid the Placement Agent a cash commission of 4% of the $1,925,030 raised
from investors in the Bridge Financing which was approximately $77,000. In addition, the Placement Agent received
five-year warrants (the &ldquo;Broker Warrants&rdquo;) to purchase a number of shares of our Common Stock equal to 8% of the
PPO Units sold to investors in the Offering that were directly introduced to us by the placement agent, including PPO Units
issued in connection with the conversion of the Bridge Notes. The Broker Warrants are identical to the Investor Warrants in
all material respects except that (i) their resale of the common stock underlying them is not covered by a
registration statement; and (ii) they have an exercise price of $0.25 per share. As a result of the foregoing arrangement, at
the initial closing of the Offering, the placement agent was paid commissions of approximately $164,000 and was issued Broker
Warrants to purchase approximately 656,000 shares of our 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">In connection with the conversion of $1,925,030
principal amount of Bridge Notes into PPO Units, the holders of the Bridge Notes received 7,700,120 five-year bridge warrants (the
&ldquo;Bridge Warrants&rdquo;), each exercisable to purchase one share of our Common Stock. 3,850,060 of the Bridge Warrants are
exercisable at $0.25 per share and 3,850,060 of the Bridge Warrants are exercisable at $0.50 per share. Except as to exercise price,
the Bridge Warrants are identical, in all material respects to the Investor Warrants.</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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The forms of the Investor Warrant, Broker
Warrant, and Bridge Warrant issued in connection with the Offering are attached as Exhibits 4.1, 4.2 and 4.3, respectively, to
this Current Report and are incorporated herein by reference.</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>The Bridge Financing</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 commencement of the Offering,
we completed a bridge financing (the &ldquo;Bridge Financing&rdquo;), wherein we sold an aggregate of $1,925,030 in principal amount
of bridge notes (the &ldquo;Bridge Notes&rdquo;) to certain accredited investors and non-U.S. Persons. The Bridge Notes were converted
into 7,700,120 PPO Units at the initial closing of the Offering. As provided in the subscription documents for the PPO Units, the
principal amount of the Bridge Notes converted into the PPO Units were included in achieving the Minimum Offering Amount in the
Offering.</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 net proceeds from the sale of the Bridge
Notes, after deducting fees and expenses related to the Bridge Financing, were used to make a secured bridge loan to BLB. The Bridge
Notes were secured by: (i) a first priority security interest in all of Pubco&rsquo;s assets relating to the Bridge Loan, (ii)
a first priority security interest in all of the tangible and intangible assets of BLB, and (iii) a pledge by the shareholders
of BLB of 100% of the outstanding capital stock of BLB.</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 Merger, the Offering, the Bridge Financing,
the Split-Off (as described below) and the related transactions are collectively referred to in this Current Report as the &ldquo;Transactions.&rdquo;</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>The Licensor Warrants</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 closing of the Merger,
we issued an aggregate of 10,000,000 warrants (the &ldquo;Licensor Warrants&rdquo;) to the Licensors (as defined below) in accordance
with BLB&rsquo;s May 9, 2012 Licensing Agreement with 2Die4Kourt, Inc., Kimsaprincess, Inc. and Khlomoney, Inc. The form of the
Licensor Warrants is attached as Exhibit 4.4 to this Current Report and 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>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Registration Rights</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">All of the securities issued in connection
with the Transactions are &ldquo;restricted securities,&rdquo; and as such are subject to all applicable restrictions on transfer
specified by federal and state securities laws.</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 the Closing Date, we entered into a
registration rights agreement with the investors in the Offering and the Bridge Financing (the &ldquo;Registration Rights Agreement&rdquo;).
Under the terms of the Registration Rights Agreement, we committed to file a registration statement on Form S-1, or other applicable
form, covering the resale of (i) our Common Stock underlying the Bridge Warrants, (ii) our Common Stock underlying the PPO Units
sold or to be sold in the Offering, and (iii) our Common Stock underlying the Investor Warrants (including securities issued in
the Offering as a result of the conversion of the Bridge Notes, but not our Common Stock that is issuable upon exercise of the
Broker Warrants) (collectively, the &ldquo;Registrable Securities&rdquo;) within 90 days from the final closing of the Offering
(the &ldquo;Filing Date&rdquo;), and to use commercially reasonable efforts to cause the registration statement to become effective
no later than 150 days after it is filed (the &ldquo;Effectiveness Date&rdquo;).</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 agreed to use our commercially reasonable
efforts to maintain the effectiveness of the registration statement for at least one year from the date the registration statement
is declared effective by the SEC or for such shorter period ending on the earlier to occur of (i) until Rule 144 of the Securities
Act of 1933, as amended (the &ldquo;Securities Act&rdquo;), is available to investors in the Offering with respect to all of their
Registrable Securities or (ii) the date when all of the Registrable Securities registered thereunder shall have been sold. We will
be liable for monetary penalties equal to 1% of the purchase price per PPO Unit paid by such investor in the Offering for the Registrable
Securities then held by each investor for each full period of period of 30 days if we fail to file the registration statement by
the Filing Date or if we fail to use our reasonable efforts to have the registration statement declared effective by the Effectiveness
Date until such failure is cured. The payment amount shall be prorated for partial 30 day periods. The maximum aggregate amount
of payments to be made by us as the result of such failures, whether by reason of a filing deadline failure, effectiveness deadline
failure or any combination thereof, shall be an amount equal to 10% of the purchase price per POP Unit paid by such investor in
the Offering for the Registrable Securities held by such investor at the time of the first occurrence of such failure to file with,
or to have the registration statement be declared effective by, 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">Moreover, no such payments shall be due
and payable with respect to any Registrable Securities we are unable to register due to limits imposed by the SEC&rsquo;s interpretation
of Rule 415 under the Securities Act. The holders of any Registrable Securities removed from the registration statement as the
result of a Rule 415 comment or other comment from the SEC shall have &ldquo;piggyback&rdquo; registration rights for the shares
of our Common Stock or our Common Stock underlying the Registrable Securities, until such shares can be sold without limitation
under Rule 144, with respect to any registration statement filed by the Company following the effectiveness of the registration
statement which would permit the inclusion of these shares.</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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We will pay all expenses in connection
with any registration obligation provided in the registration rights agreement, including, without limitation, all registration,
filing, stock exchange fees, printing expenses, all fees and expenses of complying with applicable securities laws, and the fees
and disbursements of our counsel and of our independent accountants. Each investor will be responsible for its own underwriting
discounts and commissions, transfer taxes and the expenses of any attorney or other advisor such investor decides to employ.</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 form of the Registration Rights Agreement
is attached as Exhibit 10.6 to this Current Report and 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>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Split-Off Agreement and General Release
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">In conjunction with the Merger and immediately
following the Merger, BGI will split off (the &ldquo;Split-Off&rdquo;) its wholly owned subsidiary, BOLDFACE Split Corp., a Nevada
corporation (&ldquo;Split Corp.&rdquo;). The Split-Off was accomplished through the exchange of 189,781,000 shares of our Common
Stock held by Noah Levinson (the &ldquo;Split-Off Shareholder&rdquo;) for all of the issued and outstanding shares of common stock
of Split Corp. All of the assets and liabilities of BGI immediately following the Merger, excluding any BLB assets and liabilities
assumed in the Merger, were transferred to Split Corp. The Split-Off will be accomplished pursuant to the Split-Off Agreement,
dated as of July 12, 2012, and the General Release Agreement, dated as of July 12, 2012, each entered into among us, Split Corp.
and the Split-Off Shareholder, copies of which are attached as Exhibits 10.1 and 10.2 to this Current Report and are incorporated
herein by reference.</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 Agreement with John
Derby</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 previously reported in our Current Reports
on Form 8-K filed with the SEC, from August to September 2011, we conducted a series of closings of a private placement (the &ldquo;Prism
Offering&rdquo;) in which we sold an aggregate of $2,000,000 principal amount of our 8% Secured Convertible Promissory Notes (the
&ldquo;Prism Notes&rdquo;) to certain investors, and the net proceeds of the sale of the Prism Notes were used by us to make a
loan (the &ldquo;Bridge Loan&rdquo;) to Prism Corporation, an Oklahoma corporation (&ldquo;Prism&rdquo;), a privately held company
active in the oil, gas and energy business in several states of the southern and western United States. Prism defaulted on the
Prism Notes, and discussions between us and Prism relating to a potential merger were terminated.</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 conjunction with the Merger, on May
31, 2012, John Derby, a holder of substantial portion of the Prism Notes, entered into an Indemnification Agreement with us, pursuant
to which Mr. Derby agreed that as a holder of a substantial portion of the Prism Notes he stands to gain from the actions of the
collateral agent under the security agreement, entered into in connection with the issuances of the Prism Notes. In consideration
thereof Mr. Derby agreed to provide for the indemnification, advancement, reimbursement and insurance of certain of our liabilities
and expenses and all of our liabilities, claims and any other damages (the &ldquo;Damages&rdquo;) arising out of or related to
any threatened, pending or completed action, suit, proceeding, inquiry or investigation, whether civil, criminal, administrative
or other, and any interest, assessments, excise taxes or other charges paid or payable in connection with or in respect of any
of the foregoing, incurred by us and each of our past, present and future officers, directors, stockholders, and each of their
respective representatives, agents, affiliates, successors and assigns arising solely out of our sale to the purchasers of the
Prism Notes and related matters. In addition, all of the persons that purchased the Prism Notes entered into a Consent to Assignment
Agreement, dated as of July 12, 2012, with us, including a General Release, pursuant to which such purchasers consented to the
assignment of all of their rights and obligations to Split-Off Corp and agreed to a general release of the Company for any Damages
arising from, or relating to, or in any way connect with, any fact, event, transaction, action or omission that occurred or failed
to occur on prior to the date of the Consent to Assignment Agreement relating to the Prism Notes and the underlying security agreement
and pledge agreement.</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>Lock-up 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">In connection with the Merger, for a term
of 24 months from the Closing Date except in certain limited circumstances, our officers, directors, key employees and holders
of 10% or more of our Common Stock after giving effect to the Transactions, who received shares of our Common Stock in connection
with the Merger, agreed to &ldquo;lock-up&rdquo;, not sell or otherwise transfer or hypothecate directly or indirectly, or effect
or agree to effect any short sale of, any of their shares of our Common Stock received in connection with the Merger. The form
of Lock-Up Agreement is attached as Exhibit 10.8 to this Current Report and is incorporated herein by reference.</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"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Current Ownership</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">Immediately after giving effect to the
Transactions, including the PPO Units sold in the initial closing of the Offering which included the conversion of the Bridge Notes,
the issuance of shares of our Common Stock to the former BLB stockholders in the Merger, the issuance of the Bridge Warrants and
Licensor Warrants, the cancellation of shares owned by the Split-Off Shareholder in the Split-Off, and the Broker Warrants issued
to the Placement Agent in connection with the Offering, there were issued and outstanding securities of the Company on the closing
of the Transactions as follows:</P>

<P STYLE="font: 10pt Wingdings; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Wingdings">&Yuml;</FONT></TD><TD STYLE="text-align: justify">85,200,116 shares of our Common Stock (including an aggregate of 25,000,000 shares received by
the former BLB stockholders in the Merger (including the BLB Escrowed Shares) and 8,200,120 shares underlying the PPO Units sold
in the initial closing of the Offering);</TD></TR></TABLE>

<P STYLE="font: 10pt Wingdings; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Wingdings">&Yuml;</FONT></TD><TD STYLE="text-align: justify">Investor Warrants to purchase an aggregate of 8,200,120 shares of our Common Stock at $1.00 per share
issued to the investors in the Offering, including holders of converted Bridge Notes;</TD></TR></TABLE>

<P STYLE="font: 10pt Wingdings; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Wingdings">&Yuml;</FONT></TD><TD STYLE="text-align: justify">Broker Warrants to purchase an aggregate of approximately 656,000 shares of our Common Stock at
a price of $0.25 per share issued to the placement agent in connection with the Offering;</TD></TR></TABLE>

<P STYLE="font: 10pt Wingdings; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Wingdings">&Yuml;</FONT></TD><TD STYLE="text-align: justify">Bridge Warrants to purchase an aggregate of 7,700,120 shares of our Common Stock consisting of
3,850,060 warrants exercisable at $0.25 per share and 3,850,060 warrants exercisable at $0.50 per share; and</TD></TR></TABLE>

<P STYLE="font: 10pt Wingdings; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Wingdings">&Yuml;</FONT></TD><TD STYLE="text-align: justify">Licensor Warrants to purchase an aggregate of 10,000,000 shares of our Common Stock at a price
of $0.24 per share.</TD></TR></TABLE>

<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>Accounting Treatment; 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">The Merger is being accounted for as a
&ldquo;reverse merger,&rdquo; and BLB is deemed to be the acquirer in the reverse merger for accounting purposes. Consequently,
the assets and liabilities and our historical operations that will be reflected in our financial statements prior to the Merger
will be those of BLB, and our consolidated financial statements after completion of the Merger will include the assets and liabilities
of BLB, historical operations of BLB and operations of BLB from the Closing Date.</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">Except as described in the previous paragraphs,
no arrangements or understandings exist among our present or former controlling stockholders with respect to the election of members
of our board of directors and, to our knowledge, no other arrangements exist that might result in a change of control of the Company.
Further, as a result of the issuance of the shares of our Common Stock pursuant to the Merger, a change in control of the Company
occurred as of the Closing Date.</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>Forward Stock Split</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 Merger, Pubco effected a 37.9562-for-1
forward stock split on Pubco&rsquo;s common stock in the form of a dividend with a record date of May 29, 2012 and a payment date
of May 30, 2012. All Pubco and BGI share amounts referenced in this Current Report give effect to the forward stock split including
those applicable to periods prior to the forward stock split.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: justify">Description
Of Business</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>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">Boldface licensing + branding, a Nevada
Corporation (&ldquo;BLB&rdquo;), was founded by Nicole Ostoya and Robin Coe-Hutshing (the &ldquo;Founders&rdquo;), beauty industry
veterans with over 40 years combined experience. BLB&rsquo;s focus is on licensing top tier entertainment and designer brands for
opportunities in the beauty market. BLB contracts to design, manufacture and sell branded color cosmetics, hair preparations, fragrances,
home fragrances, skin care, beauty tools, and other beauty products in all channels.</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">BLB expects to  launch its
initial brand, &ldquo;Khroma Beauty by Kourtney, Kim and Khlo&eacute;&rdquo; in December 2012 with a holiday collection at
Ulta Beauty and other stores, followed by a full brand roll out in January 2013. The vision for the Khroma brand is
luxury products at affordable prices in the mass retail channel. Other celebrity licenses are currently in negotiation. BLB has received written commitments to purchase Khroma products from
Ulta Beauty, Sears, Kmart and Meijer, and is currently in active discussions with other retailers, including some of the
largest pharmacy chains in the United States, regarding the Khroma products.</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"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>BLB&rsquo;s Business Strategy</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">BLB&rsquo;s business strategy is to profitably
grow its business by building strong brands, developing broad organizational capabilities, expanding brands globally, and adding
new value to BLB with additional licenses and ancillary products to existing licenses.</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>Celebrity Licensing 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">As more fully discussed herein, our business
will be dependent on our ability to enter into celebrity licensing agreements. Consistent with our business strategy, we have entered
into the following two celebrity licensing agreements and expect to enter into additional celebrity agreements, although no assurance
can be given that this will prove to be the case.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Khroma License Agreement</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">On May 9, 2012, BLB, entered into a licensing
agreement (the &ldquo;Khroma License Agreement&rdquo;) with 2Die4Kourt, Inc., a California corporation wholly owned by Kourtney
Kardashian, Kimsaprincess, Inc., a California corporation wholly owned by Kim Kardashian, and Khlomoney, Inc., a California corporation
wholly owned by Khlo&eacute; Kardashian (collectively, the &ldquo;Licensors&rdquo;) whereby BLB (i) acquired the exclusive worldwide
right and license to use certain trademarks owned by the Licensors in connection with the development, manufacture, production,
distribution, advertisement, promotion and sale of a line of cosmetic consumer products, including a high end line of any of such
products to be sold at certain high end retailers; and (ii) obtained certain ancillary services of each of the aforementioned Kardashian
sisters, including for the purpose of promotion and marketing support of the licensed products. The acquired license right includes
BLB&rsquo;s right to sublicense the license as it relates to the manufacture of the licensed products. The term of Khroma License
Agreement is four years, with an 18-month renewal option in favor of BLB. Pursuant to the Khroma License Agreement, BLB agreed
to make certain royalty payments to the Licensors, which are based on a percentage of net sales of the licensed products. The Licensors
are also entitled to receive certain guaranteed minimum royalties during each contract year. Additionally, in connection with the
Khroma License Agreement, we issued the Licensor Warrants to the Licensors as more fully discussed elsewhere in this Current Report.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Lopez License Agreement</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">On July 11, 2012, BLB entered into a license
agreement (the &ldquo;Lopez License Agreement&rdquo;) with Pez-Mar, Via Mar Productions Inc., a corporation wholly owned by Mario
Lopez (the &ldquo;Licensor&rdquo;), whereby BLB (i) acquired the exclusive right and license to use the certain trademarks owned
by the Licensor in connection with the development, manufacture, production, distribution, advertisement, promotion and sale of
a line of male fragrances, toiletries and other agreed upon products within the United States and its territories and possessions,
Canada, Mexico and &ldquo;duty-free&rdquo; zones and shops; and (ii) obtained certain ancillary services of Mr. Lopez, including
for the purpose of promotion and marketing support of the licensed products. The term of the Lopez License Agreement is three &ldquo;contract&rdquo;
years, commencing on July 11, 2012 and continuing through February 2016. Pursuant to the Lopez License Agreement, BLB agreed to
make certain royalty payments to the Licensor, which are based on a percentage of net sales of the licensed products. The Licensor
is also entitled to receive certain guaranteed minimum royalties during each contract year.</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>Marketing</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">BLB intends to market its consumer product
lines principally in mass retail channels and certain other channels both within and outside of the United States.</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">BLB anticipates using print, television,
and Internet advertising, as well as point-of-sale merchandising, including displays and samples, as well as other marketing means.
BLB intends to maintain separate websites for each of its celebrity brands, which will feature product and promotional information
for BLB&rsquo;s various brands.</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">BLB intends to work with the marketing
and PR firms of its celebrity licensors, and has engaged Alison Brod PR to generally promote its brands.</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>New Product Development and Research
and Development</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">BLB has retained Gold Grenade, LLC,
a beauty and fragrance product development firm (&ldquo;Gold Grenade&rdquo;),  an affiliate of our Chief Executive Officer
and President, to conduct research and development, testing, translation (of packaging copy) and compliance
(collectively, &ldquo;R&amp;D&rdquo;), on behalf of BLB. Gold Grenade will identify consumer needs and shifts in consumer
preferences in order to develop new products, introduce line extensions and redesign or reformulate existing products to
satisfy such needs or preferences. </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"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Manufacturing</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">BLB will not manufacture its products,
but rather will contract with reputable third-party cosmetics and beauty manufacturers. BLB will continue to review its manufacturing
needs and work with Gold Grenade and its outside manufacturers to identify opportunities to reduce costs and operate as efficiently
as possible.</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>Distribution</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">BLB intends to sell its products primarily
through mass retailers throughout the United States, but also abroad with a specific focus on countries in which BLB&rsquo;s celebrity
licensors have a wide following.</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>Customers</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">BLB expects that the principal customers
for its Khroma line of products will consist of large mass volume retailers and chain drug stores, traditional, home shopping and
online. BLB has already received written commitments for the purchase of Khroma products from Ulta Beauty, Sears, Kmart and Meijer.
The Founders also have business relationships with mass retailers such as Target, Walgreens, CVS, Duane Reade, Boots, JCPenney,
Sephora, Nordstrom, Bloomingdales, Henri Bendel, Fred Segal, Kitson, HSN, QVC, Liberty of London, Selfridges, Harrods, Harvey Nichols,
Shoppers Drug Mart (Canada) and Mecca Cosmetica (Australia), and BLB will attempt to establish relationships with such retailers,
plus others, to carry its other products.</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>Competition</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 consumer beauty products business is
highly competitive. BLB will compete primarily by: developing quality products with innovative features, shades, finishes, components
and packaging; featuring highly visible celebrity licensors and endorsers; educating consumers about the benefits of BLB&rsquo;s
products; offering attractively priced products; maintaining positive brand recognition; ensuring product availability through
effective planning and replenishment collaboration with retailers; and working with outside marketing and PR firms and sales representatives
to maximize advertising, marketing and promotion of its products, as well as optimizing its retail floor space, in-store positioning
and effective presentation of its products at retail.</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">Although BLB is unique in that its focus
is on celebrity-driven branding, it views its competitors as those companies whose cosmetics and beauty products are widely distributed
at mass retailers.</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>Patents, Trademarks and Proprietary
Technology</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">BLB considers trademark and patent protection
to be critically important to its business. Significant trademarks for which BLB has applied for federal registration to date include
<B>Kardashian Khroma</B>, <B>Khroma</B>, <B>Kardazzle</B>, <B>Kardashian Kurve</B>, <B>Khroma Beauty by Kourtney, Kim and Khlo&eacute;</B>,
and <B>Khroma Beauty Million Dollar Mask</B>. BLB intends to apply for foreign trademark protection for its brands in all applicable
jurisdictions.</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">BLB intends to file patents in the ordinary
course of its business with respect to its new technologies. BLB intends to protect certain of its packaging and component concepts
through patents. Patents in the United States are effective for up to 20 years and international patents are generally effective
for up to 20 years.</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">BLB has applied for the following URLs:
khromabeauty.com; boldfacegroup.com; boldfacelicensing.com; and boldfacelicensingandbranding.com.</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>Government Regulation</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">BLB will be subject to regulation by the
Federal Trade Commission and the Food and Drug Administration (the &ldquo;FDA&rdquo;) in the United States, as well as various
other federal, state, local and foreign regulatory authorities in which BLB will conduct operations or sell its products. The Federal
Food, Drug, and Cosmetic Act, administered by the FDA, prohibit the marketing of adulterated or misbranded cosmetics in interstate
commerce. The Fair Packaging and Labeling Act, also administered by the FDA, require cosmetics companies to include an ingredient
declaration to enable consumers to make informed purchasing decisions. The FDA's legal authority over cosmetics is different from
other products regulated by the agency, such as drugs, biologics, and medical devices. Cosmetic products and ingredients are not
subject to FDA premarket approval authority, with the exception of color additives. However, the FDA may pursue enforcement action
against violative products, or against firms or individuals who violate the law. BLB will only conduct business with third-party
manufacturers who maintain compliance with federal, state, local and foreign environmental and other laws and regulations.</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"><B>&nbsp;</B></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 June 15, 2012, BLB employed eight
people. BLB expects to grow to approximately fifteen employees within the next 18-24 months. None of BLB&rsquo;s employees are
covered by a collective bargaining agreement.</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>Company Facilities</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">BLB entered into a one-year lease of approximately
800 square feet of office space located at 1309 Pico Blvd., Suite #A, Santa Monica, California 90405 (the &ldquo;Premises&rdquo;).
BLB&rsquo;s executive office will be located at the Premises. The monthly rent of the Premises is $1,785, and BLB has no renewal
or extension options.</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>Capital Expenditures</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">BLB anticipates incurring certain capital
expenditures in its first year of operations, including for office furniture, computers, software and other office equipment. BLB
does not anticipate such capital expenditures to be significant during its first year of 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"><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">We are, from time to time, a party to litigation
that arises in the normal course of our business operations. Currently, no legal proceedings, government actions, administrative
actions, investigations or claims are pending against us or involve us that, in the opinion of our management, could reasonably
be expected to have a material adverse effect on our business and financial condition.</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>Available 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">We are subject to the reporting requirements
of the Securities Exchange Act of 1934 (the &ldquo;Exchange Act&rdquo;). Reports filed with the SEC pursuant to the Exchange Act,
including our annual and quarterly reports, and other reports we file with the SEC, can be inspected and copied at the public reference
facilities maintained by the SEC at 100 F Street, N.E., Washington, D.C. 20549. Investors may obtain information on the operation
of the public reference room by calling the SEC at 1-800-SEC-0330. Investors can request copies of these documents upon payment
of a duplicating fee by writing to the SEC. The reports we file with the SEC are also available on the SEC&rsquo;s website (http://www.sec.gov).</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: justify">Risk Factors</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">An investment in our securities involves
a high degree of risk. You should not invest in our securities if you cannot afford to lose your entire investment. In deciding
whether you should invest in our securities, you should carefully consider the following information together with all of the other
information contained in this Current Report. Any of the following risk factors can cause our business, prospects, financial condition
or results of operations to suffer and you to lose all or part of your investment.</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>BLB has a limited operating history
and competes in rapidly evolving markets, which makes its future operating results difficult to predict. </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">BLB was incorporated on April 26, 2012.
BLB has a limited operating history in an industry characterized by changing customer needs, evolving industry standards and frequent
introductions of new products and services. BLB entered into a Licensing Agreement with 2Die4Kourt, Inc., Kimsaprincess, Inc. and
Khlomoney, Inc., dated as of May 9, 2012, a License Agreement with Pez-Mar, Via Mar Productions Inc., dated as of July 11, 2012,
and expects to enter into additional celebrity licensing agreements although no assurance can be given that this will prove to
be the case. These factors make it difficult to predict our post-Merger operating results, which may impair our ability to manage
our business and our investors&rsquo; ability to assess our prospects.</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"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>The failure of BLB to effectively
anticipate and respond to market trends and changes in consumer preferences could have a material adverse effect on our business,
financial condition and results of 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">Our success depends in large part on our
ability to anticipate, gauge and react in a timely and effective manner to changes in consumer spending patterns and preferences
for beauty and other consumer products. We must continually work to develop, produce and market new products, maintain and enhance
the recognition of our brands, achieve a favorable mix of products, and refine our approach as to how and where we market and sell
products. While we intend to devote considerable effort and resources to shape, analyze and respond to consumer preferences, consumer
spending patterns and preferences are difficult to predict and can change rapidly. If we are unable to anticipate and respond to
trends in the market for beauty and other consumer products and changing consumer demands, our business, financial condition and
results of operations could materially suffer.</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">Furthermore, material shifts or decreases
in market demand for our products, including changes in consumer spending patterns and preferences, could result in us being unable
to sell products (i) in sufficient quantities or (ii) at anticipated prices. In addition, these shifts and changes could result
in increased product returns by our customers and excess inventory levels. To the extent we experience one or more of these adverse
results, it could have a material adverse effect on our business, financial condition 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>If we are unable to manage our anticipated
post-Merger growth effectively, our business could be adversely affected. </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 anticipate that a significant expansion
of our operations and addition of new personnel will be required in all areas of our operations in order to implement our post-Merger
business plan. Our future operating results depend to a large extent on our ability to manage this expansion and growth successfully.
For us to continue to manage such growth, we must put in place legal and accounting systems, and implement human resource management
and other tools. We have taken preliminary steps to put this structure in place. However, there is no assurance that we will be
able to successfully manage this anticipated rapid growth. A failure to manage our growth effectively could materially and adversely
affect our ability to market and sell 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>The beauty business is highly competitive,
and if we are unable to compete effectively our results will suffer.</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 vigorous competition from
companies throughout the United States and the world, including multinational consumer product companies. Most of these competitors
have greater resources than we do and may be able to respond to changing business and economic conditions more quickly than us.
Competition in the beauty business is based on pricing of products, innovation, perceived value, service to the consumer, promotional
activities, advertising, special events, new product introductions, e-commerce and m-commerce initiatives and other activities.
It is difficult for us to predict the timing and scale of our competitors&rsquo; actions in these areas. Our ability to compete
will also depend on the continued strength of our brands, our ability to attract and retain key talent and other personnel and
the efficiency of our manufacturing channels and distribution networks.</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>The behavior of our celebrity licensees
may impact the marketing and sale of our products.</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 business will be dependent on celebrity
licensing agreements. Our ability to successfully market, promote and sell our products will be tied, to a certain extent, to the
popularity of our celebrity licensees. Any negative publicity associated with our celebrity licensees by reason of offensive or
shocking conduct, or otherwise, could affect our product sales and have a material adverse effect on our business, financial condition
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>A general economic downturn or sudden
disruption in business conditions may affect consumer purchases of discretionary items and/or the financial strength of customers
that are retailers, which could adversely affect our financial results.</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 general level of consumer spending
is affected by a number of factors, including general economic conditions, inflation, interest rates, energy costs, and consumer
confidence generally, all of which are beyond our control. Consumer purchases of discretionary items tend to decline during recessionary
periods, when disposable income is lower, and may impact sales of our products. A decline in consumer purchases of discretionary
items will also tend to impact our customers that are retailers. A downturn in the economies in which we expect to sell our products
or a sudden disruption of business conditions in those economies could adversely affect our sales and profitability.</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 success depends, in part, on
the quality and safety of our products.</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, in part, on the quality
and safety of our products. If our products are found to be defective or unsafe, or if they otherwise fail to meet our consumers&rsquo;
standards, our relationships with customers or consumers could suffer, the appeal of one or more of our brands could be diminished,
and we could lose sales and/or become subject to liability claims, any of which could result in a material adverse effect on our
business, results of operations and financial condition.</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"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>A disruption in operations or our
supply chain could adversely affect our business and financial results.</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 we anticipate being a company engaged
in the manufacture (through third-party manufacturers) and distribution of beauty products, our future operations will be subject
to the risks inherent in manufacturing and distribution activities, including industrial accidents, environmental events, strikes
and other labor disputes, disruptions in supply chain or information systems, loss or impairment of key manufacturing sites, product
quality control, safety, licensing requirements and other regulatory issues, as well as natural disasters and other external factors
over which we have no control. If such an event were to occur, it could have an adverse effect on our business and financial results.</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 protect our intellectual
property rights, specifically trademarks, our ability to compete could be negatively impacted.</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 for our products will depend
to a significant extent upon the value associated with our product innovations and our brand equity. We expect to own the material
trademarks used in connection with the marketing and distribution of our major products. There can be no assurance with respect
to the rights associated with our intellectual property.</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 success depends, in part, on
our key personnel.</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 post-Merger success will depend, in
part, on our ability to retain our key personnel, including Nicole Ostoya, our President and Chief Executive Officer. The unexpected
loss of one or more of our key employees could adversely affect our business. Our success also depends, in part, on our ability
to identify, hire, train and retain other highly qualified personnel. Competition for these employees can be intense. We may not
be able to attract, assimilate or retain qualified personnel in the future, and our failure to do so could adversely affect our
business. This risk may be exacerbated by the stresses associated with the implementation of our strategic plan and other initiatives.</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 success depends on our ability
to execute fully our business strategy.</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 ability to implement the key initiatives
of our business strategy is dependent upon a number of factors, including our ability to:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Wingdings">&Yuml;</FONT></TD><TD STYLE="text-align: justify">enter into additional celebrity licensing agreements;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Wingdings">&Yuml;</FONT></TD><TD STYLE="text-align: justify">establish, maintain and increase our beauty sales and market share, and strengthen the image of
our brands;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Wingdings">&Yuml;</FONT></TD><TD STYLE="text-align: justify">implement appropriate product mix and pricing strategies and achieve anticipated benefits from
these strategies;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Wingdings">&Yuml;</FONT></TD><TD STYLE="text-align: justify">realize efficiencies across our supply chain, marketing processes, sales model and organizational
structure;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Wingdings">&Yuml;</FONT></TD><TD STYLE="text-align: justify">implement our outsourcing strategies;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Wingdings">&Yuml;</FONT></TD><TD STYLE="text-align: justify">effectively manage inventory and implement initiatives to reduce inventory levels, including the
potential impact on cash flows and obsolescence; and</TD></TR></TABLE>

<P STYLE="font: 10pt Wingdings; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Wingdings">&Yuml;</FONT></TD><TD STYLE="text-align: justify">secure short and long-term financing, or financing at attractive rates.</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">There can be no assurance that any of these
initiatives will be successfully and fully executed in the amounts or within the time periods that we expect.</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 the Offering and the
Merger</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>If we do not raise the Maximum Offering
Amount, our ability to fully implement our business plan will be limited. In addition, even if the Maximum Offering Amount is raised,
we may need additional financing from other sources and any limitation on the ability to obtain such additional financing</I></B>
<B><I>could have a material adverse effect on our business, financial condition and results of 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">In order to fully implement our post-Merger
business plan, we will need to raise the Maximum Offering Amount. If we raise less than the Maximum Offering Amount, our ability
to expand our sales team as needed to expand to other regions and otherwise fully implement our post-Merger business plan, will
be limited. In addition, although management believes that the Maximum Offering Amount will be sufficient to meet our objectives,
there can be no assurance that we will not require additional capital. This could result in dilution to our stockholders. In addition,
there is no assurance that we will be able to obtain additional capital if we need it, or that if available, it will be available
to us on favorable or reasonable terms. Any limitation on our ability to obtain additional capital could have a material adverse
effect on our business, financial condition 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>Because the Merger will be a reverse
merger, we may not be able to attract the attention of major brokerage firms, which may limit the liquidity of our Common Stock
and may make it more difficult for us to raise additional capital in the 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">Additional risks may exist because the
Merger will be a &ldquo;reverse merger.&rdquo; Certain SEC rules are more restrictive when applied to reverse merger companies,
such as the ability of stockholders to resell their shares of Common Stock pursuant to Rule 144. In addition, securities analysts
of major brokerage firms may not provide coverage of our Common Stock following the Merger because there may be little incentive
for brokerage firms to recommend the purchase of our Common Stock. As a result, our Common Stock may have limited liquidity and
investors may have difficulty selling it. In addition, we cannot assure you that brokerage firms will want to conduct any secondary
offerings on our behalf if we seek to raise additional capital in the future. Our inability to raise additional capital may have
a material adverse effect on our business.</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"><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 register the
resale of the shares comprising part of the PPO Units, the Shares underlying the Investor Warrants comprising part of the PPO Units
and the shares underlying the Bridge Warrants in a timely manner as required by the Registration Rights Agreement, we may have
to pay cash penalties in connection with such failure. Our use of cash to pay such penalties may limit our ability to use such
cash for other business purposes, which could have a material adverse effect on 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">We have agreed, at our expense, to prepare
and file a registration statement with the SEC within 90 calendar days from the final closing of the Offering. We have also agreed
to use our commercially reasonable efforts to cause such registration statement to be declared effective by the SEC within 150
calendar days of filing with the SEC. The registration statement will cover the resale of the shares comprising part of the PPO
Units, the shares underlying the Investor Warrants comprising part of the PPO Units and the shares underlying the Bridge Warrants.
There are many reasons, including some over which we have little or no control, which could delay our filing of the registration
statement beyond such 90-day deadline or which could prevent the registration statement from being declared effective by the SEC
by such 150-day deadline, including delays resulting from the SEC review process and comments raised by the SEC during that process.
In the event that the registration statement is not filed, or we fail to use our commercially reasonable efforts to have it declared
effective within these deadlines, we may be required to pay cash penalties in accordance with the terms of the Registration Rights
Agreement (as more fully discussed above under the section captioned &ldquo;<I>The Merger and Related Transactions &mdash; Registration
Rights</I>&rdquo;). As a result, we may be required to divert cash from other business purposes to pay such cash penalties, which
could have a material adverse effect on 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>If unknown pre-Merger liabilities
should arise or known pre-Merger liabilities are not paid according to our agreement with the transferee, we may be required to
divert our cash from other business purposes to discharge such liabilities, which may have an adverse effect on our post-Merger
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">Although we will be transferring certain
assets and liabilities of ours relating to our pre-Merger shell operations in connection with the Merger, there can be no assurance
that such transfer will release us of all such liabilities. If the transferee does not pay such liabilities or unknown liabilities
arise, we may be required to divert cash from other business purposes to discharge such liabilities, which may have an adverse
effect on our post-Merger business.</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 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>We do not expect to pay dividends
on 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">We have no plans to pay dividends on our
Common Stock for the foreseeable future. Because we do not plan to pay dividends on our Common Stock, our stock may be less attractive
to some investors, which could adversely affect our stock price.</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 fail to maintain proper and
effective internal controls, our ability to produce accurate and timely financial statements could be impaired, which could harm
our operating results, our ability to operate our business and investors&rsquo; views of us.</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">Ensuring that we have adequate internal
financial and accounting controls and procedures in place so that we can produce accurate financial statements on a timely basis
is a costly and time-consuming effort that will need to be evaluated frequently. Section 404 of the Sarbanes-Oxley Act requires
public companies to conduct an annual review and evaluation of their internal controls. Our failure to maintain the effectiveness
of our internal controls in accordance with the requirements of the Sarbanes-Oxley Act could have a material adverse effect on
our business. We could lose investor confidence in the accuracy and completeness of our financial reports, which could have an
adverse effect on the price of our Common Stock. In addition, if our efforts to comply with new or changed laws, regulations and
standards differ from the activities intended by regulatory or governing bodies due to ambiguities related to practice, regulatory
authorities may initiate legal proceedings against us and our business may be harmed.</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>A trading market for our Common Stock
may not develop or be sustained, and you may not be able to resell your shares of our Common Stock underlying the PPO Units or
the Investor Warrants.</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">No trading market for our Common Stock
presently exists. We cannot assure you that a market for our Common Stock will develop in the foreseeable future or, if developed,
that it will be sustained. As a result, you may not be able to resell your shares of our Common Stock underlying the PPO Units
or the Investor Warrants.</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"><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 will likely be considered
a &ldquo;penny stock,&rdquo; which is likely to limit its liquidity and make it more difficult for us to raise additional capital
in the 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">The market price of our Common Stock is,
and will likely remain for the foreseeable future, less than $5.00 per share, and therefore will be a &ldquo;penny stock&rdquo;
according to SEC rules, unless our Common Stock is listed on a national securities exchange. The OTC Bulletin Board is not a national
securities exchange. Designation as a &ldquo;penny stock&rdquo; requires any broker or dealer selling these securities to disclose
certain information concerning the transaction, obtain a written agreement from the purchaser and determine that the purchaser
is reasonably suitable to purchase the securities. These rules may restrict the ability of brokers or dealers to sell our Common
Stock and may affect the ability of current holders of our Common Stock to sell their shares. Such rules may also deter broker-dealers
from recommending or selling the Common Stock, which may further limit its liquidity. This may also make it more difficult for
us to raise additional 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>The price of our Common Stock may
become volatile, which could lead to losses by investors and costly securities litigation.</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 future trading price of our Common
Stock may become highly volatile and could fluctuate in response to factors such as:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Wingdings">&Yuml;</FONT></TD><TD STYLE="text-align: justify">actual or anticipated variations in our operating results;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Wingdings">&Yuml;</FONT></TD><TD STYLE="text-align: justify">announcements of developments by us or our competitors;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Wingdings">&Yuml;</FONT></TD><TD STYLE="text-align: justify">announcements by us or our competitors of significant acquisitions, strategic partnerships, joint
ventures or capital commitments;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Wingdings">&Yuml;</FONT></TD><TD STYLE="text-align: justify">adoption of new accounting standards affecting our industry;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Wingdings">&Yuml;</FONT></TD><TD STYLE="text-align: justify">additions or departures of key personnel;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Wingdings">&Yuml;</FONT></TD><TD STYLE="text-align: justify">sales of our Common Stock or other securities in the open market; and</TD></TR></TABLE>

<P STYLE="font: 10pt Wingdings; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Wingdings">&Yuml;</FONT></TD><TD STYLE="text-align: justify">other events or factors, many of which are beyond our control.</TD></TR></TABLE>

<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>As a former shell company, resales
of shares of our restricted common stock in reliance on Rule 144 of the Securities Act are subject to the requirements of Rule
144(i).</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">Rule 144 under the Securities Act, which
generally permits the resale, subject to various terms and conditions, of restricted securities after they have been held for six
months will not immediately apply to our Common Stock because we were at one time designated as a &ldquo;shell company&rdquo; under
SEC regulations. Pursuant to Rule 144(i), securities issued by a current or former shell company that otherwise meet the holding
period and other requirements of Rule 144 nevertheless cannot be sold in reliance on Rule 144 until one year after the date on
which the issuer filed current &ldquo;Form 10 information&rdquo; (as defined in Rule 144(i)) with the SEC reflecting that it ceased
being a shell company, and provided that at the time of a proposed sale pursuant to Rule 144, the issuer has satisfied certain
reporting requirements under the Exchange Act. The filing of this Current Report starts the running of such one year period. Because,
as a former shell company, the reporting requirements of Rule 144(i) will apply regardless of holding period, restrictive legends
on certificates for shares of our Common Stock cannot be removed except in connection with an actual sale that is subject to an
effective registration statement under, or an applicable exemption from the registration requirements of, the Securities Act.</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>You may experience dilution of your
ownership interests because of the future issuance of additional 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">In the future, we may issue our authorized
but previously unissued equity securities, resulting in the dilution of the ownership interests of our present stockholders. We
are currently authorized to issue an aggregate of 310,000,000 shares of capital stock consisting of 300,000,000 shares of our Common
Stock and 10,000,000 shares of preferred stock with preferences and rights to be determined by our board of directors. As of July
12, 2012, there were 85,200,116 shares of our Common Stock and no shares of our preferred stock outstanding, after giving effect
to the Merger, the Offering and the Split-Off (including an aggregate of 25,000,000 shares received by the former BLB stockholders
in the Merger (including the BLB Escrowed Shares) and 8,200,120 shares underlying the PPO Units sold in the initial closing of
the Offering). There are 20,000,000 shares of our Common Stock reserved for issuance under our 2012 Equity Incentive Plan.</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 future issuance of our equity or equity-backed
securities may dilute then-current stockholders&rsquo; ownership percentages and could also result in a decrease in the fair market
value of our equity securities, because our assets would be owned by a larger pool of outstanding equity. As described above, we
may need to raise additional capital through public or private offerings of our common or preferred stock or other securities that
are convertible into or exercisable for our Common Stock or preferred stock. We may also issue such securities in connection with
hiring or retaining employees and consultants, as payment to providers of goods and services, in connection with future acquisitions
or for other business purposes. Our board of directors may at any time authorize the issuance of additional common or preferred
stock without common stockholder approval, subject only to the total number of authorized common and preferred shares set forth
in our certificate of incorporation. The terms of equity securities issued by us in future transactions may be more favorable to
new investors, and may include dividend and/or liquidation preferences, superior voting rights and the issuance of warrants or
other derivative securities, which may have a further dilutive effect. Also, the future issuance of any such additional shares
of common or preferred stock or other securities may create downward pressure on the trading price of our Common Stock. There can
be no assurance that any such future issuances will not be at a price (or exercise prices) below the price at which shares of our
Common Stock are then traded.</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"><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 obtain additional capital
through the issuance of preferred stock, which may limit your rights as a holder 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">Without any stockholder vote or action,
our board of directors may designate and approve for issuance shares of our preferred stock. The terms of any preferred stock may
include priority claims to assets and dividends and special voting rights which could limit the rights of the holders of our Common
Stock. The designation and issuance of preferred stock favorable to current management or stockholders could make any possible
takeover of us or the removal of our management more difficult.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: justify">Management's
Discussion and Analysis of Financial Condition and Results of Operations</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>The following discussion should be read
in conjunction with the financial information included elsewhere in this Current Report, including our audited financial statements
for the period from inception (April 26, 2012) through May 31, 2012 and the related notes. References in this Management&rsquo;s
Discussion and Analysis of Financial Condition and Results of Operations to &ldquo;us,&rdquo; &ldquo;we,&rdquo; &ldquo;our,&rdquo;
and similar terms refer to BOLDFACE licensing + branding, a Nevada corporation. This discussion includes forward-looking statements,
as that term is defined in the federal securities laws, based upon current expectations that involve risks and uncertainties, such
as plans, objectives, expectations and intentions. Actual results and the timing of events could differ materially from those anticipated
in these forward-looking statements as a result of a number of factors. Words such as &ldquo;anticipate,&rdquo; &ldquo;estimate,&rdquo;
&ldquo;plan,&rdquo; &ldquo;continuing,&rdquo; &ldquo;ongoing,&rdquo; &ldquo;expect,&rdquo; &ldquo;believe,&rdquo; &ldquo;intend,&rdquo;
&ldquo;may,&rdquo; &ldquo;will,&rdquo; &ldquo;should,&rdquo; &ldquo;could,&rdquo; and similar expressions are used to identify
forward-looking statements.</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>We caution you that these statements
are not guarantees of future performance or events and are subject to a number of uncertainties, risks and other influences, many
of which are beyond our control, which may influence the accuracy of the statements and the projections upon which the statements
are based. Factors that may affect our results include, but are not limited to, the risk factors elsewhere in this Current Report.
Any one or more of these uncertainties, risks and other influences could materially affect our results of operations and whether
forward-looking statements made by us ultimately prove to be accurate. Our actual results, performance and achievements could differ
materially from those expressed or implied in these forward-looking statements. We undertake no obligation to publicly update or
revise any forward-looking statements, whether from new information, future events or otherwise.</I></P>

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

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: justify"></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"><B>Plan of Operations</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">BGI is a development stage company and has just recently acquired
the business and intellectual property assets of BLB. BLB&rsquo;s focus is on licensing top tier entertainment and designer brands
for opportunities in the beauty market. BLB contracts to design, manufacture and sell branded color cosmetics, hair preparations,
fragrances, home fragrances, skin care, beauty tools, and other beauty products in all channels. BLB has not yet generated or realized
any revenues from its operations to date.</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 auditors have issued a going concern opinion. This means
that there is substantial doubt that we can continue as an on-going business for the next twelve months unless we obtain additional
capital. This is because we have not generated any revenues.</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"><B><U>Results of Operations, Liquidity and Capital Resources
for the period from inception (April 26, 2012) through May 31, 2012</U></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>Results of operations</B></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">Our net loss since inception is $356,041. Since inception, we
have incurred general and administrative expenses of $54,092, research and development expenses of $38,047, royalty expense of
$38,596, professional fees of $59,953, product development fee of $150,000 and interest expense of $15,353.</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">Since inception, we issued 100,000 shares of our common stock
to our founders for an aggregate subscription price of $100.</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>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">As of the date of this Current Report, we have yet to generate
any revenues from our business operations.</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 May 31, 2012, our total assets were $1,364,106 and our
total liabilities were $1,720,047 comprised of&nbsp;$150,176 owed to Consultant, a limited liability company owned jointly by the
two largest stockholders of BGI (one of whom is the Chief Executive Officer and President of BGI), short-term convertible notes
payable to BGI in the amount of $1,500,025, accrued expenses and other current liabilities of $62,058 and accounts payable of $7,788.
The short-term notes were issued by us to BGI in order to obtain the funds necessary to run our company prior to the Merger with
BGI. These notes were converted into BGI&rsquo;s shares of common stock upon the consummation of the Merger.</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>Cash Flows from Operating Activities</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 have not generated positive cash flows from operating activities.
For the period from the inception (April 26, 2012) through May 31, 2012, net cash used in operating activities was ($1,250,910),
consisting primarily of a net loss of ($356,041), prepaid royalty of ($961,404) and prepaid inventory of ($148,404), slightly offset
by an amount due to Consultant of $150,176.</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>Cash Flows from Financing Activities</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 have financed our operations primarily from the issuance
of short-term convertible notes to BGI. For the period from inception (April 26, 2012) through May 31, 2012, we generated $1,400,587
net cash from financing activities. $1,400,487 was due to the issuance of short-term notes to BGI and $100 was due to the issuance
of 100,000 shares of our common stock to our founders.</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">We expect that working capital requirements will continue to
be funded through a combination of our existing funds and further issuances of equity and debt securities. Our working capital
requirements are expected to increase in line with the growth of our business.</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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We estimate that our expenses over the next 13 months (June
1, 2012 to June 30, 2013) will be approximately $8,970,000 as described in the table below.&nbsp;These estimates do not include
any amortized royalty acquisition costs or inventory payments that we may incur in the next 13 months. These estimates may change
significantly depending on the nature of our future business activities and our ability to raise capital from shareholders or other
sources.</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>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Description</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Estimated <BR>Completion Date</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Estimated <BR>Expenses ($)</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 50%; text-align: left">Legal and accounting fees</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 31%; text-align: center; padding-left: 10pt">June 1, 2012 &ndash; July 31, 2013</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 15%; text-align: right">348,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Research and development</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 10pt">June 1, 2012 &ndash; July 31, 2013</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">266,100</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Management and consulting costs</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 10pt">June 1, 2012 &ndash; July 31, 2013</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1,700,667</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Payments for acquisition of celebrity licenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 10pt">June 1, 2012 &ndash; July 31, 2013</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">181,320</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Payments under existing celebrity licenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 10pt">June 1, 2012 &ndash; July 31, 2013</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">50,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">General and administrative expenses</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 10pt; padding-bottom: 1pt">June 1, 2012 &ndash; July 31, 2013</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">$</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">6,423,913</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-weight: bold">Total</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right"></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$&nbsp;</TD><TD STYLE="text-align: right">8,970,000&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>



<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"></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 no lines of credit or other bank financing arrangements.
Generally, we have financed operations to date through the proceeds of the private placement of equity and convertible debt instruments.
In connection with our business plan, management anticipates additional increases in operating expenses and capital expenditures
relating to: (i) acquisition of additional celebrity licenses; (ii) payments under existing celebrity licenses, (iii) developmental
expenses associated with a start-up business; (iv) research and development costs associated with new product offerings, and (v)
management and consulting costs, as well as general administrative expenses, including the costs of being a public company. We
intend to finance these expenses with further issuances of debt and equity securities, including the proceeds of any additional
funds raised in the Offering. Thereafter, we expect we will need to raise additional capital and generate revenues to meet long-term
operating requirements. Additional issuances of equity or convertible debt securities will result in dilution to BGI&rsquo;s current
stockholders. Further, such securities might have rights, preferences or privileges senior to our common stock. Additional financing
may not be available upon acceptable terms, or at all. If adequate funds are not available or are not available on acceptable terms,
we may not be able to take advantage of prospective new business endeavors or opportunities, which could significantly and materially
restrict our business operations. With the exception of the ongoing Offering, 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 BGI&rsquo;s common stock.</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>Off-Balance Sheet Arrangements</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 have no off-balance sheet arrangements.</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>Inflation</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">The effect of inflation on our revenues and operating results
has not been significant.</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>Critical Accounting Policies</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 financial statements are affected by the accounting policies
used and the estimates and assumptions made by management during their preparation.&nbsp;A complete listing of these policies is
included in Note&nbsp;2 &ndash; Summary of Significant Accounting Policies of the notes to our financial statements, appearing
elsewhere in this Current Report.&nbsp;We have identified below the accounting policies that are of particular importance in the
presentation of our financial position, results of operations and cash flows, and which require the application of significant
judgment by management.</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"><U>Method of Accounting</U></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 maintain our accounting records on an accrual method in conformity
with accounting principles generally accepted in the United States of America (&ldquo;US GAAP&rdquo;).</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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Use of Estimates</U></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">In preparing the financial statements in conformity with US
GAAP, management makes estimates and assumptions that affect the reported amount of assets and liabilities and disclosures of contingent
assets and liabilities at the date of the financial statements, as well as the reported amounts of revenue and expenses during
the reporting period. Actual results could differ from these estimates.</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"><U>Revenue Recognition</U></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 required by Financial Accounting Standards Board (&ldquo;FASB&rdquo;)
Accounting Standards Codification Topic 605, Revenue Recognition, we recognize revenue when persuasive evidence of an arrangement
exists, delivery has occurred, the sales price is fixed or determinable and collection is probable.</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"><U>Cash and Cash Equivalents</U></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 Company considers all highly liquid investments purchased
with original maturities of three months or less to be cash equivalents.</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"><U>Financial Instruments and Concentrations of Business and
Credit Risk</U></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">FASB ASC Subtopic 825-10, Financial Instruments, requires disclosure
of fair value information about financial instruments. The Company&rsquo;s financial instruments include cash and cash equivalents,
accounts payable and other current assets and liabilities and short term loan. The fair value of these instruments approximates
their carrying value due to their relatively short maturities.</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">Financial instruments that potentially
subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents. The Company maintains cash
balances that at times exceed amounts insured by the Federal Deposit Insurance Corporation. The Company has not experienced any
losses in these accounts and believes it is not exposed to any significant credit risk in this area.</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"><U>Deferred Financing Costs</U></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">Deferred financing costs represent fees
paid in connection with obtaining short term loans (see Note 4 to our financial statements appearing elsewhere in this Current
Report). These fees are amortized using a method that approximates the effective interest method over the term of the related financing.</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 May 31, 2012, deferred financing
costs of $90,835, net of accumulated amortization of $8,703 are presented on the accompanying balance sheet. Amortization of deferred
financing costs of $8,703 is included in interest expense in the accompanying statement of operations for the period from April
26, 2012 (inception) through May 31, 2012. The remaining deferred financing costs will be fully amortized by November 16, 2012.</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"><U>License Acquisition Costs</U></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">License acquisition costs represent legal
fees paid in connection with obtaining a licensing agreement (see Note 3 to our financial statements appearing elsewhere in this
Current Report). These fees are amortized using straight-line method over the term of the licensing agreement. As of May 31, 2012,
license acquisition costs of $12,001, net of accumulated amortization of $161 are presented on the accompanying balance sheet.
Amortization of license acquisition costs of $161 is included in general and administrative expenses in the accompanying statement
of operations for the period from April 26, 2012 (inception) through May 31, 2012.</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>Recently Issued Accounting Pronouncements</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">There have been no recently issued Accounting Pronouncements
that impact us.</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">&nbsp;</P>



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

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: justify">Securities
Ownership of Certain Beneficial Owners and Management</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 information
with respect to the beneficial ownership of our Common Stock as of July 12, 2012, by (i) each stockholder known by us to be the
beneficial owner of more than 5% of our Common Stock, (ii) each of our directors and executive officers, and (iii) all of our directors
and executive officers as a group. Our only class of voting securities is our Common Stock. To our knowledge, none of the shares
listed below are held under a voting trust or similar agreement. To our knowledge, there are no pending arrangements, including
any pledges by any person of securities of the Company, the operation of which may at a subsequent date result in a change in control
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">Unless otherwise indicated in the following
table, the address for each person named in the table is c/o BOLDFACE Group, Inc., 1945 Euclid Street, Santa Monica, CA 90404.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 90%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font-weight: bold; border-bottom: Black 1pt solid">Name and Address of Beneficial Owner</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Amount and Nature</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>of Beneficial</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Ownership<SUP>1</SUP></B></P></TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Percentage</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>of Class<SUP>2</SUP></B></P></TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-style: italic; text-align: left">Directors and Executive Officers</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 70%; text-align: left">Nicole Ostoya</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 12%; text-align: right">11,875,000</TD><TD STYLE="width: 1%; text-align: left"><SUP>3</SUP>&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 12%; text-align: right">13.9</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Ashumi Kothary</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Ronald S. Altbach</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-style: italic">5% Stockholders</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>Robin Coe-Hutshing</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">11,875,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13.9</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Darien Ellul <BR>Office 1905, 19th Floor <BR>Al Thuraya 2, Dubai Media City <BR>PO Box 502077, Dubai</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,995,583</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9.4</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Adrien Ellul <BR>SOHO Square, 21 Lyndhurst Terrace Central, Hong Kong,<BR>
Hong Kong SAR</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,832,116</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8.0</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Bretton James, Inc.<SUP>4</SUP></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,579,306</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5.4</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Alejandro Agustin Moreno</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,364,963</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5.1</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">All directors and executive officers as a group (3 persons)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">11,875,000</TD><TD STYLE="text-align: left"><SUP>3</SUP>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13.9</TD><TD STYLE="text-align: left">%</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">*Less than 1%</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><SUP>1</SUP></TD><TD STYLE="text-align: justify">To the best of our knowledge, except as otherwise indicated, each of the persons named in the table
has sole voting and investment power with respect to the shares of our Common Stock beneficially owned by such person, except to
the extent such power may be shared with a spouse, which includes shares of our Common Stock that such persons have the right to
acquire within 60 days from July 12, 2012.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><SUP>2</SUP></TD><TD STYLE="text-align: justify">Percentages are based upon 85,200,116 shares of our Common Stock outstanding as of July 12, 2012,
immediately after giving effect to the Merger, the Offering and the Split-Off (including an aggregate of 25,000,000 shares received
by the former BLB stockholders in the Merger (including the BLB Escrowed Shares) and 8,200,120 shares underlying the PPO Units
sold in the initial closing of the Offering).</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><SUP>3</SUP></TD><TD STYLE="text-align: justify">Excludes (i) 1,800,000 options, exercisable at $0.24 per share, which will be granted to Ms. Ostoya
under our 2012 Equity Incentive Plan effective as of the Closing Date, which will vest annually at a rate of 50% beginning on the
first anniversary of the Closing Date, and (ii) 5,700,000 options, with an exercise price equal to the fair market value of our
Common Stock as of the date of their grant, which we agreed to issue to Ms. Ostoya under our 2012 Equity Incentive Plan on the
first anniversary of the Closing Date pursuant to the terms of her employment agreement, which will vest annually at a rate of
33% beginning on the second anniversary date of the Closing Date, in each case, if Ms. Ostoya remains employed by us or any of
our subsidiaries on each annual vesting date, and with respect to clause (ii), subject to Company performance conditions and/or
milestones as may reasonably be established by our board of directors and to such other customary and reasonable terms determined
by our board of directors.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: -0.25in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: -0.25in"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><SUP>4</SUP></TD><TD STYLE="text-align: justify">The address of Bretton James, Inc. is c/o Gottbetter
&amp; Partners, LLP, 488 Madison Avenue, 12<SUP>th</SUP> Floor, New York, NY 10022. Adam Gottbetter, the President of Bretton
James, Inc., has the sole voting and investment power over the reported shares.</TD>
</TR></TABLE>

<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 0pt 0.25in; text-align: justify; text-indent: -0.25in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: justify">Directors
and Executive Officers</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">Below are the names of and certain information
regarding the Company&rsquo;s current executive officers and directors who were appointed effective as of the closing of the Merger:</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: 80%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 26%; border-bottom: windowtext 1pt solid; font-weight: bold">Name</TD>
    <TD STYLE="width: 3%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 11%; border-bottom: windowtext 1pt solid; font-weight: bold; text-align: center">Age</TD>
    <TD STYLE="width: 3%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 57%; border-bottom: windowtext 1pt solid; font-weight: bold; text-align: center">Title</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>Nicole Ostoya</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">43</TD>
    <TD>&nbsp;</TD>
    <TD>Chief Executive Officer, President and Director</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>Ashumi Kothary</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">31</TD>
    <TD>&nbsp;</TD>
    <TD>Chief Financial Officer and Secretary</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>Ronald S. Altbach</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">65</TD>
    <TD>&nbsp;</TD>
    <TD>Chairman of the Board of Directors</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">Directors are elected to serve until our
next annual meeting of stockholders and until their successors are elected and qualified or until their earlier resignation or
death. Executive officers are appointed by the Board of Directors and serve at its pleasure.</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 principal occupation and business experience
during at least the past five years for our executive officers and directors is as follows:</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>Nicole Ostoya, Chief Executive Officer,
President, Director</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">Nicole Ostoya has served as the President
and Chief Executive Officer and a director of BLB since May 2012 and was appointed as our President and Chief Executive Officer
and a director effective as of July 12, 2012. She co-founded BOLDFACE licensing + branding in April 2012 to focus on top tier entertainment
and designer brands for opportunities in the beauty market. In 2010, Ms. Ostoya co-founded, along with her partner Robin Coe-Hutshing,
Santa Monica-based Gold Grenade, LLC, a product development, strategic marketing, comprehensive brand management company that specializes
in beauty, cosmetics and personal care. From its inception through the present, Ms. Ostoya has served as the Chief Executive Officer
for Gold Grenade, LLC. From 2008 to 2010, Ms. Ostoya served as the Chief Executive Officer of Studio Beautymix at Fred Segal where
she managed the retail operation and brought several brands to market with Ms. Coe&ndash;Hutshing, the founder of Studio Beautymix.
From 1987 to 2006, Ms. Ostoya held many executive roles at Nordstrom, Inc., including full line store manager where she was responsible
for operations, P&amp;L management, sales and merchandising for the store. Additionally, she held various executive positions in
the beauty division, including merchandise manager for cosmetics for Orange County and Los Angeles County, and west coast merchandise
manager for fragrances. In 2006, LVMH recruited Ms. Ostoya to open new channels of distribution for its brand Benefit Cosmetics.
There she oversaw the company&rsquo;s Sephora business, launched the brand on QVC, as well as put together an operational structure
to take their boutique concepts on the road. Ms. Ostoya has an AA degree from The Fashion Institute of Design and Merchandising,
graduating with honors in 1987.<SUP> </SUP></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"><FONT STYLE="font-size: 10pt"><I>Key Attributes,
Experience and Skills: </I>As our Chief Executive Officer and President, Ms. Ostoya brings a deep understanding of the cosmetics
industry. Prior to joining us, Ms. Ostoya spent nearly 20 years holding various executive roles with Nordstrom, LVMH,</FONT> <FONT STYLE="font-size: 10pt">Studio
Beautymix at Fred Segal and Gold Grenade. In the process, she acquired significant knowledge and experience in product development,
strategic marketing and brand management for the cosmetics industry.</FONT></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>Ashumi Kothary, Chief Financial Officer</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">Ashumi Kothary has been the Chief Financial
Officer of BLB since June 18, 2012 and was appointed as our Chief Financial Officer effective as of July 12, 2012. She has an extensive
background in transactional, operational and private equity matters. From December 2010 to June 2012 she was an Engagement Partner
at Growthink, a consulting and investment banking firm, where she led investment banking and consulting engagements for the firm
and sat on the company&rsquo;s advisory board. From December 2007 to January 2010, Ms. Kothary was an associate at the consumer
products focused private equity fund VMG Partners, in due diligence, acquisition advisory and portfolio management capacities.
From November 2006 to November 2007, Ms. Kothary worked for fashion house BCBG MaxAzria, where she managed the retail financial
performance of the company&rsquo;s domestic business, the post-merger integration/restructuring of the &ldquo;tween&rdquo; Rave/G&amp;G
line, as well as the launch of the company&rsquo;s e-commerce site. From July 2003 to July 2006, she served at Los Angeles-based
investment bank Houlihan Lokey Howard &amp; Zukin advising on sell-side and buy-side engagements, as well as valuations, fairness
opinions and solvency assignments. Ms. Kothary graduated from Claremont McKenna College with Honors in 2003, majoring in History
and Economics.</P>

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

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<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>Ronald S. Altbach, Chairman of the Board
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"><FONT STYLE="font-size: 10pt">Ronald Altbach
has been the Chairman of the board of directors of BLB since May 2012</FONT> <FONT STYLE="font-size: 10pt">and was appointed as
the Chairman of our Board of Directors effective as of July 12, 2012. From November 2008 through the present he has served as president
of Regeneration Capital Group, a merchant bank with a focus on middle market Chinese companies seeking financing and public listings
in the US. Regeneration&rsquo;s sector concentration includes healthcare, education, small business lending, and agriculture. From
2004 through 2008, Mr. Altbach served as the Chief Executive Officer of TableMAX, a gaming equipment manufacturer. From 1998 through
2003, he was Chairman and Chief Executive Officer of Cross Media Marketing, an American Stock Exchange listed company which he
founded. From 1994 through 1998, Mr. Altbach served as Vice Chairman of Rosecliff, Inc., a private equity group, and served as
Chairman of Paul Sebastian, Inc., one of Rosecliff&rsquo;s portfolio companies during the same period. Before joining Rosecliff,
Mr. Altbach designed and executed alternative distribution strategies for several major US fragrance brands as these brands, primarily
public companies, sought new markets and new sources of revenue. His first experience with public companies came in 1984 when a
company he founded, Mediacom Industries, merged with a publicly listed shell. Mr. Altbach served as president of Mediacom Filmworks,
a subsidiary that produced films, music videos and television specials. Mr. Altbach began his career as a songwriter/producer/performer,
most notably with the Beach Boys.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Key Attributes, Experience and Skills:
</I>&nbsp;Mr. Altbach provides our board of directors with considerable experience in capital markets, finance, investing and business
and market strategy and significant experience in finance and accounting matters through his work at Regeneration Capital Group
and his service in a variety of senior executive positions, including as the Chairman of the Board of Paul Sebastian, Inc., a manufacturer
and marketer of fragrance brands. Mr. Altbach also brings to the board of directors public company board experience.</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><I>Family Relationships</I></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">There are no family relationships among any of our directors
or executive officers.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: justify">Executive
Compensation</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>Summary Compensation Table</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 information
concerning the compensation earned by BLB&rsquo;s principal executive officer and principal financial officer during the period
from inception (April 26, 2012) through May 31, 2012. During such period BLB&rsquo;s principal executive officer and principal
financial officer were its sole executive officers.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 97%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font-weight: bold; border-bottom: Black 1pt solid">Name and Principal <BR>Position</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Period</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Salary <BR>($)</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Bonus <BR>($)</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Option <BR>Awards <BR>($)</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Total <BR>($)</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 42%; text-align: left">Nicole Ostoya,<BR>
&nbsp;&nbsp;&nbsp;&nbsp;Chief Executive Officer and<BR>
&nbsp;&nbsp;&nbsp;&nbsp;President</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 15%; text-align: center">April 26, 2012 &ndash; May 31, 2012</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 7%; text-align: right">27,123</TD><TD STYLE="width: 1%; text-align: left"></TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 7%; text-align: right">&mdash;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 7%; text-align: right">&mdash;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 7%; text-align: right">27,123</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Ashumi Kothary, <BR>&nbsp;&nbsp;&nbsp;Chief Financial Officer and <BR>&nbsp;&nbsp;&nbsp;Secretary</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: center">April 26, 2012 &ndash; May 31, 2012(1)</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></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">(1) Ms. Kothary became BLB&rsquo;s Chief Financial Officer and
Secretary on June 18, 2012.</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"><B>Employment Agreements</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>Nicole Ostoya, </I></B><I>Chief Executive
Officer and President<B> &mdash; </B></I>On July 12, 2012, we entered into an employment agreement with Ms. Ostoya with a term
of three years. Ms. Ostoya&rsquo;s annual base salary is $250,000 in years one and two and is subject to increase (but not decrease)
in year three based upon a market survey conducted under the direction of our Board of Directors. Ms. Ostoya will be eligible to
receive an annual cash bonus at the discretion of our Board of Directors based on Company performance goals established by the
Board of Directors and targeted at up to 20% of her annual salary.&nbsp;We also agreed to issue to Ms. Ostoya (i) 1,800,000 options,
exercisable at $0.24 per share, under our 2012 Equity Incentive Plan effective as of the Closing Date, which will vest annually
at a rate of 50% beginning on the first anniversary of the Closing Date, and (ii) 5,700,000 options, with an exercise price equal
to the fair market value of our Common Stock as of the date of their grant, under our 2012 Equity Incentive Plan on the first anniversary
of the Closing Date pursuant to the terms of her employment agreement, which will vest annually at a rate of 33% beginning on the
second anniversary date of the Closing Date, in each case, if Ms. Ostoya remains employed by us or any of our subsidiaries on each
annual vesting date, and with respect to clause (ii), subject to Company performance conditions and/or milestones as may reasonably
be established by our board of directors and to such other customary and reasonable terms determined by our board of directors.</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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Ms. Ostoya will be entitled to receive
any perquisites and other fringe benefits provided to our other senior executives. In the event Ms. Ostoya is terminated by us
without Cause (as defined in her employment agreement) or she resigns for Good Reason (as defined in her employment agreement),
we will be obligated to continue to pay Ms. Ostoya her base salary on our regular payroll dates for the lesser of 12 months and
the number of months remaining in the term of her employment agreement, plus any accrued but unused vacation (the &ldquo;Termination
Benefits&rdquo;). If Ms. Ostoya&rsquo;s employment is terminated during her employment term by (x) us for Cause, (y) Ms. Ostoya
for any reason other than Good Reason or (z) due to her death or Disability (as defined in her employment agreement), then she
will not be entitled to receive the Termination Benefits, and shall only be entitled to the compensation and benefits which shall
have accrued as of the date of such termination.</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>Ashumi Kothary, </I></B><I>Chief
Financial Officer and Secretary<B> &mdash; </B></I>On May 30, 2012, Ms. Kothary entered into an employment agreement with BLB.&nbsp;Ms.
Kothary&rsquo;s employment is &ldquo;at will&rdquo; and her base salary is $125,000 per year. We intend to negotiate an employment
agreement for a term of years with Ms. Kothary pursuant to which she may be eligible for an annual performance-based bonus, receive
awards under our 2012 Equity Incentive Plan and/or be entitled to receive any perquisites and other fringe benefits provided to
our other senior executives of.</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>Gold Grenade Consulting 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"><FONT STYLE="font-size: 10pt">On July 12,
2012, we also entered into a Consulting Agreement (the &ldquo;Consulting Agreement&rdquo;) with Gold Grenade, LLC (&ldquo;Consultant&rdquo;).
Pursuant to the Consulting Agreement, we engaged the Consultant to provide us and our affiliates with certain brand development,
product development and fragrance development services relating to our products (the &ldquo;Services&rdquo;). The Consultant will
be our exclusive product development provider. The Consulting Agreement is for a term of one year and will be automatically renewed
for up two additional years, unless earlier terminated pursuant to its terms. As compensation for the Consultant&rsquo;s services,
we agreed to pay the Consultant a monthly consulting fee (the &ldquo;Consulting Fee&rdquo;) based on the number of SKUs (as defined
in the Consulting Agreement) being developed or managed by the Consultant during any month of the term of the agreement. The Consulting
Fee shall be (i) $20,000 for up to 25 SKUs, (ii) $50,000 for up to 75 SKUs, (iii) $75,000 for up to 100 SKUs, and (iv) $100,000
for over 100 SKUs. We also agreed to reimburse the Consultant for all reasonable out-of-pocket fees and expenses that the Consultant
incurs in connection with the performance of the Services. Ms. Ostoya is a principal of the Consultant. The</FONT> <FONT STYLE="font-size: 10pt">Consultant
agreed that from the Closing Date until July 11, 2015, it shall present to us any and all opportunities to obtain any license to
develop, manufacture, market or sell one or more cosmetic, fragrance, health or beauty products or product lines endorsed by, or
marketed or sold under the brand of, one or more celebrities.</FONT></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"><B>Outstanding Equity Awards at Period Ended May 31, 2012</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">No stock options were issued and outstanding at May 31, 2012.</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>Director Compensation</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Director Compensation for the period
from inception (April 26, 2012) through May 31, 2012</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">Prior to the Merger, directors of BLB were
not compensated for services on the Board of Directors. Following the Merger, our directors will be entitled to receive compensation
as determined by the Board of 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>Board of Directors and 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">Our Board of Directors currently consists
of 2 members. On the Closing of the Merger, Noah Levinson and Irv Pyun, members of Pubco&rsquo;s Board of Directors resigned, and
simultaneously therewith, a new Board of Directors was appointed. The new Board consists of Ronald J. Altbach, Chairman of the
Board, and Nicole Ostoya. We anticipate that we will add up to three additional independent directors.</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"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Board Independence and 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 are not currently listed on any national
securities exchange or quoted on an inter-dealer quotation system that has a requirement that certain of the members of the Board
of Directors be independent. However, the Board of Directors has made a determination as to which of its members are independent.
In evaluating the independence of its members and the composition of the committees of the Board of Directors, the Board utilizes
the definition of &ldquo;independence&rdquo; developed by the Nasdaq Stock Market and in SEC rules, including the rules relating
to the independence standards in audit committee members and the non-employee director definition of Rule 16b-3 promulgated under
the Exchange Act.</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 Board of Directors expects to continue
to evaluate whether and to what extent the members of the Board and its committees are independent. The Company intends to appoint
persons to the Board and committees of the Board who will meet the corporate governance requirements imposed by a national securities
exchange. Therefore, the Company expects that a majority of its directors will be independent directors of which at least one director
will qualify as an &ldquo;audit committee financial expert,&rdquo; within the meaning of SEC 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">Additionally, the Board of Directors is
expected to appoint an audit committee, governance committee and compensation committee and to adopt charters relative to each
such committee.</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 believe that Mr. Altbach is currently
an &ldquo;independent&rdquo; director as that term is defined by the listing standards of the Nasdaq Stock Market and SEC rules,
including the rules relating to the independence standards for audit committee members and the non-employee director definition
of Rule 16b-3 promulgated under the Exchange Act.</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>Code of Ethics</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 adopted a written Code of Ethics.
We believe that the Code of Ethics is reasonably designed to deter wrongdoing and promote honest and ethical conduct; provide full,
fair, accurate, timely and understandable disclosure in public reports; comply with applicable laws; ensure prompt internal reporting
of code violations; and provide accountability for adherence to the code. A copy of our Code of Ethics will be provided to any
person requesting same without charge. To request a copy of our Code of Ethics, please make written request to our Chief Executive
Officer, c/o BOLDFACE Group, Inc., 1309 Pico Blvd., Suite A, Santa Monica, CA 90404.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: justify">Market
Price of and Dividends on Common Equity and Related Stockholder Matters&#9;</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 currently eligible
for quotation on the OTCBB under the symbol &ldquo;BLBK.OB.&rdquo; The quotation of our Common Stock began on or about October
3, 2011 under the symbol &ldquo;MXCS.OB&rdquo;. There has been very limited trading in our Common Stock to date. As of July 12,
2012, we had 85,200,116 shares of our Common Stock issued and outstanding held by approximately 65 stockholders of record, after
giving effect to the Merger, the Offering and the Split-Off (including an aggregate of 25,000,000 shares received by the former
BLB stockholders in the Merger (including the BLB Escrowed Shares) and 8,200,120 shares underlying the PPO Units sold in the initial
closing of the Offering). To date, we have not paid dividends on our Common Stock. We have no outstanding shares of preferred 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">The following table sets forth the high
and low closing bid prices for our Common Stock for the fiscal quarters indicated as reported on the OTCBB. The quotations reflect
inter-dealer prices, without retail mark-up, mark-down or commission and may not represent actual transactions. Our Common Stock
is very thinly traded and, thus, pricing of our Common Stock on the OTCBB does not necessarily represent its fair market value.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid">Period</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">High</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Low</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-weight: bold">Fiscal Year Ending September 30, 2012</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 76%">First Quarter ended December 31, 2011 (from October 3, 2011)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">1.50</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">0.02</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>Second Quarter ended March 31, 2012</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1.50</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1.50</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Third Quarter ending June 30, 2012 (through July 16, 2012)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4.00</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.25</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<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>Dividend Policy</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 paid any cash dividends on
our capital stock and do not anticipate paying any cash dividends on our Common Stock in the foreseeable future. We intend to retain
future earnings to fund ongoing operations and future capital requirements. Any future determination to pay cash dividends will
be at the discretion of our board of directors and will be dependent upon financial condition, results of operations, capital requirements
and such other factors as our board of directors deems relevant.</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"><B>&nbsp;</B></P>

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font-weight: bold">Plan Category</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center">Number of shares <BR>to be issued upon <BR>exercise of <BR>outstanding <BR>options, warrants <BR>and rights</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center">Weighted- <BR>Average <BR>exercise price <BR>of outstanding <BR>options, <BR>warrants and <BR>rights</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center">Number of shares <BR>remaining available <BR>for future issuance <BR>under equity <BR>compensation plans <BR>(excluding shares <BR>reflected in the first <BR>column)</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 55%; text-align: left">Equity compensation plans approved by security holders</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 12%; text-align: right">1,800,000</TD><TD STYLE="width: 1%; text-align: left">(1)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 12%; text-align: right">&mdash;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 12%; text-align: right">20,000,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Equity compensation plans not approved by securities holders</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Total</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">20,000,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left">(1)</TD><TD STYLE="text-align: justify">We agreed to issue to Ms. Ostoya, our CEO and President,
1,800,000 options. See &ldquo;Executive Compensation &mdash; Employment Agreement &mdash; Nicole Ostoya&rdquo; fee a detailed discussion of
such award.</TD>
</TR></TABLE>

<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>2012 Equity Incentive Plan</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 Board of Directors and stockholders
owning a majority of our outstanding shares adopted our 2012 Equity Incentive Plan (the &ldquo;2012 Plan&rdquo;) effective as of
the Closing Date. A total of 20,000,000 shares of our Common Stock are reserved for issuance under the 2012 Plan. If an incentive
award granted under the 2012 Plan expires, terminates, is unexercised or is forfeited, or if any shares are surrendered to us in
connection with an incentive award, the shares subject to such award and the surrendered shares will become available for further
awards under the 2012 Plan.</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">Shares issued under the 2012 Plan through
the settlement, assumption or substitution of outstanding awards or obligations to grant future awards as a condition of acquiring
another entity are not expected to reduce the maximum number of shares available under the 2012 Plan. In addition, the number of
shares of common stock subject to the 2012 Plan and the number of shares and terms of any incentive award are expected to be adjusted
in the event of any stock dividend, spin-off, split-up, stock split, reverse stock split, recapitalization, reclassification, merger,
consolidation, liquidation, business combination or exchange of shares or similar transaction.</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>Administration</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">It is expected that the compensation committee
of the Board, or the Board in the absence of such a committee, will administer the 2012 Plan. Subject to the terms of the 2012
Plan, the compensation committee would have complete authority and discretion to determine the terms of awards under the 2012 Plan.</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>Eligible Recipients</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 officer or other employee of the Company
or its affiliates, or an individual that the Company or an affiliate has engaged to become an officer or employee, or a consultant
or advisor who provides services to the Company or its affiliates, including a non-employee director of the Board, is eligible
to receive awards under the 2012 Plan.</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>Grants&#9;</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 2012 Plan authorizes the grant to eligible
recipients of nonqualified stock options, incentive stock options, restricted stock awards, restricted stock units, performance
grants intended to comply with Section 162(m) of the Internal Revenue Code of 1986, as amended (the &ldquo;Code&rdquo;) and stock
appreciation rights (&ldquo;SARs&rdquo;) as described below:</P>

<P STYLE="font: 10pt Wingdings; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Wingdings">&Yuml;</FONT></TD><TD STYLE="text-align: justify">Options granted under the 2012 Plan entitle the grantee, upon exercise, to purchase a specified
number of shares from us at a specified exercise price per share. The exercise price for shares of our Common Stock covered by
an option cannot be less than the fair market value of our Common Stock on the date of grant unless agreed to otherwise at the
time of the grant. Such awards may include vesting requirements.</TD></TR></TABLE>

<P STYLE="font: 10pt Wingdings; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Wingdings">&Yuml;</FONT></TD><TD STYLE="text-align: justify">Restricted stock awards and restricted stock units may be awarded on terms and conditions established
by our compensation committee, which may include performance conditions for restricted stock awards and the lapse of restrictions
on the achievement of one or more performance goals for restricted stock units.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Wingdings">&Yuml;</FONT></TD><TD STYLE="text-align: justify">The compensation committee may make performance grants, each of which will contain performance
goals for the award, including the performance criteria, the target and maximum amounts payable, and other terms and conditions.</TD></TR></TABLE>

<P STYLE="font: 10pt Wingdings; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Wingdings">&Yuml;</FONT></TD><TD STYLE="text-align: justify">Stock awards are permissible. The compensation committee will establish the number of shares of
common stock to be awarded and the terms applicable to each award, including performance restrictions.</TD></TR></TABLE>

<P STYLE="font: 10pt Wingdings; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Wingdings">&Yuml;</FONT></TD><TD STYLE="text-align: justify">SARs, entitle the participant to receive a distribution in an amount not to exceed the number of
shares of common stock subject to the portion of the SAR exercised multiplied by the difference between the market price of a share
of common stock on the date of exercise of the SAR and the market price of a share of common stock on the date of grant of the
SAR.</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">To the extent that the compensation committee
of our Board of Directors is not in place, then our Board of Directors shall administer such grants.</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"><FONT STYLE="font-size: 10pt">Awards exercisable
for up to 4,000,000 shares of common stock may be granted during the first 12 months following the Closing Date to our executive
officers, key employees, consultants and directors; provided, that awards for a maximum of 4,000,000 shares of our Common Stock
may be granted during the first 12 months following the Closing Date; provided, however that post-Merger our board of directors
may grant awards in excess of 4,000,000 shares of our</FONT> <FONT STYLE="font-size: 10pt">Common Stock solely to any of our newly
appointed independent directors.</FONT></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>Duration, Amendment, and Termination</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 Board of Directors or if then in place,
the compensation committee of our Board of Directors, may amend, suspend or terminate the 2012 Plan without stockholder approval
or ratification at any time or from time to time. No change may be made that materially increases the total number of shares of
our Common Stock reserved for issuance under the 2012 Plan or reduces the minimum exercise price for options or exchange of options
for other incentive awards, unless such change is authorized by our stockholders within one year. Unless sooner terminated, the
2012 Plan terminates ten years after it is adopted.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: justify">Certain
Relationships And Related Transactions</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>Transactions Involving BGI and/or BGI
Stockholders</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>Split-Off and Release</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">Immediately following the closing of the
Merger, BGI transferred all of its operating assets and liabilities to Split Corp. through the surrender and subsequent cancellation
of 189,781,000 shares of our Common Stock held by the Split-Off Shareholder for all of the issued and outstanding shares of common
stock of Split Corp.</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>Transactions with the Placement Agent
and Its Related Parties</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>Placement Agent 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">Gottbetter Capital Markets,
LLC served as the Placement Agent for both the Bridge Financing and serves as the Placement Agent for the Offering. We paid
the Placement Agent, in connection with the initial closing of the Offering a commission of 8% of the funds raised from
investors in the Offering that were directly introduced to us by the placement agent (or $10,000), excluding funds attributable to
converted bridge notes. The Placement Agent received an additional cash commission of 4%, or approximately $77,000, with
respect to the principal amount of Bridge Notes converted into PPO Units. Prior to the commencement of the Offering, we also
paid the Placement Agent a cash commission of 4% of the $1,925,030 raised from investors in the Bridge Financing which
was approximately $77,000. In addition, the Placement Agent received five-year warrants (the &ldquo;Broker Warrants&rdquo;)
to purchase a number of shares of our Common Stock equal to 8% of the PPO Units sold to investors in the Offering that
were directly introduced to us by the placement agent, including PPO Units issued in connection with the conversion of the
Bridge Notes. Except for their exercise price, the Broker Warrants are identical, in all material respects to the Investor
Warrants. As a result of the foregoing arrangement, at the initial closing of the Offering, the placement agent was paid
commissions of approximately $164,000 and was issued Broker Warrants to purchase approximately 656,000 shares of our Common
Stock at an exercise price of $0.25 per share.</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"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Share Escrow 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">We entered into an Escrow Agreement, dated
as of July 12, 2012, with the shareholders of BLB, and Gottbetter &amp; Partners, LLP, as Escrow Agent, pursuant to which the Escrow
Agent will hold in escrow 1,000,000 shares of the shares of our Common Stock that BLB&rsquo;s pre-Merger stockholders received
in the Merger in exchange for their shares of BLB for any breach of the Merger Agreement by BLB that is discovered during the two
years immediately following the closing of the Merger.</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>Transactions involving BLB and/or BLB
Stockholders</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>Employment Agreements</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">For a discussion of the employment agreements
entered into between us or BLB and our executive officers, please see above under &ldquo;<I>Executive Compensation &ndash; Employment
Agreements</I>&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>Gold Grenade Consulting 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">For a discussion of the consulting agreement
entered into between us and an affiliate of one of our executive officers, please see above under &ldquo;<I>Executive Compensation
&ndash; Gold Grenade Consulting Agreement</I>&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>Lock-Up Agreements</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">For a discussion of the lock-up agreements
entered into between us and certain of our officers, directors, key employees and holders of 10% or more of our Common Stock, please
see above under &ldquo;<I>The Merger and Related Transactions &ndash; Lock-Up Agreements</I>&rdquo;.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: justify">Description
of Capital Stock</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">Our authorized capital stock consists of
300,000,000 shares of common stock, par value $0.001 per share, and 10,000,000 shares of blank check preferred stock, par value
$0.001 per share.</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>Issued and Outstanding 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">Immediately after giving effect to the
Transactions, including the Bridge Warrants issued to the subscribers in the Bridge Offering in connection with the Merger, the
Licensor Warrants issued in connection with the Merger to the Licensors under BLB&rsquo;s May 9, 2012 Amended and Restated Licensing
Agreement, the PPO Units sold in the Offering, the conversion of Bridge Notes, the issuance of shares of our Common Stock issued
to the former BLB stockholders in the Merger, the cancellation of shares owned by the Split-Off Shareholder in the Split-Off, and
the Broker Warrants issued to the Placement Agent in connection with the Offering, there were issued and outstanding securities
of the Company on the closing of the Transactions as follows:</P>

<P STYLE="font: 10pt Wingdings; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Wingdings">&Yuml;</FONT></TD><TD STYLE="text-align: justify">85,200,116 shares of our Common Stock (including an aggregate of 25,000,000 shares received by
the former BLB stockholders in the Merger (including the BLB Escrowed Shares) and 8,200,120 shares underlying the PPO Units sold
in the initial closing of the Offering);</TD></TR></TABLE>

<P STYLE="font: 10pt Wingdings; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Wingdings">&Yuml;</FONT></TD><TD STYLE="text-align: justify">Investor Warrants to purchase an aggregate of 8,200,120 shares of our Common Stock at $1.00 per share
issued to the investors in the Offering, including holders of converted Bridge Notes;</TD></TR></TABLE>

<P STYLE="font: 10pt Wingdings; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Wingdings">&Yuml;</FONT></TD><TD STYLE="text-align: justify">Broker Warrants to purchase an aggregate of approximately 656,000 shares of our Common Stock at
a price of $0.25 per share issued to the placement agent in connection with the Offering;</TD></TR></TABLE>

<P STYLE="font: 10pt Wingdings; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Wingdings">&Yuml;</FONT></TD><TD STYLE="text-align: justify">Bridge Warrants to purchase an aggregate of 7,700,120 shares of our Common Stock consisting of
3,850,060 warrants exercisable at $0.25 per share and 3,850,060 warrants exercisable at $0.50 per share; and</TD></TR></TABLE>

<P STYLE="font: 10pt Wingdings; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Wingdings">&Yuml;</FONT></TD><TD STYLE="text-align: justify">Licensor Warrants to purchase an aggregate of 10,000,000 shares of our Common Stock at a price
of $0.24 per share.</TD></TR></TABLE>

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

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<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"><B>Description of Our 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">The holders of our Common Stock are entitled
to one vote per share on all matters submitted to a vote of our stockholders, including the election of directors. Generally, all
matters to be voted on by our stockholders must be approved by a majority (or, in the case of election of directors, by a plurality)
of the votes entitled to be cast by all shares of Common Stock that are present in person or represented by proxy. Except as otherwise
provided by law, amendments to our Articles of Incorporation generally must be approved by a majority of the votes entitled to
be cast by the holders of all outstanding shares of our Common Stock. Our Amended and Restated Articles of Incorporation do not
provide for cumulative voting in the election of directors. The Common Stock holders will be entitled to such cash dividends as
may be declared from time to time by our Board of Directors from funds available. Upon our liquidation, dissolution or winding
up, the Common Stock holders will be entitled to receive pro rata all assets available for distribution to such holders, subject
to the rights of holders of preferred stock, if any.</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>Registration Rights 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">For a discussion of the terms of the Registration
Rights Agreement see the disclosures set forth in Item 2.01 of this Current Report under the heading &ldquo;<I>The Merger and Related
Transactions - Registration Rights Agreement</I>.&rdquo;</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>Description of Investor Warrants </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 closing of the Merger
and the simultaneous initial closing of the Offering, we issued warrants to purchase an aggregate of 8,200,120 shares of our Common
Stock to investors who purchased PPO Units in the Offering (which included the conversion of the Bridge Note). The Investor Warrants
entitle the holders to purchase one full share of common stock at a purchase price of $1.00 per share during the 5-year period
that commenced upon issuance of the investor warrants. Prior to their expiration date, the Investor Warrants may be called for
redemption by us at any time upon not less than 30 or more than 60 days prior written notice, provided that, at the time of delivery
of such notice, (i) there is an effective registration statement covering the resale of the shares underlying the Investor Warrants;
(ii) the closing bid price for the Company&rsquo;s common stock for each of the 20 consecutive trading days prior to the date of
the notice of redemption is at least $2.50, as proportionally adjusted to reflect any stock splits, stock dividends, combinations
of shares or like events; and (iii) the average trading volume for our Common Stock is at least 50,000 shares per day during the
20 consecutive trading days prior to the date of the notice of redemption and that during such 20-day period there is no more than
1 trading day in which there is no trading in our 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">The Investor Warrants, at the option of
the holder, may be exercised by cash payment of the exercise price to the Company. The Investor Warrants may be exercised on a
cashless basis commencing one year after the date of the filing of this Current Report if no registration statement registering
the shares underlying the Investor Warrants is then in effect. The exercise price and number of shares of common stock issuable
on exercise of the Investor Warrants may be adjusted in certain circumstances including stock splits, stock dividends, and future
issuances of the Company&rsquo;s equity securities without consideration or for consideration per share less than $0.25 (as such
amount may be adjusted in certain circumstances provided in the form of the Investor Warrants).</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 fractional shares will be issued upon
exercise of the investor warrants. If, upon exercise of the Investor Warrants, a holder would be entitled to receive a fractional
interest in a share, we will, upon exercise, round down to the nearest whole number, the number of shares of our Common Stock to
be issued to the Investor Warrant holder.</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>Description of Bridge Warrants</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 closing of the Merger
and the simultaneous initial closing of the Offering in which Bridge Notes in the aggregate principal amount of $1,925,030 were
converted into PPO Units, we issued Bridge Warrants to purchase an aggregate of 7,700,120 shares of common stock to the holder
of the converted Bridge Notes. 3,850,060 of the Bridge Warrants are exercisable at $0.25 per share and 3,850,060 of the Bridge
Warrants are exercisable at $0.50 per share. Except as to exercise price, the Bridge Warrants are identical in all material respects
to the Investor Warrants.</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>Description of Broker Warrants</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 Broker Warrants permit the placement
agent, and its sub-agents and designees, if any, to purchase up to approximately 656,000 shares of common stock, as of the initial
closing of the Offering. The Broker Warrants are identical to the Investor Warrants in all material respects except that (i) their
resale of the common stock underlying them is not covered by a registration statement and (ii) they have an exercise price of $0.25
per share.</P>

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

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<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>Description of Licensor Warrants</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 closing of the Merger
and the simultaneous initial closing of the Offering, we issued an aggregate of 10,000,000 Licensor Warrants to the Licensors under
the May 9, 2012 Licensing Agreement among BLB and the Licensors. The Licensor Warrants are exercisable for the purchase of an aggregate
of 10,000,000 shares of our Common Stock for a term of ten years at an exercise price of $0.24 per share. The exercise price and
number of shares of common stock issuable upon exercise of the Licensor Warrants may be adjusted in certain circumstances including
stock splits and stock dividends (but excluding future issuances of our equity securities, regardless if for no consideration or
for consideration per share less than $0.24). They are exercisable on a cashless basis at any time prior to their expiration. Except
as otherwise described herein, the Licensor Warrants are identical in all material respects to the Investor Warrants.</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>Anti-Takeover Effects of Provisions
of Nevada State Law</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 may in the future become subject to
Nevada&rsquo;s control share laws. A corporation is subject to Nevada&rsquo;s control share law if it has more than 200 stockholders,
at least 100 of whom are stockholders of record and residents of Nevada, and if the corporation does business in Nevada, including
through an affiliated corporation. This control share law may have the effect of discouraging corporate takeovers. The Company
currently has less than 200 stockholders.</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 control share law focuses on the acquisition
of a &ldquo;controlling interest,&rdquo; which means the ownership of outstanding voting shares that would be sufficient, but for
the operation of the control share law, to enable the acquiring person to exercise the following proportions of the voting power
of the corporation in the election of directors: (1) one-fifth or more but less than one-third; (2) one-third or more but less
than a majority; or (3) a majority or more. The ability to exercise this voting power may be direct or indirect, as well as individual
or in association with others.</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 effect of the control share law is
that an acquiring person, and those acting in association with that person, will obtain only such voting rights in the control
shares as are conferred by a resolution of the stockholders of the corporation, approved at a special or annual meeting of stockholders.
The control share law contemplates that voting rights will be considered only once by the other stockholders. Thus, there is no
authority to take away voting rights from the control shares of an acquiring person once those rights have been approved. If the
stockholders do not grant voting rights to the control shares acquired by an acquiring person, those shares do not become permanent
non-voting shares. The acquiring person is free to sell the shares to others. If the buyer or buyers of those shares themselves
do not acquire a controlling interest, the shares are not governed by the control share law any longer.</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">If control shares are accorded full voting
rights and the acquiring person has acquired control shares with a majority or more of the voting power, a stockholder of record,
other than the acquiring person, who did not vote in favor of approval of voting rights for the control shares, is entitled to
demand fair value for such stockholder&rsquo;s shares.</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 addition to the control share law, Nevada
has a business combination law, which prohibits certain business combinations between Nevada corporations and &ldquo;interested
stockholders&rdquo; for three years after the interested stockholder first becomes an interested stockholder, unless the corporation&rsquo;s
board of directors approves the combination in advance. For purposes of Nevada law, an interested stockholder is any person who
is: (a) the beneficial owner, directly or indirectly, of 10% or more of the voting power of the outstanding voting shares of the
corporation, or (b) an affiliate or associate of the corporation and at any time within the previous three years was the beneficial
owner, directly or indirectly, of 10% or more of the voting power of the then-outstanding shares of the corporation. The definition
of &ldquo;business combination&rdquo; contained in the statute is sufficiently broad to cover virtually any kind of transaction
that would allow a potential acquirer to use the corporation&rsquo;s assets to finance the acquisition or otherwise to benefit
its own interests rather than the interests of the corporation and its other stockholders.</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 effect of Nevada&rsquo;s business combination
law is to potentially discourage a party interested in taking control of the Company from doing so if it cannot obtain the approval
of our board of directors.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: justify">Recent
Sales of Unregistered 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>Sales by BLB</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">BLB issued an aggregate of 100,000 shares
of BLB common stock to three persons in connection with BLB&rsquo;s formation on April 26, 2012. The issuance of these shares was
not registered under the Securities Act in reliance upon the exemption from registration provided by Section 4(2) of the Securities
Act which exempts transactions by an issuer not involving any public offering.</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"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Sales by Pubco</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 Merger, we agreed
to issue an aggregate of 25,000,000 shares of our Common Stock to the stockholders of BLB. The issuance of shares of our Common
Stock to the BLB stockholders in connection with the Merger was not registered under the Securities Act in reliance upon the exemption
from registration provided by Section 4(2) of the Securities Act, which exempts transactions by an issuer not involving a public
offering. These securities may not be offered or sold in the United States absent registration or an applicable exemption from
the registration requirement.</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 sold an aggregate of 8,200,120 PPO Units
in the Offering, including the sale of PPO Units upon the conversion of the Bridge Notes, at a price of $0.25 per PPO Unit for
gross proceeds of $2,050,030. Each unit consists of one share of our Common Stock and one Investor Warrant or one Bridge Warrant,
as applicable. The Offering was made only to accredited investors, as defined under Regulation D, Rule 501(a) and non-&rdquo;U.S.
Persons&rdquo; as defined in Regulations S.</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 Merger and initial
closing of the Offering (including the conversion of the Bridge Notes), we issued an aggregate of 7,700,120 shares of our Common
Stock and 7,700,120 Bridge Warrants to the holders of the Bridge Notes, 500,000 shares of our Common Stock and 8,200,116 Investor
Warrants to the purchasers of the PPO Units and 656,000 Broker Warrants. The issuance of shares of our Common Stock, the Bridge
Warrants, the Investor Warrants and the Broker Warrants was made in reliance upon the exemption from registration provided by Section
4(2) of the Securities Act which exempts transactions by an issuer not involving a public offering. These securities may not be
offered or sold in the United States without registration or an applicable exemption from the registration requirements.</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 Merger we issued
an aggregate of 10,000,000 Licensor Warrants to the Licensors. The issuance of the Licensor Warrants was made in reliance upon
the exemption from registration provided by Section 4(2) of the Securities Act which exempts transactions by an issuer not involving
a public offering. These securities may not be offered or sold in the United States without registration or an applicable exemption
from the registration requirements.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: justify">Indemnification
of Officers and 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">Nevada Revised Statutes (&ldquo;NRS&rdquo;)
Sections 78.7502 and 78.751 provide us with the power to indemnify any of our directors, officers, employees and agents. The person
entitled to indemnification must have conducted himself in good faith, and must reasonably believe that his conduct was in, or
not opposed to, our best interests. In a criminal action, the director, officer, employee or agent must not have had reasonable
cause to believe that his conduct was unlawful.</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 NRS Section 78.751, advances for
expenses may be made by agreement if the director or officer affirms in writing that he has met the standards for indemnification
and will personally repay the expenses if it is determined that such officer or director did not meet those standards.</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 bylaws include an indemnification provision
under which we have the power to indemnify our directors, officers, former directors and officers, employees and other agents (including
heirs and personal representatives) against all costs, charges and expenses actually and reasonably incurred, including an amount
paid to settle an action or satisfy a judgment to which a director or officer is made a party by reason of being or having been
a director or officer of the Company. Our bylaws further provide for the advancement of all expenses incurred in connection with
a proceeding upon receipt of an undertaking by or on behalf of such person to repay such amounts if it is determined that the party
is not entitled to be indemnified under our bylaws. These indemnification rights are contractual, and as such will continue as
to a person who has ceased to be a director, officer, employee or other agent, and will inure to the benefit of the heirs, executors
and administrators of such a person. Insofar as indemnification for liabilities arising under the Securities Act may be permitted
for our directors, officers and controlling persons pursuant to the foregoing provisions, or otherwise, we have been advised that
in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: justify">Financial
Statements and Supplemental Data</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">Reference is made to the disclosure set
forth under Item 9.01 of this Current Report, which disclosure is incorporated herein by reference.</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">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: justify">Index to
Exhibits</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">See Item 9.01(c) below, which is incorporated
by reference herein.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: justify">Description
of Exhibits</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">See the Exhibit Index below and the corresponding
exhibits, which are incorporated by reference herein.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 1in; text-align: left">Item 3.02.</TD><TD STYLE="text-align: justify">Unregistered Sales of Equity Securities.</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">The disclosure set forth in Item 2.01 to
this Current Report under the section &ldquo;Recent Sales of Unregistered Securities&rdquo; is incorporated into this item by reference.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 1in; text-align: left">Item 5.01.</TD><TD STYLE="text-align: justify">Changes in Control of the Registrant.</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">As a result of the initial closing of the
Offering and the Merger, we experienced a change in control, with the former stockholders of BLB effectively acquiring control
of us. The disclosure set forth in Item 2.01 to this Current Report is incorporated into this item by reference.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 1in; text-align: left">Item 5.02.</TD><TD STYLE="text-align: justify">Departure of Directors or Certain Officers; Election
of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.</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">The disclosure set forth in Item 2.01 to
this Current Report is incorporated into this item by reference.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 1in; text-align: left">Item 5.03.</TD><TD STYLE="text-align: justify">Amendments to Articles of Incorporation or Bylaws; Change
in Fiscal Year.</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">Prior to the closing of the Merger, on
May 21, 2012, we filed our Amended and Restated Articles of Incorporation (the &ldquo;Charter Amendment&rdquo;) with the Nevada
Secretary of State to, among other things, (i) change our name to BOLDFACE Group, Inc.; (ii) increase our authorized capitalization
from 110,000,000 shares, consisting of 100,000,000 shares of common stock, $0.001 par value per share, and 10,000,000 shares of
preferred stock, $0.001 par value per share, to 310,000,000 shares, consisting of 300,000,000 shares of common stock, $0.001 par
value per share, and 10,000,000 shares of blank check preferred stock, $0.001 par value per share; and (iii) limit the liability
of our officers and directors to us, our stockholders and our creditors to the fullest extent permitted by Nevada law.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 1in; text-align: left">Item 5.06.</TD><TD STYLE="text-align: justify">Change in Shell Company Status.</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">The disclosure set forth in Item 2.01 to
this Current Report is incorporated into this item by reference. As a result of the completion of the Merger, we believe that we
are no longer a shell company, as defined in Rule 405 of the Securities Act and Rule 12b-2 of the Exchange Act.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 1in; text-align: left">Item 9.01.</TD><TD STYLE="text-align: justify">Financial Statements and Exhibits.</TD>
</TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>(a)</B></TD><TD STYLE="text-align: justify"><B>Financial Statements of Business Acquired</B></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">BLB&rsquo;s audited financial statements
for the period ended May 31, 2012 are included with this Current Report beginning on Page F-1.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>(b)</B></TD><TD STYLE="text-align: justify"><B>Pro forma financial information</B></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">No pro forma financial information is required.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>(c)</B></TD><TD STYLE="text-align: justify"><B>Exhibits</B></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">In reviewing the agreements included or
incorporated by reference as exhibits to this Current Report on Form 8-K, please remember that they are included to provide you
with information regarding their terms and are not intended to provide any other factual or disclosure about the Company or the
other parties to the agreements. The agreements may contain representations and warranties by each of the parties to the applicable
agreement. These representations and warranties have been made solely for the benefit of the parties to the applicable agreement
and:</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 Wingdings; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Wingdings">&Yuml;</FONT></TD><TD STYLE="text-align: justify">should not in all instances be treated as categorical statements of fact, but rather as a way of
allocating the risk to one of the parties if those statements prove to be inaccurate;</TD></TR></TABLE>

<P STYLE="font: 10pt Wingdings; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Wingdings">&Yuml;</FONT></TD><TD STYLE="text-align: justify">have been qualified by disclosures that were made to the other party in connection with the negotiation
of the applicable agreement, which disclosures are not necessarily reflected in the agreement;</TD></TR></TABLE>

<P STYLE="font: 10pt Wingdings; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Wingdings">&Yuml;</FONT></TD><TD STYLE="text-align: justify">may apply standards of materiality in a way that is different from what may be viewed as material
to you or other investors; and</TD></TR></TABLE>

<P STYLE="font: 10pt Wingdings; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Wingdings">&Yuml;</FONT></TD><TD STYLE="text-align: justify">were made only as of the date of the applicable agreement or such other date or dates as may be
specified in the agreement and are subject to more recent developments.</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">Accordingly, these representations and
warranties may not describe the actual state of affairs as of the date they were made or at any other time. Additional information
about us may be found elsewhere in this Current Report and in our other public filings, which are available without charge through
the SEC&rsquo;s website at http://www.sec.gov.</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%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 13%; border-bottom: windowtext 1pt solid; font-weight: bold; text-align: left">Exhibit No.</TD>
    <TD STYLE="width: 2%; font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 85%; border-bottom: windowtext 1pt solid; font-weight: bold; text-align: justify">Description</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">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">2.1</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">Agreement and Plan of Merger and Reorganization, dated as of July 12, 2012, by and among Registrant, BOLDFACE Acquisition Corp., and BOLDFACE licensing + branding *</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">2.2</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">Articles of Merger, dated as of July 12, 2012, for the merger of BOLDFACE Acquisition Corp. into BOLDFACE licensing + branding *</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">3.1</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">Amended and Restated Articles of Incorporation as filed with the Nevada Secretary of State on May 21, 2012 (incorporated by reference from Exhibit 3.1 to the Registrant&rsquo;s Current Report on Form 8-K filed with the SEC on May 22, 2012)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">3.2</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">By-Laws of Registrant (incorporated by reference from Exhibit 3.2 to Registrant&rsquo;s Registration Statement on Form SB-2 filed with the SEC on January 17, 2008)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">4.1</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">Form of Investor Warrant *</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">4.2</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">Form of Broker Warrant *</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">4.3</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">Form of Bridge Warrant *</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">4.4</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">Form of Licensor Warrant *</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">4.5</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">Form of 10% Secured Convertible Promissory Note *</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">10.1</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">Split-Off Agreement, dated as of July 12, 2012, by and among Registrant, BOLDFACE Split Corp., and Noah Levinson *</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">10.2</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">General Release Agreement, dated as of July 12, 2012, by and among Registrant, BOLDFACE Split Corp. and Noah Levinson *</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">10.3</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">Form of Securities Purchase Agreement between Registrant and the investors in the Private Placement Offering *</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">10.4</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">Subscription Escrow Agreement, dated as of June 1, 2012, by and among Registrant, Gottbetter Capital Markets, LLC, and CSC Trust Company of Delaware, as amended on June 28, 2012 *</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">10.5</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">Placement Agency Agreement, dated as of May 2, 2012, by and between the Placement Agent and Registrant *</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">10.6</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">Form of Registration Rights Agreement by and between Registrant and the investors in the Private Placement Offering *</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">10.7</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">Escrow (Indemnification) Agreement, dated as of July 12, 2012, among Registrant, Nicole Ostoya, Robin Coe-Hutshing, Maria Torres, and Gottbetter &amp; Partners, LLP, as escrow agent *</TD></TR>
</TABLE>
<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">&nbsp;&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 13%; text-align: center">10.8</TD>
    <TD STYLE="width: 2%; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 85%; text-align: justify">Form of Lock-Up Agreement *</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">10.9&dagger;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">Employment Agreement, dated as of July 12, 2012, between Registrant and Nicole Ostoya *</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">10.10&dagger;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">Employment Agreement, dated as of May 30, 2012, between BOLDFACE licensing + branding and Ashumi Kothary *</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">10.11&dagger;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">Consulting Agreement, dated as of July 3, 2012, between Registrant and Gold Grenade, LLC *</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">10.12</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">Indemnification Agreement, dated as of July 12, 2012, between Registrant and John Derby *</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">10.13&dagger;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">Registrant&rsquo;s 2012 Equity Incentive Plan *</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">10.14</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">Form of Securities Purchase Agreement between Registrant and the investors in the Bridge Financing *</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">10.15</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">Bridge Loan Agreement, dated as of May 16, 2012, between Registrant and BOLDFACE licensing + branding *</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">10.16</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">Pledge Agreement, dated as of May 16, 2012, among Registrant and each person and entity listed as a pledger on the signature pages thereto *</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">10.17</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">Company Security Agreement, dated as of May 16, 2012, among Registrant, BOLDFACE licensing + branding and Gottbetter &amp; Partners, LLP, as collateral agent *</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">10.18</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">NewCo Bridge Loan Agreement, dated as of May 16, 2012, between BOLDFACE licensing + branding and Gottbetter &amp; Partners, LLP, as collateral agent *</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">10.19</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">Form of 10% Secured Convertible Promissory Note issued by BOLDFACE licensing + branding to Registrant *</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">10.20</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">Subscription Escrow Agreement, dated as of May 3, 2012, by and among Registrant, Gottbetter Capital Markets, LLC, and CSC Trust Company of Delaware *</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">14.1</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">Code of Ethics (incorporated by reference from Exhibit 14 to Registrant&rsquo;s Annual Report on Form 10-K for the year ended September 30, 2008 filed with the SEC on December 31, 2008)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">16.1</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">Letter from Webb &amp; Company, P.A. to the Securities and Exchange Commission, dated as of May 17, 2012, regarding changes in Registrant&rsquo;s certifying accountant (incorporated by reference from Exhibit 16.1 to Registrant&rsquo;s Current Report on Form 8-K filed with the SEC on May 8, 2012)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">99.1</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">Press release, dated as of July 13, 2012 *</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">*Filed herewith.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&dagger; Indicates management contract
or compensation plan or arrangement</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: 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">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD>Date:&nbsp; July 18, 2012</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold">BOLDFACE GROUP, INC.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%">&nbsp;</TD>
    <TD STYLE="width: 5%">By:</TD>
    <TD STYLE="width: 45%; border-bottom: Black 1pt solid">/s/ <I>Nicole Ostoya</I></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">Name:&nbsp; Nicole Ostoya</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">Title:&nbsp;&nbsp; Chief Executive Officer and President</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3.5in"><B>&nbsp;</B></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>MAY 31, 2012</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: center"><B>TABLE OF CONTENTS</B></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="width: 85%">Report of Independent Registered Public Accounting Firm</TD>
    <TD STYLE="width: 15%; text-align: center">F-2</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD>Financial Statements:</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 0.25in">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.25in">Balance Sheet</TD>
    <TD STYLE="text-align: center">F-3</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 0.25in">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.25in">Statement of Operations</TD>
    <TD STYLE="text-align: center">F-4</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 0.25in">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.25in">Statement of Changes in Shareholders&rsquo; Deficit</TD>
    <TD STYLE="text-align: center">F-5</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 0.25in">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.25in">Statement of Cash Flows</TD>
    <TD STYLE="text-align: center">F-6</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD>Notes to Financial Statements</TD>
    <TD STYLE="text-align: center">F-7&nbsp; - F-13</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></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: center"></P>

<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: center"></P>

<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: center">&nbsp;</P>



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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt"><B>REPORT OF INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM</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">The Board of Directors</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Santa Monica, California</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">We have audited the accompanying balance
sheet of BOLDFACE Licensing + Branding (a development stage company) as of May 31, 2012, and the related statements of operations,
shareholders&rsquo; deficit and cash flows from April 26, 2012 (inception) through May 31, 2012. These financial statements are
the responsibility of the Company&rsquo;s management. Our responsibility is to express an opinion on these financial statements
based on our audit.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 48.95pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We conducted our audit in accordance with
the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company
is not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. Our audit
included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the Company&rsquo;s internal control
over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made
by management, and evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis
for our opinion.</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 our opinion, the financial statements
referred to above present fairly, in all material respects, the financial position of BOLDFACE Licensing + Branding (a development
stage company) as of May 31, 2012, and the results of their operations and their cash flows from April 26, 2012 (inception) through
May 31, 2012, in conformity with accounting principles generally accepted in the United States of America.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The accompanying financial statements have
been prepared assuming that BOLDFACE Licensing + Branding (a development stage company) will continue as a going concern. As more
fully described in Note 1, the Company has incurred operating losses since inception and requires additional capital to continue
operations. These conditions raise substantial doubt about the Company&rsquo;s ability to continue as a going concern. Management&rsquo;s
plans in regard to this matter are also described in Note 1. The financial statements do not include any adjustments to reflect
the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities
that may result from the outcome of this uncertainty.</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">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><BR>
New York, NY<BR>
June 21, 2012</P>

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

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<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="5" STYLE="font-size: 12pt; font-weight: bold; text-align: center">BOLDFACE LICENSING + BRANDING</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="5" STYLE="font-size: 10pt; text-align: center">(A DEVELOPMENT STAGE COMPANY)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="5" STYLE="font-size: 10pt; text-align: center">BALANCE SHEET</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="5" STYLE="font-size: 10pt; text-align: center">MAY 31, 2012</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="5" STYLE="font-size: 10pt; font-weight: bold; text-align: center">ASSETS</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">Current assets:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 86%; font-size: 10pt; padding-left: 10pt">Cash</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">149,677</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 10pt">Current portion of prepaid royalty</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">640,351</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 10pt">Deferred financing costs, net</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">90,835</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; padding-left: 10pt">Deposit</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1,785</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt; padding-left: 10pt">Prepaid inventory</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">148,404</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 20pt">Total current assets</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1,031,052</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Prepaid royalty</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">321,053</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt">License acquisition costs</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">12,001</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 2.5pt; padding-left: 30pt">Total assets</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">1,364,106</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: center">LIABILITIES AND SHAREHOLDERS' DEFICIT</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Current liabilities:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; padding-left: 10pt">Short-term loans</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">1,500,025</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 10pt">Accounts payable</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">7,788</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 10pt">Accrued expenses and other current liabilities</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">62,058</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt; padding-left: 10pt">Due to Gold Grenade, LLC</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">150,176</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt; padding-left: 20pt">Total current liabilities</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">1,720,047</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; text-align: left">Commitments and contingencies</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; text-align: left">Shareholders' deficit:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; padding-left: 10pt">Common stock, $.001 par value, 1,000,000 shares authorized,</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 20pt">100,000 shares issued and outstanding</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">100</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt; padding-left: 10pt">Deficit accumulated during the development stage</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(356,041</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt; padding-left: 20pt">Total shareholders' deficit</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(355,941</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 2.5pt; padding-left: 30pt">Total liabilities and shareholders' deficit</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">1,364,106</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
</TABLE>



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

<!-- Field: Page; Sequence: 37; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->3<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="5" STYLE="font-size: 12pt; font-weight: bold; text-align: center">BOLDFACE LICENSING + BRANDING</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="5" STYLE="font-size: 10pt; text-align: center">(A DEVELOPMENT STAGE COMPANY)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="5" STYLE="font-size: 10pt; text-align: center">STATEMENT OF OPERATIONS</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="5" STYLE="font-size: 10pt; text-align: center">FOR THE PERIOD FROM APRIL 26, 2012 (DATE OF INCEPTION) TO MAY 31, 2012</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">Operating expenses:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 86%; font-size: 10pt; text-align: left; padding-left: 10pt">Research and development</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">38,047</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 10pt">Royalty expense</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">38,596</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 10pt">Professional fees</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">59,953</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 10pt">General and administrative expenses</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">54,092</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt; padding-left: 10pt">Product development fee</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">150,000</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 20pt">Loss from operations</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">340,688</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt">Interest expense</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">15,353</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 2.5pt; padding-left: 20pt">Net loss</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">356,041</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
</TABLE>



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

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    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->4<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
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<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="17" STYLE="font-size: 12pt; font-weight: bold; text-align: center">BOLDFACE LICENSING + BRANDING</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="17" STYLE="font-size: 10pt; text-align: center">(A DEVELOPMENT STAGE COMPANY)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="17" STYLE="font-size: 10pt; text-align: center">STATEMENT OF SHAREHOLDERS' DEFICIT</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="17" STYLE="font-size: 10pt; text-align: center">FOR THE PERIOD FROM APRIL 26, 2012 (DATE OF INCEPTION) TO MAY 31, 2012</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-size: 10pt">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-size: 10pt; font-weight: bold; text-align: center">Deficit</TD><TD NOWRAP STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-size: 10pt; font-weight: bold; text-align: center">Accumulated</TD><TD NOWRAP STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-size: 10pt; font-weight: bold; text-align: center">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-size: 10pt; font-weight: bold; text-align: center">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-size: 10pt; font-weight: bold; text-align: center">During the</TD><TD NOWRAP STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-size: 10pt; font-weight: bold; text-align: center">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="6" NOWRAP STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Common Stock</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-size: 10pt; font-weight: bold; text-align: center">Development</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-size: 10pt; font-weight: bold; text-align: center">&nbsp;</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Shares</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Amount</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Stage</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Total</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 44%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; text-align: left">Balance, April 26, 2012</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">100,000</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">100</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">100</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt">Net loss</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(356,041</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(356,041</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 2.5pt">Balance, May 31, 2012</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">100,000</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">100</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">(356,041</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">(355,941</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">)</TD></TR>
</TABLE>



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

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="5" STYLE="font-size: 12pt; font-weight: bold; text-align: center">BOLDFACE LICENSING + BRANDING</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="5" STYLE="font-size: 10pt; text-align: center">(A DEVELOPMENT STAGE COMPANY)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="5" STYLE="font-size: 10pt; text-align: center">STATEMENT OF CASH FLOWS</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="5" STYLE="font-size: 10pt; text-align: center">FOR THE PERIOD FROM APRIL 26, 2012 (DATE OF INCEPTION) TO MAY 31, 2012</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">Cash flows from operating activities:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 86%; font-size: 10pt; text-align: left; padding-left: 10pt">Net loss</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">(356,041</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 10pt">Adjustments to reconcile net loss to</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 20pt">net cash used in operating activities:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 10pt">Amortization of deferred financing costs</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">8,703</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 10pt">Amortization of license acquisition costs</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">161</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 20pt">Change in operating assets and liabilities:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 10pt">License acquisition costs</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(12,162</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 10pt">Prepaid inventory</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(148,404</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 10pt">Prepaid royalty</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(961,404</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 10pt">Deposit</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(1,785</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 10pt">Accounts payable</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">7,788</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 10pt">Accrued expenses and other current liabilities</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">62,058</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt; padding-left: 10pt">Due to Gold Grenade, LLC</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">150,176</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt; padding-left: 10pt">Net cash used in operating activities</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(1,250,910</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; text-align: left">Cash flows from financing activities:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 10pt">Proceeds from short term loan, net of deferred financing costs</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1,400,487</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt; padding-left: 10pt">Issuance of common stock</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">100</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt; padding-left: 10pt">Cash provided by financing activities</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">1,400,587</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Net change in cash</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">149,677</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt">Cash at beginning of year</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 2.5pt">Cash at end of year</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">149,677</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Supplemental disclosures of cash flow information:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 10pt">Cash paid during the year for:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; padding-bottom: 2.5pt; padding-left: 20pt">Interest</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">-</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 2.5pt; padding-left: 20pt">Income Taxes</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">-</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
</TABLE>



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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>BOLDFACE
Licensing + Branding</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase">(A
DEVELOPMENT STAGE COMPANY)</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase">Notes
to Financial Statements</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase">MAY
31, 2012</FONT></P>

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

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



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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 1in; text-align: left"><B>NOTE 1.</B></TD><TD STYLE="text-align: justify"><B>FORMATION AND NATURE OF BUSINESS</B></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 0pt 1in; text-align: justify"><U>Organization</U></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">BOLDFACE Licensing + Branding (the
&ldquo;Company&rdquo;) was incorporated under the laws of the State of Nevada on April 26, 2012 with fiscal year end of January
31. To date, the Company has devoted its efforts to enter into licensing agreements with celebrities to develop and market products
using the celebrities&rsquo; brand and image and the raising of capital. As such, the Company is considered to be in the development
stage at May 31, 2012.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">The Company has experienced $356,041
in net losses since its inception on April 26, 2012 through May 31, 2012, as it continues its operations. The Company&rsquo;s operations
have been funded by short term loans. The Company will require positive cash flows or additional debt or equity financing in future
periods to fund its operations.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">The accompanying financial statements
as of May 31, 2012 and for the period from April 26, 2012 (inception) through May 31, 2012 have been prepared assuming the Company
will continue as a going concern. There can be no assurance that the Company will be able to raise additional capital, as needed,
which could have a material adverse effect on the Company&rsquo;s business, existence, financial condition, or results of operations.
Additionally, there can be no assurance that the Company will achieve or maintain profitability in the future. The Company&rsquo;s
prospects must be considered in light of the risks, expenses, and difficulties frequently encountered by companies in the early
stages of development.</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>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 1in; text-align: left"><B>NOTE 2.</B></TD><TD STYLE="text-align: justify"><B>SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</B></TD>
</TR></TABLE>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">The Company maintains its accounting
records on an accrual method in conformity with accounting principles generally accepted in the United States of America (&ldquo;US
GAAP&rdquo;).</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in"><U>Use of Estimates</U></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">In preparing the financial statements
in conformity with US GAAP, management makes estimates and assumptions that affect the reported amount of assets and liabilities
and disclosures of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of
revenue and expenses during the reporting period. Actual results could differ from these estimates.</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 0pt 1in; text-align: justify"><U>Revenue Recognition</U></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 0pt 1in; text-align: justify">As required by Financial Accounting
Standards Board (&ldquo;FASB&rdquo;) Accounting Standards Codification (&ldquo;ASC&rdquo;) Topic 605, <I>Revenue Recognition</I>,
the Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed
or determinable and collection is probable.</P>

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

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

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<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>BOLDFACE
Licensing + Branding</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase">(A
DEVELOPMENT STAGE COMPANY)</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase">Notes
to Financial Statements</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase">MAY
31, 2012</FONT></P>

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

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



<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 0in"></TD><TD STYLE="width: 1in; text-align: left"><B>NOTE 2.</B></TD><TD STYLE="text-align: justify"><B>SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)</B></TD>
</TR></TABLE>

<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 0pt 1in; text-align: justify"><U>Cash and Cash Equivalents</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">The Company considers all highly
liquid investments purchased with original maturities of three months or less to be cash equivalents.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><U>Financial Instruments and Concentrations
of Business and Credit Risk</U></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 0pt 1in; text-align: justify">FASB ASC Subtopic 825-10, <I>Financial
Instruments</I>, requires disclosure of fair value information about financial instruments. The Company&rsquo;s financial instruments
include cash and cash equivalents, accounts payable and other current assets and liabilities and short term loan.&nbsp; The fair
value of these instruments approximates their carrying value due to their relatively short maturities.&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">Financial instruments that potentially
subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents. The Company maintains cash
balances that at times exceed amounts insured by the Federal Deposit Insurance Corporation. The Company has not experienced any
losses in these accounts and believes it is not exposed to any significant credit risk in this area.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><U>Advertising</U></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 0pt 1in; text-align: justify">Advertising costs are expensed
as incurred. Total advertising expenses amounted to $3,750 for the period from April 26, 2012 (inception) through May 31, 2012
and are included in operating expenses in the accompanying statement of operations.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><U>Deferred Financing Costs</U></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 0pt 1in; text-align: justify">Deferred financing costs represent
fees paid in connection with obtaining short term loans (see note 4). These fees are amortized using a method that approximates
the effective interest method over the term of the related financing.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">As of May 31, 2012, deferred financing
costs of $90,835, net of accumulated amortization of $8,703 are presented on the accompanying balance sheet. Amortization of deferred
financing costs of $8,703 are included in interest expense in the accompanying statement of operations for the period from April
26, 2012 (inception) through May 31, 2012. The remaining deferred financing costs will be fully amortized by November 16, 2012.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">License acquisition costs represent
legal fees paid in connection with obtaining a licensing agreement (see note 3). These fees are amortized using straight-line method
over the term of the licensing agreement.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">As of May 31, 2012, license acquisition
costs of $12,001, net of accumulated amortization of $161 are presented on the accompanying balance sheet. Amortization of license
acquisition costs of $161 are included in general and administrative expenses in the accompanying statement of operations for the
period from April 26, 2012 (inception) through May 31, 2012.</P>

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

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<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>BOLDFACE
Licensing + Branding</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase">(A
DEVELOPMENT STAGE COMPANY)</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase">Notes
to Financial Statements</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase">MAY
31, 2012</FONT></P>

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

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



<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 0in"></TD><TD STYLE="width: 1in; text-align: left"><B>NOTE 2.</B></TD><TD STYLE="text-align: justify"><B>SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)</B></TD>
</TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><U>License Acquisition Costs (Continued)</U></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0.5in">Estimated future license acquisition
cost amortization expense is as follows:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 50%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">Years ending May 31,</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 36%; font-size: 10pt; text-align: center; padding-left: 5.4pt">2013</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">2,665</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: center; padding-left: 5.4pt">2014</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">2,665</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; text-align: center; padding-left: 5.4pt">2015</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">2,665</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: center; padding-left: 5.4pt">2016</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">2,665</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; text-align: center; padding-bottom: 1pt; padding-left: 5.4pt">2017</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">1,341</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: center; padding-bottom: 2.5pt; padding-left: 5.4pt">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">12,001</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&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 0pt 1in; text-align: justify">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">The Company is subject to the provisions
of FASB ASC Topic 360, <I>Property, Plant and Equipment &ndash; Impairment or Disposal of Long Lived Assets</I>, which requires
that long-lived assets and certain identifiable intangible assets be reviewed for impairment whenever events or changes in circumstances
indicate that the carrying amount of the an asset may not be recoverable. Recoverability of assets to be held and used is measured
by a comparison of the carrying amount of an asset to undiscounted future cash flows expected to be generated by the asset. In
such cases, the carrying value of these assets are adjusted to their estimated fair value and assets held for sale are adjusted
to their estimated fair value less selling expenses. No impairment losses of long-lived assets or intangible assets were recognized
for the period from April 26, 2012 (inception) through May 31, 2012.</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 0pt 1in; text-align: justify"><U>Income Taxes</U></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">The Company uses the asset and
liability method of accounting for income taxes in accordance with FASB ASC Topic 740, <I>Income Taxes</I>. Deferred tax assets
and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying
amounts of existing assets and liabilities and their respective tax bases and tax credit carryforwards. Deferred tax assets and
liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences
are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized
in income in the period that includes the enactment date. The Company provides a valuation allowance against its deferred tax assets
when circumstances indicate that it is no longer more likely than not that such assets will be realized.</P>

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 1in; text-align: left"><B>NOTE 3.</B></TD><TD STYLE="text-align: justify"><B>PREPAID ROYALTY</B></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"><FONT STYLE="background-color: yellow"><B></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">The Company entered
into a licensing agreement with three individuals (collectively the &ldquo;Licensors&rdquo;) acquiring the exclusive right to use
the Licensors&rsquo; image in connection with the development, production, distribution, advertisement, promotion and sale of products
and obtain certain ancillary services of the Licensors. The licensing agreement remains in effect through November
30, 2016. The Company has the option to extend the term of this agreement for an additional period of eighteen months.</P>

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

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<TD STYLE="width: 0in"></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>BOLDFACE
Licensing + Branding</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase">(A
DEVELOPMENT STAGE COMPANY)</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase">Notes
to Financial Statements</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase">MAY
31, 2012</FONT></P>

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

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



<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 0in"></TD><TD STYLE="width: 1in; text-align: left"><B>NOTE 3.</B></TD><TD STYLE="text-align: justify"><B>PREPAID ROYALTY (Continued)</B></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 0pt 1in; text-align: justify">During the term of the licensing
agreement and as consideration for the grant of rights and license the Licensors&rsquo; image, the Company has agreed to pay the
Licensors depending on the product sold, a royalty on all wholesale sales of all products within the contract term equal to 8%
to 10%. In addition the Company has agreed to pay a guaranteed minimum royalty payment of $4,686,125 or $5,206,900 depending on
launch date of various products in accordance with the following schedule, but subject to adjustments:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Contract period one:
through November 30, 2013 - $1,000,000</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Contract period two: from December 1,
2013 through November 30, 2014 - $925,000 or $962,000</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Contract period three: from December 1,
2014 through November 30, 2015 - $1,188,625 or $1,394,900</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Contract period four: from December 1,
2015 through November 30, 2016 - $1,572,500 or $1,850,000</FONT></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 0pt 1in; text-align: justify">In addition to the royalty payment
and guaranteed minimum royalty payment, the Company has agreed to pay the Licensors an exit fee equal to 15% of the net sale proceeds
of any licensee sale. The Company also granted the Licensors the right and option to exchange the exit fee for 10,000,000 shares
of restricted common stock or warrants, which shall provide for cashless exercise, to purchase 10,000,000 shares of the common
stock of the Lender subsequent to the merger with the Lender (see notes 4 and 5) representing at least 6.11% of the common stock
on a fully diluted basis.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">On May 30, 2012, the Licensors
exercised their option and agreed to exchange their exit fee for 10,000,000 warrants to purchase 10,000,000 shares of common stock.
The warrants are exercisable for a period of ten years from the grant date.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">As of May 31, 2012, the Company
has paid the Licensors $1,000,000 as a non-refundable advance payment for contract period one through November
30, 2013. These fees are amortized ratably using the straight-line method over contract period one. Prepaid royalty of $961,404,
net of accumulated amortization of $38,596 are presented on the accompanying balance sheet as of May 31, 2012. Amortization of
prepaid royalty of $38,596 is presented in the accompanying statement of operations for the period from April 26, 2012 (inception)
through May 31, 2012.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0.5in">Estimated future prepaid royalty
amortization expense is as follows:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 50%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">Years ending May 31,</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 36%; font-size: 10pt; text-align: center; padding-left: 5.4pt">2013</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">640,351</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: center; padding-bottom: 1pt; padding-left: 5.4pt">2014</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">321,053</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; text-align: center; padding-bottom: 2.5pt; padding-left: 5.4pt">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">961,404</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 1in; text-align: left"><B>NOTE 4.</B></TD><TD STYLE="text-align: justify"><B>SHORT TERM LOANS</B></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 0pt 1in; text-align: justify">On May 16, 2012, the Company issued
secured bridge loan promissory notes totaling $1,500,025 bearing interest at a rate of 10% per annum to Max Cash Media, Inc. (the
&ldquo;Lender&rdquo;).</P>

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

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<TD STYLE="width: 0in"></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>BOLDFACE
Licensing + Branding</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase">(A
DEVELOPMENT STAGE COMPANY)</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase">Notes
to Financial Statements</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase">MAY
31, 2012</FONT></P>

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

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



<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 0in"></TD><TD STYLE="width: 1in; text-align: left"><B>NOTE 4.</B></TD><TD STYLE="text-align: justify"><B>SHORT TERM LOANS (Continued)</B></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 0pt 1in; text-align: justify">The promissory notes were issued
in two installments:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">May 16, 2012 - $1,440,000, due by November
15, 2012</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">May 17, 2012 - $60,025, due by November
16, 2012</FONT></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">The loan is due and payable on
the earliest of:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">On the dates mentioned above, or</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Closing of additional financing by the
Company of an amount equal to or greater than the amount borrowed, or</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The date of closing of the merger between
the Company and the Lender.</FONT></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 0pt 1in; text-align: justify">As part of the loan the Company
entered into security and pledge agreements with the Lender. The security agreement granted the Lender first priority security
interest in all tangible and intangible assets of the Company. The pledge agreement pledged 100,000 issued and outstanding shares
of common stock of the Company as collateral.</P>

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 1in; text-align: left"><B>NOTE 5.</B></TD><TD STYLE="text-align: justify"><B>COMMITMENTS AND CONTINGENCIES</B></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 0pt 1in; text-align: justify"><U>Operating Lease</U></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">On May 8, 2012, the Company executed
a one year operating lease for its corporate office commencing on May 15, 2012 at a monthly rent payment of $1,785 per month. Total
rent expense related to this operating lease was $978 for the period from April 26, 2012 (inception) through May 31, 2012 and is
included in operating expenses in accompanying statement of operations.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">The Company is currently engaged
in discussions with the Lender regarding a possible business combination involving the two companies (the &ldquo;Merger&rdquo;).
At this stage, no definitive terms have been agreed to and neither party is bound to proceed with any transaction.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">Simultaneously upon the closing
of the Merger, assuming certain other conditions have been met, the outstanding principal amount due to the Lender will be canceled
and forgiven.</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>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 1in; text-align: left"><B>NOTE 6.</B></TD><TD STYLE="text-align: justify"><B>INCOME TAXES</B></TD>
</TR></TABLE>

<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 0pt 1in; text-align: justify">The Company did not incur any income
tax expense for the period from April 26, 2012 (inception) through May 31, 2012. At May 31, 2012, $296,421 of federal and state
net operating losses were available to the Company to offset future taxable income, which will expire in 2032. Given the short
history of the Company and the uncertainty as to the likelihood of future taxable income, the Company has recorded a 100% valuation
reserve against the anticipated recovery from the use of the net operating losses created at the inception of the Company or generated
thereafter. The Company will evaluate the appropriateness of the valuation allowance on an annual basis and adjust the allowance
as considered necessary.</P>

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

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<TD STYLE="width: 0in"></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>BOLDFACE
Licensing + Branding</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase">(A
DEVELOPMENT STAGE COMPANY)</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase">Notes
to Financial Statements</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase">MAY
31, 2012</FONT></P>

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

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



<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 0in"></TD><TD STYLE="width: 1in; text-align: left"><B>NOTE 6.</B></TD><TD STYLE="text-align: justify"><B>INCOME TAXES (Continued)</B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">The Company&rsquo;s effective tax
rate differs from the federal statutory rate of 34% primarily due to the impact of state income taxes and the valuation allowance
recorded against its deferred tax assets.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 60%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 46%; font-size: 10pt; text-align: left; padding-left: 5.4pt">Statutory rate</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">34.0</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 5.4pt">State income taxes</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">8.8</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Valuation allowance</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(42.8</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">)%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; padding-bottom: 2.5pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;Total</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">0.0</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">%</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 0pt 1in; text-align: justify">The principal components of deferred
tax assets and (liabilities) are as follows as of May 31, 2012:</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 50%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: justify">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 36%; font-size: 10pt; text-align: left">Net operating losses carryforward</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">126,987</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt">Start-up costs, net of amortization</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">25,541</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; text-align: left">Gross deferred taxes</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">152,528</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt">Valuation allowance</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(152,528</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 2.5pt">Net deferred taxes</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">-</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&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 0pt 1in; text-align: justify">The Company follows the provisions
of uncertain tax positions as addressed in FASB ASC Subtopic 740-10-65-1, <I>Income Taxes</I>. As of May 31, 2012, the Company
did not recognize any liability for unrecognized tax benefits. The Company recognizes interest accrued related to unrecognized
tax benefits in interest expense and penalties in operating expenses. No such interest or penalties were recognized during the
period presented. The Company had no accruals for interest and penalties at May 31, 2012. For the period from April 26, 2012 (inception)
through May 31, 2012 is subject to examination by the federal and state taxing authorities. There are no income tax examinations
currently in process and as of the date of this report.</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>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 1in; text-align: left"><B>NOTE 7.</B></TD><TD STYLE="text-align: justify"><B>RELATED PARTY TRANSACTIONS</B></TD>
</TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">The Company entered into a consulting
agreement with Gold Grenade, LLC (&ldquo;Gold Grenade&rdquo;), a related entity co-owned by two of the shareholders to receive
product development services. As of May 31, 2012, $150,176 is due to Gold Grenade, and is presented in the accompanying balance
sheet. For the period from April 26, 2012 (inception) through May 31, 2012, the Company incurred $150,000 in product development
fees payable to Gold Grenade. The agreement is to remain in effect unless either party desires to cancel the agreement. In addition,
the Company shares the leased premises with Gold Grenade.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>BOLDFACE
Licensing + Branding</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase">(A
DEVELOPMENT STAGE COMPANY)</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase">Notes
to Financial Statements</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase">MAY
31, 2012</FONT></P>

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 1in; text-align: left"><B>NOTE 8.</B></TD><TD STYLE="text-align: justify"><B>SUBSEQUENT EVENTS</B></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 0pt 1in; text-align: justify">The Company has evaluated subsequent
events that have occurred from June 1, 2012 through June 21, 2012, and determined that there were no subsequent events or transactions
that required recognition or disclosure in the financial statements, except as disclosed below.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">In June 2012, the Company issued
an additional secured bridge loan promissory note for $425,005 bearing interest at a rate of 10% per annum to the Lender, with
similar terms as the May 2012 short term loans disclosed in Note 4.</P>



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

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[{"type": "8-K", "sequence": "1", "filename": "v318751_8k.htm", "description": "FORM 8-K", "secsgml_size_bytes": 423695}]
{"company-data": {"conformed-name": "BOLDFACE GROUP, INC.", "cik": "0001423107", "assigned-sic": "7389", "irs-number": "020811868", "state-of-incorporation": "NV", "fiscal-year-end": "0930"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "333-148722", "film-number": "12968669"}, "business-address": {"street1": "50 BROMPTON ROAD", "street2": "APT 1X", "city": "GREAT NECK", "state": "NY", "zip": "11201", "phone": "646 303-6840"}, "mail-address": {"street1": "50 BROMPTON ROAD", "street2": "APT 1X", "city": "GREAT NECK", "state": "NY", "zip": "11201"}, "former-company": {"former-conformed-name": "Max Cash Media Inc", "date-changed": "20080108"}}
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):
July 12, 2012
BOLDFACE GROUP, INC.
(Exact name of registrant as specified in
its charter)
Nevada
333-148722
02-0811868
(State or other jurisdiction of incorporation)
(Commission File Number)
(IRS Employer Identification No.)
1309 Pico Blvd., Suite A
Santa Monica, CA 90405
(Address of principal
executive offices) (Zip Code)
(310) 581-4652
(Registrant's telephone number, including
area code)
50 Brompton Road, Apt. 1X
Great Neck, NY 11021
(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 "Current
Report") contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995.
These statements relate to anticipated future events, future results of operations or future financial performance. These forward-looking
statements include, but are not limited to, statements relating to the adequacy of our capital to finance our planned operations,
market acceptance of our services and product offerings, our ability to attract and retain key personnel, and our ability to protect
our intellectual property. In some cases, you can identify forward-looking statements by terminology such as "may,"
"might," "will," "should," "intends," "expects," "plans,"
"goals," "projects," "anticipates," "believes," "estimates," "predicts,"
"potential," or "continue" or the negative of these terms or other comparable terminology.
These forward-looking statements are only
predictions, are uncertain and involve substantial known and unknown risks, uncertainties and other factors which may cause our
(or our industry's) actual results, levels of activity or performance to be materially different from any future results,
levels of activity or performance expressed or implied by these forward-looking statements. The "Risk Factors" section
of this Current Report sets forth detailed risks, uncertainties and cautionary statements regarding our business and these forward-looking
statements.
We cannot guarantee future results, levels
of activity or performance. You should not place undue reliance on these forward-looking statements, which speak only as of the
date that they were made. These cautionary statements should be considered with any written or oral forward-looking statements
that we may issue in the future. Except as required by applicable law, including the securities laws of the United States, we do
not intend to update any of the forward-looking statements to conform these statements to reflect actual results, later events
or circumstances or to reflect the occurrence of unanticipated events.
Explanatory Note
On May 21, 2012, we filed the Amended and
Restated Articles of Incorporation with the Nevada Secretary of State to, among other things, (i) change our name from Max Cash
Media, Inc. to BOLDFACE Group, Inc.; (ii) increase our authorized capitalization from 110,000,000 shares, consisting of 100,000,000
shares of common stock, $0.001 par value per share, and 10,000,000 shares of preferred stock, $0.001 par value per share, to 310,000,000
shares, consisting of 300,000,000 shares of common stock, $0.001 par value per share (the "Common Stock"), and 10,000,000
shares of blank check preferred stock, $0.001 par value per share; and (iii) limit the liability of our officers and directors
to us, our stockholders and our creditors to the fullest extent permitted by Nevada law.
On July 12, 2012 BOLDFACE Acquisition Corp.
("Acquisition Corp."), a wholly owned Nevada subsidiary of BOLDFACE Group, Inc., a Nevada corporation ("BGI"
or the "Company"), merged (the "Merger") with and into BOLDFACE licensing + branding, a Nevada corporation
("BLB"). In connection with the Merger, each share of BLB common stock was cancelled and converted into the right to
receive 200 shares of our Common Stock. BLB was the surviving corporation of the Merger. As a result of the Merger, BGI acquired
the business of BLB, and will continue the existing business operations of BLB, as its wholly owned subsidiary.
As used in this Current Report, the terms
the "BGI", the "Company", "we," "us," and "our" refer to BOLDFACE Group,
Inc., a Nevada corporation, and its wholly owned subsidiary BLB, after giving effect to the Merger, unless otherwise stated or
the context clearly indicates otherwise. The term "Pubco" refers to BOLDFACE Group, Inc., a Nevada corporation, before
giving effect to the Merger, and the term "BLB" refers to BOLDFACE licensing + branding, a Nevada corporation, both
before and after giving effect to the Merger.
This Current Report contains summaries
of the material terms of various agreements executed in connection with the Merger and other related transactions described herein.
The summaries of these agreements are subject to, and are qualified in their entirety by, reference to these agreements, all of
which are incorporated herein by reference.
This Current Report is being filed with
the U.S. Securities and Exchange Commission (the "SEC") in connection with a series of transactions consummated by
the Company and certain related events and actions taken by the Company.
2
Table
of Contents
Item 1.01.
Entry into a Material Definitive Agreement
4
Item 2.01.
Completion of Acquisition or Disposition of Assets
4
The Merger and Related Transactions
4
Description Of Business
8
Risk Factors
11
Management's Discussion and Analysis of Financial Condition and Results of Operations
16
Securities Ownership of Certain Beneficial Owners and Management
20
Directors and Executive Officers
21
Executive Compensation
22
Market Price of and Dividends on Common Equity and Related Stockholder Matters
24
Certain Relationships And Related Transactions
26
Description of Capital Stock
27
Recent Sales of Unregistered Securities
29
Indemnification of Officers and Directors
30
Financial Statements and Supplemental Data
30
Index to Exhibits
31
Description of Exhibits
31
Item 3.02.
Unregistered Sales of Equity Securities.
31
Item 5.01.
Changes in Control of Registrant.
31
Item 5.02.
Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
31
Item 5.03.
Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year.
31
Item 5.06.
Change in Shell Company Status.
31
Item 9.01.
Financial Statements and Exhibits.
31
3
Item 1.01.
Entry into a Material Definitive Agreement
On July 12, 2012, we entered into an Agreement
and Plan of Merger and Reorganization with Acquisition Corp. and BLB, which we refer to in this Current Report as the "Merger
Agreement", and completed the Merger. For a description of the Merger, the Merger Agreement and the material agreements entered
into in connection with the Merger, please see the disclosures set forth in Item 2.01 to this Current Report, which disclosures
are incorporated into this item by reference.
Item 2.01.
Completion of Acquisition or Disposition of Assets
The Merger
and Related Transactions
The Merger
On July 12, 2012, which we refer
to as the "Closing Date", Pubco, BLB and Acquisition Corp. entered into the Merger Agreement and completed
the Merger. As a result of the Merger, we acquired the business of BLB and will continue the existing business operations of
BLB as our wholly owned subsidiary. With the exception of the Bridge Financing (as defined below), before their entry into the
Merger Agreement, no material relationship existed between Pubco or Acquisition Corp. and BLB. A copy of the Merger
Agreement is attached as Exhibit 2.1 to this Current Report and is incorporated herein by reference.
Pursuant
to the Merger Agreement, on the Closing Date, Acquisition Corp., a wholly owned subsidiary of Pubco, merged with and into BLB,
with BLB remaining as the surviving entity. As a result of the Merger, each share of BLB common stock outstanding was cancelled
and converted into the right to receive 200 shares of our Common Stock.
In addition, as part
of the Merger, we also issued 5,000,000 shares of our Common Stock to stockholders of BLB (the "Additional Merger Shares")
in proportion with their ownership of the Company Shares, in connection with the execution of the Lopez License Agreement (as defined
below).
Immediately prior to the Merger, BLB had
no outstanding securities other than shares of its common stock.
The Merger Agreement contains customary
representations, warranties and covenants of Pubco, BLB, and, as applicable, Acquisition Corp., for like transactions. Breaches
of representations and warranties are secured by indemnification provisions. The Merger Agreement provides for a post-closing adjustment
in an aggregate amount of up to 1,000,000 additional shares of our Common Stock issuable pro rata to BLB's pre-Merger stockholders
for any breach of the Merger Agreement by us that is discovered during the two-year period following the Closing Date. The Merger
Agreement also provides that 5% of the shares of our Common Stock (or 1,000,000 shares) (the "BLB Escrowed Shares")
that BLB's pre-Merger stockholders received in the Merger in exchange for their shares of BLB common stock are to be held
in escrow for any breach of the Merger Agreement by BLB that is discovered during the two years following the Closing Date pursuant
to the terms of an Escrow Agreement dated as of July 3, 2012, among us, the pre-Merger stockholders of BLB, and Gottbetter &
Partners, LLP, as Escrow Agent.
For financial reporting purposes, the Merger
represents a capital transaction of BLB or a "reverse merger" rather than a business combination, because the sellers
of BLB effectively control the combined company immediately following the completion of the Merger. As such, BLB is deemed to be
the accounting acquirer in the transaction and, consequently, the transaction is being treated as a recapitalization of BLB. Accordingly,
the assets and liabilities and the historical operations that will be reflected in Pubco's ongoing financial statements will
be those of BLB and will be recorded at the historical cost basis of BLB. Pubco's assets, liabilities and results of operations
will be consolidated with the assets, liabilities and results of operations of BLB after consummation of the Merger. Pubco's historic
capital accounts will be retroactively adjusted to reflect the equivalent number of shares issued by Pubco in the Merger while
BLB's historical retained earnings will be carried forward. The historical financial statements of Pubco before the Merger will
be replaced with the historical financial statements of BLB before the Merger in all future filings with the SEC. The Merger is
intended to be treated as a tax-free exchange under Section 368(a) of the Internal Revenue Code of 1986, as amended.
Following the closing of the Merger, our
board of directors consists of two members. In connection with the foregoing, on the Closing Date, Noah Levinson and Irv Pyun,
the directors of Pubco before the Merger, appointed Ronald S. Altbach, as Chairman of the Board, and Nicole Ostoya to fill two
of the vacancies on the board of directors, and Messrs. Levinson and Pyun resigned their positions as directors. We anticipate
that we will add up to three additional independent directors. Also on the Closing Date, Messrs. Levinson and Pyun, the executive
officers of Pubco, resigned from all of their positions held with Pubco and Nicole Ostoya was appointed as our Chief Executive
Officer and President and Ashumi Kothary was appointed as our Chief Financial Officer and Secretary. The executive officers and
directors of the Company following the closing of the Merger are also identified in this Current Report under the heading "Directors
and Executive Officers."
4
Before the
Merger, Pubco's board of directors and shareholders owning a majority of its outstanding common stock adopted the 2012 Equity
Incentive Plan, which became effective on the Closing Date. The 2012 Equity Incentive Plan provides for the issuance of up to 20,000,000
shares of our Common Stock as incentive awards to be granted to executive officers, key employees, consultants and directors of
the Company; provided, that awards for a maximum of 4,000,000 shares of our Common Stock may be granted during the first 12 months
following the Closing Date; provided, however that post-Merger our board of directors may grant awards in excess of 4,000,000 shares
of our
Common Stock solely to any of our newly appointed independent directors.
The Offering
Concurrently with the closing of the Merger
and in contemplation of the Merger, we completed an initial closing of a private offering (the "Offering") of 500,000
units of our securities (the "PPO Units"), at a price of $0.25 per PPO Unit, for a total cash consideration of $125,000.
Each PPO Unit consists of one share of our Common Stock and a redeemable warrant (each an "Investor Warrant" and collectively,
the "Investor Warrants") to purchase one share of our Common Stock. The Investor Warrants are exercisable for a period
of five years at a purchase price of $1.00 per share of our Common Stock. If at any time during the two year period following the
Closing Date we issue additional shares of our Common Stock for a consideration per share less than $0.25 (the "Reduced Price"),
then we will issue to the purchasers in the Offering, concurrently with such issue and without any additional consideration from
the purchasers, the number of additional shares of our Common Stock and Investor Warrants equal to the difference between (A) the
purchase price of the PPO Units being subscribed for divided by the Reduced Price and (B) the number of shares of our Common Stock
included in the units being subscribed for in the Offering. For purposes of clarity, if an investor subscribed to purchase 10 PPO
Units and we sold additional shares of common stock within two years following the initial closing of the offering for $0.20 per
share, the number of additional shares of our Common Stock and Investor Warrants due to such investor would be three shares and
three Investor Warrants calculated as follows: the purchase price of $2.50 divided by the Reduced Price of $0.20 (which equals
12.5) less the PPO Units subscribed for (10), rounded up to the nearest whole share.
The Offering was made on an "all
or nothing" basis with respect to a minimum of 8,000,000 PPO Units (the "Minimum Offering Amount") and is being
made on a "best efforts" basis with respect to a maximum of 20,000,000 PPO Units (the "Maximum Offering Amount").
In addition, in the event the maximum number of PPO Units is sold, we and the Placement Agent (as defined below) have the option
to offer an additional 3,000,000 PPO Units (the "Over-Allotment PPO Units"). The closing of at least the Minimum Offering
Amount of 8,000,000 PPO Units and the closing of the Merger were conditioned upon each other.
On the Closing Date, the investors in the
Offering collectively subscribed for 8,200,120 PPO Units for total consideration of $2,050,030, which includes the conversion of
$1,925,030 of principal of the Bridge Notes sold in the Bridge Financing (as described below). The Offering for the remaining 11,799,880
PPO Units (not including any Over-Allotment PPO Units) will continue after the closing of the Merger. The net cash proceeds from
the sale of the PPO Units, after deducting fees and expenses related to the Offering, will be used for working capital purposes.
We paid the placement
agent, Gottbetter Capital Markets, LLC (the "Placement Agent"), in connection with the initial closing of the
Offering a commission of 8% of the funds raised from investors in the Offering that were directly introduced to us by the
placement agent (or $10,000), excluding funds attributable to converted bridge notes. The Placement Agent received an additional cash
commission of 4%, or approximately $77,000, with respect to the principal amount of Bridge Notes converted into PPO Units.
Prior to the commencement of the Offering, we also paid the Placement Agent a cash commission of 4% of the $1,925,030 raised
from investors in the Bridge Financing which was approximately $77,000. In addition, the Placement Agent received
five-year warrants (the "Broker Warrants") to purchase a number of shares of our Common Stock equal to 8% of the
PPO Units sold to investors in the Offering that were directly introduced to us by the placement agent, including PPO Units
issued in connection with the conversion of the Bridge Notes. The Broker Warrants are identical to the Investor Warrants in
all material respects except that (i) their resale of the common stock underlying them is not covered by a
registration statement; and (ii) they have an exercise price of $0.25 per share. As a result of the foregoing arrangement, at
the initial closing of the Offering, the placement agent was paid commissions of approximately $164,000 and was issued Broker
Warrants to purchase approximately 656,000 shares of our Common Stock.
In connection with the conversion of $1,925,030
principal amount of Bridge Notes into PPO Units, the holders of the Bridge Notes received 7,700,120 five-year bridge warrants (the
"Bridge Warrants"), each exercisable to purchase one share of our Common Stock. 3,850,060 of the Bridge Warrants are
exercisable at $0.25 per share and 3,850,060 of the Bridge Warrants are exercisable at $0.50 per share. Except as to exercise price,
the Bridge Warrants are identical, in all material respects to the Investor Warrants.
5
The forms of the Investor Warrant, Broker
Warrant, and Bridge Warrant issued in connection with the Offering are attached as Exhibits 4.1, 4.2 and 4.3, respectively, to
this Current Report and are incorporated herein by reference.
The Bridge Financing
Prior to the commencement of the Offering,
we completed a bridge financing (the "Bridge Financing"), wherein we sold an aggregate of $1,925,030 in principal amount
of bridge notes (the "Bridge Notes") to certain accredited investors and non-U.S. Persons. The Bridge Notes were converted
into 7,700,120 PPO Units at the initial closing of the Offering. As provided in the subscription documents for the PPO Units, the
principal amount of the Bridge Notes converted into the PPO Units were included in achieving the Minimum Offering Amount in the
Offering.
The net proceeds from the sale of the Bridge
Notes, after deducting fees and expenses related to the Bridge Financing, were used to make a secured bridge loan to BLB. The Bridge
Notes were secured by: (i) a first priority security interest in all of Pubco's assets relating to the Bridge Loan, (ii)
a first priority security interest in all of the tangible and intangible assets of BLB, and (iii) a pledge by the shareholders
of BLB of 100% of the outstanding capital stock of BLB.
The Merger, the Offering, the Bridge Financing,
the Split-Off (as described below) and the related transactions are collectively referred to in this Current Report as the "Transactions."
The Licensor Warrants
In connection with the closing of the Merger,
we issued an aggregate of 10,000,000 warrants (the "Licensor Warrants") to the Licensors (as defined below) in accordance
with BLB's May 9, 2012 Licensing Agreement with 2Die4Kourt, Inc., Kimsaprincess, Inc. and Khlomoney, Inc. The form of the
Licensor Warrants is attached as Exhibit 4.4 to this Current Report and is incorporated herein by reference.
Registration Rights
All of the securities issued in connection
with the Transactions are "restricted securities," and as such are subject to all applicable restrictions on transfer
specified by federal and state securities laws.
On the Closing Date, we entered into a
registration rights agreement with the investors in the Offering and the Bridge Financing (the "Registration Rights Agreement").
Under the terms of the Registration Rights Agreement, we committed to file a registration statement on Form S-1, or other applicable
form, covering the resale of (i) our Common Stock underlying the Bridge Warrants, (ii) our Common Stock underlying the PPO Units
sold or to be sold in the Offering, and (iii) our Common Stock underlying the Investor Warrants (including securities issued in
the Offering as a result of the conversion of the Bridge Notes, but not our Common Stock that is issuable upon exercise of the
Broker Warrants) (collectively, the "Registrable Securities") within 90 days from the final closing of the Offering
(the "Filing Date"), and to use commercially reasonable efforts to cause the registration statement to become effective
no later than 150 days after it is filed (the "Effectiveness Date").
We agreed to use our commercially reasonable
efforts to maintain the effectiveness of the registration statement for at least one year from the date the registration statement
is declared effective by the SEC or for such shorter period ending on the earlier to occur of (i) until Rule 144 of the Securities
Act of 1933, as amended (the "Securities Act"), is available to investors in the Offering with respect to all of their
Registrable Securities or (ii) the date when all of the Registrable Securities registered thereunder shall have been sold. We will
be liable for monetary penalties equal to 1% of the purchase price per PPO Unit paid by such investor in the Offering for the Registrable
Securities then held by each investor for each full period of period of 30 days if we fail to file the registration statement by
the Filing Date or if we fail to use our reasonable efforts to have the registration statement declared effective by the Effectiveness
Date until such failure is cured. The payment amount shall be prorated for partial 30 day periods. The maximum aggregate amount
of payments to be made by us as the result of such failures, whether by reason of a filing deadline failure, effectiveness deadline
failure or any combination thereof, shall be an amount equal to 10% of the purchase price per POP Unit paid by such investor in
the Offering for the Registrable Securities held by such investor at the time of the first occurrence of such failure to file with,
or to have the registration statement be declared effective by, the SEC.
Moreover, no such payments shall be due
and payable with respect to any Registrable Securities we are unable to register due to limits imposed by the SEC's interpretation
of Rule 415 under the Securities Act. The holders of any Registrable Securities removed from the registration statement as the
result of a Rule 415 comment or other comment from the SEC shall have "piggyback" registration rights for the shares
of our Common Stock or our Common Stock underlying the Registrable Securities, until such shares can be sold without limitation
under Rule 144, with respect to any registration statement filed by the Company following the effectiveness of the registration
statement which would permit the inclusion of these shares.
6
We will pay all expenses in connection
with any registration obligation provided in the registration rights agreement, including, without limitation, all registration,
filing, stock exchange fees, printing expenses, all fees and expenses of complying with applicable securities laws, and the fees
and disbursements of our counsel and of our independent accountants. Each investor will be responsible for its own underwriting
discounts and commissions, transfer taxes and the expenses of any attorney or other advisor such investor decides to employ.
The form of the Registration Rights Agreement
is attached as Exhibit 10.6 to this Current Report and is incorporated herein by reference.
Split-Off Agreement and General Release
Agreement
In conjunction with the Merger and immediately
following the Merger, BGI will split off (the "Split-Off") its wholly owned subsidiary, BOLDFACE Split Corp., a Nevada
corporation ("Split Corp."). The Split-Off was accomplished through the exchange of 189,781,000 shares of our Common
Stock held by Noah Levinson (the "Split-Off Shareholder") for all of the issued and outstanding shares of common stock
of Split Corp. All of the assets and liabilities of BGI immediately following the Merger, excluding any BLB assets and liabilities
assumed in the Merger, were transferred to Split Corp. The Split-Off will be accomplished pursuant to the Split-Off Agreement,
dated as of July 12, 2012, and the General Release Agreement, dated as of July 12, 2012, each entered into among us, Split Corp.
and the Split-Off Shareholder, copies of which are attached as Exhibits 10.1 and 10.2 to this Current Report and are incorporated
herein by reference.
Indemnification Agreement with John
Derby
As previously reported in our Current Reports
on Form 8-K filed with the SEC, from August to September 2011, we conducted a series of closings of a private placement (the "Prism
Offering") in which we sold an aggregate of $2,000,000 principal amount of our 8% Secured Convertible Promissory Notes (the
"Prism Notes") to certain investors, and the net proceeds of the sale of the Prism Notes were used by us to make a
loan (the "Bridge Loan") to Prism Corporation, an Oklahoma corporation ("Prism"), a privately held company
active in the oil, gas and energy business in several states of the southern and western United States. Prism defaulted on the
Prism Notes, and discussions between us and Prism relating to a potential merger were terminated.
In conjunction with the Merger, on May
31, 2012, John Derby, a holder of substantial portion of the Prism Notes, entered into an Indemnification Agreement with us, pursuant
to which Mr. Derby agreed that as a holder of a substantial portion of the Prism Notes he stands to gain from the actions of the
collateral agent under the security agreement, entered into in connection with the issuances of the Prism Notes. In consideration
thereof Mr. Derby agreed to provide for the indemnification, advancement, reimbursement and insurance of certain of our liabilities
and expenses and all of our liabilities, claims and any other damages (the "Damages") arising out of or related to
any threatened, pending or completed action, suit, proceeding, inquiry or investigation, whether civil, criminal, administrative
or other, and any interest, assessments, excise taxes or other charges paid or payable in connection with or in respect of any
of the foregoing, incurred by us and each of our past, present and future officers, directors, stockholders, and each of their
respective representatives, agents, affiliates, successors and assigns arising solely out of our sale to the purchasers of the
Prism Notes and related matters. In addition, all of the persons that purchased the Prism Notes entered into a Consent to Assignment
Agreement, dated as of July 12, 2012, with us, including a General Release, pursuant to which such purchasers consented to the
assignment of all of their rights and obligations to Split-Off Corp and agreed to a general release of the Company for any Damages
arising from, or relating to, or in any way connect with, any fact, event, transaction, action or omission that occurred or failed
to occur on prior to the date of the Consent to Assignment Agreement relating to the Prism Notes and the underlying security agreement
and pledge agreement.
Lock-up Agreements
In connection with the Merger, for a term
of 24 months from the Closing Date except in certain limited circumstances, our officers, directors, key employees and holders
of 10% or more of our Common Stock after giving effect to the Transactions, who received shares of our Common Stock in connection
with the Merger, agreed to "lock-up", not sell or otherwise transfer or hypothecate directly or indirectly, or effect
or agree to effect any short sale of, any of their shares of our Common Stock received in connection with the Merger. The form
of Lock-Up Agreement is attached as Exhibit 10.8 to this Current Report and is incorporated herein by reference.
7
Current Ownership
Immediately after giving effect to the
Transactions, including the PPO Units sold in the initial closing of the Offering which included the conversion of the Bridge Notes,
the issuance of shares of our Common Stock to the former BLB stockholders in the Merger, the issuance of the Bridge Warrants and
Licensor Warrants, the cancellation of shares owned by the Split-Off Shareholder in the Split-Off, and the Broker Warrants issued
to the Placement Agent in connection with the Offering, there were issued and outstanding securities of the Company on the closing
of the Transactions as follows:
Ÿ
85,200,116 shares of our Common Stock (including an aggregate of 25,000,000 shares received by
the former BLB stockholders in the Merger (including the BLB Escrowed Shares) and 8,200,120 shares underlying the PPO Units sold
in the initial closing of the Offering);
Ÿ
Investor Warrants to purchase an aggregate of 8,200,120 shares of our Common Stock at $1.00 per share
issued to the investors in the Offering, including holders of converted Bridge Notes;
Ÿ
Broker Warrants to purchase an aggregate of approximately 656,000 shares of our Common Stock at
a price of $0.25 per share issued to the placement agent in connection with the Offering;
Ÿ
Bridge Warrants to purchase an aggregate of 7,700,120 shares of our Common Stock consisting of
3,850,060 warrants exercisable at $0.25 per share and 3,850,060 warrants exercisable at $0.50 per share; and
Ÿ
Licensor Warrants to purchase an aggregate of 10,000,000 shares of our Common Stock at a price
of $0.24 per share.
Accounting Treatment; Change of Control
The Merger is being accounted for as a
"reverse merger," and BLB is deemed to be the acquirer in the reverse merger for accounting purposes. Consequently,
the assets and liabilities and our historical operations that will be reflected in our financial statements prior to the Merger
will be those of BLB, and our consolidated financial statements after completion of the Merger will include the assets and liabilities
of BLB, historical operations of BLB and operations of BLB from the Closing Date.
Except as described in the previous paragraphs,
no arrangements or understandings exist among our present or former controlling stockholders with respect to the election of members
of our board of directors and, to our knowledge, no other arrangements exist that might result in a change of control of the Company.
Further, as a result of the issuance of the shares of our Common Stock pursuant to the Merger, a change in control of the Company
occurred as of the Closing Date.
Forward Stock Split
Prior to the Merger, Pubco effected a 37.9562-for-1
forward stock split on Pubco's common stock in the form of a dividend with a record date of May 29, 2012 and a payment date
of May 30, 2012. All Pubco and BGI share amounts referenced in this Current Report give effect to the forward stock split including
those applicable to periods prior to the forward stock split.
Description
Of Business
Background
Boldface licensing + branding, a Nevada
Corporation ("BLB"), was founded by Nicole Ostoya and Robin Coe-Hutshing (the "Founders"), beauty industry
veterans with over 40 years combined experience. BLB's focus is on licensing top tier entertainment and designer brands for
opportunities in the beauty market. BLB contracts to design, manufacture and sell branded color cosmetics, hair preparations, fragrances,
home fragrances, skin care, beauty tools, and other beauty products in all channels.
BLB expects to  launch its
initial brand, "Khroma Beauty by Kourtney, Kim and Khloé" in December 2012 with a holiday collection at
Ulta Beauty and other stores, followed by a full brand roll out in January 2013. The vision for the Khroma brand is
luxury products at affordable prices in the mass retail channel. Other celebrity licenses are currently in negotiation. BLB has received written commitments to purchase Khroma products from
Ulta Beauty, Sears, Kmart and Meijer, and is currently in active discussions with other retailers, including some of the
largest pharmacy chains in the United States, regarding the Khroma products.
8
BLB's Business Strategy
BLB's business strategy is to profitably
grow its business by building strong brands, developing broad organizational capabilities, expanding brands globally, and adding
new value to BLB with additional licenses and ancillary products to existing licenses.
Celebrity Licensing Agreements
As more fully discussed herein, our business
will be dependent on our ability to enter into celebrity licensing agreements. Consistent with our business strategy, we have entered
into the following two celebrity licensing agreements and expect to enter into additional celebrity agreements, although no assurance
can be given that this will prove to be the case.
Khroma License Agreement
On May 9, 2012, BLB, entered into a licensing
agreement (the "Khroma License Agreement") with 2Die4Kourt, Inc., a California corporation wholly owned by Kourtney
Kardashian, Kimsaprincess, Inc., a California corporation wholly owned by Kim Kardashian, and Khlomoney, Inc., a California corporation
wholly owned by Khloé Kardashian (collectively, the "Licensors") whereby BLB (i) acquired the exclusive worldwide
right and license to use certain trademarks owned by the Licensors in connection with the development, manufacture, production,
distribution, advertisement, promotion and sale of a line of cosmetic consumer products, including a high end line of any of such
products to be sold at certain high end retailers; and (ii) obtained certain ancillary services of each of the aforementioned Kardashian
sisters, including for the purpose of promotion and marketing support of the licensed products. The acquired license right includes
BLB's right to sublicense the license as it relates to the manufacture of the licensed products. The term of Khroma License
Agreement is four years, with an 18-month renewal option in favor of BLB. Pursuant to the Khroma License Agreement, BLB agreed
to make certain royalty payments to the Licensors, which are based on a percentage of net sales of the licensed products. The Licensors
are also entitled to receive certain guaranteed minimum royalties during each contract year. Additionally, in connection with the
Khroma License Agreement, we issued the Licensor Warrants to the Licensors as more fully discussed elsewhere in this Current Report.
Lopez License Agreement
On July 11, 2012, BLB entered into a license
agreement (the "Lopez License Agreement") with Pez-Mar, Via Mar Productions Inc., a corporation wholly owned by Mario
Lopez (the "Licensor"), whereby BLB (i) acquired the exclusive right and license to use the certain trademarks owned
by the Licensor in connection with the development, manufacture, production, distribution, advertisement, promotion and sale of
a line of male fragrances, toiletries and other agreed upon products within the United States and its territories and possessions,
Canada, Mexico and "duty-free" zones and shops; and (ii) obtained certain ancillary services of Mr. Lopez, including
for the purpose of promotion and marketing support of the licensed products. The term of the Lopez License Agreement is three "contract"
years, commencing on July 11, 2012 and continuing through February 2016. Pursuant to the Lopez License Agreement, BLB agreed to
make certain royalty payments to the Licensor, which are based on a percentage of net sales of the licensed products. The Licensor
is also entitled to receive certain guaranteed minimum royalties during each contract year.
Marketing
BLB intends to market its consumer product
lines principally in mass retail channels and certain other channels both within and outside of the United States.
BLB anticipates using print, television,
and Internet advertising, as well as point-of-sale merchandising, including displays and samples, as well as other marketing means.
BLB intends to maintain separate websites for each of its celebrity brands, which will feature product and promotional information
for BLB's various brands.
BLB intends to work with the marketing
and PR firms of its celebrity licensors, and has engaged Alison Brod PR to generally promote its brands.
New Product Development and Research
and Development
BLB has retained Gold Grenade, LLC,
a beauty and fragrance product development firm ("Gold Grenade"),  an affiliate of our Chief Executive Officer
and President, to conduct research and development, testing, translation (of packaging copy) and compliance
(collectively, "R&D"), on behalf of BLB. Gold Grenade will identify consumer needs and shifts in consumer
preferences in order to develop new products, introduce line extensions and redesign or reformulate existing products to
satisfy such needs or preferences.
9
Manufacturing
BLB will not manufacture its products,
but rather will contract with reputable third-party cosmetics and beauty manufacturers. BLB will continue to review its manufacturing
needs and work with Gold Grenade and its outside manufacturers to identify opportunities to reduce costs and operate as efficiently
as possible.
Distribution
BLB intends to sell its products primarily
through mass retailers throughout the United States, but also abroad with a specific focus on countries in which BLB's celebrity
licensors have a wide following.
Customers
BLB expects that the principal customers
for its Khroma line of products will consist of large mass volume retailers and chain drug stores, traditional, home shopping and
online. BLB has already received written commitments for the purchase of Khroma products from Ulta Beauty, Sears, Kmart and Meijer.
The Founders also have business relationships with mass retailers such as Target, Walgreens, CVS, Duane Reade, Boots, JCPenney,
Sephora, Nordstrom, Bloomingdales, Henri Bendel, Fred Segal, Kitson, HSN, QVC, Liberty of London, Selfridges, Harrods, Harvey Nichols,
Shoppers Drug Mart (Canada) and Mecca Cosmetica (Australia), and BLB will attempt to establish relationships with such retailers,
plus others, to carry its other products.
Competition
The consumer beauty products business is
highly competitive. BLB will compete primarily by: developing quality products with innovative features, shades, finishes, components
and packaging; featuring highly visible celebrity licensors and endorsers; educating consumers about the benefits of BLB's
products; offering attractively priced products; maintaining positive brand recognition; ensuring product availability through
effective planning and replenishment collaboration with retailers; and working with outside marketing and PR firms and sales representatives
to maximize advertising, marketing and promotion of its products, as well as optimizing its retail floor space, in-store positioning
and effective presentation of its products at retail.
Although BLB is unique in that its focus
is on celebrity-driven branding, it views its competitors as those companies whose cosmetics and beauty products are widely distributed
at mass retailers.
Patents, Trademarks and Proprietary
Technology
BLB considers trademark and patent protection
to be critically important to its business. Significant trademarks for which BLB has applied for federal registration to date include
Kardashian Khroma
,
Khroma
,
Kardazzle
,
Kardashian Kurve
,
Khroma Beauty by Kourtney, Kim and Khloé
,
and
Khroma Beauty Million Dollar Mask
. BLB intends to apply for foreign trademark protection for its brands in all applicable
jurisdictions.
BLB intends to file patents in the ordinary
course of its business with respect to its new technologies. BLB intends to protect certain of its packaging and component concepts
through patents. Patents in the United States are effective for up to 20 years and international patents are generally effective
for up to 20 years.
BLB has applied for the following URLs:
khromabeauty.com; boldfacegroup.com; boldfacelicensing.com; and boldfacelicensingandbranding.com.
Government Regulation
BLB will be subject to regulation by the
Federal Trade Commission and the Food and Drug Administration (the "FDA") in the United States, as well as various
other federal, state, local and foreign regulatory authorities in which BLB will conduct operations or sell its products. The Federal
Food, Drug, and Cosmetic Act, administered by the FDA, prohibit the marketing of adulterated or misbranded cosmetics in interstate
commerce. The Fair Packaging and Labeling Act, also administered by the FDA, require cosmetics companies to include an ingredient
declaration to enable consumers to make informed purchasing decisions. The FDA's legal authority over cosmetics is different from
other products regulated by the agency, such as drugs, biologics, and medical devices. Cosmetic products and ingredients are not
subject to FDA premarket approval authority, with the exception of color additives. However, the FDA may pursue enforcement action
against violative products, or against firms or individuals who violate the law. BLB will only conduct business with third-party
manufacturers who maintain compliance with federal, state, local and foreign environmental and other laws and regulations.
10
Employees
As of June 15, 2012, BLB employed eight
people. BLB expects to grow to approximately fifteen employees within the next 18-24 months. None of BLB's employees are
covered by a collective bargaining agreement.
Company Facilities
BLB entered into a one-year lease of approximately
800 square feet of office space located at 1309 Pico Blvd., Suite #A, Santa Monica, California 90405 (the "Premises").
BLB's executive office will be located at the Premises. The monthly rent of the Premises is $1,785, and BLB has no renewal
or extension options.
Capital Expenditures
BLB anticipates incurring certain capital
expenditures in its first year of operations, including for office furniture, computers, software and other office equipment. BLB
does not anticipate such capital expenditures to be significant during its first year of operations.
Legal Proceedings
We are, from time to time, a party to litigation
that arises in the normal course of our business operations. Currently, no legal proceedings, government actions, administrative
actions, investigations or claims are pending against us or involve us that, in the opinion of our management, could reasonably
be expected to have a material adverse effect on our business and financial condition.
Available Information
We are subject to the reporting requirements
of the Securities Exchange Act of 1934 (the "Exchange Act"). Reports filed with the SEC pursuant to the Exchange Act,
including our annual and quarterly reports, and other reports we file with the SEC, can be inspected and copied at the public reference
facilities maintained by the SEC at 100 F Street, N.E., Washington, D.C. 20549. Investors may obtain information on the operation
of the public reference room by calling the SEC at 1-800-SEC-0330. Investors can request copies of these documents upon payment
of a duplicating fee by writing to the SEC. The reports we file with the SEC are also available on the SEC's website (http://www.sec.gov).
Risk Factors
An investment in our securities involves
a high degree of risk. You should not invest in our securities if you cannot afford to lose your entire investment. In deciding
whether you should invest in our securities, you should carefully consider the following information together with all of the other
information contained in this Current Report. Any of the following risk factors can cause our business, prospects, financial condition
or results of operations to suffer and you to lose all or part of your investment.
Risks Related to Our Business
BLB has a limited operating history
and competes in rapidly evolving markets, which makes its future operating results difficult to predict.
BLB was incorporated on April 26, 2012.
BLB has a limited operating history in an industry characterized by changing customer needs, evolving industry standards and frequent
introductions of new products and services. BLB entered into a Licensing Agreement with 2Die4Kourt, Inc., Kimsaprincess, Inc. and
Khlomoney, Inc., dated as of May 9, 2012, a License Agreement with Pez-Mar, Via Mar Productions Inc., dated as of July 11, 2012,
and expects to enter into additional celebrity licensing agreements although no assurance can be given that this will prove to
be the case. These factors make it difficult to predict our post-Merger operating results, which may impair our ability to manage
our business and our investors' ability to assess our prospects.
11
The failure of BLB to effectively
anticipate and respond to market trends and changes in consumer preferences could have a material adverse effect on our business,
financial condition and results of operations.
Our success depends in large part on our
ability to anticipate, gauge and react in a timely and effective manner to changes in consumer spending patterns and preferences
for beauty and other consumer products. We must continually work to develop, produce and market new products, maintain and enhance
the recognition of our brands, achieve a favorable mix of products, and refine our approach as to how and where we market and sell
products. While we intend to devote considerable effort and resources to shape, analyze and respond to consumer preferences, consumer
spending patterns and preferences are difficult to predict and can change rapidly. If we are unable to anticipate and respond to
trends in the market for beauty and other consumer products and changing consumer demands, our business, financial condition and
results of operations could materially suffer.
Furthermore, material shifts or decreases
in market demand for our products, including changes in consumer spending patterns and preferences, could result in us being unable
to sell products (i) in sufficient quantities or (ii) at anticipated prices. In addition, these shifts and changes could result
in increased product returns by our customers and excess inventory levels. To the extent we experience one or more of these adverse
results, it could have a material adverse effect on our business, financial condition and results of operations.
If we are unable to manage our anticipated
post-Merger growth effectively, our business could be adversely affected.
We anticipate that a significant expansion
of our operations and addition of new personnel will be required in all areas of our operations in order to implement our post-Merger
business plan. Our future operating results depend to a large extent on our ability to manage this expansion and growth successfully.
For us to continue to manage such growth, we must put in place legal and accounting systems, and implement human resource management
and other tools. We have taken preliminary steps to put this structure in place. However, there is no assurance that we will be
able to successfully manage this anticipated rapid growth. A failure to manage our growth effectively could materially and adversely
affect our ability to market and sell our products.
The beauty business is highly competitive,
and if we are unable to compete effectively our results will suffer.
We will face vigorous competition from
companies throughout the United States and the world, including multinational consumer product companies. Most of these competitors
have greater resources than we do and may be able to respond to changing business and economic conditions more quickly than us.
Competition in the beauty business is based on pricing of products, innovation, perceived value, service to the consumer, promotional
activities, advertising, special events, new product introductions, e-commerce and m-commerce initiatives and other activities.
It is difficult for us to predict the timing and scale of our competitors' actions in these areas. Our ability to compete
will also depend on the continued strength of our brands, our ability to attract and retain key talent and other personnel and
the efficiency of our manufacturing channels and distribution networks.
The behavior of our celebrity licensees
may impact the marketing and sale of our products.
Our business will be dependent on celebrity
licensing agreements. Our ability to successfully market, promote and sell our products will be tied, to a certain extent, to the
popularity of our celebrity licensees. Any negative publicity associated with our celebrity licensees by reason of offensive or
shocking conduct, or otherwise, could affect our product sales and have a material adverse effect on our business, financial condition
and results of operations.
A general economic downturn or sudden
disruption in business conditions may affect consumer purchases of discretionary items and/or the financial strength of customers
that are retailers, which could adversely affect our financial results.
The general level of consumer spending
is affected by a number of factors, including general economic conditions, inflation, interest rates, energy costs, and consumer
confidence generally, all of which are beyond our control. Consumer purchases of discretionary items tend to decline during recessionary
periods, when disposable income is lower, and may impact sales of our products. A decline in consumer purchases of discretionary
items will also tend to impact our customers that are retailers. A downturn in the economies in which we expect to sell our products
or a sudden disruption of business conditions in those economies could adversely affect our sales and profitability.
Our success depends, in part, on
the quality and safety of our products.
Our success depends, in part, on the quality
and safety of our products. If our products are found to be defective or unsafe, or if they otherwise fail to meet our consumers'
standards, our relationships with customers or consumers could suffer, the appeal of one or more of our brands could be diminished,
and we could lose sales and/or become subject to liability claims, any of which could result in a material adverse effect on our
business, results of operations and financial condition.
12
A disruption in operations or our
supply chain could adversely affect our business and financial results.
As we anticipate being a company engaged
in the manufacture (through third-party manufacturers) and distribution of beauty products, our future operations will be subject
to the risks inherent in manufacturing and distribution activities, including industrial accidents, environmental events, strikes
and other labor disputes, disruptions in supply chain or information systems, loss or impairment of key manufacturing sites, product
quality control, safety, licensing requirements and other regulatory issues, as well as natural disasters and other external factors
over which we have no control. If such an event were to occur, it could have an adverse effect on our business and financial results.
If we are unable to protect our intellectual
property rights, specifically trademarks, our ability to compete could be negatively impacted.
The market for our products will depend
to a significant extent upon the value associated with our product innovations and our brand equity. We expect to own the material
trademarks used in connection with the marketing and distribution of our major products. There can be no assurance with respect
to the rights associated with our intellectual property.
Our success depends, in part, on
our key personnel.
Our post-Merger success will depend, in
part, on our ability to retain our key personnel, including Nicole Ostoya, our President and Chief Executive Officer. The unexpected
loss of one or more of our key employees could adversely affect our business. Our success also depends, in part, on our ability
to identify, hire, train and retain other highly qualified personnel. Competition for these employees can be intense. We may not
be able to attract, assimilate or retain qualified personnel in the future, and our failure to do so could adversely affect our
business. This risk may be exacerbated by the stresses associated with the implementation of our strategic plan and other initiatives.
Our success depends on our ability
to execute fully our business strategy.
Our ability to implement the key initiatives
of our business strategy is dependent upon a number of factors, including our ability to:
Ÿ
enter into additional celebrity licensing agreements;
Ÿ
establish, maintain and increase our beauty sales and market share, and strengthen the image of
our brands;
Ÿ
implement appropriate product mix and pricing strategies and achieve anticipated benefits from
these strategies;
Ÿ
realize efficiencies across our supply chain, marketing processes, sales model and organizational
structure;
Ÿ
implement our outsourcing strategies;
Ÿ
effectively manage inventory and implement initiatives to reduce inventory levels, including the
potential impact on cash flows and obsolescence; and
Ÿ
secure short and long-term financing, or financing at attractive rates.
There can be no assurance that any of these
initiatives will be successfully and fully executed in the amounts or within the time periods that we expect.
Risks Related to the Offering and the
Merger
If we do not raise the Maximum Offering
Amount, our ability to fully implement our business plan will be limited. In addition, even if the Maximum Offering Amount is raised,
we may need additional financing from other sources and any limitation on the ability to obtain such additional financing
could have a material adverse effect on our business, financial condition and results of operations.
In order to fully implement our post-Merger
business plan, we will need to raise the Maximum Offering Amount. If we raise less than the Maximum Offering Amount, our ability
to expand our sales team as needed to expand to other regions and otherwise fully implement our post-Merger business plan, will
be limited. In addition, although management believes that the Maximum Offering Amount will be sufficient to meet our objectives,
there can be no assurance that we will not require additional capital. This could result in dilution to our stockholders. In addition,
there is no assurance that we will be able to obtain additional capital if we need it, or that if available, it will be available
to us on favorable or reasonable terms. Any limitation on our ability to obtain additional capital could have a material adverse
effect on our business, financial condition and results of operations.
Because the Merger will be a reverse
merger, we may not be able to attract the attention of major brokerage firms, which may limit the liquidity of our Common Stock
and may make it more difficult for us to raise additional capital in the future.
Additional risks may exist because the
Merger will be a "reverse merger." Certain SEC rules are more restrictive when applied to reverse merger companies,
such as the ability of stockholders to resell their shares of Common Stock pursuant to Rule 144. In addition, securities analysts
of major brokerage firms may not provide coverage of our Common Stock following the Merger because there may be little incentive
for brokerage firms to recommend the purchase of our Common Stock. As a result, our Common Stock may have limited liquidity and
investors may have difficulty selling it. In addition, we cannot assure you that brokerage firms will want to conduct any secondary
offerings on our behalf if we seek to raise additional capital in the future. Our inability to raise additional capital may have
a material adverse effect on our business.
13
If we are unable to register the
resale of the shares comprising part of the PPO Units, the Shares underlying the Investor Warrants comprising part of the PPO Units
and the shares underlying the Bridge Warrants in a timely manner as required by the Registration Rights Agreement, we may have
to pay cash penalties in connection with such failure. Our use of cash to pay such penalties may limit our ability to use such
cash for other business purposes, which could have a material adverse effect on our business.
We have agreed, at our expense, to prepare
and file a registration statement with the SEC within 90 calendar days from the final closing of the Offering. We have also agreed
to use our commercially reasonable efforts to cause such registration statement to be declared effective by the SEC within 150
calendar days of filing with the SEC. The registration statement will cover the resale of the shares comprising part of the PPO
Units, the shares underlying the Investor Warrants comprising part of the PPO Units and the shares underlying the Bridge Warrants.
There are many reasons, including some over which we have little or no control, which could delay our filing of the registration
statement beyond such 90-day deadline or which could prevent the registration statement from being declared effective by the SEC
by such 150-day deadline, including delays resulting from the SEC review process and comments raised by the SEC during that process.
In the event that the registration statement is not filed, or we fail to use our commercially reasonable efforts to have it declared
effective within these deadlines, we may be required to pay cash penalties in accordance with the terms of the Registration Rights
Agreement (as more fully discussed above under the section captioned "
The Merger and Related Transactions — Registration
Rights
"). As a result, we may be required to divert cash from other business purposes to pay such cash penalties, which
could have a material adverse effect on our business.
If unknown pre-Merger liabilities
should arise or known pre-Merger liabilities are not paid according to our agreement with the transferee, we may be required to
divert our cash from other business purposes to discharge such liabilities, which may have an adverse effect on our post-Merger
business.
Although we will be transferring certain
assets and liabilities of ours relating to our pre-Merger shell operations in connection with the Merger, there can be no assurance
that such transfer will release us of all such liabilities. If the transferee does not pay such liabilities or unknown liabilities
arise, we may be required to divert cash from other business purposes to discharge such liabilities, which may have an adverse
effect on our post-Merger business.
Risks Related to Our Common Stock
We do not expect to pay dividends
on our Common Stock.
We have no plans to pay dividends on our
Common Stock for the foreseeable future. Because we do not plan to pay dividends on our Common Stock, our stock may be less attractive
to some investors, which could adversely affect our stock price.
If we fail to maintain proper and
effective internal controls, our ability to produce accurate and timely financial statements could be impaired, which could harm
our operating results, our ability to operate our business and investors' views of us.
Ensuring that we have adequate internal
financial and accounting controls and procedures in place so that we can produce accurate financial statements on a timely basis
is a costly and time-consuming effort that will need to be evaluated frequently. Section 404 of the Sarbanes-Oxley Act requires
public companies to conduct an annual review and evaluation of their internal controls. Our failure to maintain the effectiveness
of our internal controls in accordance with the requirements of the Sarbanes-Oxley Act could have a material adverse effect on
our business. We could lose investor confidence in the accuracy and completeness of our financial reports, which could have an
adverse effect on the price of our Common Stock. In addition, if our efforts to comply with new or changed laws, regulations and
standards differ from the activities intended by regulatory or governing bodies due to ambiguities related to practice, regulatory
authorities may initiate legal proceedings against us and our business may be harmed.
A trading market for our Common Stock
may not develop or be sustained, and you may not be able to resell your shares of our Common Stock underlying the PPO Units or
the Investor Warrants.
No trading market for our Common Stock
presently exists. We cannot assure you that a market for our Common Stock will develop in the foreseeable future or, if developed,
that it will be sustained. As a result, you may not be able to resell your shares of our Common Stock underlying the PPO Units
or the Investor Warrants.
14
Our Common Stock will likely be considered
a "penny stock," which is likely to limit its liquidity and make it more difficult for us to raise additional capital
in the future.
The market price of our Common Stock is,
and will likely remain for the foreseeable future, less than $5.00 per share, and therefore will be a "penny stock"
according to SEC rules, unless our Common Stock is listed on a national securities exchange. The OTC Bulletin Board is not a national
securities exchange. Designation as a "penny stock" requires any broker or dealer selling these securities to disclose
certain information concerning the transaction, obtain a written agreement from the purchaser and determine that the purchaser
is reasonably suitable to purchase the securities. These rules may restrict the ability of brokers or dealers to sell our Common
Stock and may affect the ability of current holders of our Common Stock to sell their shares. Such rules may also deter broker-dealers
from recommending or selling the Common Stock, which may further limit its liquidity. This may also make it more difficult for
us to raise additional capital in the future.
The price of our Common Stock may
become volatile, which could lead to losses by investors and costly securities litigation.
The future trading price of our Common
Stock may become highly volatile and could fluctuate in response to factors such as:
Ÿ
actual or anticipated variations in our operating results;
Ÿ
announcements of developments by us or our competitors;
Ÿ
announcements by us or our competitors of significant acquisitions, strategic partnerships, joint
ventures or capital commitments;
Ÿ
adoption of new accounting standards affecting our industry;
Ÿ
additions or departures of key personnel;
Ÿ
sales of our Common Stock or other securities in the open market; and
Ÿ
other events or factors, many of which are beyond our control.
As a former shell company, resales
of shares of our restricted common stock in reliance on Rule 144 of the Securities Act are subject to the requirements of Rule
144(i).
Rule 144 under the Securities Act, which
generally permits the resale, subject to various terms and conditions, of restricted securities after they have been held for six
months will not immediately apply to our Common Stock because we were at one time designated as a "shell company" under
SEC regulations. Pursuant to Rule 144(i), securities issued by a current or former shell company that otherwise meet the holding
period and other requirements of Rule 144 nevertheless cannot be sold in reliance on Rule 144 until one year after the date on
which the issuer filed current "Form 10 information" (as defined in Rule 144(i)) with the SEC reflecting that it ceased
being a shell company, and provided that at the time of a proposed sale pursuant to Rule 144, the issuer has satisfied certain
reporting requirements under the Exchange Act. The filing of this Current Report starts the running of such one year period. Because,
as a former shell company, the reporting requirements of Rule 144(i) will apply regardless of holding period, restrictive legends
on certificates for shares of our Common Stock cannot be removed except in connection with an actual sale that is subject to an
effective registration statement under, or an applicable exemption from the registration requirements of, the Securities Act.
You may experience dilution of your
ownership interests because of the future issuance of additional shares of our Common Stock.
In the future, we may issue our authorized
but previously unissued equity securities, resulting in the dilution of the ownership interests of our present stockholders. We
are currently authorized to issue an aggregate of 310,000,000 shares of capital stock consisting of 300,000,000 shares of our Common
Stock and 10,000,000 shares of preferred stock with preferences and rights to be determined by our board of directors. As of July
12, 2012, there were 85,200,116 shares of our Common Stock and no shares of our preferred stock outstanding, after giving effect
to the Merger, the Offering and the Split-Off (including an aggregate of 25,000,000 shares received by the former BLB stockholders
in the Merger (including the BLB Escrowed Shares) and 8,200,120 shares underlying the PPO Units sold in the initial closing of
the Offering). There are 20,000,000 shares of our Common Stock reserved for issuance under our 2012 Equity Incentive Plan.
Any future issuance of our equity or equity-backed
securities may dilute then-current stockholders' ownership percentages and could also result in a decrease in the fair market
value of our equity securities, because our assets would be owned by a larger pool of outstanding equity. As described above, we
may need to raise additional capital through public or private offerings of our common or preferred stock or other securities that
are convertible into or exercisable for our Common Stock or preferred stock. We may also issue such securities in connection with
hiring or retaining employees and consultants, as payment to providers of goods and services, in connection with future acquisitions
or for other business purposes. Our board of directors may at any time authorize the issuance of additional common or preferred
stock without common stockholder approval, subject only to the total number of authorized common and preferred shares set forth
in our certificate of incorporation. The terms of equity securities issued by us in future transactions may be more favorable to
new investors, and may include dividend and/or liquidation preferences, superior voting rights and the issuance of warrants or
other derivative securities, which may have a further dilutive effect. Also, the future issuance of any such additional shares
of common or preferred stock or other securities may create downward pressure on the trading price of our Common Stock. There can
be no assurance that any such future issuances will not be at a price (or exercise prices) below the price at which shares of our
Common Stock are then traded.
15
We may obtain additional capital
through the issuance of preferred stock, which may limit your rights as a holder of our Common Stock.
Without any stockholder vote or action,
our board of directors may designate and approve for issuance shares of our preferred stock. The terms of any preferred stock may
include priority claims to assets and dividends and special voting rights which could limit the rights of the holders of our Common
Stock. The designation and issuance of preferred stock favorable to current management or stockholders could make any possible
takeover of us or the removal of our management more difficult.
Management's
Discussion and Analysis of Financial Condition and Results of Operations
The following discussion should be read
in conjunction with the financial information included elsewhere in this Current Report, including our audited financial statements
for the period from inception (April 26, 2012) through May 31, 2012 and the related notes. References in this Management's
Discussion and Analysis of Financial Condition and Results of Operations to "us," "we," "our,"
and similar terms refer to BOLDFACE licensing + branding, a Nevada corporation. This discussion includes forward-looking statements,
as that term is defined in the federal securities laws, based upon current expectations that involve risks and uncertainties, such
as plans, objectives, expectations and intentions. Actual results and the timing of events could differ materially from those anticipated
in these forward-looking statements as a result of a number of factors. Words such as "anticipate," "estimate,"
"plan," "continuing," "ongoing," "expect," "believe," "intend,"
"may," "will," "should," "could," and similar expressions are used to identify
forward-looking statements.
We caution you that these statements
are not guarantees of future performance or events and are subject to a number of uncertainties, risks and other influences, many
of which are beyond our control, which may influence the accuracy of the statements and the projections upon which the statements
are based. Factors that may affect our results include, but are not limited to, the risk factors elsewhere in this Current Report.
Any one or more of these uncertainties, risks and other influences could materially affect our results of operations and whether
forward-looking statements made by us ultimately prove to be accurate. Our actual results, performance and achievements could differ
materially from those expressed or implied in these forward-looking statements. We undertake no obligation to publicly update or
revise any forward-looking statements, whether from new information, future events or otherwise.
16
Plan of Operations
BGI is a development stage company and has just recently acquired
the business and intellectual property assets of BLB. BLB's focus is on licensing top tier entertainment and designer brands
for opportunities in the beauty market. BLB contracts to design, manufacture and sell branded color cosmetics, hair preparations,
fragrances, home fragrances, skin care, beauty tools, and other beauty products in all channels. BLB has not yet generated or realized
any revenues from its operations to date.
Our auditors have issued a going concern opinion. This means
that there is substantial doubt that we can continue as an on-going business for the next twelve months unless we obtain additional
capital. This is because we have not generated any revenues.
Results of Operations, Liquidity and Capital Resources
for the period from inception (April 26, 2012) through May 31, 2012
Results of operations
Our net loss since inception is $356,041. Since inception, we
have incurred general and administrative expenses of $54,092, research and development expenses of $38,047, royalty expense of
$38,596, professional fees of $59,953, product development fee of $150,000 and interest expense of $15,353.
Since inception, we issued 100,000 shares of our common stock
to our founders for an aggregate subscription price of $100.
Liquidity and capital resources
As of the date of this Current Report, we have yet to generate
any revenues from our business operations.
As of May 31, 2012, our total assets were $1,364,106 and our
total liabilities were $1,720,047 comprised of $150,176 owed to Consultant, a limited liability company owned jointly by the
two largest stockholders of BGI (one of whom is the Chief Executive Officer and President of BGI), short-term convertible notes
payable to BGI in the amount of $1,500,025, accrued expenses and other current liabilities of $62,058 and accounts payable of $7,788.
The short-term notes were issued by us to BGI in order to obtain the funds necessary to run our company prior to the Merger with
BGI. These notes were converted into BGI's shares of common stock upon the consummation of the Merger.
Cash Flows from Operating Activities
We have not generated positive cash flows from operating activities.
For the period from the inception (April 26, 2012) through May 31, 2012, net cash used in operating activities was ($1,250,910),
consisting primarily of a net loss of ($356,041), prepaid royalty of ($961,404) and prepaid inventory of ($148,404), slightly offset
by an amount due to Consultant of $150,176.
Cash Flows from Financing Activities
We have financed our operations primarily from the issuance
of short-term convertible notes to BGI. For the period from inception (April 26, 2012) through May 31, 2012, we generated $1,400,587
net cash from financing activities. $1,400,487 was due to the issuance of short-term notes to BGI and $100 was due to the issuance
of 100,000 shares of our common stock to our founders.
Plan of Operation and Funding
We expect that working capital requirements will continue to
be funded through a combination of our existing funds and further issuances of equity and debt securities. Our working capital
requirements are expected to increase in line with the growth of our business.
17
We estimate that our expenses over the next 13 months (June
1, 2012 to June 30, 2013) will be approximately $8,970,000 as described in the table below. These estimates do not include
any amortized royalty acquisition costs or inventory payments that we may incur in the next 13 months. These estimates may change
significantly depending on the nature of our future business activities and our ability to raise capital from shareholders or other
sources.
Description
Estimated
Completion Date
Estimated
Expenses ($)
Legal and accounting fees
June 1, 2012 – July 31, 2013
$
348,000
Research and development
June 1, 2012 – July 31, 2013
$
266,100
Management and consulting costs
June 1, 2012 – July 31, 2013
$
1,700,667
Payments for acquisition of celebrity licenses
June 1, 2012 – July 31, 2013
$
181,320
Payments under existing celebrity licenses
June 1, 2012 – July 31, 2013
$
50,000
General and administrative expenses
June 1, 2012 – July 31, 2013
$
6,423,913
Total
$
8,970,000
We have no lines of credit or other bank financing arrangements.
Generally, we have financed operations to date through the proceeds of the private placement of equity and convertible debt instruments.
In connection with our business plan, management anticipates additional increases in operating expenses and capital expenditures
relating to: (i) acquisition of additional celebrity licenses; (ii) payments under existing celebrity licenses, (iii) developmental
expenses associated with a start-up business; (iv) research and development costs associated with new product offerings, and (v)
management and consulting costs, as well as general administrative expenses, including the costs of being a public company. We
intend to finance these expenses with further issuances of debt and equity securities, including the proceeds of any additional
funds raised in the Offering. Thereafter, we expect we will need to raise additional capital and generate revenues to meet long-term
operating requirements. Additional issuances of equity or convertible debt securities will result in dilution to BGI's current
stockholders. Further, such securities might have rights, preferences or privileges senior to our common stock. Additional financing
may not be available upon acceptable terms, or at all. If adequate funds are not available or are not available on acceptable terms,
we may not be able to take advantage of prospective new business endeavors or opportunities, which could significantly and materially
restrict our business operations. With the exception of the ongoing Offering, 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 BGI's common stock.
Off-Balance Sheet Arrangements
We have no off-balance sheet arrangements.
Inflation
The effect of inflation on our revenues and operating results
has not been significant.
Critical Accounting Policies
Our financial statements are affected by the accounting policies
used and the estimates and assumptions made by management during their preparation. A complete listing of these policies is
included in Note 2 – Summary of Significant Accounting Policies of the notes to our financial statements, appearing
elsewhere in this Current Report. We have identified below the accounting policies that are of particular importance in the
presentation of our financial position, results of operations and cash flows, and which require the application of significant
judgment by management.
Method of Accounting
We maintain our accounting records on an accrual method in conformity
with accounting principles generally accepted in the United States of America ("US GAAP").
18
Use of Estimates
In preparing the financial statements in conformity with US
GAAP, management makes estimates and assumptions that affect the reported amount of assets and liabilities and disclosures of contingent
assets and liabilities at the date of the financial statements, as well as the reported amounts of revenue and expenses during
the reporting period. Actual results could differ from these estimates.
Revenue Recognition
As required by Financial Accounting Standards Board ("FASB")
Accounting Standards Codification Topic 605, Revenue Recognition, we recognize revenue when persuasive evidence of an arrangement
exists, delivery has occurred, the sales price is fixed or determinable and collection is probable.
Cash and Cash Equivalents
The Company considers all highly liquid investments purchased
with original maturities of three months or less to be cash equivalents.
Financial Instruments and Concentrations of Business and
Credit Risk
FASB ASC Subtopic 825-10, Financial Instruments, requires disclosure
of fair value information about financial instruments. The Company's financial instruments include cash and cash equivalents,
accounts payable and other current assets and liabilities and short term loan. The fair value of these instruments approximates
their carrying value due to their relatively short maturities.
Financial instruments that potentially
subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents. The Company maintains cash
balances that at times exceed amounts insured by the Federal Deposit Insurance Corporation. The Company has not experienced any
losses in these accounts and believes it is not exposed to any significant credit risk in this area.
Deferred Financing Costs
Deferred financing costs represent fees
paid in connection with obtaining short term loans (see Note 4 to our financial statements appearing elsewhere in this Current
Report). These fees are amortized using a method that approximates the effective interest method over the term of the related financing.
As of May 31, 2012, deferred financing
costs of $90,835, net of accumulated amortization of $8,703 are presented on the accompanying balance sheet. Amortization of deferred
financing costs of $8,703 is included in interest expense in the accompanying statement of operations for the period from April
26, 2012 (inception) through May 31, 2012. The remaining deferred financing costs will be fully amortized by November 16, 2012.
License Acquisition Costs
License acquisition costs represent legal
fees paid in connection with obtaining a licensing agreement (see Note 3 to our financial statements appearing elsewhere in this
Current Report). These fees are amortized using straight-line method over the term of the licensing agreement. As of May 31, 2012,
license acquisition costs of $12,001, net of accumulated amortization of $161 are presented on the accompanying balance sheet.
Amortization of license acquisition costs of $161 is included in general and administrative expenses in the accompanying statement
of operations for the period from April 26, 2012 (inception) through May 31, 2012.
Recently Issued Accounting Pronouncements
There have been no recently issued Accounting Pronouncements
that impact us.
19
Securities
Ownership of Certain Beneficial Owners and Management
The following table sets forth information
with respect to the beneficial ownership of our Common Stock as of July 12, 2012, by (i) each stockholder known by us to be the
beneficial owner of more than 5% of our Common Stock, (ii) each of our directors and executive officers, and (iii) all of our directors
and executive officers as a group. Our only class of voting securities is our Common Stock. To our knowledge, none of the shares
listed below are held under a voting trust or similar agreement. To our knowledge, there are no pending arrangements, including
any pledges by any person of securities of the Company, the operation of which may at a subsequent date result in a change in control
of the Company.
Unless otherwise indicated in the following
table, the address for each person named in the table is c/o BOLDFACE Group, Inc., 1945 Euclid Street, Santa Monica, CA 90404.
Name and Address of Beneficial Owner
Amount and Nature
of Beneficial
Ownership
1
Percentage
of Class
2
Directors and Executive Officers
Nicole Ostoya
11,875,000
3
13.9
%
Ashumi Kothary
0
—
Ronald S. Altbach
0
—
5% Stockholders
Robin Coe-Hutshing
11,875,000
13.9
%
Darien Ellul
Office 1905, 19th Floor
Al Thuraya 2, Dubai Media City
PO Box 502077, Dubai
7,995,583
9.4
%
Adrien Ellul
SOHO Square, 21 Lyndhurst Terrace Central, Hong Kong,
Hong Kong SAR
6,832,116
8.0
%
Bretton James, Inc.
4
4,579,306
5.4
%
Alejandro Agustin Moreno
4,364,963
5.1
%
All directors and executive officers as a group (3 persons)
11,875,000
3
13.9
%
*Less than 1%
1
To the best of our knowledge, except as otherwise indicated, each of the persons named in the table
has sole voting and investment power with respect to the shares of our Common Stock beneficially owned by such person, except to
the extent such power may be shared with a spouse, which includes shares of our Common Stock that such persons have the right to
acquire within 60 days from July 12, 2012.
2
Percentages are based upon 85,200,116 shares of our Common Stock outstanding as of July 12, 2012,
immediately after giving effect to the Merger, the Offering and the Split-Off (including an aggregate of 25,000,000 shares received
by the former BLB stockholders in the Merger (including the BLB Escrowed Shares) and 8,200,120 shares underlying the PPO Units
sold in the initial closing of the Offering).
3
Excludes (i) 1,800,000 options, exercisable at $0.24 per share, which will be granted to Ms. Ostoya
under our 2012 Equity Incentive Plan effective as of the Closing Date, which will vest annually at a rate of 50% beginning on the
first anniversary of the Closing Date, and (ii) 5,700,000 options, with an exercise price equal to the fair market value of our
Common Stock as of the date of their grant, which we agreed to issue to Ms. Ostoya under our 2012 Equity Incentive Plan on the
first anniversary of the Closing Date pursuant to the terms of her employment agreement, which will vest annually at a rate of
33% beginning on the second anniversary date of the Closing Date, in each case, if Ms. Ostoya remains employed by us or any of
our subsidiaries on each annual vesting date, and with respect to clause (ii), subject to Company performance conditions and/or
milestones as may reasonably be established by our board of directors and to such other customary and reasonable terms determined
by our board of directors.
4
The address of Bretton James, Inc. is c/o Gottbetter
& Partners, LLP, 488 Madison Avenue, 12
th
Floor, New York, NY 10022. Adam Gottbetter, the President of Bretton
James, Inc., has the sole voting and investment power over the reported shares.
20
Directors
and Executive Officers
Below are the names of and certain information
regarding the Company's current executive officers and directors who were appointed effective as of the closing of the Merger:
Name
Age
Title
Nicole Ostoya
43
Chief Executive Officer, President and Director
Ashumi Kothary
31
Chief Financial Officer and Secretary
Ronald S. Altbach
65
Chairman of the Board of Directors
Directors are elected to serve until our
next annual meeting of stockholders and until their successors are elected and qualified or until their earlier resignation or
death. Executive officers are appointed by the Board of Directors and serve at its pleasure.
The principal occupation and business experience
during at least the past five years for our executive officers and directors is as follows:
Nicole Ostoya, Chief Executive Officer,
President, Director
Nicole Ostoya has served as the President
and Chief Executive Officer and a director of BLB since May 2012 and was appointed as our President and Chief Executive Officer
and a director effective as of July 12, 2012. She co-founded BOLDFACE licensing + branding in April 2012 to focus on top tier entertainment
and designer brands for opportunities in the beauty market. In 2010, Ms. Ostoya co-founded, along with her partner Robin Coe-Hutshing,
Santa Monica-based Gold Grenade, LLC, a product development, strategic marketing, comprehensive brand management company that specializes
in beauty, cosmetics and personal care. From its inception through the present, Ms. Ostoya has served as the Chief Executive Officer
for Gold Grenade, LLC. From 2008 to 2010, Ms. Ostoya served as the Chief Executive Officer of Studio Beautymix at Fred Segal where
she managed the retail operation and brought several brands to market with Ms. Coe–Hutshing, the founder of Studio Beautymix.
From 1987 to 2006, Ms. Ostoya held many executive roles at Nordstrom, Inc., including full line store manager where she was responsible
for operations, P&L management, sales and merchandising for the store. Additionally, she held various executive positions in
the beauty division, including merchandise manager for cosmetics for Orange County and Los Angeles County, and west coast merchandise
manager for fragrances. In 2006, LVMH recruited Ms. Ostoya to open new channels of distribution for its brand Benefit Cosmetics.
There she oversaw the company's Sephora business, launched the brand on QVC, as well as put together an operational structure
to take their boutique concepts on the road. Ms. Ostoya has an AA degree from The Fashion Institute of Design and Merchandising,
graduating with honors in 1987.
Key Attributes,
Experience and Skills:
As our Chief Executive Officer and President, Ms. Ostoya brings a deep understanding of the cosmetics
industry. Prior to joining us, Ms. Ostoya spent nearly 20 years holding various executive roles with Nordstrom, LVMH,
Studio
Beautymix at Fred Segal and Gold Grenade. In the process, she acquired significant knowledge and experience in product development,
strategic marketing and brand management for the cosmetics industry.
Ashumi Kothary, Chief Financial Officer
Ashumi Kothary has been the Chief Financial
Officer of BLB since June 18, 2012 and was appointed as our Chief Financial Officer effective as of July 12, 2012. She has an extensive
background in transactional, operational and private equity matters. From December 2010 to June 2012 she was an Engagement Partner
at Growthink, a consulting and investment banking firm, where she led investment banking and consulting engagements for the firm
and sat on the company's advisory board. From December 2007 to January 2010, Ms. Kothary was an associate at the consumer
products focused private equity fund VMG Partners, in due diligence, acquisition advisory and portfolio management capacities.
From November 2006 to November 2007, Ms. Kothary worked for fashion house BCBG MaxAzria, where she managed the retail financial
performance of the company's domestic business, the post-merger integration/restructuring of the "tween" Rave/G&G
line, as well as the launch of the company's e-commerce site. From July 2003 to July 2006, she served at Los Angeles-based
investment bank Houlihan Lokey Howard & Zukin advising on sell-side and buy-side engagements, as well as valuations, fairness
opinions and solvency assignments. Ms. Kothary graduated from Claremont McKenna College with Honors in 2003, majoring in History
and Economics.
21
Ronald S. Altbach, Chairman of the Board
of Directors
Ronald Altbach
has been the Chairman of the board of directors of BLB since May 2012
and was appointed as
the Chairman of our Board of Directors effective as of July 12, 2012. From November 2008 through the present he has served as president
of Regeneration Capital Group, a merchant bank with a focus on middle market Chinese companies seeking financing and public listings
in the US. Regeneration's sector concentration includes healthcare, education, small business lending, and agriculture. From
2004 through 2008, Mr. Altbach served as the Chief Executive Officer of TableMAX, a gaming equipment manufacturer. From 1998 through
2003, he was Chairman and Chief Executive Officer of Cross Media Marketing, an American Stock Exchange listed company which he
founded. From 1994 through 1998, Mr. Altbach served as Vice Chairman of Rosecliff, Inc., a private equity group, and served as
Chairman of Paul Sebastian, Inc., one of Rosecliff's portfolio companies during the same period. Before joining Rosecliff,
Mr. Altbach designed and executed alternative distribution strategies for several major US fragrance brands as these brands, primarily
public companies, sought new markets and new sources of revenue. His first experience with public companies came in 1984 when a
company he founded, Mediacom Industries, merged with a publicly listed shell. Mr. Altbach served as president of Mediacom Filmworks,
a subsidiary that produced films, music videos and television specials. Mr. Altbach began his career as a songwriter/producer/performer,
most notably with the Beach Boys.
Key Attributes, Experience and Skills:
Mr. Altbach provides our board of directors with considerable experience in capital markets, finance, investing and business
and market strategy and significant experience in finance and accounting matters through his work at Regeneration Capital Group
and his service in a variety of senior executive positions, including as the Chairman of the Board of Paul Sebastian, Inc., a manufacturer
and marketer of fragrance brands. Mr. Altbach also brings to the board of directors public company board experience.
Family Relationships
There are no family relationships among any of our directors
or executive officers.
Executive
Compensation
Summary Compensation Table
The following table sets forth information
concerning the compensation earned by BLB's principal executive officer and principal financial officer during the period
from inception (April 26, 2012) through May 31, 2012. During such period BLB's principal executive officer and principal
financial officer were its sole executive officers.
Name and Principal
Position
Period
Salary
($)
Bonus
($)
Option
Awards
($)
Total
($)
Nicole Ostoya,
Chief Executive Officer and
President
April 26, 2012 – May 31, 2012
27,123
—
—
27,123
Ashumi Kothary,
Chief Financial Officer and
Secretary
April 26, 2012 – May 31, 2012(1)
—
—
—
—
(1) Ms. Kothary became BLB's Chief Financial Officer and
Secretary on June 18, 2012.
Employment Agreements
Nicole Ostoya,
Chief Executive
Officer and President
—
On July 12, 2012, we entered into an employment agreement with Ms. Ostoya with a term
of three years. Ms. Ostoya's annual base salary is $250,000 in years one and two and is subject to increase (but not decrease)
in year three based upon a market survey conducted under the direction of our Board of Directors. Ms. Ostoya will be eligible to
receive an annual cash bonus at the discretion of our Board of Directors based on Company performance goals established by the
Board of Directors and targeted at up to 20% of her annual salary. We also agreed to issue to Ms. Ostoya (i) 1,800,000 options,
exercisable at $0.24 per share, under our 2012 Equity Incentive Plan effective as of the Closing Date, which will vest annually
at a rate of 50% beginning on the first anniversary of the Closing Date, and (ii) 5,700,000 options, with an exercise price equal
to the fair market value of our Common Stock as of the date of their grant, under our 2012 Equity Incentive Plan on the first anniversary
of the Closing Date pursuant to the terms of her employment agreement, which will vest annually at a rate of 33% beginning on the
second anniversary date of the Closing Date, in each case, if Ms. Ostoya remains employed by us or any of our subsidiaries on each
annual vesting date, and with respect to clause (ii), subject to Company performance conditions and/or milestones as may reasonably
be established by our board of directors and to such other customary and reasonable terms determined by our board of directors.
22
Ms. Ostoya will be entitled to receive
any perquisites and other fringe benefits provided to our other senior executives. In the event Ms. Ostoya is terminated by us
without Cause (as defined in her employment agreement) or she resigns for Good Reason (as defined in her employment agreement),
we will be obligated to continue to pay Ms. Ostoya her base salary on our regular payroll dates for the lesser of 12 months and
the number of months remaining in the term of her employment agreement, plus any accrued but unused vacation (the "Termination
Benefits"). If Ms. Ostoya's employment is terminated during her employment term by (x) us for Cause, (y) Ms. Ostoya
for any reason other than Good Reason or (z) due to her death or Disability (as defined in her employment agreement), then she
will not be entitled to receive the Termination Benefits, and shall only be entitled to the compensation and benefits which shall
have accrued as of the date of such termination.
Ashumi Kothary,
Chief
Financial Officer and Secretary
—
On May 30, 2012, Ms. Kothary entered into an employment agreement with BLB. Ms.
Kothary's employment is "at will" and her base salary is $125,000 per year. We intend to negotiate an employment
agreement for a term of years with Ms. Kothary pursuant to which she may be eligible for an annual performance-based bonus, receive
awards under our 2012 Equity Incentive Plan and/or be entitled to receive any perquisites and other fringe benefits provided to
our other senior executives of.
Gold Grenade Consulting Agreement
On July 12,
2012, we also entered into a Consulting Agreement (the "Consulting Agreement") with Gold Grenade, LLC ("Consultant").
Pursuant to the Consulting Agreement, we engaged the Consultant to provide us and our affiliates with certain brand development,
product development and fragrance development services relating to our products (the "Services"). The Consultant will
be our exclusive product development provider. The Consulting Agreement is for a term of one year and will be automatically renewed
for up two additional years, unless earlier terminated pursuant to its terms. As compensation for the Consultant's services,
we agreed to pay the Consultant a monthly consulting fee (the "Consulting Fee") based on the number of SKUs (as defined
in the Consulting Agreement) being developed or managed by the Consultant during any month of the term of the agreement. The Consulting
Fee shall be (i) $20,000 for up to 25 SKUs, (ii) $50,000 for up to 75 SKUs, (iii) $75,000 for up to 100 SKUs, and (iv) $100,000
for over 100 SKUs. We also agreed to reimburse the Consultant for all reasonable out-of-pocket fees and expenses that the Consultant
incurs in connection with the performance of the Services. Ms. Ostoya is a principal of the Consultant. The
Consultant
agreed that from the Closing Date until July 11, 2015, it shall present to us any and all opportunities to obtain any license to
develop, manufacture, market or sell one or more cosmetic, fragrance, health or beauty products or product lines endorsed by, or
marketed or sold under the brand of, one or more celebrities.
Outstanding Equity Awards at Period Ended May 31, 2012
No stock options were issued and outstanding at May 31, 2012.
Director Compensation
Director Compensation for the period
from inception (April 26, 2012) through May 31, 2012
Prior to the Merger, directors of BLB were
not compensated for services on the Board of Directors. Following the Merger, our directors will be entitled to receive compensation
as determined by the Board of Directors.
Board of Directors and Corporate Governance
Our Board of Directors currently consists
of 2 members. On the Closing of the Merger, Noah Levinson and Irv Pyun, members of Pubco's Board of Directors resigned, and
simultaneously therewith, a new Board of Directors was appointed. The new Board consists of Ronald J. Altbach, Chairman of the
Board, and Nicole Ostoya. We anticipate that we will add up to three additional independent directors.
23
Board Independence and Committees
We are not currently listed on any national
securities exchange or quoted on an inter-dealer quotation system that has a requirement that certain of the members of the Board
of Directors be independent. However, the Board of Directors has made a determination as to which of its members are independent.
In evaluating the independence of its members and the composition of the committees of the Board of Directors, the Board utilizes
the definition of "independence" developed by the Nasdaq Stock Market and in SEC rules, including the rules relating
to the independence standards in audit committee members and the non-employee director definition of Rule 16b-3 promulgated under
the Exchange Act.
The Board of Directors expects to continue
to evaluate whether and to what extent the members of the Board and its committees are independent. The Company intends to appoint
persons to the Board and committees of the Board who will meet the corporate governance requirements imposed by a national securities
exchange. Therefore, the Company expects that a majority of its directors will be independent directors of which at least one director
will qualify as an "audit committee financial expert," within the meaning of SEC rules.
Additionally, the Board of Directors is
expected to appoint an audit committee, governance committee and compensation committee and to adopt charters relative to each
such committee.
We believe that Mr. Altbach is currently
an "independent" director as that term is defined by the listing standards of the Nasdaq Stock Market and SEC rules,
including the rules relating to the independence standards for audit committee members and the non-employee director definition
of Rule 16b-3 promulgated under the Exchange Act.
Code of Ethics
We have adopted a written Code of Ethics.
We believe that the Code of Ethics is reasonably designed to deter wrongdoing and promote honest and ethical conduct; provide full,
fair, accurate, timely and understandable disclosure in public reports; comply with applicable laws; ensure prompt internal reporting
of code violations; and provide accountability for adherence to the code. A copy of our Code of Ethics will be provided to any
person requesting same without charge. To request a copy of our Code of Ethics, please make written request to our Chief Executive
Officer, c/o BOLDFACE Group, Inc., 1309 Pico Blvd., Suite A, Santa Monica, CA 90404.
Market
Price of and Dividends on Common Equity and Related Stockholder Matters
Our Common Stock is currently eligible
for quotation on the OTCBB under the symbol "BLBK.OB." The quotation of our Common Stock began on or about October
3, 2011 under the symbol "MXCS.OB". There has been very limited trading in our Common Stock to date. As of July 12,
2012, we had 85,200,116 shares of our Common Stock issued and outstanding held by approximately 65 stockholders of record, after
giving effect to the Merger, the Offering and the Split-Off (including an aggregate of 25,000,000 shares received by the former
BLB stockholders in the Merger (including the BLB Escrowed Shares) and 8,200,120 shares underlying the PPO Units sold in the initial
closing of the Offering). To date, we have not paid dividends on our Common Stock. We have no outstanding shares of preferred stock.
The following table sets forth the high
and low closing bid prices for our Common Stock for the fiscal quarters indicated as reported on the OTCBB. The quotations reflect
inter-dealer prices, without retail mark-up, mark-down or commission and may not represent actual transactions. Our Common Stock
is very thinly traded and, thus, pricing of our Common Stock on the OTCBB does not necessarily represent its fair market value.
Period
High
Low
Fiscal Year Ending September 30, 2012
First Quarter ended December 31, 2011 (from October 3, 2011)
$
1.50
$
0.02
Second Quarter ended March 31, 2012
$
1.50
$
1.50
Third Quarter ending June 30, 2012 (through July 16, 2012)
4.00
0.25
Dividend Policy
We have never paid any cash dividends on
our capital stock and do not anticipate paying any cash dividends on our Common Stock in the foreseeable future. We intend to retain
future earnings to fund ongoing operations and future capital requirements. Any future determination to pay cash dividends will
be at the discretion of our board of directors and will be dependent upon financial condition, results of operations, capital requirements
and such other factors as our board of directors deems relevant.
24
Securities Authorized for Issuance under Equity Compensation
Plans
Plan Category
Number of shares
to be issued upon
exercise of
outstanding
options, warrants
and rights
Weighted-
Average
exercise price
of outstanding
options,
warrants and
rights
Number of shares
remaining available
for future issuance
under equity
compensation plans
(excluding shares
reflected in the first
column)
Equity compensation plans approved by security holders
1,800,000
(1)
—
20,000,000
Equity compensation plans not approved by securities holders
—
—
—
Total
20,000,000
(1)
We agreed to issue to Ms. Ostoya, our CEO and President,
1,800,000 options. See "Executive Compensation — Employment Agreement — Nicole Ostoya" fee a detailed discussion of
such award.
2012 Equity Incentive Plan
Our Board of Directors and stockholders
owning a majority of our outstanding shares adopted our 2012 Equity Incentive Plan (the "2012 Plan") effective as of
the Closing Date. A total of 20,000,000 shares of our Common Stock are reserved for issuance under the 2012 Plan. If an incentive
award granted under the 2012 Plan expires, terminates, is unexercised or is forfeited, or if any shares are surrendered to us in
connection with an incentive award, the shares subject to such award and the surrendered shares will become available for further
awards under the 2012 Plan.
Shares issued under the 2012 Plan through
the settlement, assumption or substitution of outstanding awards or obligations to grant future awards as a condition of acquiring
another entity are not expected to reduce the maximum number of shares available under the 2012 Plan. In addition, the number of
shares of common stock subject to the 2012 Plan and the number of shares and terms of any incentive award are expected to be adjusted
in the event of any stock dividend, spin-off, split-up, stock split, reverse stock split, recapitalization, reclassification, merger,
consolidation, liquidation, business combination or exchange of shares or similar transaction.
Administration
It is expected that the compensation committee
of the Board, or the Board in the absence of such a committee, will administer the 2012 Plan. Subject to the terms of the 2012
Plan, the compensation committee would have complete authority and discretion to determine the terms of awards under the 2012 Plan.
Eligible Recipients
Any officer or other employee of the Company
or its affiliates, or an individual that the Company or an affiliate has engaged to become an officer or employee, or a consultant
or advisor who provides services to the Company or its affiliates, including a non-employee director of the Board, is eligible
to receive awards under the 2012 Plan.
Grants
The 2012 Plan authorizes the grant to eligible
recipients of nonqualified stock options, incentive stock options, restricted stock awards, restricted stock units, performance
grants intended to comply with Section 162(m) of the Internal Revenue Code of 1986, as amended (the "Code") and stock
appreciation rights ("SARs") as described below:
Ÿ
Options granted under the 2012 Plan entitle the grantee, upon exercise, to purchase a specified
number of shares from us at a specified exercise price per share. The exercise price for shares of our Common Stock covered by
an option cannot be less than the fair market value of our Common Stock on the date of grant unless agreed to otherwise at the
time of the grant. Such awards may include vesting requirements.
Ÿ
Restricted stock awards and restricted stock units may be awarded on terms and conditions established
by our compensation committee, which may include performance conditions for restricted stock awards and the lapse of restrictions
on the achievement of one or more performance goals for restricted stock units.
25
Ÿ
The compensation committee may make performance grants, each of which will contain performance
goals for the award, including the performance criteria, the target and maximum amounts payable, and other terms and conditions.
Ÿ
Stock awards are permissible. The compensation committee will establish the number of shares of
common stock to be awarded and the terms applicable to each award, including performance restrictions.
Ÿ
SARs, entitle the participant to receive a distribution in an amount not to exceed the number of
shares of common stock subject to the portion of the SAR exercised multiplied by the difference between the market price of a share
of common stock on the date of exercise of the SAR and the market price of a share of common stock on the date of grant of the
SAR.
To the extent that the compensation committee
of our Board of Directors is not in place, then our Board of Directors shall administer such grants.
Awards exercisable
for up to 4,000,000 shares of common stock may be granted during the first 12 months following the Closing Date to our executive
officers, key employees, consultants and directors; provided, that awards for a maximum of 4,000,000 shares of our Common Stock
may be granted during the first 12 months following the Closing Date; provided, however that post-Merger our board of directors
may grant awards in excess of 4,000,000 shares of our
Common Stock solely to any of our newly
appointed independent directors.
Duration, Amendment, and Termination
Our Board of Directors or if then in place,
the compensation committee of our Board of Directors, may amend, suspend or terminate the 2012 Plan without stockholder approval
or ratification at any time or from time to time. No change may be made that materially increases the total number of shares of
our Common Stock reserved for issuance under the 2012 Plan or reduces the minimum exercise price for options or exchange of options
for other incentive awards, unless such change is authorized by our stockholders within one year. Unless sooner terminated, the
2012 Plan terminates ten years after it is adopted.
Certain
Relationships And Related Transactions
Transactions Involving BGI and/or BGI
Stockholders
Split-Off and Release
Immediately following the closing of the
Merger, BGI transferred all of its operating assets and liabilities to Split Corp. through the surrender and subsequent cancellation
of 189,781,000 shares of our Common Stock held by the Split-Off Shareholder for all of the issued and outstanding shares of common
stock of Split Corp.
Transactions with the Placement Agent
and Its Related Parties
Placement Agent Agreement
Gottbetter Capital Markets,
LLC served as the Placement Agent for both the Bridge Financing and serves as the Placement Agent for the Offering. We paid
the Placement Agent, in connection with the initial closing of the Offering a commission of 8% of the funds raised from
investors in the Offering that were directly introduced to us by the placement agent (or $10,000), excluding funds attributable to
converted bridge notes. The Placement Agent received an additional cash commission of 4%, or approximately $77,000, with
respect to the principal amount of Bridge Notes converted into PPO Units. Prior to the commencement of the Offering, we also
paid the Placement Agent a cash commission of 4% of the $1,925,030 raised from investors in the Bridge Financing which
was approximately $77,000. In addition, the Placement Agent received five-year warrants (the "Broker Warrants")
to purchase a number of shares of our Common Stock equal to 8% of the PPO Units sold to investors in the Offering that
were directly introduced to us by the placement agent, including PPO Units issued in connection with the conversion of the
Bridge Notes. Except for their exercise price, the Broker Warrants are identical, in all material respects to the Investor
Warrants. As a result of the foregoing arrangement, at the initial closing of the Offering, the placement agent was paid
commissions of approximately $164,000 and was issued Broker Warrants to purchase approximately 656,000 shares of our Common
Stock at an exercise price of $0.25 per share.
26
Share Escrow Agreement
We entered into an Escrow Agreement, dated
as of July 12, 2012, with the shareholders of BLB, and Gottbetter & Partners, LLP, as Escrow Agent, pursuant to which the Escrow
Agent will hold in escrow 1,000,000 shares of the shares of our Common Stock that BLB's pre-Merger stockholders received
in the Merger in exchange for their shares of BLB for any breach of the Merger Agreement by BLB that is discovered during the two
years immediately following the closing of the Merger.
Transactions involving BLB and/or BLB
Stockholders
Employment Agreements
For a discussion of the employment agreements
entered into between us or BLB and our executive officers, please see above under "
Executive Compensation – Employment
Agreements
".
Gold Grenade Consulting Agreement
For a discussion of the consulting agreement
entered into between us and an affiliate of one of our executive officers, please see above under "
Executive Compensation
– Gold Grenade Consulting Agreement
".
Lock-Up Agreements
For a discussion of the lock-up agreements
entered into between us and certain of our officers, directors, key employees and holders of 10% or more of our Common Stock, please
see above under "
The Merger and Related Transactions – Lock-Up Agreements
".
Description
of Capital Stock
Authorized Capital Stock
Our authorized capital stock consists of
300,000,000 shares of common stock, par value $0.001 per share, and 10,000,000 shares of blank check preferred stock, par value
$0.001 per share.
Issued and Outstanding Capital Stock
Immediately after giving effect to the
Transactions, including the Bridge Warrants issued to the subscribers in the Bridge Offering in connection with the Merger, the
Licensor Warrants issued in connection with the Merger to the Licensors under BLB's May 9, 2012 Amended and Restated Licensing
Agreement, the PPO Units sold in the Offering, the conversion of Bridge Notes, the issuance of shares of our Common Stock issued
to the former BLB stockholders in the Merger, the cancellation of shares owned by the Split-Off Shareholder in the Split-Off, and
the Broker Warrants issued to the Placement Agent in connection with the Offering, there were issued and outstanding securities
of the Company on the closing of the Transactions as follows:
Ÿ
85,200,116 shares of our Common Stock (including an aggregate of 25,000,000 shares received by
the former BLB stockholders in the Merger (including the BLB Escrowed Shares) and 8,200,120 shares underlying the PPO Units sold
in the initial closing of the Offering);
Ÿ
Investor Warrants to purchase an aggregate of 8,200,120 shares of our Common Stock at $1.00 per share
issued to the investors in the Offering, including holders of converted Bridge Notes;
Ÿ
Broker Warrants to purchase an aggregate of approximately 656,000 shares of our Common Stock at
a price of $0.25 per share issued to the placement agent in connection with the Offering;
Ÿ
Bridge Warrants to purchase an aggregate of 7,700,120 shares of our Common Stock consisting of
3,850,060 warrants exercisable at $0.25 per share and 3,850,060 warrants exercisable at $0.50 per share; and
Ÿ
Licensor Warrants to purchase an aggregate of 10,000,000 shares of our Common Stock at a price
of $0.24 per share.
27
Description of Our Common Stock
The holders of our Common Stock are entitled
to one vote per share on all matters submitted to a vote of our stockholders, including the election of directors. Generally, all
matters to be voted on by our stockholders must be approved by a majority (or, in the case of election of directors, by a plurality)
of the votes entitled to be cast by all shares of Common Stock that are present in person or represented by proxy. Except as otherwise
provided by law, amendments to our Articles of Incorporation generally must be approved by a majority of the votes entitled to
be cast by the holders of all outstanding shares of our Common Stock. Our Amended and Restated Articles of Incorporation do not
provide for cumulative voting in the election of directors. The Common Stock holders will be entitled to such cash dividends as
may be declared from time to time by our Board of Directors from funds available. Upon our liquidation, dissolution or winding
up, the Common Stock holders will be entitled to receive pro rata all assets available for distribution to such holders, subject
to the rights of holders of preferred stock, if any.
Registration Rights Agreement
For a discussion of the terms of the Registration
Rights Agreement see the disclosures set forth in Item 2.01 of this Current Report under the heading "
The Merger and Related
Transactions - Registration Rights Agreement
."
Description of Investor Warrants
In connection with the closing of the Merger
and the simultaneous initial closing of the Offering, we issued warrants to purchase an aggregate of 8,200,120 shares of our Common
Stock to investors who purchased PPO Units in the Offering (which included the conversion of the Bridge Note). The Investor Warrants
entitle the holders to purchase one full share of common stock at a purchase price of $1.00 per share during the 5-year period
that commenced upon issuance of the investor warrants. Prior to their expiration date, the Investor Warrants may be called for
redemption by us at any time upon not less than 30 or more than 60 days prior written notice, provided that, at the time of delivery
of such notice, (i) there is an effective registration statement covering the resale of the shares underlying the Investor Warrants;
(ii) the closing bid price for the Company's common stock for each of the 20 consecutive trading days prior to the date of
the notice of redemption is at least $2.50, as proportionally adjusted to reflect any stock splits, stock dividends, combinations
of shares or like events; and (iii) the average trading volume for our Common Stock is at least 50,000 shares per day during the
20 consecutive trading days prior to the date of the notice of redemption and that during such 20-day period there is no more than
1 trading day in which there is no trading in our Common Stock.
The Investor Warrants, at the option of
the holder, may be exercised by cash payment of the exercise price to the Company. The Investor Warrants may be exercised on a
cashless basis commencing one year after the date of the filing of this Current Report if no registration statement registering
the shares underlying the Investor Warrants is then in effect. The exercise price and number of shares of common stock issuable
on exercise of the Investor Warrants may be adjusted in certain circumstances including stock splits, stock dividends, and future
issuances of the Company's equity securities without consideration or for consideration per share less than $0.25 (as such
amount may be adjusted in certain circumstances provided in the form of the Investor Warrants).
No fractional shares will be issued upon
exercise of the investor warrants. If, upon exercise of the Investor Warrants, a holder would be entitled to receive a fractional
interest in a share, we will, upon exercise, round down to the nearest whole number, the number of shares of our Common Stock to
be issued to the Investor Warrant holder.
Description of Bridge Warrants
In connection with the closing of the Merger
and the simultaneous initial closing of the Offering in which Bridge Notes in the aggregate principal amount of $1,925,030 were
converted into PPO Units, we issued Bridge Warrants to purchase an aggregate of 7,700,120 shares of common stock to the holder
of the converted Bridge Notes. 3,850,060 of the Bridge Warrants are exercisable at $0.25 per share and 3,850,060 of the Bridge
Warrants are exercisable at $0.50 per share. Except as to exercise price, the Bridge Warrants are identical in all material respects
to the Investor Warrants.
Description of Broker Warrants
The Broker Warrants permit the placement
agent, and its sub-agents and designees, if any, to purchase up to approximately 656,000 shares of common stock, as of the initial
closing of the Offering. The Broker Warrants are identical to the Investor Warrants in all material respects except that (i) their
resale of the common stock underlying them is not covered by a registration statement and (ii) they have an exercise price of $0.25
per share.
28
Description of Licensor Warrants
In connection with the closing of the Merger
and the simultaneous initial closing of the Offering, we issued an aggregate of 10,000,000 Licensor Warrants to the Licensors under
the May 9, 2012 Licensing Agreement among BLB and the Licensors. The Licensor Warrants are exercisable for the purchase of an aggregate
of 10,000,000 shares of our Common Stock for a term of ten years at an exercise price of $0.24 per share. The exercise price and
number of shares of common stock issuable upon exercise of the Licensor Warrants may be adjusted in certain circumstances including
stock splits and stock dividends (but excluding future issuances of our equity securities, regardless if for no consideration or
for consideration per share less than $0.24). They are exercisable on a cashless basis at any time prior to their expiration. Except
as otherwise described herein, the Licensor Warrants are identical in all material respects to the Investor Warrants.
Anti-Takeover Effects of Provisions
of Nevada State Law
We may in the future become subject to
Nevada's control share laws. A corporation is subject to Nevada's control share law if it has more than 200 stockholders,
at least 100 of whom are stockholders of record and residents of Nevada, and if the corporation does business in Nevada, including
through an affiliated corporation. This control share law may have the effect of discouraging corporate takeovers. The Company
currently has less than 200 stockholders.
The control share law focuses on the acquisition
of a "controlling interest," which means the ownership of outstanding voting shares that would be sufficient, but for
the operation of the control share law, to enable the acquiring person to exercise the following proportions of the voting power
of the corporation in the election of directors: (1) one-fifth or more but less than one-third; (2) one-third or more but less
than a majority; or (3) a majority or more. The ability to exercise this voting power may be direct or indirect, as well as individual
or in association with others.
The effect of the control share law is
that an acquiring person, and those acting in association with that person, will obtain only such voting rights in the control
shares as are conferred by a resolution of the stockholders of the corporation, approved at a special or annual meeting of stockholders.
The control share law contemplates that voting rights will be considered only once by the other stockholders. Thus, there is no
authority to take away voting rights from the control shares of an acquiring person once those rights have been approved. If the
stockholders do not grant voting rights to the control shares acquired by an acquiring person, those shares do not become permanent
non-voting shares. The acquiring person is free to sell the shares to others. If the buyer or buyers of those shares themselves
do not acquire a controlling interest, the shares are not governed by the control share law any longer.
If control shares are accorded full voting
rights and the acquiring person has acquired control shares with a majority or more of the voting power, a stockholder of record,
other than the acquiring person, who did not vote in favor of approval of voting rights for the control shares, is entitled to
demand fair value for such stockholder's shares.
In addition to the control share law, Nevada
has a business combination law, which prohibits certain business combinations between Nevada corporations and "interested
stockholders" for three years after the interested stockholder first becomes an interested stockholder, unless the corporation's
board of directors approves the combination in advance. For purposes of Nevada law, an interested stockholder is any person who
is: (a) the beneficial owner, directly or indirectly, of 10% or more of the voting power of the outstanding voting shares of the
corporation, or (b) an affiliate or associate of the corporation and at any time within the previous three years was the beneficial
owner, directly or indirectly, of 10% or more of the voting power of the then-outstanding shares of the corporation. The definition
of "business combination" contained in the statute is sufficiently broad to cover virtually any kind of transaction
that would allow a potential acquirer to use the corporation's assets to finance the acquisition or otherwise to benefit
its own interests rather than the interests of the corporation and its other stockholders.
The effect of Nevada's business combination
law is to potentially discourage a party interested in taking control of the Company from doing so if it cannot obtain the approval
of our board of directors.
Recent
Sales of Unregistered Securities
Sales by BLB
BLB issued an aggregate of 100,000 shares
of BLB common stock to three persons in connection with BLB's formation on April 26, 2012. The issuance of these shares was
not registered under the Securities Act in reliance upon the exemption from registration provided by Section 4(2) of the Securities
Act which exempts transactions by an issuer not involving any public offering.
29
Sales by Pubco
In connection with the Merger, we agreed
to issue an aggregate of 25,000,000 shares of our Common Stock to the stockholders of BLB. The issuance of shares of our Common
Stock to the BLB stockholders in connection with the Merger was not registered under the Securities Act in reliance upon the exemption
from registration provided by Section 4(2) of the Securities Act, which exempts transactions by an issuer not involving a public
offering. These securities may not be offered or sold in the United States absent registration or an applicable exemption from
the registration requirement.
We sold an aggregate of 8,200,120 PPO Units
in the Offering, including the sale of PPO Units upon the conversion of the Bridge Notes, at a price of $0.25 per PPO Unit for
gross proceeds of $2,050,030. Each unit consists of one share of our Common Stock and one Investor Warrant or one Bridge Warrant,
as applicable. The Offering was made only to accredited investors, as defined under Regulation D, Rule 501(a) and non-"U.S.
Persons" as defined in Regulations S.
In connection with the Merger and initial
closing of the Offering (including the conversion of the Bridge Notes), we issued an aggregate of 7,700,120 shares of our Common
Stock and 7,700,120 Bridge Warrants to the holders of the Bridge Notes, 500,000 shares of our Common Stock and 8,200,116 Investor
Warrants to the purchasers of the PPO Units and 656,000 Broker Warrants. The issuance of shares of our Common Stock, the Bridge
Warrants, the Investor Warrants and the Broker Warrants was made in reliance upon the exemption from registration provided by Section
4(2) of the Securities Act which exempts transactions by an issuer not involving a public offering. These securities may not be
offered or sold in the United States without registration or an applicable exemption from the registration requirements.
In connection with the Merger we issued
an aggregate of 10,000,000 Licensor Warrants to the Licensors. The issuance of the Licensor Warrants was made in reliance upon
the exemption from registration provided by Section 4(2) of the Securities Act which exempts transactions by an issuer not involving
a public offering. These securities may not be offered or sold in the United States without registration or an applicable exemption
from the registration requirements.
Indemnification
of Officers and Directors
Nevada Revised Statutes ("NRS")
Sections 78.7502 and 78.751 provide us with the power to indemnify any of our directors, officers, employees and agents. The person
entitled to indemnification must have conducted himself in good faith, and must reasonably believe that his conduct was in, or
not opposed to, our best interests. In a criminal action, the director, officer, employee or agent must not have had reasonable
cause to believe that his conduct was unlawful.
Under NRS Section 78.751, advances for
expenses may be made by agreement if the director or officer affirms in writing that he has met the standards for indemnification
and will personally repay the expenses if it is determined that such officer or director did not meet those standards.
Our bylaws include an indemnification provision
under which we have the power to indemnify our directors, officers, former directors and officers, employees and other agents (including
heirs and personal representatives) against all costs, charges and expenses actually and reasonably incurred, including an amount
paid to settle an action or satisfy a judgment to which a director or officer is made a party by reason of being or having been
a director or officer of the Company. Our bylaws further provide for the advancement of all expenses incurred in connection with
a proceeding upon receipt of an undertaking by or on behalf of such person to repay such amounts if it is determined that the party
is not entitled to be indemnified under our bylaws. These indemnification rights are contractual, and as such will continue as
to a person who has ceased to be a director, officer, employee or other agent, and will inure to the benefit of the heirs, executors
and administrators of such a person. Insofar as indemnification for liabilities arising under the Securities Act may be permitted
for our directors, officers and controlling persons pursuant to the foregoing provisions, or otherwise, we have been advised that
in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable.
Financial
Statements and Supplemental Data
Reference is made to the disclosure set
forth under Item 9.01 of this Current Report, which disclosure is incorporated herein by reference.
30
Index to
Exhibits
See Item 9.01(c) below, which is incorporated
by reference herein.
Description
of Exhibits
See the Exhibit Index below and the corresponding
exhibits, which are incorporated by reference herein.
Item 3.02.
Unregistered Sales of Equity Securities.
The disclosure set forth in Item 2.01 to
this Current Report under the section "Recent Sales of Unregistered Securities" is incorporated into this item by reference.
Item 5.01.
Changes in Control of the Registrant.
As a result of the initial closing of the
Offering and the Merger, we experienced a change in control, with the former stockholders of BLB effectively acquiring control
of us. The disclosure set forth in Item 2.01 to this Current Report is incorporated into this item by reference.
Item 5.02.
Departure of Directors or Certain Officers; Election
of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
The disclosure set forth in Item 2.01 to
this Current Report is incorporated into this item by reference.
Item 5.03.
Amendments to Articles of Incorporation or Bylaws; Change
in Fiscal Year.
Prior to the closing of the Merger, on
May 21, 2012, we filed our Amended and Restated Articles of Incorporation (the "Charter Amendment") with the Nevada
Secretary of State to, among other things, (i) change our name to BOLDFACE Group, Inc.; (ii) increase our authorized capitalization
from 110,000,000 shares, consisting of 100,000,000 shares of common stock, $0.001 par value per share, and 10,000,000 shares of
preferred stock, $0.001 par value per share, to 310,000,000 shares, consisting of 300,000,000 shares of common stock, $0.001 par
value per share, and 10,000,000 shares of blank check preferred stock, $0.001 par value per share; and (iii) limit the liability
of our officers and directors to us, our stockholders and our creditors to the fullest extent permitted by Nevada law.
Item 5.06.
Change in Shell Company Status.
The disclosure set forth in Item 2.01 to
this Current Report is incorporated into this item by reference. As a result of the completion of the Merger, we believe that we
are no longer a shell company, as defined in Rule 405 of the Securities Act and Rule 12b-2 of the Exchange Act.
Item 9.01.
Financial Statements and Exhibits.
(a)
Financial Statements of Business Acquired
BLB's audited financial statements
for the period ended May 31, 2012 are included with this Current Report beginning on Page F-1.
(b)
Pro forma financial information
No pro forma financial information is required.
(c)
Exhibits
In reviewing the agreements included or
incorporated by reference as exhibits to this Current Report on Form 8-K, please remember that they are included to provide you
with information regarding their terms and are not intended to provide any other factual or disclosure about the Company or the
other parties to the agreements. The agreements may contain representations and warranties by each of the parties to the applicable
agreement. These representations and warranties have been made solely for the benefit of the parties to the applicable agreement
and:
31
Ÿ
should not in all instances be treated as categorical statements of fact, but rather as a way of
allocating the risk to one of the parties if those statements prove to be inaccurate;
Ÿ
have been qualified by disclosures that were made to the other party in connection with the negotiation
of the applicable agreement, which disclosures are not necessarily reflected in the agreement;
Ÿ
may apply standards of materiality in a way that is different from what may be viewed as material
to you or other investors; and
Ÿ
were made only as of the date of the applicable agreement or such other date or dates as may be
specified in the agreement and are subject to more recent developments.
Accordingly, these representations and
warranties may not describe the actual state of affairs as of the date they were made or at any other time. Additional information
about us may be found elsewhere in this Current Report and in our other public filings, which are available without charge through
the SEC's website at http://www.sec.gov.
Exhibit No.
Description
2.1
Agreement and Plan of Merger and Reorganization, dated as of July 12, 2012, by and among Registrant, BOLDFACE Acquisition Corp., and BOLDFACE licensing + branding *
2.2
Articles of Merger, dated as of July 12, 2012, for the merger of BOLDFACE Acquisition Corp. into BOLDFACE licensing + branding *
3.1
Amended and Restated Articles of Incorporation as filed with the Nevada Secretary of State on May 21, 2012 (incorporated by reference from Exhibit 3.1 to the Registrant's Current Report on Form 8-K filed with the SEC on May 22, 2012)
3.2
By-Laws of Registrant (incorporated by reference from Exhibit 3.2 to Registrant's Registration Statement on Form SB-2 filed with the SEC on January 17, 2008)
4.1
Form of Investor Warrant *
4.2
Form of Broker Warrant *
4.3
Form of Bridge Warrant *
4.4
Form of Licensor Warrant *
4.5
Form of 10% Secured Convertible Promissory Note *
10.1
Split-Off Agreement, dated as of July 12, 2012, by and among Registrant, BOLDFACE Split Corp., and Noah Levinson *
10.2
General Release Agreement, dated as of July 12, 2012, by and among Registrant, BOLDFACE Split Corp. and Noah Levinson *
10.3
Form of Securities Purchase Agreement between Registrant and the investors in the Private Placement Offering *
10.4
Subscription Escrow Agreement, dated as of June 1, 2012, by and among Registrant, Gottbetter Capital Markets, LLC, and CSC Trust Company of Delaware, as amended on June 28, 2012 *
10.5
Placement Agency Agreement, dated as of May 2, 2012, by and between the Placement Agent and Registrant *
10.6
Form of Registration Rights Agreement by and between Registrant and the investors in the Private Placement Offering *
10.7
Escrow (Indemnification) Agreement, dated as of July 12, 2012, among Registrant, Nicole Ostoya, Robin Coe-Hutshing, Maria Torres, and Gottbetter & Partners, LLP, as escrow agent *
32
10.8
Form of Lock-Up Agreement *
10.9†
Employment Agreement, dated as of July 12, 2012, between Registrant and Nicole Ostoya *
10.10†
Employment Agreement, dated as of May 30, 2012, between BOLDFACE licensing + branding and Ashumi Kothary *
10.11†
Consulting Agreement, dated as of July 3, 2012, between Registrant and Gold Grenade, LLC *
10.12
Indemnification Agreement, dated as of July 12, 2012, between Registrant and John Derby *
10.13†
Registrant's 2012 Equity Incentive Plan *
10.14
Form of Securities Purchase Agreement between Registrant and the investors in the Bridge Financing *
10.15
Bridge Loan Agreement, dated as of May 16, 2012, between Registrant and BOLDFACE licensing + branding *
10.16
Pledge Agreement, dated as of May 16, 2012, among Registrant and each person and entity listed as a pledger on the signature pages thereto *
10.17
Company Security Agreement, dated as of May 16, 2012, among Registrant, BOLDFACE licensing + branding and Gottbetter & Partners, LLP, as collateral agent *
10.18
NewCo Bridge Loan Agreement, dated as of May 16, 2012, between BOLDFACE licensing + branding and Gottbetter & Partners, LLP, as collateral agent *
10.19
Form of 10% Secured Convertible Promissory Note issued by BOLDFACE licensing + branding to Registrant *
10.20
Subscription Escrow Agreement, dated as of May 3, 2012, by and among Registrant, Gottbetter Capital Markets, LLC, and CSC Trust Company of Delaware *
14.1
Code of Ethics (incorporated by reference from Exhibit 14 to Registrant's Annual Report on Form 10-K for the year ended September 30, 2008 filed with the SEC on December 31, 2008)
16.1
Letter from Webb & Company, P.A. to the Securities and Exchange Commission, dated as of May 17, 2012, regarding changes in Registrant's certifying accountant (incorporated by reference from Exhibit 16.1 to Registrant's Current Report on Form 8-K filed with the SEC on May 8, 2012)
99.1
Press release, dated as of July 13, 2012 *
*Filed herewith.
† Indicates management contract
or compensation plan or arrangement
33
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.
Date:  July 18, 2012
BOLDFACE GROUP, INC.
By:
/s/
Nicole Ostoya
Name:  Nicole Ostoya
Title:   Chief Executive Officer and President
34
BOLDFACE LICENSING + BRANDING
(A DEVELOPMENT STAGE COMPANY)
FINANCIAL STATEMENTS
MAY 31, 2012
TABLE OF CONTENTS
Report of Independent Registered Public Accounting Firm
F-2
Financial Statements:
Balance Sheet
F-3
Statement of Operations
F-4
Statement of Changes in Shareholders' Deficit
F-5
Statement of Cash Flows
F-6
Notes to Financial Statements
F-7  - F-13
F-
1
REPORT OF INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM
The Board of Directors
BOLDFACE Licensing + Branding
Santa Monica, California
We have audited the accompanying balance
sheet of BOLDFACE Licensing + Branding (a development stage company) as of May 31, 2012, and the related statements of operations,
shareholders' deficit and cash flows from April 26, 2012 (inception) through May 31, 2012. These financial statements are
the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements
based on our audit.
We conducted our audit in accordance with
the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company
is not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. Our audit
included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the Company's internal control
over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made
by management, and evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion, the financial statements
referred to above present fairly, in all material respects, the financial position of BOLDFACE Licensing + Branding (a development
stage company) as of May 31, 2012, and the results of their operations and their cash flows from April 26, 2012 (inception) through
May 31, 2012, in conformity with accounting principles generally accepted in the United States of America.
The accompanying financial statements have
been prepared assuming that BOLDFACE Licensing + Branding (a development stage company) will continue as a going concern. As more
fully described in Note 1, the Company has incurred operating losses since inception and requires additional capital to continue
operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. Management's
plans in regard to this matter are also described in Note 1. The financial statements do not include any adjustments to reflect
the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities
that may result from the outcome of this uncertainty.
/s/ Friedman LLP
New York, NY
June 21, 2012
F-
2
BOLDFACE LICENSING + BRANDING
(A DEVELOPMENT STAGE COMPANY)
BALANCE SHEET
MAY 31, 2012
ASSETS
Current assets:
Cash
$
149,677
Current portion of prepaid royalty
640,351
Deferred financing costs, net
90,835
Deposit
1,785
Prepaid inventory
148,404
Total current assets
1,031,052
Prepaid royalty
321,053
License acquisition costs
12,001
Total assets
$
1,364,106
LIABILITIES AND SHAREHOLDERS' DEFICIT
Current liabilities:
Short-term loans
$
1,500,025
Accounts payable
7,788
Accrued expenses and other current liabilities
62,058
Due to Gold Grenade, LLC
150,176
Total current liabilities
1,720,047
Commitments and contingencies
Shareholders' deficit:
Common stock, $.001 par value, 1,000,000 shares authorized,
100,000 shares issued and outstanding
100
Deficit accumulated during the development stage
(356,041
)
Total shareholders' deficit
(355,941
)
Total liabilities and shareholders' deficit
$
1,364,106
F-
3
BOLDFACE LICENSING + BRANDING
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF OPERATIONS
FOR THE PERIOD FROM APRIL 26, 2012 (DATE OF INCEPTION) TO MAY 31, 2012
Operating expenses:
Research and development
$
38,047
Royalty expense
38,596
Professional fees
59,953
General and administrative expenses
54,092
Product development fee
150,000
Loss from operations
340,688
Interest expense
15,353
Net loss
$
356,041
F-
4
BOLDFACE LICENSING + BRANDING
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF SHAREHOLDERS' DEFICIT
FOR THE PERIOD FROM APRIL 26, 2012 (DATE OF INCEPTION) TO MAY 31, 2012
Deficit
Accumulated
During the
Common Stock
Development
Shares
Amount
Stage
Total
Balance, April 26, 2012
100,000
$
100
$
-
$
100
Net loss
-
-
(356,041
)
(356,041
)
Balance, May 31, 2012
100,000
$
100
$
(356,041
)
$
(355,941
)
F-
5
BOLDFACE LICENSING + BRANDING
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF CASH FLOWS
FOR THE PERIOD FROM APRIL 26, 2012 (DATE OF INCEPTION) TO MAY 31, 2012
Cash flows from operating activities:
Net loss
$
(356,041
)
Adjustments to reconcile net loss to
net cash used in operating activities:
Amortization of deferred financing costs
8,703
Amortization of license acquisition costs
161
Change in operating assets and liabilities:
License acquisition costs
(12,162
)
Prepaid inventory
(148,404
)
Prepaid royalty
(961,404
)
Deposit
(1,785
)
Accounts payable
7,788
Accrued expenses and other current liabilities
62,058
Due to Gold Grenade, LLC
150,176
Net cash used in operating activities
(1,250,910
)
Cash flows from financing activities:
Proceeds from short term loan, net of deferred financing costs
1,400,487
Issuance of common stock
100
Cash provided by financing activities
1,400,587
Net change in cash
149,677
Cash at beginning of year
-
Cash at end of year
$
149,677
Supplemental disclosures of cash flow information:
Cash paid during the year for:
Interest
$
-
Income Taxes
$
-
F-
6
BOLDFACE
Licensing + Branding
(A
DEVELOPMENT STAGE COMPANY)
Notes
to Financial Statements
MAY
31, 2012
NOTE 1.
FORMATION AND NATURE OF BUSINESS
Organization
BOLDFACE Licensing + Branding (the
"Company") was incorporated under the laws of the State of Nevada on April 26, 2012 with fiscal year end of January
31. To date, the Company has devoted its efforts to enter into licensing agreements with celebrities to develop and market products
using the celebrities' brand and image and the raising of capital. As such, the Company is considered to be in the development
stage at May 31, 2012.
Development Stage Liquidity
The Company has experienced $356,041
in net losses since its inception on April 26, 2012 through May 31, 2012, as it continues its operations. The Company's operations
have been funded by short term loans. The Company will require positive cash flows or additional debt or equity financing in future
periods to fund its operations.
The accompanying financial statements
as of May 31, 2012 and for the period from April 26, 2012 (inception) through May 31, 2012 have been prepared assuming the Company
will continue as a going concern. There can be no assurance that the Company will be able to raise additional capital, as needed,
which could have a material adverse effect on the Company's business, existence, financial condition, or results of operations.
Additionally, there can be no assurance that the Company will achieve or maintain profitability in the future. The Company's
prospects must be considered in light of the risks, expenses, and difficulties frequently encountered by companies in the early
stages of development.
NOTE 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Method of Accounting
The Company maintains its accounting
records on an accrual method in conformity with accounting principles generally accepted in the United States of America ("US
GAAP").
Use of Estimates
In preparing the financial statements
in conformity with US GAAP, management makes estimates and assumptions that affect the reported amount of assets and liabilities
and disclosures of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of
revenue and expenses during the reporting period. Actual results could differ from these estimates.
Revenue Recognition
As required by Financial Accounting
Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 605,
Revenue Recognition
,
the Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed
or determinable and collection is probable.
F-
7
BOLDFACE
Licensing + Branding
(A
DEVELOPMENT STAGE COMPANY)
Notes
to Financial Statements
MAY
31, 2012
NOTE 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Cash and Cash Equivalents
The Company considers all highly
liquid investments purchased with original maturities of three months or less to be cash equivalents.
Financial Instruments and Concentrations
of Business and Credit Risk
FASB ASC Subtopic 825-10,
Financial
Instruments
, requires disclosure of fair value information about financial instruments. The Company's financial instruments
include cash and cash equivalents, accounts payable and other current assets and liabilities and short term loan.  The fair
value of these instruments approximates their carrying value due to their relatively short maturities.
Financial instruments that potentially
subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents. The Company maintains cash
balances that at times exceed amounts insured by the Federal Deposit Insurance Corporation. The Company has not experienced any
losses in these accounts and believes it is not exposed to any significant credit risk in this area.
Advertising
Advertising costs are expensed
as incurred. Total advertising expenses amounted to $3,750 for the period from April 26, 2012 (inception) through May 31, 2012
and are included in operating expenses in the accompanying statement of operations.
Deferred Financing Costs
Deferred financing costs represent
fees paid in connection with obtaining short term loans (see note 4). These fees are amortized using a method that approximates
the effective interest method over the term of the related financing.
As of May 31, 2012, deferred financing
costs of $90,835, net of accumulated amortization of $8,703 are presented on the accompanying balance sheet. Amortization of deferred
financing costs of $8,703 are included in interest expense in the accompanying statement of operations for the period from April
26, 2012 (inception) through May 31, 2012. The remaining deferred financing costs will be fully amortized by November 16, 2012.
License Acquisition Costs
License acquisition costs represent
legal fees paid in connection with obtaining a licensing agreement (see note 3). These fees are amortized using straight-line method
over the term of the licensing agreement.
As of May 31, 2012, license acquisition
costs of $12,001, net of accumulated amortization of $161 are presented on the accompanying balance sheet. Amortization of license
acquisition costs of $161 are included in general and administrative expenses in the accompanying statement of operations for the
period from April 26, 2012 (inception) through May 31, 2012.
F-
8
BOLDFACE
Licensing + Branding
(A
DEVELOPMENT STAGE COMPANY)
Notes
to Financial Statements
MAY
31, 2012
NOTE 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
License Acquisition Costs (Continued)
Estimated future license acquisition
cost amortization expense is as follows:
Years ending May 31,
2013
$
2,665
2014
2,665
2015
2,665
2016
2,665
2017
1,341
$
12,001
Impairment of Long-Lived Assets
The Company is subject to the provisions
of FASB ASC Topic 360,
Property, Plant and Equipment – Impairment or Disposal of Long Lived Assets
, which requires
that long-lived assets and certain identifiable intangible assets be reviewed for impairment whenever events or changes in circumstances
indicate that the carrying amount of the an asset may not be recoverable. Recoverability of assets to be held and used is measured
by a comparison of the carrying amount of an asset to undiscounted future cash flows expected to be generated by the asset. In
such cases, the carrying value of these assets are adjusted to their estimated fair value and assets held for sale are adjusted
to their estimated fair value less selling expenses. No impairment losses of long-lived assets or intangible assets were recognized
for the period from April 26, 2012 (inception) through May 31, 2012.
Income Taxes
The Company uses the asset and
liability method of accounting for income taxes in accordance with FASB ASC Topic 740,
Income Taxes
. Deferred tax assets
and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying
amounts of existing assets and liabilities and their respective tax bases and tax credit carryforwards. Deferred tax assets and
liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences
are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized
in income in the period that includes the enactment date. The Company provides a valuation allowance against its deferred tax assets
when circumstances indicate that it is no longer more likely than not that such assets will be realized.
NOTE 3.
PREPAID ROYALTY
The Company entered
into a licensing agreement with three individuals (collectively the "Licensors") acquiring the exclusive right to use
the Licensors' image in connection with the development, production, distribution, advertisement, promotion and sale of products
and obtain certain ancillary services of the Licensors. The licensing agreement remains in effect through November
30, 2016. The Company has the option to extend the term of this agreement for an additional period of eighteen months.
F-
9
BOLDFACE
Licensing + Branding
(A
DEVELOPMENT STAGE COMPANY)
Notes
to Financial Statements
MAY
31, 2012
NOTE 3.
PREPAID ROYALTY (Continued)
During the term of the licensing
agreement and as consideration for the grant of rights and license the Licensors' image, the Company has agreed to pay the
Licensors depending on the product sold, a royalty on all wholesale sales of all products within the contract term equal to 8%
to 10%. In addition the Company has agreed to pay a guaranteed minimum royalty payment of $4,686,125 or $5,206,900 depending on
launch date of various products in accordance with the following schedule, but subject to adjustments:
·
Contract period one:
through November 30, 2013 - $1,000,000
·
Contract period two: from December 1,
2013 through November 30, 2014 - $925,000 or $962,000
·
Contract period three: from December 1,
2014 through November 30, 2015 - $1,188,625 or $1,394,900
·
Contract period four: from December 1,
2015 through November 30, 2016 - $1,572,500 or $1,850,000
In addition to the royalty payment
and guaranteed minimum royalty payment, the Company has agreed to pay the Licensors an exit fee equal to 15% of the net sale proceeds
of any licensee sale. The Company also granted the Licensors the right and option to exchange the exit fee for 10,000,000 shares
of restricted common stock or warrants, which shall provide for cashless exercise, to purchase 10,000,000 shares of the common
stock of the Lender subsequent to the merger with the Lender (see notes 4 and 5) representing at least 6.11% of the common stock
on a fully diluted basis.
On May 30, 2012, the Licensors
exercised their option and agreed to exchange their exit fee for 10,000,000 warrants to purchase 10,000,000 shares of common stock.
The warrants are exercisable for a period of ten years from the grant date.
As of May 31, 2012, the Company
has paid the Licensors $1,000,000 as a non-refundable advance payment for contract period one through November
30, 2013. These fees are amortized ratably using the straight-line method over contract period one. Prepaid royalty of $961,404,
net of accumulated amortization of $38,596 are presented on the accompanying balance sheet as of May 31, 2012. Amortization of
prepaid royalty of $38,596 is presented in the accompanying statement of operations for the period from April 26, 2012 (inception)
through May 31, 2012.
Estimated future prepaid royalty
amortization expense is as follows:
Years ending May 31,
2013
$
640,351
2014
321,053
$
961,404
NOTE 4.
SHORT TERM LOANS
On May 16, 2012, the Company issued
secured bridge loan promissory notes totaling $1,500,025 bearing interest at a rate of 10% per annum to Max Cash Media, Inc. (the
"Lender").
F-
10
BOLDFACE
Licensing + Branding
(A
DEVELOPMENT STAGE COMPANY)
Notes
to Financial Statements
MAY
31, 2012
NOTE 4.
SHORT TERM LOANS (Continued)
The promissory notes were issued
in two installments:
·
May 16, 2012 - $1,440,000, due by November
15, 2012
·
May 17, 2012 - $60,025, due by November
16, 2012
The loan is due and payable on
the earliest of:
·
On the dates mentioned above, or
·
Closing of additional financing by the
Company of an amount equal to or greater than the amount borrowed, or
·
The date of closing of the merger between
the Company and the Lender.
As part of the loan the Company
entered into security and pledge agreements with the Lender. The security agreement granted the Lender first priority security
interest in all tangible and intangible assets of the Company. The pledge agreement pledged 100,000 issued and outstanding shares
of common stock of the Company as collateral.
NOTE 5.
COMMITMENTS AND CONTINGENCIES
Operating Lease
On May 8, 2012, the Company executed
a one year operating lease for its corporate office commencing on May 15, 2012 at a monthly rent payment of $1,785 per month. Total
rent expense related to this operating lease was $978 for the period from April 26, 2012 (inception) through May 31, 2012 and is
included in operating expenses in accompanying statement of operations.
Business Combination
The Company is currently engaged
in discussions with the Lender regarding a possible business combination involving the two companies (the "Merger").
At this stage, no definitive terms have been agreed to and neither party is bound to proceed with any transaction.
Simultaneously upon the closing
of the Merger, assuming certain other conditions have been met, the outstanding principal amount due to the Lender will be canceled
and forgiven.
NOTE 6.
INCOME TAXES
The Company did not incur any income
tax expense for the period from April 26, 2012 (inception) through May 31, 2012. At May 31, 2012, $296,421 of federal and state
net operating losses were available to the Company to offset future taxable income, which will expire in 2032. Given the short
history of the Company and the uncertainty as to the likelihood of future taxable income, the Company has recorded a 100% valuation
reserve against the anticipated recovery from the use of the net operating losses created at the inception of the Company or generated
thereafter. The Company will evaluate the appropriateness of the valuation allowance on an annual basis and adjust the allowance
as considered necessary.
F-
11
BOLDFACE
Licensing + Branding
(A
DEVELOPMENT STAGE COMPANY)
Notes
to Financial Statements
MAY
31, 2012
NOTE 6.
INCOME TAXES (Continued)
The Company's effective tax
rate differs from the federal statutory rate of 34% primarily due to the impact of state income taxes and the valuation allowance
recorded against its deferred tax assets.
Statutory rate
34.0
%
State income taxes
8.8
%
Valuation allowance
(42.8
)%
Total
0.0
%
The principal components of deferred
tax assets and (liabilities) are as follows as of May 31, 2012:
Net operating losses carryforward
$
126,987
Start-up costs, net of amortization
25,541
Gross deferred taxes
$
152,528
Valuation allowance
(152,528
)
Net deferred taxes
$
-
The Company follows the provisions
of uncertain tax positions as addressed in FASB ASC Subtopic 740-10-65-1,
Income Taxes
. As of May 31, 2012, the Company
did not recognize any liability for unrecognized tax benefits. The Company recognizes interest accrued related to unrecognized
tax benefits in interest expense and penalties in operating expenses. No such interest or penalties were recognized during the
period presented. The Company had no accruals for interest and penalties at May 31, 2012. For the period from April 26, 2012 (inception)
through May 31, 2012 is subject to examination by the federal and state taxing authorities. There are no income tax examinations
currently in process and as of the date of this report.
NOTE 7.
RELATED PARTY TRANSACTIONS
The Company entered into a consulting
agreement with Gold Grenade, LLC ("Gold Grenade"), a related entity co-owned by two of the shareholders to receive
product development services. As of May 31, 2012, $150,176 is due to Gold Grenade, and is presented in the accompanying balance
sheet. For the period from April 26, 2012 (inception) through May 31, 2012, the Company incurred $150,000 in product development
fees payable to Gold Grenade. The agreement is to remain in effect unless either party desires to cancel the agreement. In addition,
the Company shares the leased premises with Gold Grenade.
F-
12
BOLDFACE
Licensing + Branding
(A
DEVELOPMENT STAGE COMPANY)
Notes
to Financial Statements
MAY
31, 2012
NOTE 8.
SUBSEQUENT EVENTS
The Company has evaluated subsequent
events that have occurred from June 1, 2012 through June 21, 2012, and determined that there were no subsequent events or transactions
that required recognition or disclosure in the financial statements, except as disclosed below.
In June 2012, the Company issued
an additional secured bridge loan promissory note for $425,005 bearing interest at a rate of 10% per annum to the Lender, with
similar terms as the May 2012 short term loans disclosed in Note 4.
F-
13