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  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center">_______________________________________________________________________________________________&#9;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>UNITED STATES</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>SECURITIES AND EXCHANGE COMMISSION</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Washington, D.C. 20549</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>FORM 8-K</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>CURRENT REPORT</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 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/normal Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">Date of Report (Date of earliest event
  reported): February 5, 2014</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>JPX GLOBAL, INC.</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center">_______________________________________________________________________________________________&#9;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">(Exact name of registrant as specified
  in its charter)</P>
  
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      <td style="width: 34%; border-bottom: black 1pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Nevada</b></font></td>
      <td style="width: 2%; text-align: left; line-height: 115%">&nbsp;</td>
      <td style="width: 31%; border-bottom: black 1pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif"><b>000-54793</b></font></td>
      <td style="width: 2%; text-align: left; line-height: 115%">&nbsp;</td>
      <td style="width: 31%; border-bottom: black 1pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif"><b>26-2801338</b></font></td></tr>
  <tr>
      <td style="text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(State or other jurisdiction of incorporation)</font></td>
      <td style="text-align: left; line-height: 115%">&nbsp;</td>
      <td style="text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(Commission File Number)</font></td>
      <td style="text-align: left; line-height: 115%">&nbsp;</td>
      <td style="text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(IRS Employer Identification No.)</font></td></tr>
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  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>9864 E Grand River, Ste 110-301</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Brighton, Michigan 48116 </B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center">_______________________________________________________________________________________________&#9;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">(Address of principal executive offices)
  (Zip Code)</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">Registrant&rsquo;s telephone number,
  including area code: <B>(780) 349-1755</B></P>
  
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  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center">______________________________________________________________________________________________&#9;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">(Former name or former address, if changed
  since last report.)</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Check the appropriate box below if the
  Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions
  (<U>see </U>General Instruction A.2. below):</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> [ ] Written communications
  pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> [ ] Soliciting material pursuant
  to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> [ ] Pre-commencement
  communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> [ ] Pre-commencement
  communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)</P>
  
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  <P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: left">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>SPECIAL NOTE REGARDING FORWARD LOOKING
  STATEMENTS</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">This Current Report
  on Form 8-K (this &ldquo;Report&rdquo;) contains forward-looking statements. The forward-looking statements are contained principally
  in the sections entitled &ldquo;Description of Business,&rdquo; &ldquo;Risk Factors,&rdquo; and &ldquo;Management&rsquo;s Discussion
  and Analysis of Financial Condition and Results of Operations.&rdquo; These statements involve known and unknown risks, uncertainties
  and other factors which may cause our actual results, performance or achievements to be materially different from any future results,
  performances or achievements expressed or implied by the forward-looking statements. In some cases, you can identify forward-looking
  statements by terms such as &ldquo;anticipates,&rdquo; &ldquo;believes,&rdquo; &ldquo;seeks,&rdquo; &ldquo;could,&rdquo; &ldquo;estimates,&rdquo;
  &ldquo;expects,&rdquo; &ldquo;intends,&rdquo; &ldquo;may,&rdquo; &ldquo;plans,&rdquo; &ldquo;potential,&rdquo; &ldquo;predicts,&rdquo;
  &ldquo;projects,&rdquo; &ldquo;should,&rdquo; &ldquo;would&rdquo; and similar expressions intended to identify forward-looking
  statements. Forward-looking statements reflect our current views with respect to future events and are based on assumptions and
  subject to risks and uncertainties. These risks and uncertainties include, but are not limited to, the factors described in the
  section captioned &ldquo;Risk Factors&rdquo; below. Given these uncertainties, you should not place undue reliance on these forward-looking
  statements.&nbsp;&nbsp;Such statements may include, but are not limited to, information related to: anticipated operating results;
  relationships with our customers; consumer demand; financial resources and condition; changes in revenues; cost of sales; selling,
  general and administrative expenses; interest expense; legal proceedings and claims.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Also, forward-looking
  statements represent our estimates and assumptions only as of the date of this Report. You should read this Report and the documents
  that we reference and filed as exhibits to this Report completely and with the understanding that our actual future results may
  be materially different from what we expect. Except as required by law, we assume no obligation to update any forward-looking statements
  publicly, or to update the reasons actual results could differ materially from those anticipated in any forward-looking statements,
  even if new information becomes available in the future.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>ITEM 1.01</B>&nbsp;&nbsp;&nbsp;&nbsp;
  <B>ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><I>Acquisition</I></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On February 5, 2014,
  JPX Global, Inc. (hereafter, the &ldquo;Company&rdquo;, or &ldquo;JPEX&rdquo;) entered into an agreement to acquire all of the
  assets of Scorpex, Inc., a Nevada corporation (hereafter, &ldquo;Scorpex&rdquo;), in exchange for 105,000,000 shares of common
  stock of the Company (such transaction is hereafter referred to as the &ldquo;Acquisition&rdquo;). Scorpex is a development stage
  waste disposal and recycling company, with the goal of storing and disposing all types of waste, including those classified as
  industrial, toxic, and hazardous.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The foregoing descriptions
  of the terms of the Acquisition are qualified in their entirety by reference to the provisions of the Asset Purchase Agreement
  filed as Exhibit 2.1 to this Report, which is incorporated by reference herein.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>ITEM 2.01</B>&nbsp;&nbsp;&nbsp;&nbsp;
  <B>COMPLETION OF ACQUISITION OR DISPOSITION OF ASSETS</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left"><I>Asset Purchase Agreement</I></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On February 5, 2014
  pursuant to the terms of the Acquisition, JPEX acquired all of the assets of Scorpex in exchange for 105,000,000 shares of common
  stock of the Company. Scorpex is a development stage waste disposal and recycling company, with the goal of storing and disposing
  all types of waste, including those classified as industrial, toxic, and hazardous. Following the Acquisition, JPEX has 136,975,000
  shares of common stock outstanding.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Immediately following
  the Closing, the Company intends to file a Definitive 14C and complete these corporate actions now that the Acquisition is complete.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  
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  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>FORM 10 DISCLOSURES</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">As disclosed elsewhere
  in this Report, on February 5, 2014, the Company entered into the Acquisition. Item 2.01(f) of Form 8-K provides that if the registrant
  was a shell company, other than a business combination related shell company, as those terms are defined in Rule 12b-2 under the
  Securities Exchange Act of 1934, as amended, (&ldquo;Exchange Act&rdquo;), immediately before a transaction such as the Acquisition,
  then the registrant must disclose the information that would be required if the registrant were filing a general form for registration
  of securities on Form 10 under the Exchange Act reflecting all classes of the registrant&rsquo;s securities subject to the reporting
  requirements of Section 13 of the Exchange Act upon consummation of the transaction.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We are providing
  below the information that we would be required to disclose on Form 10 under the Exchange Act if we were to file such form. Please
  note that the information provided below relates to the combined enterprises of the Company and Scorpex, after the Acquisition
  has been consummated, except that information relating to periods prior to the date of the Acquisition only relate to Scorpex,
  unless otherwise specifically indicated.&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Information in response
  to this Item 2.01 below generally follows the format of Form 10.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>BUSINESS</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Business Overview</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">As a result of the
  Acquisition, our objective is to expand our operations as a expanding our business to further develop our operations as a development
  stage waste disposal and recycling company, with the goal of storing and disposing all types of waste, including those classified
  as industrial, toxic, and hazardous.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Our Corporate History and Background</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">JPX Global, Inc.,
  (f.k.a. Jasper Explorations, Inc.) (the &ldquo;Company&rdquo;), was organized under the laws of the State of Nevada on December
  18, 2008 as Jubilee Resources, Inc., to explore mineral properties in North America. The name of the Company was subsequently changed
  to Jasper Explorations, Inc. on December 16, 2010. The name of the Company was again changed on January 3, 2013 from Jasper Explorations,
  Inc. to JPX Global, Inc.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#9;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On January 3, 2013,
  the Company approved the action to amend and restate the Articles of Incorporation of the and increase the authorized common shares
  to 500,000,000 and create and authorize 40,000,000 shares of Preferred Stock which was approved by written consent of the holder
  representing approximately 67% of the outstanding voting securities of the Company. Series A Preferred Stock was created and designated
  with super-voting rights of 100 votes per share of Series A Preferred Stock held, and is convertible into 10 shares of common stock
  for every share of preferred stock held.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On February 15,
  2013, the Company entered into an agreement to acquire all of the assets of Scorpex, in exchange for 103,250,000 shares of Common
  Stock and 5,000,000 shares of Series A Preferred Stock of the Company. Upon the acquisition of Scorpex, there was an implied option
  for either party to rescind the original acquisition. During the year that option was exercised and on May 16, 2013, we unwound
  the acquisition of Scorpex and resumed its operation prior to February 15, 2013, primarily, the exploration for copper, molybdenum
  and other minerals.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On June 17, 2013,
  the Company entered into a <I>Processing Lease and Option To Purchase Agreement</I>, thereby effecting the <I>Joint Venture Agreement</I>
  with CGrowth Capital, Inc., a Delaware corporation (&quot;CGrowth&quot;). Pursuant to the Agreements, CGrowth is obligated to provide
  operational, on-site, and sales support in respect to the Chewelah Community Pit, a 15 acre sand and gravel pit in Colville, Washington.
  The Company shall be entitled to 51% of the net revenue, and CGrowth shall be entitled to 49% respectively. <B> </B>The Agreements
  expire on June 1, 2014, but will automatically extend for an additional year, in anticipation of a 5-year BLM extension. A copy
  of the Agreements are provided as exhibits to this Current Report.</P>
  
  
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  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On February 5, 2014,
  the Company entered into an agreement to acquire all of the assets of Scorpex, Inc., a Nevada corporation, in exchange for 105,000,000
  shares of Common Stock. We are now expanding our business to further develop our operations as a development stage waste disposal
  and recycling company, with the goal of storing and disposing all types of waste, including those classified as industrial, toxic,
  and hazardous. With the acquisition of the Scorpex assets, the Company has a business model to capitalize on the opportunities
  available in the integrated waste, and waste management services sector primarily in Mexico.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Waste Disposal Plan of Operations</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We are a development
  stage company with no history of operations. As a result of the Acquisition of the Scorpex assets, the Company intends to further
  capitalize on opportunities in its integrated waste, and waste management service operations, including the receiving, storage,
  transfer and disposal in an environmental manner. In providing these services, we intend to actively pursue projects and initiatives
  that we believe make a positive difference for our environment which will be focused on gasification of waste in an environmental
  manner. It is expected that our customer base will include commercial, industrial, municipal and residential customers, other waste
  management companies, electric utilities, and governmental entity properties. We are a development stage company and have not realized
  any revenues. We do not have sufficient capital to enable us to commence and complete our exploration program. We will require
  additional financing in order to conduct the exploration programs described herein. Our auditors have issued a going concern opinion,
  raising substantial doubt about the Company&rsquo;s financial prospects and the Company&rsquo;s ability to continue as a going
  concern.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Waste management
  and collection involves picking up and transporting waste from where it was generated to our planned gasification facilities. We
  intend to sub-contract our collection services. Waste is defined as nonhazardous waste sent off-site for final disposal through
  gasification including household waste, commercial, business or institutional waste, construction and demolition debris, regulated
  medical waste, yard waste, sludge, scrap tires and hazardous waste.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Waste Gasification/Thermal
  Oxidation Plant, where we intend to convert waste to ash, is a two-stage waste combustion process that converts combustible organic
  matter from its existing solid, sludge or liquid state into a gas under an oxygen depleted environment (also known as &ldquo;oxidation&rdquo;).
  The resulting gas product is then well mixed with ambient air before being burnt off in a secondary gas-processing unit.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The technology reverts
  any man made or organic waste product back to its natural state, which is inert ash or breathable air. The technology is capable
  of handling community solid waste content and biosolids including medical waste, tires, plastics, wood waste, oily waste, furniture
  and other organic or man-made compounds found in municipal or industrial waste.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The intended plant
  is comprised of three basic components: a Primary Gasification Cell, a Secondary Gas Processor, and a computerized Process Logic
  Controller. Combustible waste material is placed into the primary gasification cell through the load access door. In some facilities
  this can be done via a loading conveyor. The proposed design is to have collection vehicles dump their waste load directly into
  the primary oxidation cell. None of these components have been built on the property.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Primary Cell can be either a batch
  or continuous feed processor. Based on our research, batch processing provides the most efficient and cost effective strategy for
  the waste management solution. In the case of batch processing once the cell has received that days collected waste, the door is
  closed and the process is initiated. The cell does not have to be full for the system to be activated.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">An operator is responsible
  for supervising the loading of waste material, and initiating the process startup. A computer keystroke (or optional manual button
  and lever control) which pre-heats the secondary gas-processing unit accomplishes this start-up. Once that unit reaches its pre-set
  temperature, the primary gasification cell heater is activated, and the process begins. Approximately 8 to 12 hours later, the
  organic wastes in the primary cell will have been converted to a gas, and the cycle will generally be complete. The system will
  move to its &ldquo;cool down&rdquo; mode. In another 4-6 hours, the system may be re-loaded, and another process started, with
  or without the removal of the preceding load&rsquo;s ash material.</P>
  
  
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  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Residual materials
  (bottles, cans, ash and misc.) need only to be removed periodically. The composition of MSW consists mainly of organic and combustible
  waste. Glass and metals are easily extracted in our plant design as it includes equipment that will assist in the process and cut
  down on labor man-hours. Ash removal is either an automated or manual process. In automated unloading, the base of the primary
  gasification cell contains a ductile iron furnace floor conveyor that evacuates material remaining in the base of the unit through
  a side access door. This dry waste material empties into a storage bin, which can be removed to another location for recycling.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Aluminum, metal
  and glass can be completely recovered. Emissions may be captured and used as a nonfossil fuel source for various &ldquo;on site&rdquo;
  processes.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Our intention is
  to take the ash that is left over from our disposal process and create a brick out of the residue. The machines that will be used,
  through 60 thousand pounds of pressure, will create this brick that can then be donated back to any municipality for various uses.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We intend to provide
  our services under two types of agreements:</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">For commercial and industrial collection services, we intend to enter
  a multi-year service agreement. The fees under these agreements will be influenced by factors such as collection frequency, type
  and volume or weight of the waste collected, distance to our facility, labor costs, cost of gasification and general market factors.</FONT></TD></TR></TABLE>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">For most residential collection services, we will have a contract
  with, or a franchise granted by, a municipality, homeowners&rsquo; association or some other regional authority that will give
  us the exclusive right to service all or a portion of the homes in an area. These contracts or franchises are typically for periods
  of one to five years. We expect the fees for residential collection to be either paid by the municipality or authority from their
  tax revenues or service charges, or are paid directly by the residents receiving the service.</FONT></TD></TR></TABLE>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">With its current
  assets, and without further financing, our auditor has expressed substantial doubt as to our ability to continue as a Going Concern.
  However, the Company plans to raise the capital necessary to fund our business through a private placement and public offering
  of our common stock.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Because the company
  has incurred losses, income tax expenses are immaterial. No tax benefits have been booked related to operating loss carry-forwards,
  given the uncertainty of the Company being able to utilize such loss carry-forwards in future years. The Company anticipates incurring
  additional losses during the coming year.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Market</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We believe that
  the $55 billion US waste management industry will play a substantial role in the coming economic recovery and the growth of worldwide
  trade as traditional waste conversion, as well as the more technical methods such as gasification, plasma arc gasification, hydrolysis,
  and pyrolysis become cheaper and more efficient. In a world where in 2011 alone, the world&rsquo;s rapidly increasing urban population
  generated nearly 2 billion tons of municipal solid waste (&ldquo;MSW&rdquo;), it is no longer sufficient to discard trash. It is
  estimated that this number will rise to at least 2.9 billion tons by 2022. Today, more than 800 thermal waste-to-energy (&ldquo;WTE&rdquo;)
  plants operate in nearly 40 countries around the globe. Led by Asia-Pacific and Europe, this number is expected to grow rapidly
  over the next decade, potentially treating 396 million tons of MSW annually by 2022 with an estimated output of 151 terawatt hours
  (TWh) of electricity. Of the municipal solid waste generated, 33 percent was recycled in 2011, up from 32 percent in 2010.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></P>
  
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  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Competition</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The solid waste
  industry is very competitive. Competition comes from a number of publicly held solid waste companies, private solid waste companies,
  large commercial and industrial companies handling their own waste collection or disposal operations and public and private waste-to-energy
  companies. We also have competition from municipalities and regional government authorities with respect to residential and commercial
  solid waste collection and solid waste landfills.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Operating costs,
  disposal costs and collection fees vary widely throughout Mexico. The prices that we intend to charge will be determined locally,
  and typically vary by the volume and weight, type of waste collected, treatment requirements, risk of handling or disposal, frequency
  of collections, distance to final disposal sites, labor costs and amount and type of equipment furnished to the customer. We will
  face intense competition in our core business based on pricing and quality of service. However, we believe that we can distinguish
  the Company from our competition by providing precise accounting, exceptional customer service, comprehensive tax management, and
  competitive pricing. While we intend to offer some customers credit terms, in most cases the credit lines will be secured by corporate
  or personal guarantees, deposits, letters of credit or other bank instruments, and liens.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Chewelah Community Sand and Gravel
  Pit</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Overview </B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Chewelah Community
  Pit is a 15 acre sand and gravel pit in Colville, Washington, that supplies aggregate materials for concrete products and related
  products such as asphalt paving mix, and paving and related construction services to the U.S. construction industry, including
  public infrastructure projects, as well as private residential and non-residential construction.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Chewelah Community
  Pit (&ldquo;Chewelah&rdquo;) was established in 2008. The Company along with its joint-venture partner CGrowth Capital (&ldquo;CGrowth&rdquo;),
  acquired Chewelah in July 2013, as a result of a joint-venture between the Company and CGrowth Capital. According to the terms
  of the joint-venture, the Company made two payments in the aggregate of $350,000, and the Company shall be entitled to 51% of the
  net revenue, and CGrowth shall be entitled to 49% respectively. The Agreements expire on June 1, 2014, but will automatically extend
  for an additional year, in anticipation of a 5-year BLM extension.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Our products are
  generally delivered upon receipt of orders or requests from customers. Accordingly, the backlog associated with external product
  sales is converted into revenue within a relatively short period of time. Inventory for products is generally maintained in sufficient
  quantities to meet rapid delivery requirements of customers.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Aggregates are key
  material components used in the production of asphalt paving mixes and concrete for the public infrastructure, highway, commercial
  and residential construction markets and are also widely used for various applications and products, such as road and building
  foundations, railroad ballast, erosion control, filtration, roofing granules and in solutions for snow and ice control. Generally
  extracted from the earth using surface or underground mining methods, aggregates are produced from natural deposits of various
  materials such as limestone, sand and gravel, granite and trap rock. Once extracted, processed and graded, aggregates are supplied
  directly to their end use or incorporated for further processing into construction materials, such as cement, asphalt paving mix,
  and ready mixed concrete.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">According to the
  February 2013 U.S. Geological Survey, approximately 1.28 billion tons of crushed stone with a value of approximately $11.5 billion
  was produced in the United States in 2012, in line with 1.28 billion tons in 2011. Sand and gravel production was approximately
  907 million tons in 2012 valued at approximately $6.25 billion, up from 894 million tons in 2011. The U.S. aggregate industry is
  highly fragmented relative to other building product markets, with numerous participants operating in localized markets and the
  top six players controlling approximately 30% of the national market in 2011. In January 2013, the USGS reported that a total of
  1,550 companies operating 4,000 quarries and 91 underground mines produced or sold crushed stone in 2012 in the United States.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Transportation cost
  is a major variable in determining aggregate pricing and marketing radius. The cost of transporting aggregate products from the
  plant to the market often equates to or exceeds the sale price of the product at the plant. As a result of the high transportation
  costs and the large quantities of bulk material that have to be shipped, finished products are typically marketed locally.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">&nbsp;</P>
  
  
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  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify; text-indent: 0.5in">We believe
  that the long-term growth of the market for aggregates is largely driven by growth in population, jobs and households, which impact
  transportation infrastructure spending and changes in population density. In the past few years, the recession in the United States
  has led to a decrease in overall private construction activity. Despite the increase in federal stimulus spending, public construction
  activity has also declined over this period, albeit less than private construction markets. In fact, through the prior three U.S.
  recessions (July 1990 through March 1991, March 2001 through November 2001 and December 2007 through June 2009), highway spending
  in real dollars grew 1.8% annually on average in years with a recession as compared to 0.9% annually on average in years without
  a recession. While short-term demand for aggregates fluctuates with economic cycles, the declines have historically been followed
  by strong recovery, with each peak establishing a new historical high.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">A significant portion
  of annual demand for aggregates is derived from large public infrastructure and highway construction projects. According to the
  Montana Contractors&rsquo; Association, approximately 38,000 tons of aggregate are required to construct a one mile stretch of
  a typical four-lane interstate highway. Highways located in markets with significant seasonal temperature variances are particularly
  vulnerable to freeze-thaw conditions that exert excessive stress on pavement and leads to more rapid surface degradation. Surface
  maintenance repairs, as well as general highway construction, occur in the warmer months, resulting in a majority of aggregates
  production and sales in the eight months from April through November in these markets.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 24.45pt; text-align: justify; text-indent: 11.55pt"><B><I>Our
  Aggregate Operations </I></B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 24.45pt; text-align: justify; text-indent: 11.55pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 24.45pt; text-align: justify; text-indent: 11.55pt"><I>Aggregate
  Products </I></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 24.45pt; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We mine limestone,
  sand, and gravel, and other natural resources from our quarry. Aggregates are produced mainly from blasting hard rock from quarries
  and then crushing and screening it to various sizes to meet our customers&rsquo; needs. The production of aggregates also involves
  the extraction of sand and gravel, which requires less crushing, but still requires screening for different sizes. Aggregate production
  utilizes capital intensive heavy equipment which includes the use of loaders, large haul trucks, crushers, screens and other heavy
  equipment at quarries.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Once extracted,
  the minerals are processed and/or crushed on site into crushed stone, concrete and masonry sand, specialized sand, pulverized lime
  or agricultural lime. The minerals are processed to meet customer specifications or to meet industry standard sizes. Crushed stone
  is used primarily in ready mixed concrete, asphalt paving mix, and the construction of road base for highways.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 24.45pt; text-align: justify; text-indent: 11.55pt"><I>Aggregate
  Competition </I></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 24.45pt; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The U.S. aggregate
  industry is highly fragmented with numerous participants operating in localized markets. The January 2013 USGS reported that a
  total of 1,550 companies operating 4,000 quarries and 91 underground mines produced or sold crushed stone in 2012 in the United
  States. This fragmentation is a result of the cost of transporting aggregates, which typically limits producers to a market area
  within approximately 40 miles of their production facilities.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We believe we have
  a strong competitive advantage in aggregates through our superior reserves, and high quality. We further share and implement best
  practices relating to strategy, sales and marketing, production, safety, and environmental and land management. As a result of
  our local market knowledge, we have a strong understanding of the needs of most of our aggregates customers.</P>
  
  <P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0; text-align: justify; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Seasonality </B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">Use and consumption
  of our products fluctuate due to seasonality. Nearly all of the products used by us, and by our customers, in the public or private
  construction industry are used outdoors. Therefore, season changes and other weather-related conditions, in particular extended
  rainy and cold weather in the spring and fall and major weather events, such as hurricanes, tropical storms and heavy snows, can
  adversely affect our business and operations through a decline in both the use of our products and demand for our services. In
  addition, the construction materials business production and shipment levels follow activity in the construction industry, which</P>
  
  
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  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">typically occurs in the spring, summer
  and fall. Warmer and drier weather during the second and third quarters of our fiscal year typically result in higher activity
  and revenue levels during those quarters. The first quarter of our fiscal year has typically lower levels of activity due to weather
  conditions.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Compliance with Government Regulation
  </B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We will be required
  to conduct all mineral exploration and waste disposal activities in accordance with government regulations. Such operations are
  subject to various laws governing land use, the protection of the environment, production, exports, taxes, labor standards, occupational
  health, waste disposal, toxic substances, safety and other matters. Unfavorable amendments to current laws, regulations and permits
  governing operations and activities of resource exploration companies, or more stringent implementation thereof, could have a materially
  adverse impact and cause increases in capital expenditures which could result in a cessation of operations.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Employees</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">As of December 31,
  2013, we had approximately 10 employees/independent contractors including a manager / attorney, consultant, and property security.
  We used the services of various contract personnel from time to time. Although national unemployment rates remain high relative
  to historical averages, there exists a significant amount of competition for skilled personnel in the waste management and waste
  conversion industry. Nevertheless, we expect to be able to attract and retain such additional employees as are necessary, commensurate
  with the anticipated future expansion of our business resulting from future acquisitions and joint ventures. Further, we expect
  to continue to use consultants, contract labor, attorneys and accountants as necessary.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Available Information</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">JPX Global, Inc.
  is subject to the information requirements of the Securities Exchange Act of 1934, as amended, and in accordance therewith files
  quarterly and annual reports, as well as other information with the Securities and Exchange Commission (&ldquo;Commission&rdquo;)
  under File No. 000-54793. Such reports and other information filed with the Commission can be inspected and copied at the public
  reference facilities maintained by the Commission at 450 Fifth Street, N.W., Washington, D.C. 20549 at prescribed rates, and at
  various regional and district offices maintained by the Commission throughout the United States. Information about the operation
  of the Commission&rsquo;s public reference facilities may be obtained by calling the Commission at 1-800-SEC-0330. The Commission
  also maintains a website at <I>http://www.sec.gov</I> that contains reports and other information regarding the Company and other
  registrants that file electronic reports and information with the Commission.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  
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  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>RISK FACTORS</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><I>An investment in our Common Stock
  involves a high degree of risk. You should carefully consider the risks described below, together with all of the other information
  included in this Report, before making an investment decision. If any of the following risks actually occur, our business, financial
  condition or results of operations could suffer. In that case, the trading price of our shares of Common Stock could decline, and
  you may lose all or part of your investment. You should read the section entitled &ldquo;Special Note Regarding Forward Looking
  Statements&rdquo; above for a discussion of what types of statements are forward-looking statements, as well as the significance
  of such statements in the context of this Report.</I></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="background-color: white"><B>Risks
  Related to Our Business</B></FONT></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="background-color: white"><B>&nbsp;</B></FONT></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white"><B><I>We
  have a limited operating history that you can use to evaluate us, and the likelihood of our success must be considered in light
  of the problems, expenses, difficulties, complications and delays frequently encountered by a small developing company.</I></B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">We
  were incorporated in Nevada in December 2008. As a small company, we face all of the risks commonly encountered by new businesses,
  including the lack of an established operating history, need for additional capital and personnel, and intense competition. We
  cannot assure you that our business plan will be successful.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B><I>We are dependent
  upon receipt of additional working capital to fund our business plan.</I></B> Our working capital at February 5, 2014 was insufficient
  to fund our business plan. We will require additional capital to continue our business operations. We will need to obtain additional
  financing from outside sources within the next 12 months in order to continue to fund our business needs. There is no assurance
  that funds will be available from any source or, if available, that they can be obtained on terms acceptable to us. If we are unsuccessful
  in addressing these needs, we may cease our business activities. As a result, investors may lose all or a part of their investment.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B><I>Governmental laws
  and regulations may add to our costs or limit our activities. Our operations are affected from time to time in varying degrees
  by governmental laws and regulations.</I></B> We may be required to make significant capital expenditures to comply with governmental
  laws and regulations. It is also possible that these laws and regulations may in the future add significantly to our operating
  costs or may significantly limit our activities.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B><I>Competition is intense,
  and we have limited financial and personnel resources with which to compete.</I></B> We expect to be at a disadvantage when competing
  with many firms that have substantially greater financial and management resources and capabilities.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B><I>Our operations and
  resources are not diversified.</I></B> Our limited financial resources limit our ability to diversify our operations. The inability
  to diversify activities into more than one area will subject us to economic fluctuations within a particular business or industry
  and therefore increase the risks associated with our operations.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B><I>We depend heavily
  upon our management. </I></B>We are heavily dependent upon the skills, talents, and abilities of our management team to implement
  our business plan. The loss of the services of our sole executive officer would have a material adverse effect upon our business
  and financial condition.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B><I>We depend heavily
  upon outside advisors.</I></B> To supplement the business experience of our employees, we employ accountants, technical experts,
  appraisers, attorneys, or other consultants or advisors. The selection of any such advisors will be made by us without any input
  from stockholders. Furthermore, it is anticipated that such persons may be engaged on an &ldquo;as needed&rdquo; basis without
  a continuing fiduciary or other obligation to us or the shareholders. In the event we consider it necessary to hire outside advisors,
  we may elect to hire persons who are affiliates, if they are able to provide the required services.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B><I>We provide for indemnification
  of officers and directors. </I></B>Nevada corporation law provides for the indemnification of directors, officers, employees, and
  agents, under certain circumstances, against attorney&rsquo;s fees and other expenses incurred by them in any litigation to which
  they become a party from their association with or activities on our behalf. We will also bear the expenses of such litigation
  for any of our directors, officers</P>
  
  
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  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">employees, or agents, upon such person&rsquo;s
  promise to repay the Company therefore if it is ultimately determined that any such person shall not have been entitled to indemnification.
  This indemnification policy could result in substantial expenditures by us. &#9;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B><I>The liability of
  our directors and officers is limited. </I></B>Nevada's corporation&rsquo;s law excludes personal liability of directors and officers
  for monetary damages for breach of fiduciary duty except in certain specified circumstances. Accordingly, we will have a much more
  limited right of action against our directors and officers than otherwise would be the case. This provision does not affect the
  liability of any directors or officers under federal of applicable state securities laws.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B><I>Our business is speculative.</I></B>
  The solid waste industry is extremely competitive and the commercial success of any venture is often dependent on factors beyond
  the control of the Company. The Company may incur uninsured losses for liabilities which arise in the ordinary course of business,
  or which are unforeseen, including but not limited to copyright infringement, product liability, and employment liability. We cannot
  assure you that you will not lose your entire investment in the Company.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="background-color: white"><B>Risks
  Related to Ownership of Our Common Stock</B></FONT></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>Though our common stock is quoted
  on the OTCQB, there is no liquidity and no established public market for our common stock, which means that it will be difficult
  to sell your shares.</I></B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><I>&nbsp;</I></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Our common stock
  is quoted on the OTCQB under the symbol &ldquo;JPEX&rdquo;. There is, however, presently no active public market in our shares.
  We cannot assure you that such an active market for our common stock will develop. The over-the-counter market is a significantly
  more limited market than established trading markets such as the New York Stock Exchange or Nasdaq. Broker dealers may not be willing
  to make a market in our shares. In addition, the OTCQB and similar quotation services are often characterized by low trading volumes,
  and price volatility, which may make it difficult for an investor to sell our common stock on acceptable terms.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>Our common stock is subject to
  the &ldquo;penny stock&rdquo; rules of the SEC and the trading market in our securities is limited, which makes transactions in
  our stock cumbersome and may reduce the value of an investment in our stock.</I></B><I> </I></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><I>&nbsp;</I></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Under U.S. federal
  securities legislation, our common stock will constitute &ldquo;penny stock&rdquo;. Penny stock is any equity security that has
  a market price of less than $5.00 per share, subject to certain exceptions. For any transaction involving a penny stock, unless
  exempt, the rules require that a broker or dealer approve a potential investor&rsquo;s account for transactions in penny stocks,
  and the broker or dealer receive from the investor a written agreement to the transaction, setting forth the identity and quantity
  of the penny stock to be purchased. In order to approve an investor&rsquo;s account for transactions in penny stocks, the broker
  or dealer must obtain financial information and investment experience objectives of the person, and make a reasonable determination
  that the transactions in penny stocks are suitable for that person and the person has sufficient knowledge and experience in financial
  matters to be capable of evaluating the risks of transactions in penny stocks. The broker or dealer must also deliver, prior to
  any transaction in a penny stock, a disclosure schedule prepared by the SEC relating to the penny stock market, which, in highlight
  form sets forth the basis on which the broker or dealer made the suitability determination. Brokers may be less willing to execute
  transactions in securities subject to the &ldquo;penny stock&rdquo; rules. This may make it more difficult for investors to dispose
  of our common stock and cause a decline in the market value of our stock. Disclosure also has to be made about the risks of investing
  in penny stocks in both public offerings and in secondary trading and about the commissions payable to both the broker-dealer and
  the registered representative, current quotations for the securities and the rights and remedies available to an investor in cases
  of fraud in penny stock transactions. Finally, monthly statements have to be sent disclosing recent price information for the penny
  stock held in the account and information on the limited market in penny stocks.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><I>&nbsp;</I></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>Because we do not intend to pay
  any cash dividends on our common stock, our stockholders will not be able to receive a return on their shares unless they sell
  them.</I></B><I> </I></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  
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  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We have never paid
  a dividend and we intend to retain any future earnings to finance the development and expansion of our business. Consequently,
  we do not anticipate paying any cash dividends on our common stock in the foreseeable future. Unless we pay dividends, our stockholders
  will not be able to receive a return on their shares unless they sell them. We cannot assure you that stockholders will be able
  to sell shares when desired.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><B><I>Future
  issuance of our Common Stock could dilute the interests of existing shareholders.</I></B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">We
  may issue additional shares of our Common Stock in the future. The issuance of a substantial amount of Common Stock could have
  the effect of substantially diluting the interests of our shareholders. In addition, the sale of a substantial amount of Common
  Stock in the public market, either in the initial issuance or in a subsequent resale by the target company in an acquisition which
  received such Common Stock as consideration or by investors who acquired such Common Stock in a private placement could have an
  adverse affect on the market price of our Common Stock.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>
  
  <P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">If we are unable to establish appropriate
  internal financial reporting controls and procedures, it could cause us to fail to meet our reporting obligations, result in the
  restatement of our financial statements, harm our operating results, subject us to regulatory scrutiny and sanction, cause investors
  to lose confidence in our reported financial information and have a negative effect on the market price for shares of our Common
  Stock.</P>
  
  <P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Effective internal controls
  are necessary for us to provide reliable financial reports and to effectively prevent fraud. We maintain a system of internal control
  over financial reporting, which is defined as a process designed by, or under the supervision of our principal executive officer
  and principal financial officer, or persons performing similar functions, and effected by our board of directors, management and
  other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial
  statements for external purposes in accordance with generally accepted accounting principles.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 27.35pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">As a public company that
  files reports under the Exchange Act, we have significant additional requirements for enhanced financial reporting and internal
  controls. We are required to document and test our internal control procedures in order to satisfy the requirements of Section
  404 of the Sarbanes-Oxley Act of 2002, which requires annual management assessments of the effectiveness of our internal controls
  over financial reporting. The process of designing and implementing effective internal controls is a continuous effort that requires
  us to anticipate and react to changes in our business and the economic and regulatory environments and to expend significant resources
  to maintain a system of internal controls that is adequate to satisfy our reporting obligations as a public company under the Exchange
  Act.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 27.35pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We cannot assure you that
  we will not, in the future, identify areas requiring improvement in our internal control over financial reporting. We cannot assure
  you that the measures we will take to remediate any areas in need of improvement will be successful or that we will implement and
  maintain adequate controls over our financial processes and reporting in the future as we continue our growth. If we are unable
  to establish appropriate internal financial reporting controls and procedures, it could cause us to fail to meet our reporting
  obligations, result in the restatement of our financial statements, harm our operating results, subject us to regulatory scrutiny
  and sanction, cause investors to lose confidence in our reported financial information and have a negative effect on the market
  price for shares of our Common Stock.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>Lack of experience as officers of publicly-traded
  companies of our management team may hinder our ability to comply with Sarbanes-Oxley Act.</I></B></P>
  
  <P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">It may be time consuming,
  difficult and costly for us to develop and implement the internal controls and reporting procedures required by the Sarbanes-Oxley
  Act. We may need to hire additional financial reporting, internal controls and other finance staff or consultants in order to develop
  and implement appropriate internal controls and reporting procedures.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  
  <!-- Field: Page; Sequence: 11 -->
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  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>
  
  <P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Following
  the </FONT>Acquisition<FONT STYLE="font-family: Times New Roman, Times, Serif">, public company compliance may make it more difficult
  to attract and retain officers and directors.</FONT></P>
  
  <P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Sarbanes-Oxley
  Act and rules subsequently implemented by the SEC have required changes in corporate governance practices of public companies that
  file reports under the Exchange Act. As a public reporting company, we expect these rules and regulations to continue to increase
  our compliance costs and to make certain activities more time consuming and costly. As a public company, these rules and regulations
  may make it more difficult and expensive for us to obtain director and officer liability insurance at commercially acceptable rates
  and we may therefore be required to accept reduced policy limits and coverage or incur substantially higher costs to obtain the
  same or similar coverage. As a result, it may be more difficult for us to attract and retain qualified persons to serve on our
  board of directors or as executive officers.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Because our directors and executive
  officers are among our largest shareholders, they can exert significant control over our business and affairs and have actual or
  potential interests that may depart from those our other shareholders.</P>
  
  <P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Calibri, Helvetica, Sans-Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Our
  directors and executive officers will own or control a significant percentage of the Common Stock following the </FONT>Acquisition<FONT STYLE="font-family: Times New Roman, Times, Serif">.
  The interests of such persons may differ from the interests of our other shareholders. As a result, in addition to their board
  seats and offices, such persons will have significant influence over and control all corporate actions requiring shareholder approval,
  irrespective of how the Company&rsquo;s other shareholders, including participants in the Acquisition, may vote, including the
  following actions:</FONT></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font: 10pt Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">to elect or defeat the election of our directors;</FONT></TD></TR></TABLE>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font: 10pt Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">to amend or prevent amendment of our Articles of Incorporation or
  By-laws;</FONT></TD></TR></TABLE>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font: 10pt Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">to effect or prevent a merger, sale of assets or other corporate
  transaction; and</FONT></TD></TR></TABLE>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font: 10pt Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">to control the outcome of any other matter submitted to our shareholders
  for vote.</FONT></TD></TR></TABLE>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Such persons&rsquo; stock ownership
  may discourage a potential acquirer from making a tender offer or otherwise attempting to obtain control of the Company, which
  in turn could reduce our stock price or prevent our shareholders from realizing a premium over our stock price.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">FINANCIAL INFORMATION</P>
  
  <P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>
  
  <P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">MANAGEMENT&rsquo;S DISCUSSION AND ANALYSIS
  OF OPERATIONS</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="background-color: white"><I>&nbsp;</I></FONT></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="background-color: white"><I>The
  following discussion and analysis of the results of operations and financial condition should be read in conjunction with our financial
  statements and the notes to those financial statements that are attached as Exhibit 99.1 to this Report. </I></FONT><I>The Financial
  Statements should not be relied on for an understanding of the current financial status of the Company.</I></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="background-color: white"><I>&nbsp;</I></FONT></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Overview</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On February 5, 2014,
  the Company entered into an agreement to acquire all of the assets of Scorpex, Inc., a Nevada corporation, in exchange for 105,000,000
  shares of Common Stock. We are now expanding our business to further develop our operations to capitalize on the opportunities
  available primarily in Mexico, in the integrated waste, and waste management service operations, including the receiving, storage,
  transfer and disposal of waste in an environmental manner. In providing these services, we intend to actively pursue projects and
  initiatives that we believe make a positive difference for our environment which will be focused on gasification of waste in an
  environmental manner. It is expected that our customer base will include commercial, industrial, municipal and residential customers,
  other waste management companies, electric utilities, and governmental entity properties. We are an exploration stage company and
  we have not realized any revenues to date. We do not have sufficient capital</P>
  
  
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  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">to enable us to commence and complete
  our exploration program. We will require additional financing in order to conduct the exploration program described herein.&quot;
  Our auditors have issued a going concern opinion, raising substantial doubt about the Company's financial prospects, and the Company&rsquo;s
  ability to continue as a going concern. As a waste management company, our principal sources of revenue will result from waste
  management contracts, but will also include revenue from ancillary services related to the handling and conversion of waste. Expenses
  which comprise the costs of goods sold include the operational and staffing costs of the trucks and other vehicles used for transporting
  and special licensing where required. General and administrative expenses have been comprised of administrative wages and benefits;
  occupancy and office expenses; outside legal, accounting and other professional fees; travel and other miscellaneous office and
  administrative expenses. Selling and marketing expenses include selling/marketing wages and benefits, advertising and promotional
  expenses, as well as travel and other miscellaneous related expenses.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Because we have
  incurred losses, income tax expenses are immaterial. No tax benefits have been booked related to operating loss carryforwards,
  given our uncertainty of being able to utilize such loss carryforwards in future years. We anticipate incurring additional losses
  during the coming year.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Results of Operations</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Following is management&rsquo;s
  discussion of the relevant items affecting results of operations for the years ended December 31, 2013 and 2012.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><I>Revenues</I>. The Company
  generated net revenues of $14,502 during the year ended December 31, 2013 as compared to $-0- for the year ended December 31, 2012.
  The revenues were generated from sand and gravel excavation per the joint venture as previously described. The joint venture commenced
  operations during the quarter ended September 30, 2013.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><I>Consulting Fees</I>.
  Consulting fees for the year ended December 31, 2013 were $2,541,783 compared to $-0- for the year ended December 31, 2012. During
  the year ended December 31, 2013 the Company issued 2,033,380 shares of common stock for services rendered to the Company. The
  shares were valued at $1.25 per share for financial statement purposes.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><I>Professional Fees.</I>
  Professional fees for the year ended December 31, 2013 were $44,765 compared to $44,557 for the year ended December 31, 2012. Professional
  fees consist mainly of the fees for the audits and review of the Company&rsquo;s financial statements as well as the filings with
  the SEC. We anticipate that professional fees will increase in future periods as we scale up our operations.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><I>Other General and Administrative
  Expenses.</I> Other general and administrative expenses for the year ended December 31, 2013 were $33,854 compared to $-0- for
  the year ended December 31, 2012. The Company expects other general and administrative expenses to increase in future periods as
  we scale up our operations.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><I>&nbsp;</I></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><I>Other Income (Expense).</I>
  The Company had net other expenses of $26,370 for the year ended December 31, 2013 compared to $-0- during 2012. Other expenses
  consist of interest expenses and debt discount expenses related to promissory notes issued by the Company.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Liquidity and Capital Resources</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">As of December 31, 2013,
  the Company&rsquo;s primary source of liquidity consisted of $972 in cash and cash equivalents. The Company holds its cash reserves
  In trust account. Since inception, the Company has financed its operations through a combination of short -term loan from the founder
  and through the private placement of its common stock.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Company has sustained
  significant net losses which have resulted in an accumulated deficit at December 31, 2013 of $2.721.694 and is currently experiencing
  a substantial shortfall in operating capital which raises doubt about the Company&rsquo;s ability to continue as a going concern.
  The Company generated a net loss for the year ended December 31, 2013 of $2,640,116 compared to a net loss for the year ended December
  31, 2012 of</P>
  
  
  <!-- Field: Page; Sequence: 13 -->
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  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">$44,557. Without additional revenues, working
  capital loans, or equity investment, there is substantial doubt as to our ability to continue operations.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We believe these conditions
  have resulted from the inherent risks associated with small public companies. Such risks include, but are not limited to, the ability
  to (i) generate revenues and sales of our products and services at levels sufficient to cover our costs and provide a return for
  investors, (ii) attract additional capital in order to finance growth, and (iii) successfully compete with other comparable companies
  having financial, production and marketing resources significantly greater than those of the Company.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We believe that our capital
  resources are insufficient for ongoing operations, with minimal current cash reserves, particularly given the resources necessary
  to expand our waste management business. We will likely require considerable amounts of financing to make any significant advancement
  in our business strategy. There is presently no agreement in place that will guarantee financing for our Company, and we cannot
  assure you that we will be able to raise any additional funds, or that such funds will be available on acceptable terms. Funds
  raised through future equity financing will likely be substantially dilutive to current shareholders. Lack of additional funds
  will materially affect our Company and our business, and may cause us to substantially curtail or even cease operations. Consequently,
  you could incur a loss of your entire investment in the Company.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Off-Balance Sheet Arrangements</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We do not have any off-balance
  sheet arrangements.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Critical Accounting Policies</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We believe the following
  critical accounting policies are used in the preparation of our financial statements:</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><I>Use of Estimates.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</I>The
  preparation of financial statements in conformity with accounting principles generally accepted in the United States of America
  requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying
  notes. Actual results could differ from those estimates. On a periodic basis, management reviews those estimates, including those
  related to valuation allowances, loss contingencies, income taxes, and projection of future cash flows.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><I>Research and
  Development.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</I>Research and development costs are charged to operations when incurred and are included
  in operating expenses.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Recent Accounting Pronouncements</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">See Note 1 in the
  Notes to the Financial Statements for recent accounting pronouncements.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">There were various
  other accounting standards and interpretations recently issued, none of which are expected to a have a material impact on the Company's
  financial position, operations or cash flows.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Forward-Looking Statements</B>&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">This report contains
  or incorporates by reference forward-looking statements within the meaning of the United States Private Securities Litigation Reform
  Act of 1995 concerning our future business plans and strategies, the receipt of working capital, future revenues and other statements
  that are not historical in nature. In this report, forward-looking statements are often identified by the words &ldquo;anticipate,&rdquo;
  &ldquo;plan,&rdquo; &ldquo;believe,&rdquo; &ldquo;expect,&rdquo; &ldquo;estimate,&rdquo; and the like. These forward-looking statements
  reflect our current beliefs, expectations and opinions with respect to future events, and involve future risks and uncertainties
  which could cause actual results to differ materially from those expressed or implied.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  
  <!-- Field: Page; Sequence: 14 -->
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  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Other uncertainties
  that could affect the accuracy of forward-looking statements include:</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify; text-indent: 27pt">&bull;&#9;the
  worldwide economic situation;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 27pt">&bull;&#9;any changes
  in interest rates or inflation;</P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 27pt"></TD><TD STYLE="width: 22.5pt"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">the willingness and ability of third parties to honor their contractual
  commitments; </FONT></TD></TR></TABLE>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 27pt"></TD><TD STYLE="width: 22.5pt"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">our ability to raise additional capital, as it may be affected by
  current conditions in the &nbsp;stock market and competition for risk capital; </FONT></TD></TR></TABLE>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 27pt"></TD><TD STYLE="width: 22.5pt"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">our capital expenditures, as they may be affected by delays or cost
  overruns;</FONT></TD></TR></TABLE>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 27pt"></TD><TD STYLE="width: 22.5pt"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">environmental and other regulations, as the same presently exist
  or may later be amended; </FONT></TD></TR></TABLE>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 27pt"></TD><TD STYLE="width: 22.5pt"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">our ability to identify, finance and integrate any future acquisitions;
  and </FONT></TD></TR></TABLE>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 27pt"></TD><TD STYLE="width: 22.5pt"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">the volatility of our common stock price. </FONT></TD></TR></TABLE>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">This list is not
  exhaustive of the factors that may affect any of our forward-looking statements. You should read this report completely and with
  the understanding that our actual future results may be materially different from what we expect. These forward-looking statements
  represent our beliefs, expectations and opinions only as of the date of this report. We do not intend to update these forward looking
  statements except as required by law. We qualify all of our forward-looking statements by these cautionary statements.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>QUANTITATIVE AND QUALITATIVE DISCLOSURES
  ABOUT MARKET RISK</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Not Applicable.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left"><B>PROPERTIES</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Our executive offices
  are located at 9864 E Grand River, Ste 110-301 Brighton, Michigan 48116. The office space is free of charge and no lease exists.
  There are currently no proposed programs for the renovation, improvement or development of the facilities we currently use.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
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  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  
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  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>SECURITY OWNERSHIP OF CERTAIN BENEFICIAL
  OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS.</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The following table
  sets forth the beneficial ownership of each of our directors and executive officers, and each person known to us to beneficially
  own 5% or more of the outstanding shares of our common stock, and our executive officers and directors as a group, as of December
  31, 2013. Beneficial ownership is determined in accordance with the rules of the SEC and includes voting or investment power with
  respect to the securities. Unless otherwise indicated, we believe that each beneficial owner set forth in the table has sole voting
  and investment power and has the same address as us. Our address is 9864 E Grand River, Ste 110-301 Brighton, Michigan 48116 .
  As of December 31, 2013, we had 31,975,000 shares of common stock outstanding and 1,000 shares of series A preferred stock outstanding.
  Joseph Caywood, our majority shareholder and creditor of the Company owns all of the issued and outstanding shares of series A
  preferred stock. Each of our shares of common stock holds one vote. The following table describes the ownership of our voting securities
  (i) by each of our officers and directors, (ii) all of our officers and directors as a group, and (iii) each person known to us
  to own beneficially more than 5% of our common stock or any shares of our preferred stock.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="15" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Amount and Nature of Beneficial Ownership</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="font-weight: bold; text-align: left; border-bottom: Black 1pt solid">Name</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Sole<BR> Voting and<BR> Investment<BR> Power</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Options<BR> Exercisable<BR> Within<BR> 60 Days</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Other<BR> Beneficial<BR> Ownership</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif"><b>Total<sup>(1)</sup></b></font></TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif"><b>Percent</b></font><br> <font style="font: 10pt Times New Roman, Times, Serif"><b>of Class</b></font><br> <font style="font: 10pt Times New Roman, Times, Serif"><b>Outstanding<sup>(2)</sup></b></font></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; text-indent: -11.4pt; padding-left: 11.4pt"><font style="font: 10pt Times New Roman, Times, Serif">James P. Foran<b><sup>(3)</sup></b></font></TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">*</font></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="width: 35%; text-align: left; padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif">Joseph Caywood<b><sup>(4)</sup></b></font></TD><TD STYLE="width: 2%; padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="width: 1%; border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; border-bottom: Black 1pt solid; text-align: right">20,100,000</TD><TD STYLE="width: 1%; padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="width: 1%; border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="width: 1%; border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="width: 1%; border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; border-bottom: Black 1pt solid; text-align: right">20,100,00</TD><TD STYLE="width: 1%; padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="width: 1%; border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; border-bottom: Black 1pt solid; text-align: right">62.86</TD><TD STYLE="width: 1%; padding-bottom: 1pt; text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="font-weight: bold; text-align: left; text-indent: -11.4pt; padding-left: 11.4pt">All current directors and executive officers as a group (1 person)</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
      <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
      <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
      <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
      <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">*</font></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  </TABLE>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: left">____________________</P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">*</TD><TD STYLE="text-align: justify">Indicates less than one percent.</TD></TR></TABLE>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 9pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">(1)</TD><TD STYLE="text-align: justify">The calculation of total beneficial ownership for each person in the table above is based upon
  the number of shares of common stock beneficially owned by such person, together with any options, warrants, rights, or conversion
  privileges held by such person that are currently exercisable or exercisable within 60 days of the date of this prospectus.</TD></TR></TABLE>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 9pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">(2)</TD><TD STYLE="text-align: justify">Based on 31,975,000 shares of our common stock, par value $0.001 per share, outstanding as of February
  5, 2014. Excludes voting rights applicable to shares of our preferred stock. See footnote (4) for a discussion of the percentage
  of outstanding voting rights beneficially held when taking into account our shares of preferred stock.</TD></TR></TABLE>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 9pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">(3)</TD><TD STYLE="text-align: justify">Chief Executive Officer, Secretary, Chief Financial Officer, and sole Director of the Company.</TD></TR></TABLE>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 9pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">(4)</TD><TD STYLE="text-align: justify">Beneficial shareholder of the Company. Includes 20,100,00 shares of common stock held directly,
  but excludes 1,000 shares of preferred stock. If the votes of the 1,000 preferred stock and the shares of common stock are taken
  into account, Mr. Caywood would beneficially hold 91% of the voting securities of the Company. Following this acquisition, Mr.
  Caywood will control another 105,000,000 shares of common stock as the sole officer and director of Scorpex, Inc.</TD></TR></TABLE>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>Section&nbsp;16(a) beneficial ownership
  compliance </I></B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Under the federal securities
  laws, our directors, executive officers, and any persons beneficially owning more than ten percent of our common stock are required
  to report their ownership of our common stock and any changes in that ownership to the Company and the SEC. Specific due dates
  for these reports have been established by regulation. Based solely upon a review of reports furnished to the Company and written
  representations of certain persons, except as listed below, we believe that all of our directors and executive officers complied
  during 2012 with the reporting requirements of Section&nbsp;16(a) of the Securities Exchange Act of 1934 (the &ldquo;Exchange Act&rdquo;).</P>
  
  
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  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">To our knowledge,
  during the fiscal year ended December 31, 2012, based solely upon a review of such materials as are required by the Securities
  and Exchange Commission, no other officer, director or beneficial holder of more than ten percent of our issued and outstanding
  shares of Common Stock failed to timely file with the Securities and Exchange Commission any form or report required to be so filed
  pursuant to Section 16(a) of the Exchange Act of 1934.</P>
  
  <P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0; text-align: left">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left"><B>Changes in Control</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We are not aware
  of any person who owns of record, or is known to own beneficially, five percent or more of our outstanding securities of any class,
  other than as set forth above.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left"><B>DIRECTORS AND EXECUTIVE OFFICERS</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The following table
  sets forth the names and ages of all of our directors, executive officers and key employees; and all positions and offices held
  as of the date of this Report. The directors will hold such office until the next annual meeting of shareholders and until his
  or her successor has been elected and has qualified.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse">
  <tr style="vertical-align: top">
      <td style="width: 34%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif"><b><u>Name</u></b></font></td>
      <td style="width: 22%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif"><b><u>Age</u></b></font></td>
      <td style="width: 44%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif"><b><u>Position</u></b></font></td></tr>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
      <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">James P. Foran</font></td>
      <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">&nbsp;53</font></td>
      <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Chief Executive Officer, Secretary, Chief Financial and sole Director</font></td></tr>
  </table>
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Business Experience</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B>James P. Foran<I>,
  53, Chief Executive Officer, Secretary, Chief Financial Officer and Sole Director</I></B><I>.&nbsp; </I>Mr. Foran, age 53, is a
  director and the Chief Executive Officer for Continental Industrial Services since 1999, a company that specializes in mechanical
  installation and maintenance of water and waste treatment facilities. Mr. Foran is also the Senior Project Manager for the Detroit
  Incinerator Rehabilitation since November 2010, renovation of one of the world&rsquo;s largest incineration complex&rsquo;s. Mr.
  Foran has more than twenty years of experience at managing personnel and projects in the Heavy Civil Engineering Construction field.
  His involvement has included a diverse background in multiple management areas: establishing budgets, schedules, project management,
  mechanical process, monitoring and coordination, and extensive personnel management experience. He has experience in the design
  and construction of industrial facilities and processes for chemical and municipal customers. Mr. Foran has a Juris Doctorate degree
  from the University of Detroit School of Law, and a Bachelor's degree in English Literature and Communications. Mr. Foran is currently
  licensed to practice law in Michigan.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Committees</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The board of directors
  has no standing committees. However, the Company intends to implement a comprehensive corporate governance program, including establishing
  various board committees and adopting a Code of Ethics in the future. In addition, the Company intends to secure Directors and
  Officers insurance consistent with the Company&rsquo;s and Board of Director&rsquo;s mandates.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  
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  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-right: 0; margin-left: 0"><B>EXECUTIVE COMPENSATION</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The following table summarizes
  the total compensation for the two fiscal years ended December 31, 2011 and 2012 of each person who served as our principal executive
  officer or principal financial and accounting officer collectively, (the &ldquo;Named Executive Officers&rdquo;) including any
  other executive officer who received more than $100,000 in annual compensation from the Company. We did not award cash bonuses,
  stock awards, stock options or non-equity incentive plan compensation to any Named Executive Officer during the two years ended
  December 31, 2011 and 2012, thus these items are omitted from the table below:</P>
  
  <P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0; text-align: left">&nbsp;</P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%; font: 10pt Calibri, Helvetica, Sans-Serif">
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD COLSPAN="21" STYLE="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center; padding-left: 2.9pt">Summary Compensation Table</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="width: 35%; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: left; padding-bottom: 1pt; padding-left: 2.9pt">&nbsp;<BR>Name and Principal Position</TD><TD STYLE="width: 2%; font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="width: 1%; border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: right"><P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: center"><b>&nbsp;</b></P><P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: center"><b>Year</b></P></TD><TD STYLE="width: 1%; padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="width: 1%; border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: right"><P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: center"><b>&nbsp;</b></P><P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: center"><b>Salary</b></P></TD><TD STYLE="width: 1%; padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="width: 1%; border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: right"><P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: center"><b>&nbsp;</b></P><P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: center"><b>Stock Awards</b></P></TD><TD STYLE="width: 1%; padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="width: 1%; border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center; vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif"><b>All Other Compensation</b></font></TD><TD STYLE="width: 1%; padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="width: 1%; border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: right"><P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: center"><b>&nbsp;</b></P><P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: center"><b>Total</b></P></TD><TD STYLE="width: 1%; padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-left: 2.9pt">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left; padding-left: 2.9pt">James P. Foran</TD><TD STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: right">2013</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left; padding-left: 10pt">Chief Executive Officer, Secretary and Chief Financial Officer</TD><TD STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: right">2012</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
  </TABLE>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">There is no other
  arrangement or understanding between our directors and officers and any other person pursuant to which any director or officer
  was or is to be selected as such.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><B>Outstanding
  Equity Awards at Fiscal Year-End</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Our Named Executive
  Officer did not have any unexercised options or stock awards that have not vested outstanding at the end of our last fiscal year.
  Other than as noted above, we did not grant any equity awards to our Named Executive Officers or directors during 2013 or 2012.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.5in"><B>Employment Agreements
  </B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Currently, none
  of our executive officers are subject to an employment agreement with the Company. Nevertheless, we do intend to enter into such
  agreements in the future.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Option Plan</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">There are no stock
  option plans or shares of Common Stock set aside for any stock option plan.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS&#9;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On February 5, 2014,
  the Company entered into an agreement to acquire all of the assets of Scorpex, Inc., a Nevada corporation, a Company controlled
  by the Company&rsquo;s controlling shareholder Joseph Caywood, in exchange for 105,000,000 shares of Common Stock.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify; text-indent: 0.5in">On January
  6, 2014, the Company issued 1,000 shares of Series A Preferred Stock as security for outstanding debts of the Company to its controlling
  shareholder Joseph Caywood. The Series A Preferred Stock has no conversion rights. On January 6, 2014, the Board of Directors of
  JPX Global, Inc. (the &ldquo;Company&rdquo;) approved a Certificate of Designation to the Company&rsquo;s Articles of Incorporation.
  The Certificate of Designation designates the following rights, preferences, privileges, and restrictions in respect to the Series
  &ldquo;A&rdquo; Preferred Stock (the &ldquo;Preferred Stock&rdquo;).</P>
  
  
  <!-- Field: Page; Sequence: 18 -->
      <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->18<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
      <DIV STYLE="page-break-before: always; margin-top: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Calibri, Helvetica, Sans-Serif">
  <tr style="vertical-align: top">
      <td style="width: 73px; padding-bottom: 10pt; text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">&nbsp;i.</font></td>
      <td style="width: 7px">&nbsp;</td>
      <td style="padding-bottom: 10pt; text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Each share of Series A Preferred Stock shall have 100,000 votes per share and shall vote together with holders of the Company's common stock on all matters upon which common stockholders may vote; and</font></td></tr>
  </table>
  <P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Calibri, Helvetica, Sans-Serif">
  <tr style="vertical-align: top">
      <td style="width: 73px; padding-bottom: 10pt; text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">ii.</font></td>
      <td style="width: 7px">&nbsp;</td>
      <td style="padding-bottom: 10pt; text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Shares of Series A Preferred Stock shall not have the right to receive dividends or distributions, and shall have no rights with respect to the liquidation of the Company; and</font></td></tr>
  </table>
  <P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Calibri, Helvetica, Sans-Serif">
  <tr style="vertical-align: top">
      <td style="width: 73px; padding-bottom: 10pt; text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">iii.</font></td>
      <td style="width: 7px">&nbsp;</td>
      <td style="padding-bottom: 10pt; text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Shares of Series A Preferred Stock shall not be convertible into shares of common stock or any other shares of capital stock of the Company, unless approved by the Board of Directors of the Company.</font></td></tr>
  </table>
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On February 15,
  2013, the Company entered into an agreement to acquire all of the assets of Scorpex, a Company controlled by the Company&rsquo;s
  controlling shareholder Joseph Caywood, in exchange for 103,250,000 shares of Common Stock and 5,000,000 shares of Series A Preferred
  Stock of the Company. Upon the acquisition of Scorpex, there was an implied option for either party to rescind the original acquisition.
  During the year that option was exercised and on May 16, 2013, we unwound the acquisition of Scorpex and resumed its operation
  prior to February 15, 2013 acquisition.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On August 17, 2011
  the Company issued 100,000 common shares at par value for services rendered.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On August 31, 2010,
  the company issued 30,000,000 private placement common shares to its founder for cash of $30,000.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left; background-color: white"><B>Director Independence</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left; background-color: white; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">Because
  our common stock is not currently listed on a national securities exchange, we have used the definition of &ldquo;independence&rdquo;
  of The NASDAQ Stock Market to make this determination. NASDAQ Listing Rule 5605(a)(2) provides that an &ldquo;independent director&rdquo;
  is a person other than an officer or employee of the Company or any other individual having a relationship which, in the opinion
  of the Company&rsquo;s board of directors, would interfere with the exercise of independent judgment in carrying out the responsibilities
  of a director. The NASDAQ listing rules provide that a director cannot be considered independent if:</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left; background-color: white; text-indent: 0.5in">&nbsp;</P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; background-color: white"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 10pt Symbol">&#183;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">the director is, or at any time during the
  past three years was, an employee of the company;</FONT></TD></TR></TABLE>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; background-color: white"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 10pt Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">the director or a family member of the director
  accepted any compensation from the company in excess of $120,000 during any period of 12 consecutive months within the three years
  preceding the independence determination (subject to certain exclusions, including, among other things, compensation for board
  or board committee service);</FONT></TD></TR></TABLE>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; background-color: white"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 10pt Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">a family member of the director is, or at
  any time during the past three years was, an executive officer of the company;</FONT></TD></TR></TABLE>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; background-color: white"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 10pt Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">the director or a family member of the director
  is a partner in, controlling stockholder of, or an executive officer of an entity to which the company made, or from which the
  company received, payments in the current or any of the past three fiscal years that exceed 5% of the recipient&rsquo;s consolidated
  gross revenue for that year or $200,000, whichever is greater (subject to certain exclusions);</FONT></TD></TR></TABLE>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; background-color: white"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 10pt Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">the director or a family member of the director
  is employed as an executive officer of an entity where, at any time during the past three years, any of the executive officers
  of the company served on the compensation committee of such other entity; or the director or a family member of the director is
  a current partner of the company&rsquo;s outside auditor, or at any time during the past three years was a partner or employee
  of the company&rsquo;s outside auditor, and who worked on the company&rsquo;s audit.</FONT></TD></TR></TABLE>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left; background-color: white; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">We
  do not have any independent directors. We do not have an audit committee, compensation committee or nominating committee. <FONT STYLE="background-color: white">We
  currently do not have a code of ethics that applies to our officers, employees and director.</FONT></P>
  
  
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  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left"><B>LEGAL PROCEEDINGS</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">From time to time,
  we may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business. However, litigation
  is subject to inherent uncertainties and an adverse result in these or other matters may arise from time to time that may harm
  our business. We are currently not aware of any such legal proceedings or claims that we believe will have a material adverse affect
  on our business, financial condition or operating results.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left"><B>MARKET PRICE AND DIVIDENDS ON THE REGISTANT&rsquo;S
  COMMON EQUITY AND RELATED SHAREHOLDER MATTERS</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Our common stock
  is listed on the OTCQB under the symbol &ldquo;JPEX&rdquo;. We had approximately 29 registered holders of our common stock as of
  February 5, 2014. Registered holders do not include those stockholders whose stock has been issued in street name. The last reported
  price for our common stock on February 5, 2014 was $1.25 per share.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The following table
  reflects the high and low closing sales prices per share of our common stock during each calendar quarter as reported on the OTCQB,
  during the two fiscal years ended December 31, 2013:</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 70%; font: 10pt Calibri, Helvetica, Sans-Serif">
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif; font-weight: bold">&nbsp;</TD>
      <TD COLSPAN="7" STYLE="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">Price Range(1)</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif; font-weight: bold">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">High</TD><TD STYLE="font-family: Times New Roman, Times, Serif; font-weight: bold">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">Low</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: left">Fiscal Year Ended 2013</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="width: 56%; font-family: Times New Roman, Times, Serif; text-align: left; text-indent: -12pt; padding-left: 0.5in">Fourth quarter&#9;</TD><TD STYLE="width: 8%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="width: 1%; font-family: Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 12%; font-family: Times New Roman, Times, Serif; text-align: right">8.74</TD><TD STYLE="width: 1%; font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 8%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="width: 1%; font-family: Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 12%; font-family: Times New Roman, Times, Serif; text-align: right">0.11</TD><TD STYLE="width: 1%; font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left; text-indent: -12pt; padding-left: 0.5in">Third quarter&#9;</TD><TD STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: right">1.25</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: right">1.10</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left; text-indent: -12pt; padding-left: 0.5in">Second quarter&#9;</TD><TD STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: right">1.25</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: right">1.25</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left; text-indent: -12pt; padding-left: 0.5in">First quarter&#9;</TD><TD STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: right">1.18</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: right">1.10</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; text-indent: -12.25pt; padding-left: 0.5in">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  </TABLE>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left">(1)&#9;The above quotations reflect inter-dealer
  prices, without retail mark-up, mark-down, or commission and may not necessarily represent actual transactions.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left"><B>Dividends</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Registrant has
  not declared any cash dividends since inception and does not anticipate paying any dividends in the foreseeable future. The payment
  of dividends is within the discretion of the Board of Directors and will depend on the Company&rsquo;s earnings, capital requirements,
  financial condition and other relevant factors. There are no restrictions that currently limit the Registrant&rsquo;s ability to
  pay dividends on its Common Stock other than those generally imposed by applicable state law.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left"><B>RECENT SALES OF UNREGISTERED SECURITIES</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify; text-indent: 0.5in">On February
  5, 2014, the Company entered into an agreement to acquire all of the assets of Scorpex, Inc., a Nevada corporation, a Company controlled
  by the Company&rsquo;s controlling shareholder Joseph Caywood, in exchange for 105,000,000 shares of Common Stock.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On January
  6, 2014, the Company issued 1,000 shares of Series A Preferred Stock as security for outstanding debts of the Company to its controlling
  shareholder Joseph Caywood. The Series A Preferred Stock has no conversion rights. On January 6, 2014, the Board of Directors of
  JPX Global, Inc. (the &ldquo;Company&rdquo;) approved a Certificate of Designation to the Company&rsquo;s Articles of Incorporation.
  The Certificate of Designation designates the following rights, preferences, privileges, and restrictions in respect to the Series
  &ldquo;A&rdquo; Preferred Stock (the &ldquo;Preferred Stock&rdquo;).<BR CLEAR="ALL">
  </P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></P>
  
  <!-- Field: Page; Sequence: 20 -->
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  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Calibri, Helvetica, Sans-Serif">
  <tr style="vertical-align: top">
      <td style="width: 73px; text-align: left; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">&nbsp;i.</font></td>
      <td style="width: 7px">&nbsp;</td>
      <td style="text-align: left; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Each share of Series A Preferred Stock shall have 100,000 votes per share and shall vote together with holders of the Company's common stock on all matters upon which common stockholders may vote; and</font></td></tr>
  </table>
  <P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0; text-align: left">&nbsp;</P>
  
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Calibri, Helvetica, Sans-Serif">
  <tr style="vertical-align: top">
      <td style="width: 73px; text-align: left; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">ii.</font></td>
      <td style="width: 7px">&nbsp;</td>
      <td style="text-align: left; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Shares of Series A Preferred Stock shall not have the right to receive dividends or distributions, and shall have no rights with respect to the liquidation of the Company; and</font></td></tr>
  </table>
  <P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0; text-align: left">&nbsp;</P>
  
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Calibri, Helvetica, Sans-Serif">
  <tr style="vertical-align: top">
      <td style="width: 73px; text-align: left; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">iii.</font></td>
      <td style="width: 7px">&nbsp;</td>
      <td style="text-align: left; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Shares of Series A Preferred Stock shall not be convertible into shares of common stock or any other shares of capital stock of the Company, unless approved by the Board of Directors of the Company.</font></td></tr>
  </table>
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On August 17, 2011
  the Company issued 100,000 common shares at par value for services rendered.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On August 31, 2010,
  the company issued 30,000,000 private placement common shares to its founder for cash of $30,000.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left"><B>DESCRIPTION OF SECURITIES</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><B>Authorized
  Capital Stock</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">Our
  authorized capital stock consists of 500,000,000 shares of Common Stock and 40,000,000 shares of Preferred Stock at a par value
  of $0.001 per share. As of February 5, 2014, 31,975,000 shares of our Common Stock and 1,000 shares of Preferred Stock were issued
  and outstanding.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><B>Common Stock</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="background-color: white">All
  outstanding shares of Common Stock are of the same class and have equal rights and attributes. The holders of Common Stock are
  entitled to one vote per share on all matters submitted to a vote of shareholders of the Company. All shareholders are entitled
  to share equally in dividends, if any, as may be declared from time to time by the Board of Directors out of funds legally available.
  In the event of liquidation, the holders of Common Stock are entitled to share ratably in all assets remaining after payment of
  all liabilities. The shareholders do not have cumulative or preemptive rights.</FONT></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="background-color: white">&nbsp;</FONT></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><B>Preferred
  Stock</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">Our
  charter authorizes us to issue up to 40,000,000 shares of preferred stock. 1,000 shares of our preferred stock are designated as
  Series &ldquo;A&rdquo; Preferred Stock. As of February 5, 2014 all 1,000 of our Series &ldquo;A&rdquo; Preferred Stock were issued
  and outstanding. Although the Series &ldquo;A&rdquo; Preferred Stock carries no dividend, distribution, liquidation or conversion
  rights, each share of Series &ldquo;A&rdquo; Preferred Stock carries one hundred thousand (100,000) votes, and holders of our preferred
  stock are able to vote together with our common stockholders on all matters. Consequently, the holder of our Series &ldquo;A&rdquo;
  Preferred Stock is able to unilaterally control the election of our board of directors and, ultimately, the direction of our Company.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left"><B>INDEMNIFICATION OF DIRECTORS AND OFFICERS</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Pursuant to our
  charter and under the Nevada Revised Statutes (hereafter, the &ldquo;NRS&rdquo;), our directors are not liable to us or our stockholders
  for monetary damages for breach of fiduciary duty, except for liability in connection with a breach of duty of loyalty, for acts
  or omissions not in good faith or which involve intentional misconduct or a knowing violation of law, for authorization of illegal
  dividend payments or stock redemptions under Nevada law or any transaction from which a director has derived an improper personal
  benefit. Our charter provides that we are authorized to provide indemnification of (and advancement of expenses) to our directors,
  officers, employees and agents (and any other persons to which applicable law permits us to provide indemnification) through Bylaw
  provisions, agreements with such persons, vote of stockholders or disinterested directors, or otherwise, to the fullest extent
  permitted by applicable law.</P>
  
  
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      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We have previously
  entered into indemnification agreements with certain of our current directors and officers. The indemnification agreement indemnifies
  the indemnitee to the fullest extent permitted by law, including against third-party claims and claims by or in right of the Company
  or any subsidiary or majority-owned partnership of the Company by reason of that person (including the advancement of expenses
  subject to certain conditions) (a) being a director, officer employee or agent of the Company, or of any subsidiary or majority-owned
  partnership of the Company or (b) serving at our request as a director, officer, employee or agent of another entity. If appropriate,
  we are entitled to assume the defense of the claim with counsel selected by us and approved by the indemnitee (which approval may
  not be unreasonably withheld). Separate counsel employed by the indemnitee will be at his or her own expense unless (1) the employment
  of separate counsel has been previously authorized by us, (2) the indemnitee reasonably concludes there may be a conflict of interest
  or (3) we have not, in fact, employed counsel to assume the defense of such claim.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left"><B>FINANCIAL STATEMENTS AND SUPPLEMENTARY
  DATA</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Information concerning
  the financial information of the Registrant set forth under Item 9.01 of this Report is incorporated by reference.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left"><B>CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS
  ON ACCOUNTING AND FINANCIAL DISCLOSURE</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">None.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Item 3.02 Unregistered Sales of Equity
  Securities</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The information
  contained in Item 1.01 above is incorporated herein by reference in response to this Item 3.02.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On February 5, 2014
  pursuant to the terms of the Acquisition, JPEX acquired all of the assets of Scorpex in exchange for 105,000,000 shares of common
  stock of the Company. Scorpex is a development stage waste disposal and recycling company, with the goal of storing and disposing
  all types of waste, including those classified as industrial, toxic, and hazardous. Following the Acquisition, JPEX has 136,975,000
  shares of common stock outstanding.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">With
  respect to the transaction noted above, no solicitation was made and no underwriting discounts were given or paid in connection
  with these transactions. The Company believes that the issuance of the shares as described above was exempt from registration with
  the Securities and Exchange Commission pursuant to Section 4(2) of the Securities Act of 1933.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left"><B>Item 9.01 Financial Statements and Exhibits.</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.5in">(d) Exhibits</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.5in">&nbsp;</P>
  
  <table cellspacing="0" cellpadding="0" style="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%">
  <tr style="vertical-align: bottom">
      <td style="width: 12%; border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Exhibit No.</b></font></td>
      <td style="width: 4%; text-align: left; line-height: 115%">&nbsp;</td>
      <td style="width: 84%; border-bottom: black 1.5pt solid; text-align: left; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Description</b></font></td></tr>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
      <td style="text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">2.1</font></td>
      <td style="text-align: left; line-height: 115%">&nbsp;</td>
      <td style="text-align: left; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif"><A HREF="ex2_1assetpurchaseagmt.htm">Asset Purchase Agreement by and between JPX Global, Inc., and Scorpex, Inc. dated February 5, 2014.</A></font></td></tr>
  <TR STYLE="vertical-align: top; background-color: White">
      <td style="text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">99.1</font></td>
      <td style="text-align: left; line-height: 115%">&nbsp;</td>
      <td style="text-align: left; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif"><A HREF="jpex8k020614ex991.htm">Scorpex Int'l, Inc. Consolidated Financial Statements for the period from September 30, 2010 to September 30, 2011</A></font></td></tr>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
      <td style="text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">99.2</font></td>
      <td style="text-align: left; line-height: 115%">&nbsp;</td>
      <td style="text-align: left; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif"><A HREF="jpex8k020614ex992.htm">Scorpex Int'l, Inc. Consolidated Financial Statements for the period from September 30, 2011 to September 30, 2012</A></font></td></tr>
  <TR STYLE="vertical-align: top; background-color: White">
      <td style="text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">99.3</font></td>
      <td style="text-align: left; line-height: 115%">&nbsp;</td>
      <td style="text-align: left; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif"><A HREF="jpex8k020614ex993.htm">Scorpex Int'l, Inc. Consolidated Financial Statements for the period from September 30, 2012 to September 30, 2013</A></font></td></tr>
  </table>
  
  <!-- Field: Page; Sequence: 22 -->
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  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>SIGNATURES</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.5in">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/normal Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>
  
  <table cellspacing="0" cellpadding="0" style="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
      <td colspan="3" style="text-align: left; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif"><b>JPX GLOBAL, INC.</b></font></td></tr>
  <tr style="vertical-align: top">
      <td colspan="3" style="text-align: left; line-height: 115%">&nbsp;</td></tr>
  <tr style="vertical-align: top">
      <TD STYLE="width: 15%; text-align: left; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">By:</font></td>
      <TD STYLE="width: 22%; border-bottom: Black 1pt solid; text-align: left; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif"><i>/s/&nbsp;James P. Foran</i></font></td>
      <TD STYLE="width: 63%; text-align: left; line-height: 115%">&nbsp;</td></tr>
  <tr style="vertical-align: top">
      <TD STYLE="text-align: left; line-height: 115%">&nbsp;</td>
      <td colspan="2" style="text-align: left; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">James P. Foran</font></td></tr>
  <tr style="vertical-align: top">
      <TD STYLE="text-align: left; line-height: 115%">&nbsp;</td>
      <td colspan="2" style="text-align: left; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Chief Executive Officer</font></td></tr>
  <tr style="vertical-align: top">
      <td colspan="3">
          <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.5in">&nbsp;</P>
          <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left">Date:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;February
          5, 2014</P></td></tr>
  </table>
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>
  
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  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>
  
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  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: center">JPX GLOBAL, INC.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: center">Pro Forma Financial Statements</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: center">December 31, 2013</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"></P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 8pt Arial, Helvetica, Sans-Serif">
  <TR STYLE="vertical-align: bottom">
      <TD COLSPAN="25" STYLE="text-align: center"><FONT STYLE="font-size: 8pt">JPX GLOBAL, INC.</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD COLSPAN="25" STYLE="text-align: center"><FONT STYLE="font-size: 8pt">(formerly Jasper Explorations Inc.)</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD COLSPAN="25" STYLE="text-align: center"><FONT STYLE="font-size: 8pt">(A Development Stage Company)</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD COLSPAN="25" STYLE="text-align: center"><FONT STYLE="font-size: 8pt">Pro Forma Balance Sheet</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD COLSPAN="25" STYLE="text-align: center"><FONT STYLE="font-size: 8pt">(UNAUDITED)</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD COLSPAN="3" STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD COLSPAN="3" STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD COLSPAN="3" STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD COLSPAN="3" STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD COLSPAN="3" STYLE="text-align: center"><FONT STYLE="font-size: 8pt">JPX GLOBAL, INC.</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD COLSPAN="3" STYLE="text-align: center"><FONT STYLE="font-size: 8pt">SCORPEX INTERNATIONAL, INC.</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD COLSPAN="3" STYLE="text-align: center"><FONT STYLE="font-size: 8pt">Pro Forma adjustments</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD COLSPAN="3" STYLE="text-align: center"><FONT STYLE="font-size: 8pt">Pro Forma</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="font-size: 9pt; text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 9pt; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD COLSPAN="3" STYLE="font-size: 9pt; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">December
      31, 2013</FONT></TD><TD STYLE="font-size: 9pt; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD COLSPAN="3" STYLE="font-size: 9pt; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">December
      31, 2013</FONT></TD><TD STYLE="font-size: 9pt; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD COLSPAN="3" STYLE="font-size: 9pt; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 9pt; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD COLSPAN="3" STYLE="font-size: 9pt; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">December
      31, 2013</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD COLSPAN="3" STYLE="text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD COLSPAN="3" STYLE="text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD COLSPAN="3" STYLE="text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD COLSPAN="3" STYLE="text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt">&nbsp;ASSETS</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;CURRENT ASSETS:</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="padding-left: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;Cash</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">972</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">33,611</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(33,611</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">972</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;Accounts receivable</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">1,063</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">1,063</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;Due from joint venture
      partner</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">3,563</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">3,563</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 20pt"><FONT STYLE="font-size: 8pt">&nbsp;Total Current Assets</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">5,598</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">33,611</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">(33,611</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">5,598</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;OTHER ASSETS:</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;Mineral rights</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">75,617</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">75,617</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;Waste disposal rights</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">3,632,400</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">3,632,400</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 20pt"><FONT STYLE="font-size: 8pt">&nbsp;Total Other Assets</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">75,617</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">3,632,400</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">3,708,017</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 2.5pt; padding-left: 30pt"><FONT STYLE="font-size: 8pt">&nbsp;Total Assets</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 8pt">81,215</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 8pt">33,611</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 8pt">3,598,789</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 8pt">3,713,615</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;LIABILITIES AND STOCKHOLDERS' DEFICIT</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;CURRENT LIABILITIES:</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;Accounts payable and accrued liabilities</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">15,985</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">934,528</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(934,528</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">15,985</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-left: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;Advances from related party</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">141,725</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">141,725</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;Convertible loan payable - related party</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">1,500</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">1,500</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-left: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;Notes payable - related parties</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">3,079,140</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(3,079,140</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;Notes payable</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">71,874</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">621,450</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">(621,450</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">71,874</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 20pt"><FONT STYLE="font-size: 8pt">&nbsp;Total Current Liabilities</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">231,084</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">4,635,118</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">(4,635,118</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">231,084</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;STOCKHOLDERS' DEFICIT:</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="padding-left: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;Preferred stock at $0.001 par value: 40,000,000 shares</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 20pt"><FONT STYLE="font-size: 8pt">&nbsp;authorized, none issued and outstanding</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">10,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(10,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="padding-left: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;Common stock at $0.001 par value: 500,000,000 shares</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 20pt"><FONT STYLE="font-size: 8pt">&nbsp;authorized, 136,975,000 shares issued
      and outstanding</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">31,975</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">211,124</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">105,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">136,975</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(211,124</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;Stock payable</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">197,975</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">197,975</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-left: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;Additional paid-in capital</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">2,341,875</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">76,371,298</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">3,527,400</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">5,869,275</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(76,371,298</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;Accumulated deficit</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">(2,721,694</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">(81,193,929</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">81,193,929</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">(2,721,694</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 20pt"><FONT STYLE="font-size: 8pt">&nbsp;Total Stockholders'
      Deficit</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">(149,869</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">(4,601,507</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">8,233,907</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">3,482,531</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 2.5pt; padding-left: 30pt"><FONT STYLE="font-size: 8pt">&nbsp;Total Liabilities
      and Stockholders' Deficit</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 8pt">81,215</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 8pt">33,611</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 8pt">3,598,789</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 8pt">3,713,615</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD COLSPAN="17" STYLE="text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;See notes to the pro forma financial statements.</FONT></TD></TR>
  </TABLE>
  
  
  
  <P STYLE="font: 9pt/normal Sans-Serif; margin: 0 0 10pt; text-align: center; color: Red"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-right: 0; margin-left: 0">&nbsp;</P>
  
  
  <!-- Field: Page; Sequence: 24 -->
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  <TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif">
  <TR STYLE="vertical-align: bottom">
      <TD COLSPAN="23" STYLE="text-align: center"><FONT STYLE="font-size: 8pt">JPX GLOBAL, INC.</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD COLSPAN="23" STYLE="text-align: center"><FONT STYLE="font-size: 8pt">(formerly Jasper Explorations Inc.)</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD COLSPAN="23" STYLE="text-align: center"><FONT STYLE="font-size: 8pt">(A Development Stage Company)</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD COLSPAN="23" STYLE="text-align: center"><FONT STYLE="font-size: 8pt">Pro Forma Statement of Operations</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD COLSPAN="23" STYLE="text-align: center"><FONT STYLE="font-size: 8pt">(UNAUDITED)</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD COLSPAN="3"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD COLSPAN="3"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD COLSPAN="3"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD COLSPAN="3"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD COLSPAN="3" STYLE="text-align: center"><FONT STYLE="font-size: 8pt">JPX GLOBAL, INC.</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD COLSPAN="3" STYLE="text-align: center"><FONT STYLE="font-size: 8pt">SCORPEX INTERNATIONAL, INC.</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD COLSPAN="3" STYLE="text-align: center"><FONT STYLE="font-size: 8pt">Pro Forma adjustments</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD COLSPAN="3" STYLE="text-align: center"><FONT STYLE="font-size: 8pt">Pro Forma</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="font-size: 9pt; font-weight: bold"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 9pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD COLSPAN="3" STYLE="font-size: 9pt; text-align: center"><FONT STYLE="font-size: 8pt">For the Year Ended</FONT></TD><TD STYLE="font-size: 9pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD COLSPAN="3" STYLE="font-size: 9pt; text-align: center"><FONT STYLE="font-size: 8pt">For the Year Ended</FONT></TD><TD STYLE="font-size: 9pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD COLSPAN="3" STYLE="font-size: 9pt; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 9pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD COLSPAN="3" STYLE="font-size: 9pt; text-align: center"><FONT STYLE="font-size: 8pt">For the Year Ended</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="font-size: 9pt; text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 9pt; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD COLSPAN="3" STYLE="font-size: 9pt; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">December
      31, 2013</FONT></TD><TD STYLE="font-size: 9pt; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD COLSPAN="3" STYLE="font-size: 9pt; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">December
      31, 2013</FONT></TD><TD STYLE="font-size: 9pt; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD COLSPAN="3" STYLE="font-size: 9pt; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 9pt; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD COLSPAN="3" STYLE="font-size: 9pt; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">December
      31, 2013</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="color: blue; text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD COLSPAN="3" STYLE="text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD COLSPAN="3" STYLE="text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD COLSPAN="3" STYLE="text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD COLSPAN="3" STYLE="text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD COLSPAN="3" STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD COLSPAN="3" STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD COLSPAN="3" STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD COLSPAN="3" STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="width: 40%; text-align: left; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;NET REVENUES</FONT></TD><TD STYLE="width: 3%; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="width: 1%; border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="width: 10%; border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">14,502</FONT></TD><TD STYLE="width: 1%; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 3%; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="width: 1%; border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="width: 10%; border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="width: 1%; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 3%; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="width: 1%; border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="width: 10%; border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="width: 1%; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 3%; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="width: 1%; border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="width: 10%; border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">14,502</FONT></TD><TD STYLE="width: 1%; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;COST OF SERVICES</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">7,846</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">7,846</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;GROSS PROFIT</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">6,656</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">6,656</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;OPERATING EXPENSES:</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-left: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;Consulting fees</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">2,541,783</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">2,541,783</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;Salaries and compensation</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">139,308</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(139,308</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-left: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;Professional fees</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">44,765</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">95,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(95,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">44,765</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;General and administrative
      expenses</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">33,854</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">2,674</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">(2,674</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">33,854</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 20pt"><FONT STYLE="font-size: 8pt">&nbsp;Total Operating Expenses</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">2,620,402</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">236,982</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">(236,982</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">2,620,402</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;LOSS FROM OPERATIONS</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">(2,613,746</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">(236,982</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">236,982</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">(2,613,746</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;OTHER INCOME (EXPENSES):</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-left: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;Interest expense</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(1,996</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(274,369</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">274,369</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(1,996</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;Debt discount expense</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">(24,374</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">(24,374</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 20pt"><FONT STYLE="font-size: 8pt">&nbsp;Total Other Income
      (Expenses)</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">(26,370</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">(274,369</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">274,369</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">(26,370</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;LOSS BEFORE INCOME TAXES</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(2,640,116</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(511,351</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">511,351</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(2,640,116</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;INCOME TAX EXPENSE</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 2.5pt"><FONT STYLE="font-size: 8pt">&nbsp;NET LOSS</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 8pt">(2,640,116</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 8pt">(511,351</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 8pt">511,351</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 8pt">(2,640,116</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD COLSPAN="17" STYLE="text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;See notes to the pro forma financial statements.</FONT></TD></TR>
  </TABLE>
  
  
  
  <P STYLE="font: 9pt/normal Sans-Serif; margin: 0; text-align: left; color: Red"></P>
  
  <P STYLE="font: 9pt/normal Sans-Serif; margin: 0; text-align: left; color: Red">&nbsp;</P>
  
  
  <!-- Field: Page; Sequence: 25 -->
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  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">NOTES TO PRO FORMA FINANCIAL
  STATEMENTS (UNAUDITED)</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The accompanying
  pro forma financial statements are prepared to present the acquisition of the waste disposal rights of Scorpex International, Inc.
  by JPX Global, Inc., to aid the user in understanding the acquisition. The proforma balance sheet and statement of operations are
  presented as though the acquisition took place on January 1, 2013. On February 5, 2014, the Company entered into an agreement to
  acquire all of the assets of Scorpex, Inc., a Nevada corporation, in exchange for 105,000,000 shares of Common Stock.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Following are the
  pro forma adjustments.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 90%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; text-align: right">1</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
      <TD STYLE="width: 74%; text-align: left">Waste disposal rights</TD><TD STYLE="width: 8%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">3,632,400</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">Common stock (JPX Global)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(105,000</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">Additional paid-in capital</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3,527,400</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <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></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="5" STYLE="text-align: left">To record the acquistion of mineral rights through the issuance of 105,000,000 shares of common stock.</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <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></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD>Cash</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(33,611</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">Accounts payable and accrued liabilities</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">934,528</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">Notes payable - related parties</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,079,140</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">Notes payable</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">621,450</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">Preferred stock</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">Common stock</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">211,124</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">Additional paid-in capital</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">76,371,298</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">Accumulated deficit (Scorpex)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(81,193,929</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <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></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">Eliminate assets, liabilities and equity not acquired in the asset purchase.</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  </TABLE>
  
  
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-right: 0; margin-left: 0"></P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 90%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; text-align: right">3</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
      <TD STYLE="width: 74%; text-align: left">Salaries and compensation</TD><TD STYLE="width: 8%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">(139,308</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">Professional fees</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(95,000</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">General and administrative expenses</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,674</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">Interest expense</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(274,369</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">Accumulated deficit</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">511,351</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif">&nbsp;</TD>
      <TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif">&nbsp;</TD>
      <TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">Eliminate operations of Scorpex not acquired in the asset purchase.</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  </TABLE>
  
  
  
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metadata_documents: [{"type": "8-K", "sequence": "1", "filename": "f8k_jpx010614.htm", "description": "FORM 8-K", "secsgml_size_bytes": 326159}]
metadata_filer: {"company-data": {"conformed-name": "JPX Global Inc.", "cik": "0001506814", "assigned-sic": "1000", "irs-number": "262801338", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-54793", "film-number": "14579935"}, "business-address": {"street1": "9864 E GRAND RIVER, STE 110-301", "city": "BRIGHTON", "state": "MI", "zip": "48116", "phone": "310-891-1838"}, "mail-address": {"street1": "9864 E GRAND RIVER, STE 110-301", "city": "BRIGHTON", "state": "MI", "zip": "48116"}, "former-company": [{"former-conformed-name": "Jasper Explorations Inc.", "date-changed": "20110202"}, {"former-conformed-name": "Jasper Exploration Inc.", "date-changed": "20101201"}]}
text: _______________________________________________________________________________________________
  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): February 5, 2014
  JPX GLOBAL, INC.
  _______________________________________________________________________________________________
  (Exact name of registrant as specified
  in its charter)
  Nevada
  000-54793
  26-2801338
  (State or other jurisdiction of incorporation)
  (Commission File Number)
  (IRS Employer Identification No.)
  9864 E Grand River, Ste 110-301
  Brighton, Michigan 48116
  _______________________________________________________________________________________________
  (Address of principal executive offices)
  (Zip Code)
  Registrant's telephone number,
  including area code:
  (780) 349-1755
  ______________________________________________________________________________________________
  (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)
  SPECIAL NOTE REGARDING FORWARD LOOKING
  STATEMENTS
  This Current Report
  on Form 8-K (this "Report") contains forward-looking statements. The forward-looking statements are contained principally
  in the sections entitled "Description of Business," "Risk Factors," and "Management's Discussion
  and Analysis of Financial Condition and Results of Operations." These statements involve known and unknown risks, uncertainties
  and other factors which may cause our actual results, performance or achievements to be materially different from any future results,
  performances or achievements expressed or implied by the forward-looking statements. In some cases, you can identify forward-looking
  statements by terms such as "anticipates," "believes," "seeks," "could," "estimates,"
  "expects," "intends," "may," "plans," "potential," "predicts,"
  "projects," "should," "would" and similar expressions intended to identify forward-looking
  statements. Forward-looking statements reflect our current views with respect to future events and are based on assumptions and
  subject to risks and uncertainties. These risks and uncertainties include, but are not limited to, the factors described in the
  section captioned "Risk Factors" below. Given these uncertainties, you should not place undue reliance on these forward-looking
  statements.  Such statements may include, but are not limited to, information related to: anticipated operating results;
  relationships with our customers; consumer demand; financial resources and condition; changes in revenues; cost of sales; selling,
  general and administrative expenses; interest expense; legal proceedings and claims.
  Also, forward-looking
  statements represent our estimates and assumptions only as of the date of this Report. You should read this Report and the documents
  that we reference and filed as exhibits to this Report completely and with the understanding that our actual future results may
  be materially different from what we expect. Except as required by law, we assume no obligation to update any forward-looking statements
  publicly, or to update the reasons actual results could differ materially from those anticipated in any forward-looking statements,
  even if new information becomes available in the future.
  ITEM 1.01
  ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT
  Acquisition
  On February 5, 2014,
  JPX Global, Inc. (hereafter, the "Company", or "JPEX") entered into an agreement to acquire all of the
  assets of Scorpex, Inc., a Nevada corporation (hereafter, "Scorpex"), in exchange for 105,000,000 shares of common
  stock of the Company (such transaction is hereafter referred to as the "Acquisition"). Scorpex is a development stage
  waste disposal and recycling company, with the goal of storing and disposing all types of waste, including those classified as
  industrial, toxic, and hazardous.
  The foregoing descriptions
  of the terms of the Acquisition are qualified in their entirety by reference to the provisions of the Asset Purchase Agreement
  filed as Exhibit 2.1 to this Report, which is incorporated by reference herein.
  ITEM 2.01
  COMPLETION OF ACQUISITION OR DISPOSITION OF ASSETS
  Asset Purchase Agreement
  On February 5, 2014
  pursuant to the terms of the Acquisition, JPEX acquired all of the assets of Scorpex in exchange for 105,000,000 shares of common
  stock of the Company. Scorpex is a development stage waste disposal and recycling company, with the goal of storing and disposing
  all types of waste, including those classified as industrial, toxic, and hazardous. Following the Acquisition, JPEX has 136,975,000
  shares of common stock outstanding.
  Immediately following
  the Closing, the Company intends to file a Definitive 14C and complete these corporate actions now that the Acquisition is complete.
  2
  FORM 10 DISCLOSURES
  As disclosed elsewhere
  in this Report, on February 5, 2014, the Company entered into the Acquisition. Item 2.01(f) of Form 8-K provides that if the registrant
  was a shell company, other than a business combination related shell company, as those terms are defined in Rule 12b-2 under the
  Securities Exchange Act of 1934, as amended, ("Exchange Act"), immediately before a transaction such as the Acquisition,
  then the registrant must disclose the information that would be required if the registrant were filing a general form for registration
  of securities on Form 10 under the Exchange Act reflecting all classes of the registrant's securities subject to the reporting
  requirements of Section 13 of the Exchange Act upon consummation of the transaction.
  We are providing
  below the information that we would be required to disclose on Form 10 under the Exchange Act if we were to file such form. Please
  note that the information provided below relates to the combined enterprises of the Company and Scorpex, after the Acquisition
  has been consummated, except that information relating to periods prior to the date of the Acquisition only relate to Scorpex,
  unless otherwise specifically indicated.
  Information in response
  to this Item 2.01 below generally follows the format of Form 10.
  BUSINESS
  Business Overview
  As a result of the
  Acquisition, our objective is to expand our operations as a expanding our business to further develop our operations as a development
  stage waste disposal and recycling company, with the goal of storing and disposing all types of waste, including those classified
  as industrial, toxic, and hazardous.
  Our Corporate History and Background
  JPX Global, Inc.,
  (f.k.a. Jasper Explorations, Inc.) (the "Company"), was organized under the laws of the State of Nevada on December
  18, 2008 as Jubilee Resources, Inc., to explore mineral properties in North America. The name of the Company was subsequently changed
  to Jasper Explorations, Inc. on December 16, 2010. The name of the Company was again changed on January 3, 2013 from Jasper Explorations,
  Inc. to JPX Global, Inc.
  On January 3, 2013,
  the Company approved the action to amend and restate the Articles of Incorporation of the and increase the authorized common shares
  to 500,000,000 and create and authorize 40,000,000 shares of Preferred Stock which was approved by written consent of the holder
  representing approximately 67% of the outstanding voting securities of the Company. Series A Preferred Stock was created and designated
  with super-voting rights of 100 votes per share of Series A Preferred Stock held, and is convertible into 10 shares of common stock
  for every share of preferred stock held.
  On February 15,
  2013, the Company entered into an agreement to acquire all of the assets of Scorpex, in exchange for 103,250,000 shares of Common
  Stock and 5,000,000 shares of Series A Preferred Stock of the Company. Upon the acquisition of Scorpex, there was an implied option
  for either party to rescind the original acquisition. During the year that option was exercised and on May 16, 2013, we unwound
  the acquisition of Scorpex and resumed its operation prior to February 15, 2013, primarily, the exploration for copper, molybdenum
  and other minerals.
  On June 17, 2013,
  the Company entered into a
  Processing Lease and Option To Purchase Agreement
  , thereby effecting the
  Joint Venture Agreement
  with CGrowth Capital, Inc., a Delaware corporation ("CGrowth"). Pursuant to the Agreements, CGrowth is obligated to provide
  operational, on-site, and sales support in respect to the Chewelah Community Pit, a 15 acre sand and gravel pit in Colville, Washington.
  The Company shall be entitled to 51% of the net revenue, and CGrowth shall be entitled to 49% respectively.
  The Agreements
  expire on June 1, 2014, but will automatically extend for an additional year, in anticipation of a 5-year BLM extension. A copy
  of the Agreements are provided as exhibits to this Current Report.
  3
  On February 5, 2014,
  the Company entered into an agreement to acquire all of the assets of Scorpex, Inc., a Nevada corporation, in exchange for 105,000,000
  shares of Common Stock. We are now expanding our business to further develop our operations as a development stage waste disposal
  and recycling company, with the goal of storing and disposing all types of waste, including those classified as industrial, toxic,
  and hazardous. With the acquisition of the Scorpex assets, the Company has a business model to capitalize on the opportunities
  available in the integrated waste, and waste management services sector primarily in Mexico.
  Waste Disposal Plan of Operations
  We are a development
  stage company with no history of operations. As a result of the Acquisition of the Scorpex assets, the Company intends to further
  capitalize on opportunities in its integrated waste, and waste management service operations, including the receiving, storage,
  transfer and disposal in an environmental manner. In providing these services, we intend to actively pursue projects and initiatives
  that we believe make a positive difference for our environment which will be focused on gasification of waste in an environmental
  manner. It is expected that our customer base will include commercial, industrial, municipal and residential customers, other waste
  management companies, electric utilities, and governmental entity properties. We are a development stage company and have not realized
  any revenues. We do not have sufficient capital to enable us to commence and complete our exploration program. We will require
  additional financing in order to conduct the exploration programs described herein. Our auditors have issued a going concern opinion,
  raising substantial doubt about the Company's financial prospects and the Company's ability to continue as a going
  concern.
  Waste management
  and collection involves picking up and transporting waste from where it was generated to our planned gasification facilities. We
  intend to sub-contract our collection services. Waste is defined as nonhazardous waste sent off-site for final disposal through
  gasification including household waste, commercial, business or institutional waste, construction and demolition debris, regulated
  medical waste, yard waste, sludge, scrap tires and hazardous waste.
  The Waste Gasification/Thermal
  Oxidation Plant, where we intend to convert waste to ash, is a two-stage waste combustion process that converts combustible organic
  matter from its existing solid, sludge or liquid state into a gas under an oxygen depleted environment (also known as "oxidation").
  The resulting gas product is then well mixed with ambient air before being burnt off in a secondary gas-processing unit.
  The technology reverts
  any man made or organic waste product back to its natural state, which is inert ash or breathable air. The technology is capable
  of handling community solid waste content and biosolids including medical waste, tires, plastics, wood waste, oily waste, furniture
  and other organic or man-made compounds found in municipal or industrial waste.
  The intended plant
  is comprised of three basic components: a Primary Gasification Cell, a Secondary Gas Processor, and a computerized Process Logic
  Controller. Combustible waste material is placed into the primary gasification cell through the load access door. In some facilities
  this can be done via a loading conveyor. The proposed design is to have collection vehicles dump their waste load directly into
  the primary oxidation cell. None of these components have been built on the property.
  The Primary Cell can be either a batch
  or continuous feed processor. Based on our research, batch processing provides the most efficient and cost effective strategy for
  the waste management solution. In the case of batch processing once the cell has received that days collected waste, the door is
  closed and the process is initiated. The cell does not have to be full for the system to be activated.
  An operator is responsible
  for supervising the loading of waste material, and initiating the process startup. A computer keystroke (or optional manual button
  and lever control) which pre-heats the secondary gas-processing unit accomplishes this start-up. Once that unit reaches its pre-set
  temperature, the primary gasification cell heater is activated, and the process begins. Approximately 8 to 12 hours later, the
  organic wastes in the primary cell will have been converted to a gas, and the cycle will generally be complete. The system will
  move to its "cool down" mode. In another 4-6 hours, the system may be re-loaded, and another process started, with
  or without the removal of the preceding load's ash material.
  4
  Residual materials
  (bottles, cans, ash and misc.) need only to be removed periodically. The composition of MSW consists mainly of organic and combustible
  waste. Glass and metals are easily extracted in our plant design as it includes equipment that will assist in the process and cut
  down on labor man-hours. Ash removal is either an automated or manual process. In automated unloading, the base of the primary
  gasification cell contains a ductile iron furnace floor conveyor that evacuates material remaining in the base of the unit through
  a side access door. This dry waste material empties into a storage bin, which can be removed to another location for recycling.
  Aluminum, metal
  and glass can be completely recovered. Emissions may be captured and used as a nonfossil fuel source for various "on site"
  processes.
  Our intention is
  to take the ash that is left over from our disposal process and create a brick out of the residue. The machines that will be used,
  through 60 thousand pounds of pressure, will create this brick that can then be donated back to any municipality for various uses.
  We intend to provide
  our services under two types of agreements:
  •
  For commercial and industrial collection services, we intend to enter
  a multi-year service agreement. The fees under these agreements will be influenced by factors such as collection frequency, type
  and volume or weight of the waste collected, distance to our facility, labor costs, cost of gasification and general market factors.
  •
  For most residential collection services, we will have a contract
  with, or a franchise granted by, a municipality, homeowners' association or some other regional authority that will give
  us the exclusive right to service all or a portion of the homes in an area. These contracts or franchises are typically for periods
  of one to five years. We expect the fees for residential collection to be either paid by the municipality or authority from their
  tax revenues or service charges, or are paid directly by the residents receiving the service.
  With its current
  assets, and without further financing, our auditor has expressed substantial doubt as to our ability to continue as a Going Concern.
  However, the Company plans to raise the capital necessary to fund our business through a private placement and public offering
  of our common stock.
  Because the company
  has incurred losses, income tax expenses are immaterial. No tax benefits have been booked related to operating loss carry-forwards,
  given the uncertainty of the Company being able to utilize such loss carry-forwards in future years. The Company anticipates incurring
  additional losses during the coming year.
  Market
  We believe that
  the $55 billion US waste management industry will play a substantial role in the coming economic recovery and the growth of worldwide
  trade as traditional waste conversion, as well as the more technical methods such as gasification, plasma arc gasification, hydrolysis,
  and pyrolysis become cheaper and more efficient. In a world where in 2011 alone, the world's rapidly increasing urban population
  generated nearly 2 billion tons of municipal solid waste ("MSW"), it is no longer sufficient to discard trash. It is
  estimated that this number will rise to at least 2.9 billion tons by 2022. Today, more than 800 thermal waste-to-energy ("WTE")
  plants operate in nearly 40 countries around the globe. Led by Asia-Pacific and Europe, this number is expected to grow rapidly
  over the next decade, potentially treating 396 million tons of MSW annually by 2022 with an estimated output of 151 terawatt hours
  (TWh) of electricity. Of the municipal solid waste generated, 33 percent was recycled in 2011, up from 32 percent in 2010.
  5
  Competition
  The solid waste
  industry is very competitive. Competition comes from a number of publicly held solid waste companies, private solid waste companies,
  large commercial and industrial companies handling their own waste collection or disposal operations and public and private waste-to-energy
  companies. We also have competition from municipalities and regional government authorities with respect to residential and commercial
  solid waste collection and solid waste landfills.
  Operating costs,
  disposal costs and collection fees vary widely throughout Mexico. The prices that we intend to charge will be determined locally,
  and typically vary by the volume and weight, type of waste collected, treatment requirements, risk of handling or disposal, frequency
  of collections, distance to final disposal sites, labor costs and amount and type of equipment furnished to the customer. We will
  face intense competition in our core business based on pricing and quality of service. However, we believe that we can distinguish
  the Company from our competition by providing precise accounting, exceptional customer service, comprehensive tax management, and
  competitive pricing. While we intend to offer some customers credit terms, in most cases the credit lines will be secured by corporate
  or personal guarantees, deposits, letters of credit or other bank instruments, and liens.
  Chewelah Community Sand and Gravel
  Pit
  Overview
  The Chewelah Community
  Pit is a 15 acre sand and gravel pit in Colville, Washington, that supplies aggregate materials for concrete products and related
  products such as asphalt paving mix, and paving and related construction services to the U.S. construction industry, including
  public infrastructure projects, as well as private residential and non-residential construction.
  The Chewelah Community
  Pit ("Chewelah") was established in 2008. The Company along with its joint-venture partner CGrowth Capital ("CGrowth"),
  acquired Chewelah in July 2013, as a result of a joint-venture between the Company and CGrowth Capital. According to the terms
  of the joint-venture, the Company made two payments in the aggregate of $350,000, and the Company shall be entitled to 51% of the
  net revenue, and CGrowth shall be entitled to 49% respectively. The Agreements expire on June 1, 2014, but will automatically extend
  for an additional year, in anticipation of a 5-year BLM extension.
  Our products are
  generally delivered upon receipt of orders or requests from customers. Accordingly, the backlog associated with external product
  sales is converted into revenue within a relatively short period of time. Inventory for products is generally maintained in sufficient
  quantities to meet rapid delivery requirements of customers.
  Aggregates are key
  material components used in the production of asphalt paving mixes and concrete for the public infrastructure, highway, commercial
  and residential construction markets and are also widely used for various applications and products, such as road and building
  foundations, railroad ballast, erosion control, filtration, roofing granules and in solutions for snow and ice control. Generally
  extracted from the earth using surface or underground mining methods, aggregates are produced from natural deposits of various
  materials such as limestone, sand and gravel, granite and trap rock. Once extracted, processed and graded, aggregates are supplied
  directly to their end use or incorporated for further processing into construction materials, such as cement, asphalt paving mix,
  and ready mixed concrete.
  According to the
  February 2013 U.S. Geological Survey, approximately 1.28 billion tons of crushed stone with a value of approximately $11.5 billion
  was produced in the United States in 2012, in line with 1.28 billion tons in 2011. Sand and gravel production was approximately
  907 million tons in 2012 valued at approximately $6.25 billion, up from 894 million tons in 2011. The U.S. aggregate industry is
  highly fragmented relative to other building product markets, with numerous participants operating in localized markets and the
  top six players controlling approximately 30% of the national market in 2011. In January 2013, the USGS reported that a total of
  1,550 companies operating 4,000 quarries and 91 underground mines produced or sold crushed stone in 2012 in the United States.
  Transportation cost
  is a major variable in determining aggregate pricing and marketing radius. The cost of transporting aggregate products from the
  plant to the market often equates to or exceeds the sale price of the product at the plant. As a result of the high transportation
  costs and the large quantities of bulk material that have to be shipped, finished products are typically marketed locally.
  6
  We believe
  that the long-term growth of the market for aggregates is largely driven by growth in population, jobs and households, which impact
  transportation infrastructure spending and changes in population density. In the past few years, the recession in the United States
  has led to a decrease in overall private construction activity. Despite the increase in federal stimulus spending, public construction
  activity has also declined over this period, albeit less than private construction markets. In fact, through the prior three U.S.
  recessions (July 1990 through March 1991, March 2001 through November 2001 and December 2007 through June 2009), highway spending
  in real dollars grew 1.8% annually on average in years with a recession as compared to 0.9% annually on average in years without
  a recession. While short-term demand for aggregates fluctuates with economic cycles, the declines have historically been followed
  by strong recovery, with each peak establishing a new historical high.
  A significant portion
  of annual demand for aggregates is derived from large public infrastructure and highway construction projects. According to the
  Montana Contractors' Association, approximately 38,000 tons of aggregate are required to construct a one mile stretch of
  a typical four-lane interstate highway. Highways located in markets with significant seasonal temperature variances are particularly
  vulnerable to freeze-thaw conditions that exert excessive stress on pavement and leads to more rapid surface degradation. Surface
  maintenance repairs, as well as general highway construction, occur in the warmer months, resulting in a majority of aggregates
  production and sales in the eight months from April through November in these markets.
  Our
  Aggregate Operations
  Aggregate
  Products
  We mine limestone,
  sand, and gravel, and other natural resources from our quarry. Aggregates are produced mainly from blasting hard rock from quarries
  and then crushing and screening it to various sizes to meet our customers' needs. The production of aggregates also involves
  the extraction of sand and gravel, which requires less crushing, but still requires screening for different sizes. Aggregate production
  utilizes capital intensive heavy equipment which includes the use of loaders, large haul trucks, crushers, screens and other heavy
  equipment at quarries.
  Once extracted,
  the minerals are processed and/or crushed on site into crushed stone, concrete and masonry sand, specialized sand, pulverized lime
  or agricultural lime. The minerals are processed to meet customer specifications or to meet industry standard sizes. Crushed stone
  is used primarily in ready mixed concrete, asphalt paving mix, and the construction of road base for highways.
  Aggregate
  Competition
  The U.S. aggregate
  industry is highly fragmented with numerous participants operating in localized markets. The January 2013 USGS reported that a
  total of 1,550 companies operating 4,000 quarries and 91 underground mines produced or sold crushed stone in 2012 in the United
  States. This fragmentation is a result of the cost of transporting aggregates, which typically limits producers to a market area
  within approximately 40 miles of their production facilities.
  We believe we have
  a strong competitive advantage in aggregates through our superior reserves, and high quality. We further share and implement best
  practices relating to strategy, sales and marketing, production, safety, and environmental and land management. As a result of
  our local market knowledge, we have a strong understanding of the needs of most of our aggregates customers.
  Seasonality
  Use and consumption
  of our products fluctuate due to seasonality. Nearly all of the products used by us, and by our customers, in the public or private
  construction industry are used outdoors. Therefore, season changes and other weather-related conditions, in particular extended
  rainy and cold weather in the spring and fall and major weather events, such as hurricanes, tropical storms and heavy snows, can
  adversely affect our business and operations through a decline in both the use of our products and demand for our services. In
  addition, the construction materials business production and shipment levels follow activity in the construction industry, which
  7
  typically occurs in the spring, summer
  and fall. Warmer and drier weather during the second and third quarters of our fiscal year typically result in higher activity
  and revenue levels during those quarters. The first quarter of our fiscal year has typically lower levels of activity due to weather
  conditions.
  Compliance with Government Regulation
  We will be required
  to conduct all mineral exploration and waste disposal activities in accordance with government regulations. Such operations are
  subject to various laws governing land use, the protection of the environment, production, exports, taxes, labor standards, occupational
  health, waste disposal, toxic substances, safety and other matters. Unfavorable amendments to current laws, regulations and permits
  governing operations and activities of resource exploration companies, or more stringent implementation thereof, could have a materially
  adverse impact and cause increases in capital expenditures which could result in a cessation of operations.
  Employees
  As of December 31,
  2013, we had approximately 10 employees/independent contractors including a manager / attorney, consultant, and property security.
  We used the services of various contract personnel from time to time. Although national unemployment rates remain high relative
  to historical averages, there exists a significant amount of competition for skilled personnel in the waste management and waste
  conversion industry. Nevertheless, we expect to be able to attract and retain such additional employees as are necessary, commensurate
  with the anticipated future expansion of our business resulting from future acquisitions and joint ventures. Further, we expect
  to continue to use consultants, contract labor, attorneys and accountants as necessary.
  Available Information
  JPX Global, Inc.
  is subject to the information requirements of the Securities Exchange Act of 1934, as amended, and in accordance therewith files
  quarterly and annual reports, as well as other information with the Securities and Exchange Commission ("Commission")
  under File No. 000-54793. Such reports and other information filed with the Commission can be inspected and copied at the public
  reference facilities maintained by the Commission at 450 Fifth Street, N.W., Washington, D.C. 20549 at prescribed rates, and at
  various regional and district offices maintained by the Commission throughout the United States. Information about the operation
  of the Commission's public reference facilities may be obtained by calling the Commission at 1-800-SEC-0330. The Commission
  also maintains a website at
  http://www.sec.gov
  that contains reports and other information regarding the Company and other
  registrants that file electronic reports and information with the Commission.
  8
  RISK FACTORS
  An investment in our Common Stock
  involves a high degree of risk. You should carefully consider the risks described below, together with all of the other information
  included in this Report, before making an investment decision. If any of the following risks actually occur, our business, financial
  condition or results of operations could suffer. In that case, the trading price of our shares of Common Stock could decline, and
  you may lose all or part of your investment. You should read the section entitled "Special Note Regarding Forward Looking
  Statements" above for a discussion of what types of statements are forward-looking statements, as well as the significance
  of such statements in the context of this Report.
  Risks
  Related to Our Business
  We
  have a limited operating history that you can use to evaluate us, and the likelihood of our success must be considered in light
  of the problems, expenses, difficulties, complications and delays frequently encountered by a small developing company.
  We
  were incorporated in Nevada in December 2008. As a small company, we face all of the risks commonly encountered by new businesses,
  including the lack of an established operating history, need for additional capital and personnel, and intense competition. We
  cannot assure you that our business plan will be successful.
  We are dependent
  upon receipt of additional working capital to fund our business plan.
  Our working capital at February 5, 2014 was insufficient
  to fund our business plan. We will require additional capital to continue our business operations. We will need to obtain additional
  financing from outside sources within the next 12 months in order to continue to fund our business needs. There is no assurance
  that funds will be available from any source or, if available, that they can be obtained on terms acceptable to us. If we are unsuccessful
  in addressing these needs, we may cease our business activities. As a result, investors may lose all or a part of their investment.
  Governmental laws
  and regulations may add to our costs or limit our activities. Our operations are affected from time to time in varying degrees
  by governmental laws and regulations.
  We may be required to make significant capital expenditures to comply with governmental
  laws and regulations. It is also possible that these laws and regulations may in the future add significantly to our operating
  costs or may significantly limit our activities.
  Competition is intense,
  and we have limited financial and personnel resources with which to compete.
  We expect to be at a disadvantage when competing
  with many firms that have substantially greater financial and management resources and capabilities.
  Our operations and
  resources are not diversified.
  Our limited financial resources limit our ability to diversify our operations. The inability
  to diversify activities into more than one area will subject us to economic fluctuations within a particular business or industry
  and therefore increase the risks associated with our operations.
  We depend heavily
  upon our management.
  We are heavily dependent upon the skills, talents, and abilities of our management team to implement
  our business plan. The loss of the services of our sole executive officer would have a material adverse effect upon our business
  and financial condition.
  We depend heavily
  upon outside advisors.
  To supplement the business experience of our employees, we employ accountants, technical experts,
  appraisers, attorneys, or other consultants or advisors. The selection of any such advisors will be made by us without any input
  from stockholders. Furthermore, it is anticipated that such persons may be engaged on an "as needed" basis without
  a continuing fiduciary or other obligation to us or the shareholders. In the event we consider it necessary to hire outside advisors,
  we may elect to hire persons who are affiliates, if they are able to provide the required services.
  We provide for indemnification
  of officers and directors.
  Nevada corporation law provides for the indemnification of directors, officers, employees, and
  agents, under certain circumstances, against attorney's fees and other expenses incurred by them in any litigation to which
  they become a party from their association with or activities on our behalf. We will also bear the expenses of such litigation
  for any of our directors, officers
  9
  employees, or agents, upon such person's
  promise to repay the Company therefore if it is ultimately determined that any such person shall not have been entitled to indemnification.
  This indemnification policy could result in substantial expenditures by us.
  The liability of
  our directors and officers is limited.
  Nevada's corporation's law excludes personal liability of directors and officers
  for monetary damages for breach of fiduciary duty except in certain specified circumstances. Accordingly, we will have a much more
  limited right of action against our directors and officers than otherwise would be the case. This provision does not affect the
  liability of any directors or officers under federal of applicable state securities laws.
  Our business is speculative.
  The solid waste industry is extremely competitive and the commercial success of any venture is often dependent on factors beyond
  the control of the Company. The Company may incur uninsured losses for liabilities which arise in the ordinary course of business,
  or which are unforeseen, including but not limited to copyright infringement, product liability, and employment liability. We cannot
  assure you that you will not lose your entire investment in the Company.
  Risks
  Related to Ownership of Our Common Stock
  Though our common stock is quoted
  on the OTCQB, there is no liquidity and no established public market for our common stock, which means that it will be difficult
  to sell your shares.
  Our common stock
  is quoted on the OTCQB under the symbol "JPEX". There is, however, presently no active public market in our shares.
  We cannot assure you that such an active market for our common stock will develop. The over-the-counter market is a significantly
  more limited market than established trading markets such as the New York Stock Exchange or Nasdaq. Broker dealers may not be willing
  to make a market in our shares. In addition, the OTCQB and similar quotation services are often characterized by low trading volumes,
  and price volatility, which may make it difficult for an investor to sell our common stock on acceptable terms.
  Our common stock is subject to
  the "penny stock" rules of the SEC and the trading market in our securities is limited, which makes transactions in
  our stock cumbersome and may reduce the value of an investment in our stock.
  Under U.S. federal
  securities legislation, our common stock will constitute "penny stock". Penny stock is any equity security that has
  a market price of less than $5.00 per share, subject to certain exceptions. For any transaction involving a penny stock, unless
  exempt, the rules require that a broker or dealer approve a potential investor's account for transactions in penny stocks,
  and the broker or dealer receive from the investor a written agreement to the transaction, setting forth the identity and quantity
  of the penny stock to be purchased. In order to approve an investor's account for transactions in penny stocks, the broker
  or dealer must obtain financial information and investment experience objectives of the person, and make a reasonable determination
  that the transactions in penny stocks are suitable for that person and the person has sufficient knowledge and experience in financial
  matters to be capable of evaluating the risks of transactions in penny stocks. The broker or dealer must also deliver, prior to
  any transaction in a penny stock, a disclosure schedule prepared by the SEC relating to the penny stock market, which, in highlight
  form sets forth the basis on which the broker or dealer made the suitability determination. Brokers may be less willing to execute
  transactions in securities subject to the "penny stock" rules. This may make it more difficult for investors to dispose
  of our common stock and cause a decline in the market value of our stock. Disclosure also has to be made about the risks of investing
  in penny stocks in both public offerings and in secondary trading and about the commissions payable to both the broker-dealer and
  the registered representative, current quotations for the securities and the rights and remedies available to an investor in cases
  of fraud in penny stock transactions. Finally, monthly statements have to be sent disclosing recent price information for the penny
  stock held in the account and information on the limited market in penny stocks.
  Because we do not intend to pay
  any cash dividends on our common stock, our stockholders will not be able to receive a return on their shares unless they sell
  them.
  10
  We have never paid
  a dividend and we intend to retain any future earnings to finance the development and expansion of our business. Consequently,
  we do not anticipate paying any cash dividends on our common stock in the foreseeable future. Unless we pay dividends, our stockholders
  will not be able to receive a return on their shares unless they sell them. We cannot assure you that stockholders will be able
  to sell shares when desired.
  Future
  issuance of our Common Stock could dilute the interests of existing shareholders.
  We
  may issue additional shares of our Common Stock in the future. The issuance of a substantial amount of Common Stock could have
  the effect of substantially diluting the interests of our shareholders. In addition, the sale of a substantial amount of Common
  Stock in the public market, either in the initial issuance or in a subsequent resale by the target company in an acquisition which
  received such Common Stock as consideration or by investors who acquired such Common Stock in a private placement could have an
  adverse affect on the market price of our Common Stock.
  If we are unable to establish appropriate
  internal financial reporting controls and procedures, it could cause us to fail to meet our reporting obligations, result in the
  restatement of our financial statements, harm our operating results, subject us to regulatory scrutiny and sanction, cause investors
  to lose confidence in our reported financial information and have a negative effect on the market price for shares of our Common
  Stock.
  Effective internal controls
  are necessary for us to provide reliable financial reports and to effectively prevent fraud. We maintain a system of internal control
  over financial reporting, which is defined as a process designed by, or under the supervision of our principal executive officer
  and principal financial officer, or persons performing similar functions, and effected by our board of directors, management and
  other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial
  statements for external purposes in accordance with generally accepted accounting principles.
  As a public company that
  files reports under the Exchange Act, we have significant additional requirements for enhanced financial reporting and internal
  controls. We are required to document and test our internal control procedures in order to satisfy the requirements of Section
  404 of the Sarbanes-Oxley Act of 2002, which requires annual management assessments of the effectiveness of our internal controls
  over financial reporting. The process of designing and implementing effective internal controls is a continuous effort that requires
  us to anticipate and react to changes in our business and the economic and regulatory environments and to expend significant resources
  to maintain a system of internal controls that is adequate to satisfy our reporting obligations as a public company under the Exchange
  Act.
  We cannot assure you that
  we will not, in the future, identify areas requiring improvement in our internal control over financial reporting. We cannot assure
  you that the measures we will take to remediate any areas in need of improvement will be successful or that we will implement and
  maintain adequate controls over our financial processes and reporting in the future as we continue our growth. If we are unable
  to establish appropriate internal financial reporting controls and procedures, it could cause us to fail to meet our reporting
  obligations, result in the restatement of our financial statements, harm our operating results, subject us to regulatory scrutiny
  and sanction, cause investors to lose confidence in our reported financial information and have a negative effect on the market
  price for shares of our Common Stock.
  Lack of experience as officers of publicly-traded
  companies of our management team may hinder our ability to comply with Sarbanes-Oxley Act.
  It may be time consuming,
  difficult and costly for us to develop and implement the internal controls and reporting procedures required by the Sarbanes-Oxley
  Act. We may need to hire additional financial reporting, internal controls and other finance staff or consultants in order to develop
  and implement appropriate internal controls and reporting procedures.
  11
  Following
  the
  Acquisition
  , public company compliance may make it more difficult
  to attract and retain officers and directors.
  The Sarbanes-Oxley
  Act and rules subsequently implemented by the SEC have required changes in corporate governance practices of public companies that
  file reports under the Exchange Act. As a public reporting company, we expect these rules and regulations to continue to increase
  our compliance costs and to make certain activities more time consuming and costly. As a public company, these rules and regulations
  may make it more difficult and expensive for us to obtain director and officer liability insurance at commercially acceptable rates
  and we may therefore be required to accept reduced policy limits and coverage or incur substantially higher costs to obtain the
  same or similar coverage. As a result, it may be more difficult for us to attract and retain qualified persons to serve on our
  board of directors or as executive officers.
  Because our directors and executive
  officers are among our largest shareholders, they can exert significant control over our business and affairs and have actual or
  potential interests that may depart from those our other shareholders.
  Our
  directors and executive officers will own or control a significant percentage of the Common Stock following the
  Acquisition
  .
  The interests of such persons may differ from the interests of our other shareholders. As a result, in addition to their board
  seats and offices, such persons will have significant influence over and control all corporate actions requiring shareholder approval,
  irrespective of how the Company's other shareholders, including participants in the Acquisition, may vote, including the
  following actions:
  ·
  to elect or defeat the election of our directors;
  ·
  to amend or prevent amendment of our Articles of Incorporation or
  By-laws;
  ·
  to effect or prevent a merger, sale of assets or other corporate
  transaction; and
  ·
  to control the outcome of any other matter submitted to our shareholders
  for vote.
  Such persons' stock ownership
  may discourage a potential acquirer from making a tender offer or otherwise attempting to obtain control of the Company, which
  in turn could reduce our stock price or prevent our shareholders from realizing a premium over our stock price.
  FINANCIAL INFORMATION
  MANAGEMENT'S DISCUSSION AND ANALYSIS
  OF OPERATIONS
  The
  following discussion and analysis of the results of operations and financial condition should be read in conjunction with our financial
  statements and the notes to those financial statements that are attached as Exhibit 99.1 to this Report.
  The Financial
  Statements should not be relied on for an understanding of the current financial status of the Company.
  Overview
  On February 5, 2014,
  the Company entered into an agreement to acquire all of the assets of Scorpex, Inc., a Nevada corporation, in exchange for 105,000,000
  shares of Common Stock. We are now expanding our business to further develop our operations to capitalize on the opportunities
  available primarily in Mexico, in the integrated waste, and waste management service operations, including the receiving, storage,
  transfer and disposal of waste in an environmental manner. In providing these services, we intend to actively pursue projects and
  initiatives that we believe make a positive difference for our environment which will be focused on gasification of waste in an
  environmental manner. It is expected that our customer base will include commercial, industrial, municipal and residential customers,
  other waste management companies, electric utilities, and governmental entity properties. We are an exploration stage company and
  we have not realized any revenues to date. We do not have sufficient capital
  12
  to enable us to commence and complete
  our exploration program. We will require additional financing in order to conduct the exploration program described herein."
  Our auditors have issued a going concern opinion, raising substantial doubt about the Company's financial prospects, and the Company's
  ability to continue as a going concern. As a waste management company, our principal sources of revenue will result from waste
  management contracts, but will also include revenue from ancillary services related to the handling and conversion of waste. Expenses
  which comprise the costs of goods sold include the operational and staffing costs of the trucks and other vehicles used for transporting
  and special licensing where required. General and administrative expenses have been comprised of administrative wages and benefits;
  occupancy and office expenses; outside legal, accounting and other professional fees; travel and other miscellaneous office and
  administrative expenses. Selling and marketing expenses include selling/marketing wages and benefits, advertising and promotional
  expenses, as well as travel and other miscellaneous related expenses.
  Because we have
  incurred losses, income tax expenses are immaterial. No tax benefits have been booked related to operating loss carryforwards,
  given our uncertainty of being able to utilize such loss carryforwards in future years. We anticipate incurring additional losses
  during the coming year.
  Results of Operations
  Following is management's
  discussion of the relevant items affecting results of operations for the years ended December 31, 2013 and 2012.
  Revenues
  . The Company
  generated net revenues of $14,502 during the year ended December 31, 2013 as compared to $-0- for the year ended December 31, 2012.
  The revenues were generated from sand and gravel excavation per the joint venture as previously described. The joint venture commenced
  operations during the quarter ended September 30, 2013.
  Consulting Fees
  .
  Consulting fees for the year ended December 31, 2013 were $2,541,783 compared to $-0- for the year ended December 31, 2012. During
  the year ended December 31, 2013 the Company issued 2,033,380 shares of common stock for services rendered to the Company. The
  shares were valued at $1.25 per share for financial statement purposes.
  Professional Fees.
  Professional fees for the year ended December 31, 2013 were $44,765 compared to $44,557 for the year ended December 31, 2012. Professional
  fees consist mainly of the fees for the audits and review of the Company's financial statements as well as the filings with
  the SEC. We anticipate that professional fees will increase in future periods as we scale up our operations.
  Other General and Administrative
  Expenses.
  Other general and administrative expenses for the year ended December 31, 2013 were $33,854 compared to $-0- for
  the year ended December 31, 2012. The Company expects other general and administrative expenses to increase in future periods as
  we scale up our operations.
  Other Income (Expense).
  The Company had net other expenses of $26,370 for the year ended December 31, 2013 compared to $-0- during 2012. Other expenses
  consist of interest expenses and debt discount expenses related to promissory notes issued by the Company.
  Liquidity and Capital Resources
  As of December 31, 2013,
  the Company's primary source of liquidity consisted of $972 in cash and cash equivalents. The Company holds its cash reserves
  In trust account. Since inception, the Company has financed its operations through a combination of short -term loan from the founder
  and through the private placement of its common stock.
  The Company has sustained
  significant net losses which have resulted in an accumulated deficit at December 31, 2013 of $2.721.694 and is currently experiencing
  a substantial shortfall in operating capital which raises doubt about the Company's ability to continue as a going concern.
  The Company generated a net loss for the year ended December 31, 2013 of $2,640,116 compared to a net loss for the year ended December
  31, 2012 of
  13
  $44,557. Without additional revenues, working
  capital loans, or equity investment, there is substantial doubt as to our ability to continue operations.
  We believe these conditions
  have resulted from the inherent risks associated with small public companies. Such risks include, but are not limited to, the ability
  to (i) generate revenues and sales of our products and services at levels sufficient to cover our costs and provide a return for
  investors, (ii) attract additional capital in order to finance growth, and (iii) successfully compete with other comparable companies
  having financial, production and marketing resources significantly greater than those of the Company.
  We believe that our capital
  resources are insufficient for ongoing operations, with minimal current cash reserves, particularly given the resources necessary
  to expand our waste management business. We will likely require considerable amounts of financing to make any significant advancement
  in our business strategy. There is presently no agreement in place that will guarantee financing for our Company, and we cannot
  assure you that we will be able to raise any additional funds, or that such funds will be available on acceptable terms. Funds
  raised through future equity financing will likely be substantially dilutive to current shareholders. Lack of additional funds
  will materially affect our Company and our business, and may cause us to substantially curtail or even cease operations. Consequently,
  you could incur a loss of your entire investment in the Company.
  Off-Balance Sheet Arrangements
  We do not have any off-balance
  sheet arrangements.
  Critical Accounting Policies
  We believe the following
  critical accounting policies are used in the preparation of our financial statements:
  Use of Estimates.
  The
  preparation of financial statements in conformity with accounting principles generally accepted in the United States of America
  requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying
  notes. Actual results could differ from those estimates. On a periodic basis, management reviews those estimates, including those
  related to valuation allowances, loss contingencies, income taxes, and projection of future cash flows.
  Research and
  Development.
  Research and development costs are charged to operations when incurred and are included
  in operating expenses.
  Recent Accounting Pronouncements
  See Note 1 in the
  Notes to the Financial Statements for recent accounting pronouncements.
  There were various
  other accounting standards and interpretations recently issued, none of which are expected to a have a material impact on the Company's
  financial position, operations or cash flows.
  Forward-Looking Statements
  This report contains
  or incorporates by reference forward-looking statements within the meaning of the United States Private Securities Litigation Reform
  Act of 1995 concerning our future business plans and strategies, the receipt of working capital, future revenues and other statements
  that are not historical in nature. In this report, forward-looking statements are often identified by the words "anticipate,"
  "plan," "believe," "expect," "estimate," and the like. These forward-looking statements
  reflect our current beliefs, expectations and opinions with respect to future events, and involve future risks and uncertainties
  which could cause actual results to differ materially from those expressed or implied.
  14
  Other uncertainties
  that could affect the accuracy of forward-looking statements include:
  •	the
  worldwide economic situation;
  •	any changes
  in interest rates or inflation;
  •
  the willingness and ability of third parties to honor their contractual
  commitments;
  •
  our ability to raise additional capital, as it may be affected by
  current conditions in the  stock market and competition for risk capital;
  •
  our capital expenditures, as they may be affected by delays or cost
  overruns;
  •
  environmental and other regulations, as the same presently exist
  or may later be amended;
  •
  our ability to identify, finance and integrate any future acquisitions;
  and
  •
  the volatility of our common stock price.
  This list is not
  exhaustive of the factors that may affect any of our forward-looking statements. You should read this report completely and with
  the understanding that our actual future results may be materially different from what we expect. These forward-looking statements
  represent our beliefs, expectations and opinions only as of the date of this report. We do not intend to update these forward looking
  statements except as required by law. We qualify all of our forward-looking statements by these cautionary statements.
  QUANTITATIVE AND QUALITATIVE DISCLOSURES
  ABOUT MARKET RISK
  Not Applicable.
  PROPERTIES
  Our executive offices
  are located at 9864 E Grand River, Ste 110-301 Brighton, Michigan 48116. The office space is free of charge and no lease exists.
  There are currently no proposed programs for the renovation, improvement or development of the facilities we currently use.
  15
  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL
  OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS.
  The following table
  sets forth the beneficial ownership of each of our directors and executive officers, and each person known to us to beneficially
  own 5% or more of the outstanding shares of our common stock, and our executive officers and directors as a group, as of December
  31, 2013. Beneficial ownership is determined in accordance with the rules of the SEC and includes voting or investment power with
  respect to the securities. Unless otherwise indicated, we believe that each beneficial owner set forth in the table has sole voting
  and investment power and has the same address as us. Our address is 9864 E Grand River, Ste 110-301 Brighton, Michigan 48116 .
  As of December 31, 2013, we had 31,975,000 shares of common stock outstanding and 1,000 shares of series A preferred stock outstanding.
  Joseph Caywood, our majority shareholder and creditor of the Company owns all of the issued and outstanding shares of series A
  preferred stock. Each of our shares of common stock holds one vote. The following table describes the ownership of our voting securities
  (i) by each of our officers and directors, (ii) all of our officers and directors as a group, and (iii) each person known to us
  to own beneficially more than 5% of our common stock or any shares of our preferred stock.
  Amount and Nature of Beneficial Ownership
  Name
  Sole
  Voting and
  Investment
  Power
  Options
  Exercisable
  Within
  60 Days
  Other
  Beneficial
  Ownership
  Total
  (1)
  Percent
  of Class
  Outstanding
  (2)
  James P. Foran
  (3)
  —
  —
  —
  —
  *
  Joseph Caywood
  (4)
  20,100,000
  —
  —
  20,100,00
  62.86
  %
  All current directors and executive officers as a group (1 person)
  —
  —
  —
  —
  *
  ____________________
  *
  Indicates less than one percent.
  (1)
  The calculation of total beneficial ownership for each person in the table above is based upon
  the number of shares of common stock beneficially owned by such person, together with any options, warrants, rights, or conversion
  privileges held by such person that are currently exercisable or exercisable within 60 days of the date of this prospectus.
  (2)
  Based on 31,975,000 shares of our common stock, par value $0.001 per share, outstanding as of February
  5, 2014. Excludes voting rights applicable to shares of our preferred stock. See footnote (4) for a discussion of the percentage
  of outstanding voting rights beneficially held when taking into account our shares of preferred stock.
  (3)
  Chief Executive Officer, Secretary, Chief Financial Officer, and sole Director of the Company.
  (4)
  Beneficial shareholder of the Company. Includes 20,100,00 shares of common stock held directly,
  but excludes 1,000 shares of preferred stock. If the votes of the 1,000 preferred stock and the shares of common stock are taken
  into account, Mr. Caywood would beneficially hold 91% of the voting securities of the Company. Following this acquisition, Mr.
  Caywood will control another 105,000,000 shares of common stock as the sole officer and director of Scorpex, Inc.
  Section 16(a) beneficial ownership
  compliance
  Under the federal securities
  laws, our directors, executive officers, and any persons beneficially owning more than ten percent of our common stock are required
  to report their ownership of our common stock and any changes in that ownership to the Company and the SEC. Specific due dates
  for these reports have been established by regulation. Based solely upon a review of reports furnished to the Company and written
  representations of certain persons, except as listed below, we believe that all of our directors and executive officers complied
  during 2012 with the reporting requirements of Section 16(a) of the Securities Exchange Act of 1934 (the "Exchange Act").
  16
  To our knowledge,
  during the fiscal year ended December 31, 2012, based solely upon a review of such materials as are required by the Securities
  and Exchange Commission, no other officer, director or beneficial holder of more than ten percent of our issued and outstanding
  shares of Common Stock failed to timely file with the Securities and Exchange Commission any form or report required to be so filed
  pursuant to Section 16(a) of the Exchange Act of 1934.
  Changes in Control
  We are not aware
  of any person who owns of record, or is known to own beneficially, five percent or more of our outstanding securities of any class,
  other than as set forth above.
  DIRECTORS AND EXECUTIVE OFFICERS
  The following table
  sets forth the names and ages of all of our directors, executive officers and key employees; and all positions and offices held
  as of the date of this Report. The directors will hold such office until the next annual meeting of shareholders and until his
  or her successor has been elected and has qualified.
  Name
  Age
  Position
  James P. Foran
  53
  Chief Executive Officer, Secretary, Chief Financial and sole Director
  Business Experience
  James P. Foran
  ,
  53, Chief Executive Officer, Secretary, Chief Financial Officer and Sole Director
  .
  Mr. Foran, age 53, is a
  director and the Chief Executive Officer for Continental Industrial Services since 1999, a company that specializes in mechanical
  installation and maintenance of water and waste treatment facilities. Mr. Foran is also the Senior Project Manager for the Detroit
  Incinerator Rehabilitation since November 2010, renovation of one of the world's largest incineration complex's. Mr.
  Foran has more than twenty years of experience at managing personnel and projects in the Heavy Civil Engineering Construction field.
  His involvement has included a diverse background in multiple management areas: establishing budgets, schedules, project management,
  mechanical process, monitoring and coordination, and extensive personnel management experience. He has experience in the design
  and construction of industrial facilities and processes for chemical and municipal customers. Mr. Foran has a Juris Doctorate degree
  from the University of Detroit School of Law, and a Bachelor's degree in English Literature and Communications. Mr. Foran is currently
  licensed to practice law in Michigan.
  Committees
  The board of directors
  has no standing committees. However, the Company intends to implement a comprehensive corporate governance program, including establishing
  various board committees and adopting a Code of Ethics in the future. In addition, the Company intends to secure Directors and
  Officers insurance consistent with the Company's and Board of Director's mandates.
  17
  EXECUTIVE COMPENSATION
  The following table summarizes
  the total compensation for the two fiscal years ended December 31, 2011 and 2012 of each person who served as our principal executive
  officer or principal financial and accounting officer collectively, (the "Named Executive Officers") including any
  other executive officer who received more than $100,000 in annual compensation from the Company. We did not award cash bonuses,
  stock awards, stock options or non-equity incentive plan compensation to any Named Executive Officer during the two years ended
  December 31, 2011 and 2012, thus these items are omitted from the table below:
  Summary Compensation Table
  Name and Principal Position
  Year
  Salary
  Stock Awards
  All Other Compensation
  Total
  James P. Foran
  2013
  $
  —
  $
  —
  $
  —
  $
  —
  Chief Executive Officer, Secretary and Chief Financial Officer
  2012
  $
  —
  $
  —
  $
  —
  $
  —
  There is no other
  arrangement or understanding between our directors and officers and any other person pursuant to which any director or officer
  was or is to be selected as such.
  Outstanding
  Equity Awards at Fiscal Year-End
  Our Named Executive
  Officer did not have any unexercised options or stock awards that have not vested outstanding at the end of our last fiscal year.
  Other than as noted above, we did not grant any equity awards to our Named Executive Officers or directors during 2013 or 2012.
  Employment Agreements
  Currently, none
  of our executive officers are subject to an employment agreement with the Company. Nevertheless, we do intend to enter into such
  agreements in the future.
  Option Plan
  There are no stock
  option plans or shares of Common Stock set aside for any stock option plan.
  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
  On February 5, 2014,
  the Company entered into an agreement to acquire all of the assets of Scorpex, Inc., a Nevada corporation, a Company controlled
  by the Company's controlling shareholder Joseph Caywood, in exchange for 105,000,000 shares of Common Stock.
  On January
  6, 2014, the Company issued 1,000 shares of Series A Preferred Stock as security for outstanding debts of the Company to its controlling
  shareholder Joseph Caywood. The Series A Preferred Stock has no conversion rights. On January 6, 2014, the Board of Directors of
  JPX Global, Inc. (the "Company") approved a Certificate of Designation to the Company's Articles of Incorporation.
  The Certificate of Designation designates the following rights, preferences, privileges, and restrictions in respect to the Series
  "A" Preferred Stock (the "Preferred Stock").
  18
  i.
  Each share of Series A Preferred Stock shall have 100,000 votes per share and shall vote together with holders of the Company's common stock on all matters upon which common stockholders may vote; and
  ii.
  Shares of Series A Preferred Stock shall not have the right to receive dividends or distributions, and shall have no rights with respect to the liquidation of the Company; and
  iii.
  Shares of Series A Preferred Stock shall not be convertible into shares of common stock or any other shares of capital stock of the Company, unless approved by the Board of Directors of the Company.
  On February 15,
  2013, the Company entered into an agreement to acquire all of the assets of Scorpex, a Company controlled by the Company's
  controlling shareholder Joseph Caywood, in exchange for 103,250,000 shares of Common Stock and 5,000,000 shares of Series A Preferred
  Stock of the Company. Upon the acquisition of Scorpex, there was an implied option for either party to rescind the original acquisition.
  During the year that option was exercised and on May 16, 2013, we unwound the acquisition of Scorpex and resumed its operation
  prior to February 15, 2013 acquisition.
  On August 17, 2011
  the Company issued 100,000 common shares at par value for services rendered.
  On August 31, 2010,
  the company issued 30,000,000 private placement common shares to its founder for cash of $30,000.
  Director Independence
  Because
  our common stock is not currently listed on a national securities exchange, we have used the definition of "independence"
  of The NASDAQ Stock Market to make this determination. NASDAQ Listing Rule 5605(a)(2) provides that an "independent director"
  is a person other than an officer or employee of the Company or any other individual having a relationship which, in the opinion
  of the Company's board of directors, would interfere with the exercise of independent judgment in carrying out the responsibilities
  of a director. The NASDAQ listing rules provide that a director cannot be considered independent if:
  ·
  the director is, or at any time during the
  past three years was, an employee of the company;
  ·
  the director or a family member of the director
  accepted any compensation from the company in excess of $120,000 during any period of 12 consecutive months within the three years
  preceding the independence determination (subject to certain exclusions, including, among other things, compensation for board
  or board committee service);
  ·
  a family member of the director is, or at
  any time during the past three years was, an executive officer of the company;
  ·
  the director or a family member of the director
  is a partner in, controlling stockholder of, or an executive officer of an entity to which the company made, or from which the
  company received, payments in the current or any of the past three fiscal years that exceed 5% of the recipient's consolidated
  gross revenue for that year or $200,000, whichever is greater (subject to certain exclusions);
  ·
  the director or a family member of the director
  is employed as an executive officer of an entity where, at any time during the past three years, any of the executive officers
  of the company served on the compensation committee of such other entity; or the director or a family member of the director is
  a current partner of the company's outside auditor, or at any time during the past three years was a partner or employee
  of the company's outside auditor, and who worked on the company's audit.
  We
  do not have any independent directors. We do not have an audit committee, compensation committee or nominating committee.
  We
  currently do not have a code of ethics that applies to our officers, employees and director.
  19
  LEGAL PROCEEDINGS
  From time to time,
  we may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business. However, litigation
  is subject to inherent uncertainties and an adverse result in these or other matters may arise from time to time that may harm
  our business. We are currently not aware of any such legal proceedings or claims that we believe will have a material adverse affect
  on our business, financial condition or operating results.
  MARKET PRICE AND DIVIDENDS ON THE REGISTANT'S
  COMMON EQUITY AND RELATED SHAREHOLDER MATTERS
  Our common stock
  is listed on the OTCQB under the symbol "JPEX". We had approximately 29 registered holders of our common stock as of
  February 5, 2014. Registered holders do not include those stockholders whose stock has been issued in street name. The last reported
  price for our common stock on February 5, 2014 was $1.25 per share.
  The following table
  reflects the high and low closing sales prices per share of our common stock during each calendar quarter as reported on the OTCQB,
  during the two fiscal years ended December 31, 2013:
  Price Range(1)
  High
  Low
  Fiscal Year Ended 2013
  Fourth quarter
  $
  8.74
  $
  0.11
  Third quarter
  $
  1.25
  $
  1.10
  Second quarter
  $
  1.25
  $
  1.25
  First quarter
  $
  1.18
  $
  1.10
  (1)	The above quotations reflect inter-dealer
  prices, without retail mark-up, mark-down, or commission and may not necessarily represent actual transactions.
  Dividends
  The Registrant has
  not declared any cash dividends since inception and does not anticipate paying any dividends in the foreseeable future. The payment
  of dividends is within the discretion of the Board of Directors and will depend on the Company's earnings, capital requirements,
  financial condition and other relevant factors. There are no restrictions that currently limit the Registrant's ability to
  pay dividends on its Common Stock other than those generally imposed by applicable state law.
  RECENT SALES OF UNREGISTERED SECURITIES
  On February
  5, 2014, the Company entered into an agreement to acquire all of the assets of Scorpex, Inc., a Nevada corporation, a Company controlled
  by the Company's controlling shareholder Joseph Caywood, in exchange for 105,000,000 shares of Common Stock.
  On January
  6, 2014, the Company issued 1,000 shares of Series A Preferred Stock as security for outstanding debts of the Company to its controlling
  shareholder Joseph Caywood. The Series A Preferred Stock has no conversion rights. On January 6, 2014, the Board of Directors of
  JPX Global, Inc. (the "Company") approved a Certificate of Designation to the Company's Articles of Incorporation.
  The Certificate of Designation designates the following rights, preferences, privileges, and restrictions in respect to the Series
  "A" Preferred Stock (the "Preferred Stock").
  20
  i.
  Each share of Series A Preferred Stock shall have 100,000 votes per share and shall vote together with holders of the Company's common stock on all matters upon which common stockholders may vote; and
  ii.
  Shares of Series A Preferred Stock shall not have the right to receive dividends or distributions, and shall have no rights with respect to the liquidation of the Company; and
  iii.
  Shares of Series A Preferred Stock shall not be convertible into shares of common stock or any other shares of capital stock of the Company, unless approved by the Board of Directors of the Company.
  On August 17, 2011
  the Company issued 100,000 common shares at par value for services rendered.
  On August 31, 2010,
  the company issued 30,000,000 private placement common shares to its founder for cash of $30,000.
  DESCRIPTION OF SECURITIES
  Authorized
  Capital Stock
  Our
  authorized capital stock consists of 500,000,000 shares of Common Stock and 40,000,000 shares of Preferred Stock at a par value
  of $0.001 per share. As of February 5, 2014, 31,975,000 shares of our Common Stock and 1,000 shares of Preferred Stock were issued
  and outstanding.
  Common Stock
  All
  outstanding shares of Common Stock are of the same class and have equal rights and attributes. The holders of Common Stock are
  entitled to one vote per share on all matters submitted to a vote of shareholders of the Company. All shareholders are entitled
  to share equally in dividends, if any, as may be declared from time to time by the Board of Directors out of funds legally available.
  In the event of liquidation, the holders of Common Stock are entitled to share ratably in all assets remaining after payment of
  all liabilities. The shareholders do not have cumulative or preemptive rights.
  Preferred
  Stock
  Our
  charter authorizes us to issue up to 40,000,000 shares of preferred stock. 1,000 shares of our preferred stock are designated as
  Series "A" Preferred Stock. As of February 5, 2014 all 1,000 of our Series "A" Preferred Stock were issued
  and outstanding. Although the Series "A" Preferred Stock carries no dividend, distribution, liquidation or conversion
  rights, each share of Series "A" Preferred Stock carries one hundred thousand (100,000) votes, and holders of our preferred
  stock are able to vote together with our common stockholders on all matters. Consequently, the holder of our Series "A"
  Preferred Stock is able to unilaterally control the election of our board of directors and, ultimately, the direction of our Company.
  INDEMNIFICATION OF DIRECTORS AND OFFICERS
  Pursuant to our
  charter and under the Nevada Revised Statutes (hereafter, the "NRS"), our directors are not liable to us or our stockholders
  for monetary damages for breach of fiduciary duty, except for liability in connection with a breach of duty of loyalty, for acts
  or omissions not in good faith or which involve intentional misconduct or a knowing violation of law, for authorization of illegal
  dividend payments or stock redemptions under Nevada law or any transaction from which a director has derived an improper personal
  benefit. Our charter provides that we are authorized to provide indemnification of (and advancement of expenses) to our directors,
  officers, employees and agents (and any other persons to which applicable law permits us to provide indemnification) through Bylaw
  provisions, agreements with such persons, vote of stockholders or disinterested directors, or otherwise, to the fullest extent
  permitted by applicable law.
  21
  We have previously
  entered into indemnification agreements with certain of our current directors and officers. The indemnification agreement indemnifies
  the indemnitee to the fullest extent permitted by law, including against third-party claims and claims by or in right of the Company
  or any subsidiary or majority-owned partnership of the Company by reason of that person (including the advancement of expenses
  subject to certain conditions) (a) being a director, officer employee or agent of the Company, or of any subsidiary or majority-owned
  partnership of the Company or (b) serving at our request as a director, officer, employee or agent of another entity. If appropriate,
  we are entitled to assume the defense of the claim with counsel selected by us and approved by the indemnitee (which approval may
  not be unreasonably withheld). Separate counsel employed by the indemnitee will be at his or her own expense unless (1) the employment
  of separate counsel has been previously authorized by us, (2) the indemnitee reasonably concludes there may be a conflict of interest
  or (3) we have not, in fact, employed counsel to assume the defense of such claim.
  FINANCIAL STATEMENTS AND SUPPLEMENTARY
  DATA
  Information concerning
  the financial information of the Registrant set forth under Item 9.01 of this Report is incorporated by reference.
  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS
  ON ACCOUNTING AND FINANCIAL DISCLOSURE
  None.
  Item 3.02 Unregistered Sales of Equity
  Securities
  The information
  contained in Item 1.01 above is incorporated herein by reference in response to this Item 3.02.
  On February 5, 2014
  pursuant to the terms of the Acquisition, JPEX acquired all of the assets of Scorpex in exchange for 105,000,000 shares of common
  stock of the Company. Scorpex is a development stage waste disposal and recycling company, with the goal of storing and disposing
  all types of waste, including those classified as industrial, toxic, and hazardous. Following the Acquisition, JPEX has 136,975,000
  shares of common stock outstanding.
  With
  respect to the transaction noted above, no solicitation was made and no underwriting discounts were given or paid in connection
  with these transactions. The Company believes that the issuance of the shares as described above was exempt from registration with
  the Securities and Exchange Commission pursuant to Section 4(2) of the Securities Act of 1933.
  Item 9.01 Financial Statements and Exhibits.
  (d) Exhibits
  Exhibit No.
  Description
  2.1
  Asset Purchase Agreement by and between JPX Global, Inc., and Scorpex, Inc. dated February 5, 2014.
  99.1
  Scorpex Int'l, Inc. Consolidated Financial Statements for the period from September 30, 2010 to September 30, 2011
  99.2
  Scorpex Int'l, Inc. Consolidated Financial Statements for the period from September 30, 2011 to September 30, 2012
  99.3
  Scorpex Int'l, Inc. Consolidated Financial Statements for the period from September 30, 2012 to September 30, 2013
  22
  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.
  JPX GLOBAL, INC.
  By:
  /s/ James P. Foran
  James P. Foran
  Chief Executive Officer
  Date:     February
          5, 2014
  23
  JPX GLOBAL, INC.
  Pro Forma Financial Statements
  December 31, 2013
  JPX GLOBAL, INC.
  (formerly Jasper Explorations Inc.)
  (A Development Stage Company)
  Pro Forma Balance Sheet
  (UNAUDITED)
  JPX GLOBAL, INC.
  SCORPEX INTERNATIONAL, INC.
  Pro Forma adjustments
  Pro Forma
  December
      31, 2013
  December
      31, 2013
  December
      31, 2013
  ASSETS
  CURRENT ASSETS:
  Cash
  $
  972
  $
  33,611
  $
  (33,611
  )
  $
  972
  Accounts receivable
  1,063
  —
  —
  1,063
  Due from joint venture
      partner
  3,563
  —
  —
  3,563
  Total Current Assets
  5,598
  33,611
  (33,611
  )
  5,598
  OTHER ASSETS:
  Mineral rights
  75,617
  —
  —
  75,617
  Waste disposal rights
  3,632,400
  3,632,400
  Total Other Assets
  75,617
  —
  3,632,400
  3,708,017
  Total Assets
  $
  81,215
  $
  33,611
  $
  3,598,789
  $
  3,713,615
  LIABILITIES AND STOCKHOLDERS' DEFICIT
  CURRENT LIABILITIES:
  Accounts payable and accrued liabilities
  15,985
  934,528
  (934,528
  )
  15,985
  Advances from related party
  141,725
  —
  —
  141,725
  Convertible loan payable - related party
  1,500
  —
  —
  1,500
  Notes payable - related parties
  —
  3,079,140
  (3,079,140
  )
  —
  Notes payable
  71,874
  621,450
  (621,450
  )
  71,874
  Total Current Liabilities
  231,084
  4,635,118
  (4,635,118
  )
  231,084
  STOCKHOLDERS' DEFICIT:
  Preferred stock at $0.001 par value: 40,000,000 shares
  authorized, none issued and outstanding
  —
  10,000
  (10,000
  )
  —
  Common stock at $0.001 par value: 500,000,000 shares
  authorized, 136,975,000 shares issued
      and outstanding
  31,975
  211,124
  105,000
  136,975
  (211,124
  )
  Stock payable
  197,975
  —
  —
  197,975
  Additional paid-in capital
  2,341,875
  76,371,298
  3,527,400
  5,869,275
  (76,371,298
  )
  Accumulated deficit
  (2,721,694
  )
  (81,193,929
  )
  81,193,929
  (2,721,694
  )
  Total Stockholders'
      Deficit
  (149,869
  )
  (4,601,507
  )
  8,233,907
  3,482,531
  Total Liabilities
      and Stockholders' Deficit
  $
  81,215
  $
  33,611
  $
  3,598,789
  $
  3,713,615
  See notes to the pro forma financial statements.
  24
  JPX GLOBAL, INC.
  (formerly Jasper Explorations Inc.)
  (A Development Stage Company)
  Pro Forma Statement of Operations
  (UNAUDITED)
  JPX GLOBAL, INC.
  SCORPEX INTERNATIONAL, INC.
  Pro Forma adjustments
  Pro Forma
  For the Year Ended
  For the Year Ended
  For the Year Ended
  December
      31, 2013
  December
      31, 2013
  December
      31, 2013
  NET REVENUES
  $
  14,502
  $
  —
  $
  —
  $
  14,502
  COST OF SERVICES
  7,846
  —
  —
  7,846
  GROSS PROFIT
  6,656
  —
  —
  6,656
  OPERATING EXPENSES:
  Consulting fees
  2,541,783
  —
  —
  2,541,783
  Salaries and compensation
  —
  139,308
  (139,308
  )
  —
  Professional fees
  44,765
  95,000
  (95,000
  )
  44,765
  General and administrative
      expenses
  33,854
  2,674
  (2,674
  )
  33,854
  Total Operating Expenses
  2,620,402
  236,982
  (236,982
  )
  2,620,402
  LOSS FROM OPERATIONS
  (2,613,746
  )
  (236,982
  )
  236,982
  (2,613,746
  )
  OTHER INCOME (EXPENSES):
  Interest expense
  (1,996
  )
  (274,369
  )
  274,369
  (1,996
  )
  Debt discount expense
  (24,374
  )
  —
  —
  (24,374
  )
  Total Other Income
      (Expenses)
  (26,370
  )
  (274,369
  )
  274,369
  (26,370
  )
  LOSS BEFORE INCOME TAXES
  (2,640,116
  )
  (511,351
  )
  511,351
  (2,640,116
  )
  INCOME TAX EXPENSE
  —
  —
  —
  —
  NET LOSS
  $
  (2,640,116
  )
  $
  (511,351
  )
  $
  511,351
  $
  (2,640,116
  )
  See notes to the pro forma financial statements.
  25
  NOTES TO PRO FORMA FINANCIAL
  STATEMENTS (UNAUDITED)
  The accompanying
  pro forma financial statements are prepared to present the acquisition of the waste disposal rights of Scorpex International, Inc.
  by JPX Global, Inc., to aid the user in understanding the acquisition. The proforma balance sheet and statement of operations are
  presented as though the acquisition took place on January 1, 2013. On February 5, 2014, the Company entered into an agreement to
  acquire all of the assets of Scorpex, Inc., a Nevada corporation, in exchange for 105,000,000 shares of Common Stock.
  Following are the
  pro forma adjustments.
  1
  )
  Waste disposal rights
  $
  3,632,400
  Common stock (JPX Global)
  (105,000
  )
  Additional paid-in capital
  (3,527,400
  )
  To record the acquistion of mineral rights through the issuance of 105,000,000 shares of common stock.
  2
  )
  Cash
  $
  (33,611
  )
  Accounts payable and accrued liabilities
  934,528
  Notes payable - related parties
  3,079,140
  Notes payable
  621,450
  Preferred stock
  10,000
  Common stock
  211,124
  Additional paid-in capital
  76,371,298
  Accumulated deficit (Scorpex)
  (81,193,929
  )
  Eliminate assets, liabilities and equity not acquired in the asset purchase.
  3
  )
  Salaries and compensation
  $
  (139,308
  )
  Professional fees
  (95,000
  )
  General and administrative expenses
  (2,674
  )
  Interest expense
  (274,369
  )
  Accumulated deficit
  511,351
  Eliminate operations of Scorpex not acquired in the asset purchase.
  26