Increase in Outstanding Shares

From January 1, 2016 up to March 15, 2016, the Company issued convertible notes in aggregate of $390,610 in exchange for cash of $355,100. The notes are unsecured, convertible into 3,90,100 shares in common stock of the Company at a conversion price of $0.10 per share and matures in one year. In connection with these notes, the Company also issued warrants to purchase 1,953,050 shares of common stock of the Company at an exercise price of $0.10 per share and expiring one year from the date of issuance. As a result, the Company will record a note discount of $390,610 to account for the relative fair value of the warrants, the notes’ beneficial conversion feature and original issue discount which will be amortized as interest expense over the life of the notes.

From January 1, 2016 up to March 15, 2016, Company issued 3,029,050 shares of common stock upon voluntary conversion of previously issued convertible notes in aggregate value of $302,905.