Quarterly report pursuant to Section 13 or 15(d)

STOCK WARRANTS

STOCK WARRANTS

9 Months Ended

Sep. 30, 2015

NOTE 10 – STOCK WARRANTS

Pursuant to a binding Letter of Intent with Ross Sklar (“Sklar”), a related party, dated August 13, 2015, the Company granted warrants to purchase 35 million shares of common stock to Sklar on September 15, 2015. The warrants were granted in consideration for licensing rights to a series of products. The warrants have an exercise price of $0.23 and a term of ten years. The aggregate fair value of the warrants totaled $6,501,715 based on the Black Scholes Merton pricing model using the following estimates: exercise price of $0.23, 2.28% risk free rate, 65.24% volatility and expected life of the options of 10 years. Mr. Sklar was also appointed to the Board of Directors designating him a related party.

A summary of the status of the Company’s outstanding stock warrants and changes during the periods is presented below:

	Shares available to purchase with warrants		Weighted Average Price		Weighted Average Fair Value

Outstanding, December 31, 2014		-	$	-	$	-

Issued		35,000,000		0.23		0.186
Exercised		-		-		-
Forfeited		-		-		-
Expired		-		-		-
Outstanding, September 30, 2015		35,000,000	$	0.23	$	0.186

Exercisable, September 30, 2015		35,000,000	$	0.23	$	0.186

Range of Exercise Prices	Number Outstanding 9/30/2015	Weighted Average Remaining Contractual Life		Weighted Average Exercise Price
$0.23	35,000,000	9.97 years	$	0.23