Annual report pursuant to Section 13 and 15(d)

COMMITMENTS & CONTIGENCIES

COMMITMENTS & CONTIGENCIES

12 Months Ended

Dec. 31, 2016

NOTE 8 – COMMITMENTS & CONTIGENCIES

Operating Lease

The Company currently occupies office space in Burbank, California. The Company signed a three-year lease starting January 1, 2016. Current monthly lease payments are $3,527 with yearly increases. The lease required a deposit of $3,500 which was paid on December 10, 2015. Minimum lease payments over the next three years are as follows:

Year		Amount
2016	$	41,097
2017		42,330
2018		43,596
Total	$	127,023

Investment Agreement

On July 9, 2014, the Board of Directors approved an investment arrangement with an individual. Per the terms of the agreement the investor has transferred $150,000 to the Company for which he is now entitled to the following: $1 per unit sold through all retail outlets including online and retail shopping shows until the investment is paid back in full. Once the original investment is recouped the investor shall then receive a 2% royalty in perpetuity on all future retail sales of the fitness product. The investment remains with the Company and is disclosed as an accrued liability on the balance sheet. This agreement is currently being renegotiated.