Quarterly report pursuant to Section 13 or 15(d)

STOCK WARRANTS

STOCK WARRANTS

3 Months Ended

Mar. 31, 2017

NOTE 7 – 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 35,000,000 shares of common stock to Sklar on September 15, 2015. 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, 2016		51,000,000	$	0.23	$	0.186

Issued		-	$	-	$	-
Exercised		-	$	-	$	-
Forfeited		-	$	-	$	-
Expired		-	$	-	$	-
Outstanding, March 31, 2017		51,000,000	$	0.23	$	0.186

Exercisable, March 31, 2017		35,000,000	$	0.23	$	0.186

Range of Exercise Prices	Number Outstanding 3/31/2017	Weighted Average Remaining Contractual Life		Weighted Average Exercise Price
$0.23	51,000,000	8.38 years	$	0.23