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are as follows:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
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<td style="width: 55%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Conversion price</font></td>
<td style="width: 45%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$0.15 - $0.30</font></td></tr>
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<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Risk free rate</font></td>
<td style="padding-right: 5.4pt; padding-left: 24pt; font-family: Times New Roman, Times, Serif"><font style="font-size: 10pt"> 0.03% - 0.13%</font></td></tr>
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<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Expected volatility</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">169% - 254%</font></td></tr>
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<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Dividend yield</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">0%</font></td></tr>
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<td style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">0.04 years – 0.50 years</font></td></tr>
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<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The inputs into the Black-Scholes models
are as follows:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
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<tr style="vertical-align: top">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Risk free rate</font></td>
<td style="padding-right: 5.4pt; padding-left: 24pt; font-family: Times New Roman, Times, Serif"><font style="font-size: 10pt"> 0.05%</font></td></tr>
<tr style="vertical-align: top">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Expected volatility</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">860% - 1259%</font></td></tr>
<tr style="vertical-align: top">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Dividend yield</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">0%</font></td></tr>
<tr style="vertical-align: top">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Expected life</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">0.03 years – 0.38 years</font></td></tr>
</table>
278300
173300
54784
124583
131647
8152
-42367
930157
385000
0.20
0.42
-445820
0.05
-70797
192519
485854
91665
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 1 – NATURE OF OPERATIONS</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Nature of Business</u></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Labor Smart, Inc. (the “Company”)
was incorporated in the State of Nevada on May 31, 2011. Labor Smart, Inc. provides temporary blue-collar staffing services. It
supplies general laborers on demand to the light industries, including manufacturing, logistics, and warehousing, skilled trades’
people, and general laborers to commercial construction industries.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 2 – GOING CONCERN</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The accompanying consolidated financial
statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities
in the normal course of business. The Company requires capital for its contemplated operational and marketing activities. The Company’s
ability to raise additional capital through the future issuances of common stock is unknown. At June 26, 2015, the Company had
an accumulated deficit of $10,339,670 and negative working capital of $4,896,012. Also, the Company had a net loss of $2,026,385
for six months ended June 26, 2015. Additionally, the operating activities of the Company provided $391,980 net cash during the
same six month period. The obtainment of additional financing and increasingly profitable operations are necessary for the Company
to continue operations. The ability to successfully resolve these factors raise substantial doubt about the Company’s ability
to continue as a going concern. These consolidated financial statements do not include any adjustments relating to the recoverability
and classification of recorded asset amounts, or amounts and classification of liabilities that might result from this uncertainty.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 3 – SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Basis of Presentation</u></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">These consolidated financial
statements are presented in United States dollars and have been prepared in accordance with generally accepted accounting principles
in the United States of America (“US GAAP”). On January 20, 2015, the Company incorporated a 100% owned subsidiary,
Skill Corp, Inc. On March 2, 2015, the Company incorporated the following 100% owned subsidiaries: LSI Corp, LLC, Labor Smart TN,
LLC, Labor Smart SE, LLC, Labor Smart SE II, LLC, Labor Smart NAT, LLC, Labor Smart GA, LLC and Labor Smart MW, LLC which are included
in these consolidated financial statements. All significant inter-company accounts and transactions have been eliminated.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">The Company has a
52-53 week fiscal year ending on the Friday closest to December 31.  This
change was effective with the end of the registrant’s fiscal second quarter ended June 27, 2014. The change to a 52-53 week
fiscal year was retroactively applied as if it was adopted as of January 1, 2014. The registrant’s current fiscal year ends
on December 25, 2015 and comprises 52 weeks. </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Pursuant to the rules and regulations
of the Securities and Exchange Commission for Form 10-Q, the condensed consolidated financial statements, footnote disclosures
and other information normally included in consolidated financial statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted. The condensed consolidated financial statements contained in this report are unaudited
but, in the opinion of management, reflect all adjustments, consisting of only normal recurring adjustments, necessary for a fair
presentation of the condensed consolidated financial statements.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Fair Value of Financial Instruments</u></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">As required by the Fair Value
Measurements and Disclosures Topic of the FASB ASC (“ASC 820-10”), fair value is measured based on a three-tier fair
value hierarchy, which prioritizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted
prices in active markets; (Level 2) inputs, other than the quoted prices in active markets, that are observable either directly
or indirectly; and (Level 3) unobservable inputs in which there is little or no market data, which require the reporting entity
to develop its own assumptions.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">The three levels of the fair
value hierarchy are described below:</p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Arial, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr>
<td style="width: 6%; line-height: 115%"> </td>
<td style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify; width: 10%">Level 1</td>
<td style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify; width: 84%">Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; </td></tr>
<tr>
<td style="line-height: 115%"> </td>
<td style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">Level 2</td>
<td style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; </td></tr>
<tr>
<td style="line-height: 115%"> </td>
<td style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">Level 3</td>
<td style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">Pursuant to ASC 825, the fair
value of cash and marketable securities is determined based on “Level 1” inputs, which consist of quoted prices in
active markets for identical assets. The Company believes that the recorded values of cash, accounts receivables, marketable securities,
accounts payable and accrued liabilities, and notes payable approximate their current fair values because of their nature and respective
relatively short maturity dates or durations.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">Assets measured at fair value
on a recurring basis were presented on the Company’s balance sheets as of June 26, 2015 and December 26, 2014 as follows:</p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="17" style="font-family: Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid"><b><u>Fair Value Measurements as of June 26, 2015 Using:</u></b></td></tr>
<tr style="vertical-align: bottom">
<td style="font-family: Times New Roman, Times, Serif; text-align: center"> </td><td> </td>
<td colspan="3" style="text-align: center"> </td><td style="font-family: Times New Roman, Times, Serif"> </td>
<td colspan="3" style="font-family: Times New Roman, Times, Serif; text-align: center"><b>Total Carrying Value as of</b></td><td style="font-family: Times New Roman, Times, Serif"> </td>
<td colspan="3" style="font-family: Times New Roman, Times, Serif; text-align: center"><b>Quoted Market Prices in Active Markets</b></td><td style="font-family: Times New Roman, Times, Serif"> </td>
<td colspan="3" style="font-family: Times New Roman, Times, Serif; text-align: center"><b>Significant Other Observable Inputs</b></td><td style="font-family: Times New Roman, Times, Serif"> </td>
<td style="font-family: Times New Roman, Times, Serif; text-align: center"><b>Significant Unobservable Inputs</b></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center"> </td><td style="font: bold 11pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-family: Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid"><b>June
26, 2015</b></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-family: Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid"><b><u>(Level 1)</u></b></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-family: Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid"><b><u>(Level 2</u></b><b><u>)</u></b></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="font-family: Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid"><b><u>(Level 3) </u></b></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-family: Times New Roman, Times, Serif; text-align: center"><b>Assets:</b></td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 37%; font-family: Times New Roman, Times, Serif; text-align: center">Equity securities</td><td style="width: 3%; font-family: Times New Roman, Times, Serif"> </td>
<td style="width: 1%; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="width: 10%; font-family: Times New Roman, Times, Serif; text-align: right"> </td><td style="width: 1%; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="width: 3%; font-family: Times New Roman, Times, Serif"> </td>
<td style="width: 1%; font-family: Times New Roman, Times, Serif; text-align: left">$</td><td style="width: 10%; font-family: Times New Roman, Times, Serif; text-align: right">77,960</td><td style="width: 1%; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="width: 3%; font-family: Times New Roman, Times, Serif"> </td>
<td style="width: 1%; font-family: Times New Roman, Times, Serif; text-align: left">$</td><td style="width: 10%; font-family: Times New Roman, Times, Serif; text-align: right">77,960</td><td style="width: 1%; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="width: 3%; font-family: Times New Roman, Times, Serif"> </td>
<td style="width: 1%; font-family: Times New Roman, Times, Serif; text-align: left">$</td><td style="width: 10%; font-family: Times New Roman, Times, Serif; text-align: right">0</td><td style="width: 1%; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="width: 3%; font-family: Times New Roman, Times, Serif"> </td>
<td style="font-family: Times New Roman, Times, Serif; text-align: right">$0</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-family: Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt">Warrant</td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right">35,650</td><td style="padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right">0</td><td style="padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right">0</td><td style="padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right">35,650</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-family: Times New Roman, Times, Serif; text-align: center; padding-bottom: 2.5pt; text-indent: 0.25in">Total</td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </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"> </td><td style="padding-bottom: 2.5pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right">113,610</td><td style="padding-bottom: 2.5pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right">77,960</td><td style="padding-bottom: 2.5pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right">0</td><td style="padding-bottom: 2.5pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right">$35,650</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-family: Times New Roman, Times, Serif; text-align: center"><b>Liabilities:</b></td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-family: Times New Roman, Times, Serif; text-align: center">Convertible note payable derivative liability</td><td style="font-family: Times New Roman, Times, Serif"> </td>
<td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; text-align: right"> </td><td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif"> </td>
<td style="font-family: Times New Roman, Times, Serif; text-align: left">$</td><td style="font-family: Times New Roman, Times, Serif; text-align: right">376,228</td><td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif"> </td>
<td style="font-family: Times New Roman, Times, Serif; text-align: left">$</td><td style="font-family: Times New Roman, Times, Serif; text-align: right">0</td><td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif"> </td>
<td style="font-family: Times New Roman, Times, Serif; text-align: left">$</td><td style="font-family: Times New Roman, Times, Serif; text-align: right">0</td><td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif"> </td>
<td style="font-family: Times New Roman, Times, Serif; text-align: right">$376,228</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-family: Times New Roman, Times, Serif; text-align: center">Warrant derivative liability</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif"> </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">2,375</td><td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif"> </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">0</td><td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif"> </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">0</td><td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif"> </td>
<td style="font-family: Times New Roman, Times, Serif; text-align: right">2,375</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-family: Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt">Contingent consideration payable</td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right">131,647</td><td style="padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right">0</td><td style="padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right">0</td><td style="padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right">131,647</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-family: Times New Roman, Times, Serif; text-align: center; padding-bottom: 2.5pt; text-indent: 0.25in">Total</td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </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"> </td><td style="padding-bottom: 2.5pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right">510,250</td><td style="padding-bottom: 2.5pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right">0</td><td style="padding-bottom: 2.5pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right">0</td><td style="padding-bottom: 2.5pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right">$510,250</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-family: Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="17" style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: center; vertical-align: middle"><b><u>Fair Value Measurements as of December 26, 2014 Using:</u></b></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-family: Times New Roman, Times, Serif; text-align: center"><b> </b></td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif"> </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"><b>Total Carrying Value as of</b></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif"> </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"><b>Quoted Market Prices in Active Markets</b></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif"> </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"><b>Significant Other Observable Inputs</b></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif"> </td>
<td style="font-family: Times New Roman, Times, Serif; text-align: center"><b>Significant Unobservable Inputs</b></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: center; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font: bold 11pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font: bold 11pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid"><b><u>December 26, 2014</u></b></td><td style="padding-bottom: 1pt; font: bold 11pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><b><u>(Level 1)</u></b></td><td style="padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><b><u>(Level 2</u></b><b><u>)</u></b></td><td style="padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: center"><b><u>(Level 3) </u></b></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-family: Times New Roman, Times, Serif; text-align: center"><b>Assets:</b></td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-family: Times New Roman, Times, Serif; text-align: center">Equity securities</td><td style="font-family: Times New Roman, Times, Serif"> </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"> </td><td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif"> </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">52,610</td><td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif"> </td>
<td style="font-family: Times New Roman, Times, Serif; text-align: left">$</td><td style="font-family: Times New Roman, Times, Serif; text-align: right">52,610</td><td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif"> </td>
<td style="font-family: Times New Roman, Times, Serif; text-align: left">$</td><td style="font-family: Times New Roman, Times, Serif; text-align: right">0</td><td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif"> </td>
<td style="font-family: Times New Roman, Times, Serif; text-align: right">$0</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-family: Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt">Warrant</td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right">47,344</td><td style="padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right">0</td><td style="padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right">0</td><td style="padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right">47,344</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-family: Times New Roman, Times, Serif; text-align: center; padding-bottom: 2.5pt; text-indent: 0.25in">Total</td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </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"> </td><td style="padding-bottom: 2.5pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right">99,954</td><td style="padding-bottom: 2.5pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right">52,610</td><td style="padding-bottom: 2.5pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right">0</td><td style="padding-bottom: 2.5pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right">$47,344</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-family: Times New Roman, Times, Serif; text-align: center"><b>Liabilities:</b></td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-family: Times New Roman, Times, Serif; text-align: center">Convertible note payable derivative liability</td><td style="font-family: Times New Roman, Times, Serif"> </td>
<td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; text-align: right"> </td><td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif"> </td>
<td style="font-family: Times New Roman, Times, Serif; text-align: left">$</td><td style="font-family: Times New Roman, Times, Serif; text-align: right">601,345</td><td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif"> </td>
<td style="font-family: Times New Roman, Times, Serif; text-align: left">$</td><td style="font-family: Times New Roman, Times, Serif; text-align: right">0</td><td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif"> </td>
<td style="font-family: Times New Roman, Times, Serif; text-align: left">$</td><td style="font-family: Times New Roman, Times, Serif; text-align: right">0</td><td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif"> </td>
<td style="font-family: Times New Roman, Times, Serif; text-align: right">$601,345</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-family: Times New Roman, Times, Serif; text-align: center">Warrant derivative liability</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif"> </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">2,294</td><td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif"> </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">0</td><td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif"> </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">0</td><td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif"> </td>
<td style="font-family: Times New Roman, Times, Serif; text-align: right">2,294</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-family: Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt">Contingent consideration payable</td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right">165,862</td><td style="padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right">0</td><td style="padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right">0</td><td style="padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right">165,862</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-family: Times New Roman, Times, Serif; text-align: center; padding-bottom: 2.5pt; text-indent: 0.25in">Total</td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </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"> </td><td style="padding-bottom: 2.5pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right">769,501</td><td style="padding-bottom: 2.5pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right">0</td><td style="padding-bottom: 2.5pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right">0</td><td style="padding-bottom: 2.5pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right">$769,501</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: center"> </td><td style="font-size: 11pt"> </td>
<td style="font-size: 11pt; text-align: left"> </td><td style="font-size: 11pt; text-align: right"> </td><td style="font-size: 11pt; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Changes in convertible note payable
derivative liability during the six months ended June 26, 2015 were as follows:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 70%; text-align: justify; padding-left: 5.4pt">Opening balance at December 26, 2014</td><td style="width: 10%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">601,345</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-left: 5.4pt">Fair value of convertible derivative liability</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">69,686</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-left: 5.4pt">Loss on derivative liabilities</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(19,686</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt">Gain on change in fair value of derivative <br />liability</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(275,117</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 2.5pt; padding-left: 5.4pt">Closing balance at June 26, 2015</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">376,228</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Changes in warrant derivative liability
during the six months ended June 26, 2015 were as follows:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 70%; text-align: justify; padding-left: 5.4pt">Opening balance at December 26, 2014</td><td style="width: 10%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">2,294</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt">Loss on change in fair value of derivative <br />liability</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">81</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 2.5pt; padding-left: 5.4pt">Closing balance at June 26, 2015</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,375</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Changes in contingent liability during
the six months ended June 26, 2015 were as follows:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 70%; text-align: justify; padding-left: 5.4pt">Opening balance at December 26, 2014</td><td style="width: 10%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">165,862</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-left: 5.4pt">Payments</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(42,367</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt">Interest</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">8,152</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 2.5pt; padding-left: 5.4pt">Closing balance at June 26, 2015</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">131,647</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">Equity securities comprise publicly
traded shares of common stock. The warrant gives the Company, the right but not the obligation, to purchase 100,000 shares of Science
to Consumers, Inc. (formerly Argon Beauty Corp.) (OTCBB:BEUT). The warrant is valued at the end of each accounting period using
the Black Scholes option valuation model using the following inputs at June 26, 2015: stock price $0.41, exercise price $0.50,
expected life 2.23 years, volatility 208%, dividends 0% and discount rate 1.08%.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Cash and Cash Equivalents</u></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">Cash and cash equivalents consist
of cash and short-term investments with original maturities of less than 90 days. Cash equivalents are placed with high credit
quality financial institutions and are primarily in money market funds. The carrying value of those investments approximates fair
value. The Company maintains its cash in bank deposit accounts which may exceed federally insured limits. As of June 26, 2015,
the Company’s accounts are insured for $250,000 by FDIC for US bank deposits.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Income Taxes</u></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company follows the liability method
of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences
attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective
tax balances. Deferred tax assets and liabilities are measured using enacted or substantially enacted tax rates expected to apply
to the taxable income in the years in which those differences are expected to be recovered or settled. The effect on deferred tax
assets and liabilities of a change in tax rates is recognized in income in the period that includes the date of enactment or substantive
enactment. Deferred income taxes are reported for timing differences between items of income or expense reported in the consolidated
financial statements and those reported for income tax purposes in accordance with FASB ASC 740-10, “Income Taxes,”
which requires the use of the asset/liability method of accounting for income taxes.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company provides for deferred taxes
for the estimated future tax effects attributable to temporary differences and carry-forwards when realization is more likely than
not.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Revenue Recognition</u></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">The Company recognizes revenues
and the related costs when persuasive evidence of an arrangement exists, delivery and acceptance has occurred or service has been
rendered, the price is fixed or determinable, and collection of the resulting receivable is reasonably assured. Amounts invoiced
or collected in advance of product delivery or providing services are recorded as deferred revenue. The Company accrues for customer
credits, bad debts, and other allowances based on its historical experience. Staffing revenue is recognized as the services are
performed. Revenue also includes billable travel and other reimbursable costs and is recorded net of sales tax.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Deferred Financing Costs</u></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">Deferred financing costs consist
of costs incurred to obtain debt financing, including legal fees, origination fees and administration fees. Costs associated with
the Convertible Promissory Notes are deferred and amortized in our statements of operations<i> </i>using the straight-line method,
which approximates the effective interest method, over the terms of the respective financing instrument.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Use of Estimates</u></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">The preparation of consolidated
financial statements in conformity with accounting principles generally accepted in the United States of America requires the Company
to make estimates and judgments that affect the reported amounts of assets and liabilities, revenues and expenses, and related
disclosures of contingent assets and liabilities. These estimates and judgments are based on historical information, information
that is currently available to the Company, and on various other assumptions that the Company believes to be reasonable under the
circumstances. Actual results could differ from those estimates.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Factoring Agreements and Accounts
Receivable</u></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On
July 31, 2013 the Company entered into a Purchase and Sale Agreement with Transfac Capital, Inc. (“Transfac”). Advances
to the Company from Transfac are with recourse and are secured by assets of the Company and are treated as a secured financing
arrangement. As of June 26, 2015 and December 26, 2014, factored accounts receivable total $1,839,381 and $1,638,771, respectively.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Allowance for Doubtful Accounts</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company allows for an estimated amount
of receivables that may not be collected. The Company estimates its allowance for doubtful accounts based on historical experience
and customer relationships. As of June 26, 2015 and December 26, 2014, the Company has recorded an allowance of $182,721 and $110,605,
respectively.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Property and Equipment</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Property and equipment are stated at the lower
of cost or fair value. Depreciation is provided on a straight-line basis over the estimated useful lives of the assets, as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Arial, Helvetica, Sans-Serif; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 60%; border-bottom: Black 1pt solid; text-align: center">Description</td>
<td style="width: 40%; border-bottom: Black 1pt solid; text-align: center">Estimated Life</td></tr>
<tr style="vertical-align: top">
<td>Office equipment and furniture</td>
<td style="text-align: center">3 years</td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">The estimated useful lives are
based on the nature of the assets as well as current operating strategy and legal considerations such as contractual life. Future
events, such as property expansions, property developments, new competition, or new regulations, could result in a change in the
manner in which the Company uses certain assets requiring a change in the estimated useful lives of such assets.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><u>June 26, 2015</u></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><u>December 26, 2014</u></td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 50%; text-align: justify; padding-left: 5.4pt">Office equipment and furniture</td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 15%; text-align: right">155,929</td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 15%; text-align: right">131,295</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt">Less: accumulated depreciation</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(55,789</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(32,505</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 2.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">100,140</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">98,790</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Depreciation expense for six months
ended June 26, 2015 and June 27, 2014 was $23,284 and $4,039, respectively.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Customer Relationships</u></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">Customer relationships comprise
customer lists acquired from Qwik Staffing Solutions, Inc. on April 29, 2013 with an estimated fair value of $294,100, from Shirley’s
Employment Service, Inc. on April 9, 2014 with an estimated fair value of $162,461 and from Kwik Jobs on September 26, 2014 with
an estimated fair value of $141,529. Customer lists are amortized on a straight-line basis over three years.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><u>June 26, 2015</u></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><u>December 26, 2014</u></td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 50%; text-align: justify; padding-left: 5.4pt">Customer lists</td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 15%; text-align: right">598,090</td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 15%; text-align: right">598,090</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt">Less: accumulated amortization</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(312,063</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(212,654</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 2.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">286,027</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">385,436</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Amortization expense for the six months
ended June 26, 2015 and June 27, 2014 was $99,409 and $60,186 respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Earnings (loss) per share</u></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Basic earnings (loss) per common share
is computed by dividing net income (loss) available to common shareholders by the weighted-average number of shares of common stock
outstanding during the period. Diluted earnings per common share is computed by dividing income available to common shareholders
by the weighted-average number of shares of common stock outstanding during the period increased to include the number of additional
shares of common stock that would have been outstanding if potentially dilutive securities had been issued. Potentially dilutive
common shares outstanding stock options assumed to be exercised or vested and paid out of shares of common stock and warrants assumed
to be exercised. Outstanding stock options and warrants are disclosed in Note 11 Stockholders’ Deficit.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Convertible Notes Payable</u></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 12pt 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: 0.5in"><font style="font-size: 10pt">i)</font></td><td style="text-align: justify"><font style="font-size: 10pt"><u>Beneficial Conversion Feature</u></font></td></tr></table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">If the conversion features
of conventional convertible debt provides for a rate of conversion that is below market value, this feature is characterized as
a beneficial conversion feature (“BCF”). A BCF is recorded by the Company as a debt discount pursuant to ASC Topic
470-20 “Debt with Conversion and Other Options.” In those circumstances, the convertible debt is recorded
net of the discount related to the BCF and the Company amortizes the discount to interest expense over the life of the debt using
the effective interest method.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><i> </i></p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 12pt 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: 0.5in"><font style="font-size: 10pt">ii)</font></td><td style="text-align: justify"><font style="font-size: 10pt"><u>Debt Discount</u></font></td></tr></table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">The Company determines if
the convertible debenture should be accounted for as liability or equity under ASC 480, Liabilities — Distinguishing Liabilities
from Equity. ASC 480, applies to certain contracts involving a company's own equity, and requires that issuers classify the following
freestanding financial instruments as liabilities. Mandatorily redeemable financial instruments, obligations that require or may
require repurchase of the issuer's equity shares by transferring assets (e.g., written put options and forward purchase contracts),
and certain obligations where at inception the monetary value of the obligation is based solely or predominantly on:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">– A fixed monetary
amount known at inception, for example, a payable settleable with a variable number of the issuer's equity shares with an issuance
date fair value equal to a fixed dollar amount,</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">– Variations in something
other than the fair value of the issuer's equity shares, for example, a financial instrument indexed to the S&P 500 and settleable
with a variable number of the issuer's equity shares, or</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">– Variations inversely
related to changes in the fair value of the issuer's equity shares, for example, a written put that could be net share settled.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">If the entity determined
the instrument meets the guidance under ASC 480 the instrument is accounted for as a liability with a respective debt discount.
The Company records debt discounts in connection with raising funds through the issuance of convertible debt (see Note 7). These
costs are amortized to non-cash interest expense over the life of the debt. If a conversion of the underlying debt occurs, a proportionate
share of the unamortized amounts is immediately expensed.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 12pt 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: 0.5in"><font style="font-size: 10pt">iii)</font></td><td style="text-align: justify"><font style="font-size: 10pt"><u>Derivative Financial Instruments</u></font></td></tr></table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">Derivative financial instruments,
as defined in ASC 815, “Accounting for Derivative Financial Instruments and Hedging Activities”, consist of financial
instruments or other contracts that contain a notional amount and one or more underlying (e.g. interest rate, security price or
other variable), require no initial net investment and permit net settlement. Derivative financial instruments may be free-standing
or embedded in other financial instruments. Further, derivative financial instruments are initially, and subsequently, measured
at fair value and recorded as liabilities or, in rare instances, assets.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">The Company does not use
derivative financial instruments to hedge exposures to cash-flow, market or foreign-currency risks. However, the Company has issued
financial instruments including senior convertible promissory notes payable and freestanding stock purchase warrants with features
that are either (i) not afforded equity classification, (ii) embody risks not clearly and closely related to host contracts, or
(iii) may be net-cash settled by the counterparty. As required by ASC 815, in certain instances, these instruments are required
to be carried as derivative liabilities, at fair value, in our consolidated financial statements.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Stock-based compensation</u></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company records stock based compensation
in accordance with the guidance in ASC Topic 505 and 718 which requires the Company to recognize expenses related to the fair value
of its employee stock option awards. This eliminates accounting for share-based compensation transactions using the intrinsic value
and requires instead that such transactions be accounted for using a fair-value-based method. The Company recognizes the cost of
all share-based awards on a graded vesting basis over the vesting period of the award. </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company accounts for equity instruments
issued in exchange for the receipt of goods or services from other than employees in accordance with FASB ASC 718-10 and the conclusions
reached by the FASB ASC 505-50. Costs are measured at the estimated fair market value of the consideration received or the estimated
fair value of the equity instruments issued, whichever is more reliably measurable. The value of equity instruments issued for
consideration other than employee services is determined on the earliest of a performance commitment or completion of performance
by the provider of goods or services as defined by FASB ASC 505-50.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Recent Accounting Pronouncements</u></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In May 2014, the FASB issued Accounting
Standards Update No. 2014-09, Revenue from Contracts with Customers (“FASB ASU 2014-09”). This standard update clarifies
the principles for recognizing revenue and develops a common revenue standard for U.S. generally accepted accounting principles
(GAAP) and International Financial Reporting Standards. The standard update intends to provide a more robust framework for addressing
revenue issues; improve comparability of revenue recognition practices across entities, industries, jurisdictions, and capital
markets; and provide more useful information to users of consolidated financial statements through improved disclosure requirements.
Upon adoption of this standard update, the Company expects that the allocation and timing of revenue recognition will be impacted.
The provisions of FASB ASU 2014-09 are effective for annual reporting periods beginning after December 15, 2016, including interim
periods within that reporting period, and are to be applied retrospectively to each prior period presented or retrospectively with
the cumulative effect recognized as of the date of adoption. Early application is not permitted. The Company is currently evaluating
the impact that this standard update will have on its consolidated financial statements.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In August 2014, the FASB issued ASU
2014-15, Presentation of Financial Statements - Going Concern. The new standard requires management of public and private companies
to evaluate whether there is substantial doubt about the entity’s ability to continue as a going concern and, if so, disclose
that fact. Management will also be required to evaluate and disclose whether its plans alleviate that doubt. The standard requires
management to evaluate, for each reporting period, whether there are conditions or events that raise substantial doubt about a
company’s ability to continue as a going concern within one year from the date the financial statements are issued. The new
standard is effective for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after
December 15, 2016. Early adoption is permitted. The Company does not expect the adoption of the ASU to have a significant impact
on our consolidated financial statements</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has implemented all new
accounting pronouncements that are in effect and that may impact its consolidated financial statements and does not believe that
there are any other new accounting pronouncements that have been issued that might have a material impact on its consolidated financial
statements.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 4 – PREPAID EXPENSES</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">As of June 26, 2015 and December 26,
2014, the Company had prepaid expenses of $65,452 and $322,855, respectively. Prepaid expenses at June 26, 2015 comprised primarily
of prepaid lease payments, insurance and services.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 5 – FACTORING AGREEMENT</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On
July 31, 2013 the Company entered into a Purchase and Sale Agreement with Transfac Capital, Inc. (“Transfac”).  Under
the terms of the Purchase and Sale Agreement, Transfac shall have the right, but not the obligation, to purchase up to Two Million
Dollars ($2,000,000) worth of accounts receivable (the “Maximum Advances”) of the Company.  For each account receivable
purchased, Transfac shall advance eighty-five percent (85%) of the face value of the account and the balance after receipt of full
payment on the account.  As consideration, the Company shall pay Transfac two percent (2%) of the average monthly balance
of the outstanding accounts purchased, with a minimum of one half of one percent (0.5%) of the Maximum Advances per month, as long
as the Purchase and Sale Agreement remains in effect.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The factoring line of credit with Transfac
has been treated as a secured financing arrangement. As of June 26, 2015 and December 26, 2014 under the agreement with Transfac,
the Company had factored receivables in the amounts of $1,839,381 and $1,699,900, recorded reserve deposits of $191,986 and $448,968
included in other current assets, and recorded a liability of $1,831,290 and $1,638,771, respectively. Discounts and interest provided
during factoring of the accounts receivable have been expensed on the statements of operations as interest expense. Interest expense
related to the factoring arrangement was $173,300 and $54,784 for the three months ended June 26, 2015 and June 27, 2014, respectively
and $278,300 and $124,583 for the six months ended June 26, 2015 and June 27, 2014, respectively.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 6 – RELATED PARTY</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On April 25, 2013, the Company entered
into a loan agreement with the CEO of the Company in the amount of $175,768. This loan is payable on demand, unsecured, and bears
0% interest per annum. This loan consolidates all previous loans issued. As of June 26, 2015, $161,043 of this note has been repaid
and $14,725 (December 26, 2014 - $14,725) of this note remains outstanding.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 7 – CONVERTIBLE PROMISSORY
NOTES</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Unless otherwise stated in Note 8, these
convertible promissory notes have been accounted for in accordance with ASC 480 <i>Distinguishing Liabilities from Equity</i>.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On March 4, 2013, the Company issued
a Convertible Promissory Note (“Note”) to Vista Capital Investments, LLC (“Holder”), in the original principal
amount of $275,000 bearing a 12% annual interest rate and maturing one year for $250,000 of consideration paid in cash and a $25,000
original issue discount. The Company may repay the Note any time and if repaid within 90 days of date of issue with an interest
rate is 0%. This Note together with any unpaid accrued interest is convertible into shares of common stock at the Holder’s
option at a variable conversion price calculated as lessor of (a) $0.62 or (b) 60% of the lowest trade occurring during the 25
consecutive trading days immediately preceding the conversion date.</p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 12pt 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">i)</font></td><td style="text-align: justify"><font style="font-size: 10pt">On January 14, 2014, the Company received cash proceeds of $25,000
on the third tranche of the Note. During the year ended December 26, 2014, the Holder converted 1,431,373 shares of common stock
of the Company with a fair value of $51,654 to settle $20,540 of principal and interest. </font></td></tr></table>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 12pt 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">ii)</font></td><td style="text-align: justify"><font style="font-size: 10pt">On March 19, 2014, the Company received cash proceeds of $25,000
on the fourth tranche of the Note. During the year ended December 26, 2014, the Holder converted 3,800,000 shares of common stock
of the Company with a fair value of $33,410 to settle $17,364 in principal and interest, respectively. During the six months ended
June 26, 2015, the Holder converted 15,000,000 shares of common stock of the Company with a fair value of $15,000 to settle $8,100
of principal and interest. </font></td></tr></table>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 12pt 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">iii)</font></td><td style="text-align: justify"><font style="font-size: 10pt">On May 27, 2014, the Company received cash proceeds of $25,000 on
the fifth tranche of the Note. </font></td></tr></table>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 12pt 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">iv)</font></td><td style="text-align: justify"><font style="font-size: 10pt">On July 24, 2014, the Company received cash proceeds of $25,000 on
the sixth tranche of the Note.</font></td></tr></table>
<p style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify"> On June 15, 2015, the third,
fourth, fifth and sixth tranche were settled and paid in full for $75,000 in cash.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On December 12, 2013 the Company entered
into a Convertible Promissory Note (“Note”) with Tonaquint Inc. (“Holder”) in the original principal amount
of $115,000 bearing a 10% annual interest rate and maturing November 12, 2014. The Note is due is six equal monthly installments
plus interest (“Installment Amount”) commencing six months after the issue date. At the option of the Holder, the Installment
Amount is convertible into shares of common stock of the Company at a variable conversion price calculated at 60% of the market
price which means the average of the lowest two trading prices during the twenty trading day period ending on the latest complete
trading day prior to the conversion date. The Company may elect to prepay in cash all or any portion of the outstanding balance
of the Note if the Company pays the holder 125% of the outstanding balance. The Company received cash proceeds of $100,000, which
was net of original issue discount of $83,703. During the year ended December 26, 2014, the Company elected to pay $32,457 in cash
and the Holder converted 713,167 shares of common stock of the Company with a fair market value of $138,205 to settle $77,528 in
principal and interest. During the six months ended June 26, 2015, the Holder converted 43,713,145 shares of common stock of the
Company with a fair value of $48,084 to settle $24,042 of principal and interest. At January 16, 2015, the Note was paid in full.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On January 31, 2014, the Company entered
into a Convertible Promissory Note (“Note”) with Tonaquint Inc. (“Holder”) in the original principal amount
of $115,000 less an original issuer’s discount of $10,000 and transaction costs of $5,000 bearing a 0% annual interest rate
and maturing December 31, 2014. The Note is due in six equal monthly installments plus interest (“Installment Amount”)
commencing nine months after the issue date. At the option of the Holder, the Installment Amount is convertible into shares of
common stock of the Company at a variable conversion price calculated at 60% of the market price which means the average of the
lowest two trading prices during the twenty trading day period ending on the latest complete trading day prior to the conversion
date. The Company may elect to prepay in cash all or any portion of the outstanding balance of the Note if the Company pays the
holder 125% of the outstanding balance. In October 2014, the Company paid principal and interest of $88,577 in cash. At June 26,
2015, the Note is recorded at a fully accreted value of $3,969 less unamortized debt discount of $0.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On March 27, 2014, the Company entered
into a 10% Original Issue Discount Convertible Promissory Note (“Note”) with Gemini Master Fund, Ltd. (“Holder”)
in the original principal amount of $220,000 bearing a 10% annual interest rate and maturing January 1, 2015. At June 26, 2015,
the Note has passed its maturity date and the Company has not received a notice of default. At the option of the Holder:</p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 12pt 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: 10pt Calibri, Helvetica, Sans-Serif">i)</font></td><td style="text-align: justify"><font style="font-size: 10pt">The Note together with any unpaid accrued interest is convertible
into shares of common stock of the Company at a variable conversion price calculated at 65% of the market price which means the
average of the lowest volume weighted average price during the twenty trading day period ending prior to the conversion date, or</font></td></tr></table>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 12pt 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: 10pt Calibri, Helvetica, Sans-Serif">ii)</font></td><td style="text-align: justify"><font style="font-size: 10pt">All principal, costs, charges and interest amounts outstanding may
be exchanged for shares of the Company’s common stock at the Conversion Price of $0.25 per share. The Conversion Price is
subject to an anti-dilution adjustment. </font></td></tr></table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company may repay the Note at 130%
of the original principal amount plus interest. During the year ended December 26, 2014, the Holder converted 2,386,034 shares
of common stock of the Company with a fair value of $143,162 to settle $30,000 of principal and interest. During the six months
ended June 26, 2015, the Holder converted 24,923,077 shares of common stock of the Company with a fair value of $29,908 to settle
$16,200 of principal and interest. During the six months ended June 26, 2015, the Company paid $9,600 in cash for principal and
interest. At June 26, 2015, the Note is recorded at a fully accreted value of $277,815 less unamortized debt discount of $0.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On April 2, 2014, the Company entered
into a Convertible Promissory Note (“Note”) with Coventry Enterprises, LLC (“Holder”) in the original principal
amount of $101,000 less transaction costs of $13,000 bearing a 10% annual interest rate and maturing April 5, 2015. This Note together
with any unpaid accrued interest is convertible into shares of common stock of the Company at the Holder’s option at a variable
conversion price calculated at 58% of the lowest bid price during the twelve trading days prior to the conversion date including
the day upon which a Notice of Conversion is received by the Company. The Company may repay the Note if repaid within 180 days
of date of issue at 135% of the original principal amount plus interest. Thereafter, the Company does not have the right of prepayment.
During the year ended December 26, 2014, the Holder converted 27,737,439 shares of common stock of the Company with a fair value
of $306,184 to settle $98,856 of principal and interest. During the six months ended June 26, 2015, the Holder converted 8,015,809
shares of common stock of the Company with a fair value of $12,825 to settle $5,050 of principal and interest. On January 21, 2015,
the note was paid in full.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On April 14, 2014, the Company entered
into a Convertible Promissory Note (“Note”) with Group 10 Holdings, LLC (“Holder”) in the original principal
amount of $113,000 less original issue discount of $12,000 bearing a 12% annual interest rate and maturing April 17, 2015. This
Note together with any unpaid accrued interest is convertible into shares of common stock of the Company at the Holder’s
option at a variable conversion price calculated at 55% of the lowest trading price of any day during the 20 consecutive trading
days prior to the date on which the Holder elects to convert all or part of the Note. The Company may repay the Note if repaid
within 30 days of date of issue at 125% of the original principal amount plus interest and between 31 days and 179 days at 135%
of the original principal amount plus interest and thereafter, the Company may repay the Note at 145% of the original principal
amount plus interest. During the year ended December 26, 2014, the Holder converted 26,340,100 shares of common stock of the Company
with a fair value of $170,445 to settle $71,944 of principal and interest. During the six months ended June 26, 2015, the Holder
converted 110,890,000 shares of common stock of the Company with a fair value of $120,344 to settle $60,979 of principal and interest.
On January 21, 2015, the note was paid in full.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On April 16, 2014, the Company entered
into a Convertible Promissory Note (“Note”) with Tonaquint Inc. (“Holder”) in the original principal amount
of $115,000 less an original issuer’s discount of $10,000 and transaction costs of $13,000 bearing a 10% annual interest
rate and maturing March 16, 2015. At June 26, 2015, the Note has passed its maturity date and the Company has not received a notice
of default. The Note is due in six equal monthly installments plus interest (“Installment Amount”) commencing nine
months after the issue date. At the option of the Holder, the Installment Amount is convertible into shares of common stock of
the Company at a variable conversion price calculated at 60% of the market price which means the average of the lowest two trading
prices during the twenty trading day period ending on the latest complete trading day prior to the conversion date. The Company
may elect to prepay in cash all or any portion of the outstanding balance of the Note if the Company pays the holder 125% of the
outstanding balance. During the year ended December 26, 2014, the Holder converted 18,429,925 shares of common stock of the Company
with a fair value of $94,398 to settle $69,530 of principal and interest. During the six months ended June 26, 2015, the Holder
converted 261,500,000 shares of common stock of the Company with a fair value of $47,150 to settle $28,628 of principal and interest.
During the six months ended June 26, 2015, the Company paid $30,000 in cash for principal and interest. On June 15, 2015, the note
was paid in full.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On April 21, 2014, the Company entered
into a Convertible Promissory Note (“Note”) with Tailwind Partners 3, LLC (“Holder”) in the original principal
amount of $106,000 less transaction costs of $5,000 bearing a 12% annual interest rate and maturing January 21, 2015. At June 26,
2015, the Note has passed its maturity date and the Company has not received a notice of default. This Note together with any unpaid
accrued interest is convertible into shares of common stock of the Company at the Holder’s option at a variable conversion
price calculated at 58% of the market price which means the average of the lowest three trading prices during the ten trading day
period ending on the latest complete trading day prior to the conversion date. The Company may repay the Note if repaid within
120 days of date of issue at 125% of the original principal amount plus interest, between 121 days and 150 days at 130% of the
original principal amount plus interest and between 151 days and 180 days at 135% of the original principal amount plus interest.
Thereafter, the Company does not have the right of prepayment. During the year ended December 26, 2014, the Holder converted 8,620,690
shares of common stock of the Company with a fair value of $142,698 to settle $49,000 of principal and interest. During the six
months ended June 26, 2015, the Holder converted 370,714,216 shares of common stock of the Company with a fair value of $92,402
to settle $44,200 of principal and interest. During the six months ended June 26, 2015, the Company paid $7,500 in cash for principal
and interest. At June 26, 2015, the Note is recorded at a fully accreted value of $48,317 less unamortized debt discount of $0.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On May 14, 2014, the Company entered
into a Convertible Promissory Note (“Note”) with KBM Worldwide, Inc. (“Holder”) in the original principal
amount of $103,500 less transaction costs $3,500 bearing an 8% annual interest rate and maturing February 16, 2015. At June 26,
2015, the Note has passed its maturity date and the Company has not received a notice of default. This Note together with any unpaid
accrued interest is convertible into shares of common stock of the Company at the Holder’s option at a variable conversion
price calculated at 58% of the market price which means the average of the lowest three trading prices during the ten trading day
period ending on the latest complete trading day prior to the conversion date. The Company may repay the Note if repaid within
60 days of date of issue at 119% of the original principal amount plus interest, between 61 days and 90 days at 125% of the original
principal amount plus interest, between 91 days and 120 days at 130% of the original principal amount plus interest and 121 days
and 180 days at 135% of the original principal amount plus interest. Thereafter, the Company does not have the right of prepayment.
During the year ended December 26, 2014, the Holder converted 33,354,930 shares of common stock of the Company with a fair value
of $98,434 to settle $60,345 of principal and interest. From January 1, 2015 to January 12, 2015, the Holder converted 69,688,011
shares of common stock of the Company with a fair value of $86,735 to settle $46,595 of principal and interest. On January 12,
2015, the note was paid in full.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On May 27, 2014, the Company issued
a Convertible Promissory Note (“Note”) to JMJ Financial (“Holder”), in the original principal amount of
$330,000 bearing a 12% annual interest rate and maturing in one year for $300,000 of consideration paid in cash and a $30,000 original
issue discount. The Company may repay the Note any time and if repaid within 90 days of date of issue with an interest rate is
0%. This Note together with any unpaid accrued interest is convertible into shares of common stock at the Holder’s option
at a variable conversion price calculated as lessor of (a) $0.30 or (b) 60% of the lowest trade occurring during the 25 consecutive
trading days immediately preceding the conversion date. On May 27, 2014, the Company received cash of $100,000 in the first tranche,
which was net of original issue discount of $10,000. On August 19, 2014, the Company received cash of $50,000 in the second tranche,
which was net of original issue discount of $5,000 bearing a 8% annual interest and maturing in one year. During the year ended
December 26, 2014, the Holder converted 8,600,000 shares of common stock of the Company with a fair value of $25,880 to settle
$14,256 of principal and interest. During the six months ended June 26, 2015, the Holder converted 577,340,000 shares of common
stock of the Company with a fair value of $102,939 to settle $54,698 of principal and interest. At June 26, 2015, the first tranche
of the Note is recorded at a fully accreted value of $75,614 less unamortized debt discount of $0. At June 26, 2015, the second
tranche of the Note is recorded at a fully accreted value of $90,538 less unamortized debt discount of $5,565.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On June 6, 2014, the Company entered
into a Convertible Promissory Note (“Note”) with Firehole River Capital, LLC (“Holder”) in the original
principal amount of $106,000 less transaction costs of $5,000 bearing a 12% annual interest rate and maturing March 6, 2015. At
June 26, 2015, the Note has passed its maturity date and the Company has not received a notice of default. This Note together with
any unpaid accrued interest is convertible into shares of common stock of the Company at the Holder’s option at a variable
conversion price calculated at 58% of the market price which means the average of the lowest three trading prices during the ten
trading day period ending on the latest complete trading day prior to the conversion date. The Company may repay the Note if repaid
within 120 days of date of issue at 125% of the original principal amount plus interest, between 121 days and 150 days at 130%
of the original principal amount plus interest and between 151 days and 180 days at 135% of the original principal amount plus
interest. Thereafter, the Company does not have the right of prepayment. During the six months ended June 26, 2015, the Holder
converted 145,805,413 shares of common stock of the Company with a fair value of $72,617 to settle $33,000 of principal and interest.
During the six months ended June 26, 2015, the Company paid $25,000 in cash for principal and interest. At June 26, 2015, the Note
is recorded at a fully accreted value of $106,900 less unamortized debt discount of $0.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On June 9, 2014, the Company entered
into a Convertible Promissory Note (“Note”) with Group 10 Holdings, LLC (“Holder”) in the original principal
amount of $113,000 less an original issue discount of $12,000 bearing a 12% annual interest rate and maturing June 9, 2015. This
Note together with any unpaid accrued interest is convertible into shares of common stock of the Company at the Holder’s
option at a variable conversion price calculated at 55% of the lowest trading price of any day during the 20 consecutive trading
days prior to the date on which the Holder elects to convert all or part of the Note. The Company may repay the Note if repaid
within 30 days of date of issue at 125% of the original principal amount plus interest and between 31 days and 179 days at 135%
of the original principal amount plus interest and thereafter, the Company may repay the Note at 145% of the original principal
amount plus interest. During the six months ended June 26, 2015, the Holder converted 451,130,000 shares of common stock of the
Company with a fair value of $49,343 to settle $24,812 of principal and interest. During the six months ended June 26, 2015, the
Company paid $6,505 in cash for principal and interest. At June 26, 2015, the Note is recorded at a fully accreted value of $172,582
less unamortized debt discount of $0.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On July 3, 2014, the Company received
cash proceed of a Convertible Promissory Note (“Note”) dated June 26, 2014 with JSJ Investment Inc. (“Holder”)
in the original principal amount of $101,000 bearing a 10% annual interest rate and maturing December 27, 2014. At June 26, 2015,
the Note has passed its maturity date and the Company has not received a notice of default. This Note together with any unpaid
accrued interest is convertible into shares of common stock of the Company at the Holder’s option at a variable conversion
price calculated at 58% of the market price which means the average of the lowest three trading prices during the ten trading day
period ending on the latest complete trading day prior to the conversion date. Upon the maturity date, this note has a cash redemption
value of 135%. This provision only may be exercise if the consent of the Note holder is obtained. During the six months ended June
26, 2015, the Holder converted 215,886,723 shares of common stock of the Company with a fair value of $75,293 to settle $38,340
of principal and interest. During the six months ended June 26, 2015, the Company paid $47,476 in cash for principal and interest.
At June 26, 2015, the Note is recorded at a fully accreted value of $34,623 less unamortized debt discount of $0.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On July 8, 2014, the Company entered
into a Convertible Promissory Note (“Note”) with Tailwind Partners, LLC (“Holder”) in the original principal
amount of $106,000 less transaction costs of $5,000 bearing a 12% annual interest rate and maturing April 8, 2015. The Note has
passed its maturity date and the Company has not received a notice of default. This Note together with any unpaid accrued interest
is convertible into shares of common stock of the Company at the Holder’s option at a variable conversion price calculated
at 58% of the market price which means the average of the lowest three trading prices during the ten trading day period ending
on the latest complete trading day prior to the conversion date. The Company may repay the Note if repaid within 120 days of date
of issue at 125% of the original principal amount plus interest, between 121 days and 150 days at 130% of the original principal
amount plus interest and between 151 days and 180 days at 135% of the original principal amount plus interest. Thereafter, the
Company does not have the right of prepayment. During the six months ended June 26, 2015, the Company paid $64,000 in cash for
principal and interest. At June 26, 2015, the Note is recorded at a fully accreted value of $106,135 less unamortized debt discount
of $0.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On July 11, 2014, the Company entered
into a Convertible Promissory Note (“Note”) with Tonaquint Inc. (“Holder”) in the original principal amount
of $225,000 less an original issuer’s discount of $20,000 and transaction costs of $16,000 bearing a 10% annual interest
rate and maturing June 11, 2015. The Note is due in six equal monthly installments plus interest (“Installment Amount”)
commencing nine months after the issue date. At the option of the Holder, the Installment Amount is convertible into shares of
common stock of the Company at a variable conversion price calculated at 60% of the market price which means the average of the
lowest two trading prices during the twenty trading day period ending on the latest complete trading day prior to the conversion
date. The Company may elect to prepay in cash all or any portion of the outstanding balance of the Note if the Company pays the
holder 125% of the outstanding balance. During the six months ended June 26, 2015, the Holder converted 370,000,000 shares of common
stock of the Company with a fair value of $44,500 for $24,475 of principal and interest. At June 26, 2015, the Note is recorded
at a fully accreted value of $368,754 less unamortized debt discount of $0.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On July 11, 2014, the Company entered
into a Convertible Promissory Note (“Note”) with Macallan Partners, LLC (“Holder”) in the original principal
amount of $115,000 less an original issue discount of $14,000 and transaction costs of $8,080 bearing a 0% annual interest rate
and maturing January 7, 2015. At June 26, 2015, the Note has passed its maturity date and the Company has not received a notice
of default. This Note together with any unpaid accrued interest is convertible into shares of common stock of the Company at the
Holder’s option at a variable conversion price calculated at 58% of the lowest trading price of any day during the 15 consecutive
trading days prior to the date on which the Holder elects to convert all or part of the Note. The Company may repay the Note if
repaid within 60 days of date of issue at 125% of the original principal amount plus interest, and between 61 days and 120 days
at 130% of the original principal amount plus interest and between 121 days and 180 days at 135% of the original principal amount
plus interest. Thereafter, the Company does not have the right of prepayment. During the six months ended June 26, 2015, the Holder
converted 376,666,667 shares of common stock of the Company with a fair value of $68,126 to settle $33,000 of principal and interest.
During the six months ended June 26, 2015, the Company paid $7,000 in cash for principal and interest. At June 26, 2015, the Note
is recorded at a fully accreted value of $129,310 less unamortized debt discount of $0.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On July 15, 2014, the Company issued
a Convertible Promissory Note (“Note”) to Iconic Holding, LLC (“Holder”), in the original principal amount
of $110,250 less an original issue discount of $5,250 and transaction costs of $8,340 bearing a 0% annual interest rate and maturing
July 15, 2015. This unsecured Note is convertible into shares of common stock at the Holder’s option at a variable conversion
price calculated at 60% of the lowest trading price of any day during the 10 consecutive trading days prior to the dated on which
the Holder elects to convert all or part of the Note. The Company may repay the Note within 60 days of date of issue at 125% of
the original principal amount plus interest, between 60 days and 120 days at 130% of the original principal amount plus interest
plus 30,000 shares of common stock of the Company and between 120 days and 180 days at 135% of the original principal amount plus
interest plus 60,000 shares of common stock of the Company. Thereafter, the Note may only be repaid with the consent of the Holder.
During the six months ended June 26, 2015, the Holder converted 263,993,047 shares of common stock of the Company with a fair value
of $62,521 to settle $31,673 of principal and interest. During the six months ended June 26, 2015, the Company paid $5,000 in cash
for principal and interest. At June 26, 2015, the Note is recorded at a fully accreted value of $122,628 less unamortized debt
discount of $2,017.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On July 22, 2014, the Company entered
into a Convertible Promissory Note (“Note”) with Firehole River Capital, LLC (“Holder”) in the original
principal amount of $106,000 less transaction costs of $8,080 bearing a 12% annual interest rate and maturing April 22, 2015. The
Note has passed its maturity date and the Company has not received a notice of default. This Note together with any unpaid accrued
interest is convertible into shares of common stock of the Company at the Holder’s option at a variable conversion price
calculated at 58% of the market price which means the average of the lowest three trading prices during the ten trading day period
ending on the latest complete trading day prior to the conversion date. The Company may repay the Note if repaid within 120 days
of date of issue at 125% of the original principal amount plus interest, between 121 days and 150 days at 130% of the original
principal amount plus interest and between 151 days and 180 days at 135% of the original principal amount plus interest. During
the six months ended June 26, 2015, the Company paid $64,000 in cash for principal and interest. Thereafter, the Company does not
have the right of prepayment. At June 26, 2015, the Note is recorded at a fully accreted value of $105,891 less unamortized debt
discount of $0.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On July 23, 2014, the Company entered
into a Convertible Promissory Note (“Note”) with WHC Capital, LLC (“Holder”) in the original principal
amount of $101,000 less transaction costs of $5,000 bearing a 12% annual interest rate and maturing July 23, 2015. This Note together
with any unpaid accrued interest is convertible into shares of common stock of the Company at the Holder’s option at a variable
conversion price calculated at 58% of the market price which means the average of the lowest three trading prices during the fifteen
trading day period ending on the latest complete trading day prior to the conversion date. The Company may repay the Note if repaid
within 120 days of date of issue at 125% of the original principal amount plus interest, between 121 days and 150 days at 130%
of the original principal amount plus interest and between 151 days and 180 days at 135% of the original principal amount plus
interest. Thereafter, the Company does not have the right of prepayment. During the six months ended June 26, 2015, the Holder
converted 325,888,610 shares of common stock of the Company with a fair value of $46,723 to settle $27,089 of principal and interest.
At June 26, 2015, the Note is recorded at a fully accreted value of $146,001 less unamortized debt discount of $2,249.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On August 6, 2014, the Company entered
into a Convertible Promissory Note (“Note”) with LG Capital Funding, LLC (“Holder”) in the original principal
amount of $106,000 less transaction costs of $5,000 bearing a 10% annual interest rate and maturing August 6, 2015. This Note together
with any unpaid accrued interest is convertible into shares of common stock of the Company at the Holder’s option at a variable
conversion price calculated at 58% of the market price which means the lowest bid price during the twelve trading day period ending
on the latest complete trading day prior to the conversion date. The Company may repay the Note if repaid within 90 days of date
of issue at 125% of the original principal amount plus interest, between 91 days and 150 days at 130% of the original principal
amount plus interest and between 151 days and 180 days at 135% of the original principal amount plus interest. Thereafter, the
Company does not have the right of prepayment. During the six months ended June 26, 2015, the Holder converted 188,206,378 shares
of common stock of the Company with a fair value of $22,993 to settle $10,916 of principal and interest. At June 26, 2015, the
Note is recorded at a fully accreted value of $180,893 less unamortized debt discount of $2,896.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On August 8, 2014, the Company entered
into a Convertible Debenture (“Note”) with Daniel James Management, Inc. (“Holder”) in the original principal
amount of $101,000 bearing a 12% annual interest rate and maturing August 8, 2015. This Note together with any unpaid accrued interest
is convertible into shares of common stock of the Company at the Holder’s option at a variable conversion price calculated
at 58% of the market price which means the lowest closing bid price during the ten trading day period ending on the latest complete
trading day prior to the conversion date. The Company may repay any portion of the principal amount at 135% of such amount along
with any accrued interest of this Debenture at any time upon seven days written notice to the Holder. During the six months ended
June 26, 2015, the Holder converted 248,420,783 shares of common stock of the Company with a fair value of $33,322 to settle $14,408
of principal and interest. On June 1, 2015, the Company and the Holder entered into a new Convertible Note to settled $50,000 of
principal. At June 26, 2015, the Note is recorded at a fully accreted value of $167,337 less unamortized debt discount of $6,696.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On August 18, 2014, the Company entered
into a Convertible Promissory Note (“Note”) with Redwood Fund III, LLC (“Holder”) in the original principal
amount of $262,500 less original issue discount of $12,500 and transaction costs of $22,000 bearing a 11% annual interest rate
and maturing August 18, 2015. This Note together with any unpaid accrued interest is convertible into shares of common stock of
the Company at the Holder’s option at a variable conversion price calculated as 60% of the lowest trading price, determined
on the then current trading market for the Company’s common stock, for 20 trading days prior to conversion. The Company may
repay any portion of the principal amount at 130% of such amount along with any accrued interest of this Debenture at any time
upon five days written notice to the Holder. At June 26, 2015, the Note is recorded at a fully accreted value of $479,743 less
unamortized debt discount of $42,210.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On August 18, 2014, the Company entered
into a Convertible Promissory Note (“Note”) with Redwood Management, LLC (“Holder”) in the original principal
amount of $105,000 less original issue discount $5,000 bearing a 11% annual interest rate and maturing August 18, 2015. This Note
together with any unpaid accrued interest is convertible into shares of common stock of the Company at the Holder’s option
at a variable conversion price calculated as 60% of the lowest trading price, determined on the then current trading market for
the Company’s common stock, for 20 trading days prior to conversion. The Company may repay any portion of the principal amount
at 130% of such amount along with any accrued interest of this Debenture at any time upon five days written notice to the Holder.
During the six months ended June 26, 2015, the Holder converted 269,145,700 shares of common stock of the Company with a fair value
of $26,915 to settle $19,928 of principal and interest. At June 26, 2015, the Note is recorded at a fully accreted value of $157,859
less unamortized debt discount of $13,685.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On September 19, 2014, the Company entered
into a Convertible Promissory Note (“Note”) with Eastmore Capital, LLC (“Holder”) in the original principal
amount of $110,000 less transaction costs of $5,000 bearing a 12% annual interest rate and maturing September 18, 2015. This Note
together with any unpaid accrued interest is convertible into shares of common stock of the Company at the Holder’s option
at a variable conversion price calculated at 60% of the market price which means the average of the lowest trading price during
the fifteen trading day period ending on the latest complete trading day prior to the conversion date. For six months, the Company
may repay any portion of the principal amount at 130% of such amount along with any accrued interest of this Debenture at any time
upon five days written notice to the Holder. Thereafter, the Company does not have the right of prepayment. During the six months
ended June 26, 2015, the Holder converted 145,000,000 shares of common stock of the Company with a fair value of $14,500 to settle
$1,450 of principal and interest. At June 26, 2015, the Note is recorded at a fully accreted value of $198,005 less unamortized
debt discount of $15,907.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On September 19, 2014, the Company entered
into a Convertible Promissory Note (“Note”) with RDW Capital, LLC (“Holder”) in the original principal
amount of $131,250 less original issue discount of $6,250 bearing a 11% annual interest rate and maturing September 19, 2015. This
Note together with any unpaid accrued interest is convertible into shares of common stock of the Company at the Holder’s
option at a variable conversion price calculated as 60% of the lowest trading price, determined on the then current trading market
for the Company’s common stock, for 20 trading days prior to conversion. The Company may repay any portion of the principal
amount at 130% of such amount along with any accrued interest of this Debenture at any time upon five days written notice to the
Holder. At June 26, 2015, the Note is recorded at a fully accreted value of $237,733 less unamortized debt discount of $29,793.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On September 24, 2014, the Company entered
into a Convertible Promissory Note (“Note”) with Carebourn Capital, L.P. (“Holder”) in the original principal
amount of $125,289 less transaction costs $6,300 bearing a 12% annual interest rate and maturing June 24, 2015. This Note together
with any unpaid accrued interest is convertible into shares of common stock of the Company at the Holder’s option at a variable
conversion price calculated at 60% of the market price which means the average of the lowest three trading prices during the ten
trading day period ending on the latest complete trading day prior to the conversion date. The Company may repay the Note if repaid
within 30 days of date of issue at 110% of the original principal amount plus interest, between 31 days and 60 days at 115% of
the original principal amount plus interest, between 61 days and 90 days at 120% of the original principal amount plus interest,
between 91 days and 120 days at 125% of the original principal amount plus interest and 121 days and 150 days at 130% and between
151 days and 180 days at 135% of the original principal amount plus interest of the original principal amount plus interest. Thereafter,
the Company does not have the right of prepayment. At June 26, 2015, the Note is recorded at a fully accreted value of $227,556
less unamortized debt discount of $0.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On October 1, 2014, the Company entered
into a Convertible Promissory Note (“Note”) with KBM Worldwide, Inc. (“Holder”) in the original principal
amount of $95,000 less transaction costs $10,000 bearing an 8% annual interest rate and maturing July 6, 2015. This Note together
with any unpaid accrued interest is convertible into shares of common stock of the Company at the Holder’s option at a variable
conversion price calculated at 58% of the market price which means the average of the lowest three trading prices during the ten
trading day period ending on the latest complete trading day prior to the conversion date. The Company may repay the Note if repaid
within 30 days of date of issue at 112% of the original principal amount plus interest, between 31 days and 60 days at 119% of
the original principal amount plus interest, between 61 days and 90 days at 125% of the original principal amount plus interest,
between 91 days and 120 days at 130% of the original principal amount plus interest and 121 days and 180 days at 135% of the original
principal amount plus interest. During the six months ended June 26, 2015, the Company paid $75,000 in cash for principal and interest.
Thereafter, the Company does not have the right of prepayment. At June 26, 2015, the Note is recorded at a fully accreted value
of $43,033 less unamortized debt discount of $1,811.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On October 31, 2014, the Company entered
into a Convertible Promissory Note (“Note”) with Tailwind Partners, LLC (“Holder”) in the original principal
amount of $106,000 less transaction costs of $5,000 bearing a 12% annual interest rate and maturing July 31, 2015. This Note together
with any unpaid accrued interest is convertible into shares of common stock of the Company at the Holder’s option at a variable
conversion price calculated at 58% of the market price which means the average of the lowest three trading prices during the ten
trading day period ending on the latest complete trading day prior to the conversion date. The Company may repay the Note if repaid
within 120 days of date of issue at 125% of the original principal amount plus interest, between 121 days and 150 days at 130%
of the original principal amount plus interest and between 151 days and 180 days at 135% of the original principal amount plus
interest. Thereafter, the Company does not have the right of prepayment. At June 26, 2015, the Note is recorded at a fully accreted
value of $197,501 less unamortized debt discount of $20,185.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On November 12, 2014, the Company entered
into a Convertible Promissory Note (“Note”) with LG Capital Funding, LLC (“Holder”) in the original principal
amount of $106,000 less transaction costs of $5,000 bearing a 10% annual interest rate and maturing November 12, 2015. This Note
together with any unpaid accrued interest is convertible into shares of common stock of the Company at the Holder’s option
at a variable conversion price calculated at 58% of the market price which means the lowest bid price during the twelve trading
day period ending on the latest complete trading day prior to the conversion date. The Company may repay the Note if repaid within
90 days of date of issue at 125% of the original principal amount plus interest, between 91 days and 150 days at 130% of the original
principal amount plus interest and between 151 days and 180 days at 135% of the original principal amount plus interest. Thereafter,
the Company does not have the right of prepayment. At June 26, 2015, the Note is recorded at a fully accreted value of $194,435
less unamortized debt discount of $65,748.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On June 1, 2015, the Company entered
into a Convertible Debenture (“Note”) with Daniel James Management, Inc. (“Holder”) in the original principal
amount of $50,000 bearing a 12% annual interest rate and maturing May 31, 2016. The Note was issued to settle $50,000 of principal
for the Convertible Debenture issued by the Holder on August 8, 2014. This Note together with any unpaid accrued interest is convertible
into shares of common stock of the Company at the Holder’s option at a variable conversion price calculated at 58% of the
market price which means the lowest closing bid price during the ten trading day period ending on the latest complete trading day
prior to the conversion date. The Company may repay any portion of the principal amount at 135% of such amount along with any accrued
interest of this Debenture at any time upon seven days written notice to the Holder. At June 26, 2015, the Note is recorded at
a fully accreted value of $87,040 less unamortized debt discount of $46,027.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">At June 26, 2015 and December 26, 2014,
convertible notes payable include accrued interest of $71,767 and $103,555, respectively, for Notes that principal has been fully
paid.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 8– CONVERTIBLE NOTE PAYABLE
DERIVATIVE LIABILITY</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Convertible Promissory Notes with
Gemini Master Fund Ltd. with an issue date of March 27, 2014, JMJ Financial Tranche 1 with an issue date of May 27, 2014, Tonaquint,
Inc. with an issue date of April 16, 2014, Tonaquint, Inc. with an issue date of July 11, 2014, Redwood Fund III, Ltd. with an
issue date of August 18, 2014, Redwood Management LLC with an issue date of August 18, 2014, JMJ Financial Tranche 2 with an issue
date of August 19, 2014 and RDW Capital, LLC with an issue date of September 19, 2014 have an initial conversion price that is
subject to anti-dilution adjustments that allow for the reduction in the Conversion Price in the event the Company subsequently
issues equity securities including common stock or any security convertible or exchangeable for shares of common stock for no consideration
or for consideration less than original conversion price.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company’s convertible promissory
note derivative liabilities due to anti-dilution adjustments has been measured at fair value at June 26, 2015 using a binomial
model. Since the Conversion Price contains an anti-dilution adjustment, the probability that the Conversion Price of the Notes
would decrease as the share price decreased was incorporated into the valuation calculation.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The inputs into the binomial models
are as follows:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-left: 5.4pt">Conversion price</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">$0.15 - $0.30</font></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-left: 5.4pt">Risk free rate</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font-size: 10pt"> 0.03% - 0.13</font></td><td style="text-align: left">%</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-left: 5.4pt">Expected volatility</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">169% - 254</font></td><td style="text-align: left">%</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 70%; text-align: justify; padding-left: 5.4pt">Dividend yield</td><td style="width: 10%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 18%; text-align: right">0</td><td style="width: 1%; text-align: left">%</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-left: 5.4pt">Expected life</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">0.04 years – 0.50 years</font></td><td style="text-align: left"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Additionally, the Convertible Promissory
Notes with KBM Worldwide, Inc. with an issue date of October 1, 2014, Tailwind Partner 3, LLC with an issue date of October 31,
2014, LG Capital Funding, LLC with an issued date of November 12, 2014 and Daniel James Management, Inc. with an issued date of
June 1, 2015 were all accounted for under ASC 815.  The variable conversion price is not considered predominately based on
a fixed monetary amount settleable with a variable number of shares due to the volatility and trading volume of the Company’s
common stock. The Company’s convertible promissory note derivative liabilities has been measured at fair value at June 26,
2015 using the Black-Scholes model.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The inputs into the Black-Scholes models
are as follows:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 70%; text-align: justify; padding-left: 5.4pt">Conversion price</td><td style="width: 10%"> </td>
<td style="width: 1%; text-align: left"></td><td style="width: 18%; text-align: right">$0.0001</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-left: 5.4pt">Risk free rate</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">0.05</td><td style="text-align: left">%</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-left: 5.4pt">Expected volatility</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">860% - 1259</font></td><td style="text-align: left">%</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-left: 5.4pt">Dividend yield</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">0</td><td style="text-align: left">%</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-left: 5.4pt">Expected life</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">0.03 years – 0.38 years</font></td><td style="text-align: left"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify"><b>NOTE 9 – WARRANT DERIVATIVE
LIABILITY</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On July 11, 2014, in conjunction with
the issuance of the Convertible Promissory Note issued to Tonaquint, Inc. on July 11, 2014, the Company issued a warrant to purchase
271,084 shares of common stock with an exercise price of $0.45 per share and a life of five years.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The warrant is subject to anti-dilution
adjustments that allow for the reduction in the conversion price in the event the Company subsequently issues equity securities
including common stock or any security convertible or exchangeable for shares of common stock for no consideration or for consideration
less than $0.45 a share. The Company accounted for the warrants in accordance with ASC Topic 815. Accordingly, the warrants
is not considered to be solely indexed to the Company’s own stock and, as such, is recorded as a liability.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The warrant derivative liability has
been measured at fair value at December 31, 2014 and June 26, 2015 using a binomial model. Since the Conversion Price contains
an anti-dilution adjustment, the probability that the exercise price of the Notes would decrease as the share price decreased was
incorporated into the valuation calculation.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The inputs into the binomial model are
as follows:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 70%; text-align: justify; padding-left: 5.4pt">Risk free rate</td><td style="width: 10%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 18%; text-align: right">1.75</td><td style="width: 1%; text-align: left">%</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-left: 5.4pt">Expected volatility</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">183</td><td style="text-align: left">%</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-left: 5.4pt">Dividend yield</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">0</td><td style="text-align: left">%</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-left: 5.4pt">Expected life</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">4.25 years</font></td><td style="text-align: left"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 10 – CONTINGENT LIABILITY</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company incurred a contingent liability
related to the Asset Acquisition Agreement with Shirley’s Employment Service, Inc. on April 13, 2014. The obligation is due
in monthly installments by paying an amount equal to 5.0% of the monthly accounts receivable collected by operating the Tulsa,
Oklahoma location. The total payments are not to exceed $100,000. The fair value of the obligation is determined by estimating
discounted monthly installments at an interest rate of 12% per annum.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company incurred a contingent liability
related to the Asset Acquisition Agreement with Kwik Jobs, Inc. on September 26, 2014. The obligation is due in monthly installments
by paying an amount equal to 5.0% of the monthly accounts receivable collected by operating the Birmingham, Alabama and Decatur,
Georgia locations. The total payments are not expected to exceed $100,000. The fair value of the obligation is determined by estimating
discounted monthly installments at an interest rate of 12% per annum.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 70%; text-align: justify; padding-left: 5.4pt">Opening balance at December 26, 2014</td><td style="width: 10%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">165,862</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-left: 5.4pt">Payments</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(42,367</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt">Interest</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">8,152</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 2.5pt; padding-left: 5.4pt">Closing balance at June 26, 2015</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">131,647</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The current portion and long-term portion
of the contingent liability reported on the consolidated balance sheet at June 26, 2015 is $131,647 and $0, respectively.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 11 – STOCKHOLDERS’
DEFICIT</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Preferred Stock</u> – The Company
has 5,000,000 shares of “blank check” preferred stock authorized. As of June 26, 2015 and December 26, 2014, the Company
had 51 preferred shares issued and outstanding, respectively.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Common Stock</u> - The Company has
20,000,000,000 shares of $0.00001 par value common stock authorized. As of June 26, 2015 and December 26, 2014, the Company had
4,662,382,682 and 180,485,103 shares issued and outstanding, respectively.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">During the six months ended June 26,
2015, the holders of Convertible Promissory Notes (see Note 7) converted 4,481,927,579 shares of common stock of the Company with
a fair value of $1,072,935 to settle $547,584 of principal and interest.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Share-based employee compensation related
to stock options for the three months ended June 26, 2015 and June 27, 2014 was $(32,461) and $33,841, respectively and for the
six months ended June 26, 2015 and June 27, 2014 was $(17,357) and $69,997, respectively. At June 26, 2015, the company has $74,342
of total unrecognized compensation cost related to non-vested share-based compensation. The cost is expected to be recognized over
a weighted-average period of 6.2 years.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The following is a summary of the common
stock options granted, forfeited or expired and exercised:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid">Number of Options</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid">Weighted Average Exercise <br />Price Per Share</td></tr>
<tr style="vertical-align: bottom">
<td style="width: 56%; text-align: justify; padding-left: 5.4pt">Outstanding  - December 26, 2014</td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right">2,875,977</td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">0.23</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify; padding-left: 5.4pt">Granted</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify; padding-left: 5.4pt">Forfeited</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(445,820</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">0.05</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify; padding-left: 5.4pt">Expired</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(1,500,000</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">0.30</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt">Exercised</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify; padding-bottom: 2.5pt; padding-left: 5.4pt">Outstanding– June 26, 2015</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">930,157</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0.20</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify; padding-bottom: 2.5pt; padding-left: 5.4pt">Exercisable – June 26, 2015</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">385,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0.42</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The following table summarizes information
on stock options exercisable as of June 26, 2015:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><u>Exercise Price</u></p></td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">Number Outstanding at<u> June 26, 2015</u></font></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">Average Remaining<u> Life (Years)</u></font></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">Aggregate Intrinsic <u>Value</u></font></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 46%; text-align: left; padding-left: 5.4pt">$0.021</td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: right">25,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: right">4.36</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: right">—  </td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt">$0.105</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">25,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4.27</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt">$0.25</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">25,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3.50</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt">$0.295</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">50,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3.25</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt">$0.41</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">30,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2.82</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt">$0.50</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">130,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3.26</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt">$0.56</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">50,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2.66</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt">$0.62</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">50,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2.72</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 13.5pt 0 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The following table summarizes information
on stock options outstanding as of June 26, 2015:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><u>Exercise Price</u></p></td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">Number Outstanding at<u> June 26, 2015</u></font></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">Average Remaining<u> Life (Years)</u></font></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">Aggregate Intrinsic <u>Value</u></font></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 46%; text-align: left; padding-left: 5.4pt">$0.021</td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: right">25,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: right">4.36</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: right">—  </td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt">$0.05</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">545,157</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">8.29</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt">$0.105</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">25,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4.27</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt">$0.25</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">25,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3.50</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt">$0.295</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">50,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3.25</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt">$0.41</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">30,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2.82</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt">$0.50</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">130,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3.26</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt">$0.56</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">50,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2.66</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt">$0.62</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">50,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2.72</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The following is a summary of warrants
activity during June 26, 2015:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid">Number of Shares</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid">Weighted Average Exercise Price</td></tr>
<tr style="vertical-align: bottom">
<td style="width: 56%; text-align: justify; text-indent: -0.25in; padding-left: 0.25in">Balance, December 26, 2014</td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right">1,841,286</td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">0.14</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify; padding-left: 9pt">Warrants granted and assumed (1) <br />Warrants canceled</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">561,160,714-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">0.0001-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify; padding-bottom: 1pt; text-indent: 10pt; padding-left: 0.25in">Warrants expired</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify; padding-bottom: 2.5pt; text-indent: -0.25in; padding-left: 0.25in">Balance, June 26, 2015</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">563,002,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0.0006</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 12pt 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"><font style="font-size: 10pt">(1)</font></td><td style="text-align: justify"><font style="font-size: 10pt">The number of warrants is equal to $56,250 divided by the market
price. Market price is defined as greater of (i) the closing price of common stock on the issue date and (ii) the VWAP of the common
stock for the trading day that is 2 trading days prior to the exercise price. At June 26, 2015 and December 31, 2016, the number
of warrants granted and assumed is calculated to be 562,500,000 and 1,339,286, respectively. The initial exercise price of the
warrants is $0.45 per common share subject to adjustment for dilutive issuances. As June 26, 2015, the exercise price was $0.0001
per share.</font></td></tr></table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify; text-indent: -0.25in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify; text-indent: -0.25in">All
warrants outstanding as of June 26, 2015 are exercisable.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 12 – CONTINGENCIES AND
COMMITMENTS</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">On June 4, 2015, the Company
filed a lawsuit against Command Center, Inc. (“Command Center”) in the State of Washington for tortious interference
with contractual relationships and business relations, defamation, intentional interference with prospective advantage or business
expectancy, and breach of contract.  Further, the Company requested a declaratory judgement on the promissory note Command
Center purchased from Gemini Master Fund, Ltd. (“Gemini”).  The Company believes that prior to the sale of the
promissory note by Gemini to Command Center, the terms of the promissory note were amended by Gemini and Company to allow the Company
to make monthly payments under the promissory note.  On June 18, 2015, Command Center filed a lawsuit against the Company
in the State of New York, claiming the promissory note they purchased from Gemini is in default and have demanded payment in full,
plus penalties and fees.  On July 10, 2015, the Company and Command Center agreed to consolidate and transfer these two actions
into one case, which will be argued in the State of New York.  The action is in its very preliminary stages. As a result,
we are unable to estimate a potential gain or loss or range of gain or loss, if any, at this time.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">From time to time we are involved
in various legal proceedings. We believe that the outcome of these proceedings, even if determined adversely, will not have a material
adverse effect on our business, financial condition or results of operations. There have been no material changes in our legal
proceedings since June 26, 2015.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company leases office premises under
26 operating leases with terms from month to month to five years. Rental expenses was $109,509 and $94,744 for the three months
ended June 26, 2015 and June 27, 2014, respectively and was $269,054 and $170,145 for the six months ended June 26, 2015 and June
27, 2014, respectively.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0.1in 0 0; text-align: justify">The following table is a schedule
of future minimum lease commitments for the Company:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0.1in 0 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Arial, Helvetica, Sans-Serif; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt; text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Period ending December 31,</font></td>
<td nowrap="nowrap" style="padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt; text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">2015</font></td>
<td nowrap="nowrap" style="padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">     $      258,812</font></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt"> </td>
<td nowrap="nowrap" style="padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt; text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">2016</font></td>
<td nowrap="nowrap" style="padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">440,539</font></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt"> </td>
<td nowrap="nowrap" style="padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt; text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">2017</font></td>
<td nowrap="nowrap" style="padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">305,970</font></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt; text-align: justify; line-height: 115%"> </td>
<td nowrap="nowrap" style="padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt; text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">2018</font></td>
<td nowrap="nowrap" style="padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">206,101</font></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt; text-align: justify; line-height: 115%"> </td>
<td nowrap="nowrap" style="padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt; text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">2019</font></td>
<td nowrap="nowrap" style="padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">119,965</font></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt; text-align: justify; line-height: 115%"> </td>
<td nowrap="nowrap" style="padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt; text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">2020</font></td>
<td nowrap="nowrap" style="padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">105,227</font></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt"> </td>
<td nowrap="nowrap" style="padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt"> </td>
<td nowrap="nowrap" style="border-top: Black 1pt solid; border-bottom: Black 2.25pt double; padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif"> $   1,436,614</font></td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0.1in 0 0; text-align: justify"><b></b></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Arial, Helvetica, Sans-Serif; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt; text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Period ending December 31,</font></td>
<td nowrap="nowrap" style="padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt; text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">2015</font></td>
<td nowrap="nowrap" style="padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">     $      258,812</font></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt"> </td>
<td nowrap="nowrap" style="padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt; text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">2016</font></td>
<td nowrap="nowrap" style="padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">440,539</font></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt"> </td>
<td nowrap="nowrap" style="padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt; text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">2017</font></td>
<td nowrap="nowrap" style="padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">305,970</font></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt; text-align: justify; line-height: 115%"> </td>
<td nowrap="nowrap" style="padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt; text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">2018</font></td>
<td nowrap="nowrap" style="padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">206,101</font></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt; text-align: justify; line-height: 115%"> </td>
<td nowrap="nowrap" style="padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt; text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">2019</font></td>
<td nowrap="nowrap" style="padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">119,965</font></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt; text-align: justify; line-height: 115%"> </td>
<td nowrap="nowrap" style="padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt; text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">2020</font></td>
<td nowrap="nowrap" style="padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">105,227</font></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt"> </td>
<td nowrap="nowrap" style="padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt"> </td>
<td nowrap="nowrap" style="border-top: Black 1pt solid; border-bottom: Black 2.25pt double; padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif"> $   1,436,614</font></td></tr>
</table>
269054
109509
94744
170145
<p style="margin: 0pt"></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 13 – SUBSEQUENT EVENTS</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Common Stock</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">From July 1, 2015 to August 12, 2015,
the holders of Convertible Promissory Notes converted 637,155,411 shares of common stock of the Company with a fair value of $63,716
to settle $36,615 of principal and interest.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Convertible Notes</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On June 29, 2015, the Company paid the
remaining outstanding balance of the Convertible Promissory Note with KBM Worldwide, Inc. dated October 1, 2014 for $25,000 in
cash.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On July 20, 2015, the Company paid the
remaining outstanding balance of the Convertible Promissory Note with Investments Inc. dated July 3, 2014 for $23,738 in cash.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0.1in 0 0; text-align: justify"><b>Asset Purchase Agreement</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0.1in 0 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On August 5, 2015, the Company and
Christopher Ryan Schadel, the Chief Executive Officer of the Company, (“Schadel”) entered into an Agreement for Purchase
and Sale of Assets (the “Asset Purchase Agreement”) with Harris Ventures, Inc., a Georgia corporation (“Harris
Ventures”), effective as of July 31, 2015. Under the terms of the Asset Purchase Agreement, Harris Ventures will purchase
the following branch offices of the Company: Augusta, Georgia, Charleston, South Carolina, Columbia, South Carolina, Denver, Colorado,
and Greenville, South Carolina (the “Branch Offices”), and all assets associated with the Branch Offices, excluding
open accounts receivable. The purchase price for the Branch Offices will be a total of $1,025,000, of which $135,000 was due upon
the execution of the Agreement and the remaining $890,000 due on August 12, 2015. The Company and Schadel also agreed that, for
a period of five (5) years (except for the branch offices located in South Carolina, in which the restricted period shall be three
(3) years) not to complete within a forty (40) mile radius of the Branch Offices.</p>
258812
440539
305970
206101
119965
105227
1436614
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Basis of Presentation</u></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">These consolidated financial
statements are presented in United States dollars and have been prepared in accordance with generally accepted accounting principles
in the United States of America (“US GAAP”). On January 20, 2015, the Company incorporated a 100% owned subsidiary,
Skill Corp, Inc. On March 2, 2015, the Company incorporated the following 100% owned subsidiaries: LSI Corp, LLC, Labor Smart TN,
LLC, Labor Smart SE, LLC, Labor Smart SE II, LLC, Labor Smart NAT, LLC, Labor Smart GA, LLC and Labor Smart MW, LLC which are included
in these consolidated financial statements. All significant inter-company accounts and transactions have been eliminated.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">The Company has a
52-53 week fiscal year ending on the Friday closest to December 31.  This
change was effective with the end of the registrant’s fiscal second quarter ended June 27, 2014. The change to a 52-53 week
fiscal year was retroactively applied as if it was adopted as of January 1, 2014. The registrant’s current fiscal year ends
on December 25, 2015 and comprises 52 weeks. </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Pursuant to the rules and regulations
of the Securities and Exchange Commission for Form 10-Q, the condensed consolidated financial statements, footnote disclosures
and other information normally included in consolidated financial statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted. The condensed consolidated financial statements contained in this report are unaudited
but, in the opinion of management, reflect all adjustments, consisting of only normal recurring adjustments, necessary for a fair
presentation of the condensed consolidated financial statements.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Fair Value of Financial Instruments</u></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">As required by the Fair Value
Measurements and Disclosures Topic of the FASB ASC (“ASC 820-10”), fair value is measured based on a three-tier fair
value hierarchy, which prioritizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted
prices in active markets; (Level 2) inputs, other than the quoted prices in active markets, that are observable either directly
or indirectly; and (Level 3) unobservable inputs in which there is little or no market data, which require the reporting entity
to develop its own assumptions.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">The three levels of the fair
value hierarchy are described below:</p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Arial, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr>
<td style="width: 6%; line-height: 115%"> </td>
<td style="vertical-align: top; width: 10%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Level 1</font></td>
<td style="vertical-align: top; width: 84%; text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; </font></td></tr>
<tr>
<td style="line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Level 2</font></td>
<td style="vertical-align: top; text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; </font></td></tr>
<tr>
<td style="line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Level 3</font></td>
<td style="vertical-align: top; text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). </font></td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">Pursuant to ASC 825, the fair
value of cash and marketable securities is determined based on “Level 1” inputs, which consist of quoted prices in
active markets for identical assets. The Company believes that the recorded values of cash, accounts receivables, marketable securities,
accounts payable and accrued liabilities, and notes payable approximate their current fair values because of their nature and respective
relatively short maturity dates or durations.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">Assets measured at fair value
on a recurring basis were presented on the Company’s balance sheets as of June 26, 2015 and December 26, 2014 as follows:</p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="17" style="font-family: Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif"><b><u>Fair Value Measurements as of June 26, 2015 Using:</u></b></font></td></tr>
<tr style="vertical-align: bottom">
<td style="font-family: Times New Roman, Times, Serif; text-align: center"> </td><td> </td>
<td colspan="3" style="text-align: center"> </td><td style="font-family: Times New Roman, Times, Serif"> </td>
<td colspan="3" style="font-family: Times New Roman, Times, Serif; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Total Carrying Value as of</b></font></td><td style="font-family: Times New Roman, Times, Serif"> </td>
<td colspan="3" style="font-family: Times New Roman, Times, Serif; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Quoted Market Prices in Active Markets</b></font></td><td style="font-family: Times New Roman, Times, Serif"> </td>
<td colspan="3" style="font-family: Times New Roman, Times, Serif; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Significant Other Observable Inputs</b></font></td><td style="font-family: Times New Roman, Times, Serif"> </td>
<td style="font-family: Times New Roman, Times, Serif; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Significant Unobservable Inputs</b></font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center"> </td><td style="font: bold 11pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-family: Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid"><b>June
26, 2015</b></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-family: Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif"><b><u>(Level 1)</u></b></font></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-family: Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif"><b><u>(Level 2</u></b></font><b><u><font style="font-family: Times New Roman, Times, Serif">)</font></u></b></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="font-family: Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif"><b><u>(Level 3) </u></b></font></td></tr>
<tr style="vertical-align: bottom">
<td style="font-family: Times New Roman, Times, Serif; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Assets:</b></font></td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 40%; font-family: Times New Roman, Times, Serif; text-align: center">Equity securities</td><td style="width: 3%; font-family: Times New Roman, Times, Serif"> </td>
<td style="width: 1%; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="width: 10%; font-family: Times New Roman, Times, Serif; text-align: right"> </td><td style="width: 1%; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="width: 3%; font-family: Times New Roman, Times, Serif"> </td>
<td style="width: 1%; font-family: Times New Roman, Times, Serif; text-align: left">$</td><td style="width: 10%; font-family: Times New Roman, Times, Serif; text-align: right">77,960</td><td style="width: 1%; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="width: 3%; font-family: Times New Roman, Times, Serif"> </td>
<td style="width: 1%; font-family: Times New Roman, Times, Serif; text-align: left">$</td><td style="width: 10%; font-family: Times New Roman, Times, Serif; text-align: right">77,960</td><td style="width: 1%; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="width: 3%; font-family: Times New Roman, Times, Serif"> </td>
<td style="width: 1%; font-family: Times New Roman, Times, Serif; text-align: left">$</td><td style="width: 10%; font-family: Times New Roman, Times, Serif; text-align: right">0</td><td style="width: 1%; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="width: 3%; font-family: Times New Roman, Times, Serif"> </td>
<td style="font-family: Times New Roman, Times, Serif; text-align: right">$0</td></tr>
<tr style="vertical-align: bottom">
<td style="font-family: Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt">Warrant</td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right">35,650</td><td style="padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right">0</td><td style="padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right">0</td><td style="padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right">35,650</td></tr>
<tr style="vertical-align: bottom">
<td style="font-family: Times New Roman, Times, Serif; text-align: center; padding-bottom: 2.5pt; text-indent: 0.25in">Total</td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </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"> </td><td style="padding-bottom: 2.5pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right">113,610</td><td style="padding-bottom: 2.5pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right">77,960</td><td style="padding-bottom: 2.5pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right">0</td><td style="padding-bottom: 2.5pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right">$35,650</td></tr>
<tr style="vertical-align: bottom">
<td style="font-family: Times New Roman, Times, Serif; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Liabilities:</b></font></td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-family: Times New Roman, Times, Serif; text-align: center">Convertible note payable derivative liability</td><td style="font-family: Times New Roman, Times, Serif"> </td>
<td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; text-align: right"> </td><td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif"> </td>
<td style="font-family: Times New Roman, Times, Serif; text-align: left">$</td><td style="font-family: Times New Roman, Times, Serif; text-align: right">376,228</td><td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif"> </td>
<td style="font-family: Times New Roman, Times, Serif; text-align: left">$</td><td style="font-family: Times New Roman, Times, Serif; text-align: right">0</td><td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif"> </td>
<td style="font-family: Times New Roman, Times, Serif; text-align: left">$</td><td style="font-family: Times New Roman, Times, Serif; text-align: right">0</td><td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif"> </td>
<td style="font-family: Times New Roman, Times, Serif; text-align: right">$376,228</td></tr>
<tr style="vertical-align: bottom">
<td style="font-family: Times New Roman, Times, Serif; text-align: center">Warrant derivative liability</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif"> </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">2,375</td><td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif"> </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">0</td><td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif"> </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">0</td><td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif"> </td>
<td style="font-family: Times New Roman, Times, Serif; text-align: right">2,375</td></tr>
<tr style="vertical-align: bottom">
<td style="font-family: Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt">Contingent consideration payable</td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right">131,647</td><td style="padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right">0</td><td style="padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right">0</td><td style="padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right">131,647</td></tr>
<tr style="vertical-align: bottom">
<td style="font-family: Times New Roman, Times, Serif; text-align: center; padding-bottom: 2.5pt; text-indent: 0.25in">Total</td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </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"> </td><td style="padding-bottom: 2.5pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right">510,250</td><td style="padding-bottom: 2.5pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right">0</td><td style="padding-bottom: 2.5pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right">0</td><td style="padding-bottom: 2.5pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right">$510,250</td></tr>
<tr style="vertical-align: bottom">
<td style="font-family: Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="17" style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: center; vertical-align: middle"><font style="font: 10pt Times New Roman, Times, Serif"><b><u>Fair Value Measurements as of December 26, 2014 Using:</u></b></font></td></tr>
<tr style="vertical-align: bottom">
<td style="font-family: Times New Roman, Times, Serif; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b> </b></font></td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif"> </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"><font style="font: 10pt Times New Roman, Times, Serif"><b>Total Carrying Value as of</b></font></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif"> </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"><font style="font: 10pt Times New Roman, Times, Serif"><b>Quoted Market Prices in Active Markets</b></font></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif"> </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"><font style="font: 10pt Times New Roman, Times, Serif"><b>Significant Other Observable Inputs</b></font></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif"> </td>
<td style="font-family: Times New Roman, Times, Serif; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Significant Unobservable Inputs</b></font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font: bold 11pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font: bold 11pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid"><font style="font-family: Times New Roman, Times, Serif"><b><u>December 26, 2014</u></b></font></td><td style="padding-bottom: 1pt; font: bold 11pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b><u>(Level 1)</u></b></font></td><td style="padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b><u>(Level 2</u></b></font><b><u><font style="font-family: Times New Roman, Times, Serif">)</font></u></b></td><td style="padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b><u>(Level 3) </u></b></font></td></tr>
<tr style="vertical-align: bottom">
<td style="font-family: Times New Roman, Times, Serif; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Assets:</b></font></td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-family: Times New Roman, Times, Serif; text-align: center">Equity securities</td><td style="font-family: Times New Roman, Times, Serif"> </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"> </td><td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif"> </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">52,610</td><td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif"> </td>
<td style="font-family: Times New Roman, Times, Serif; text-align: left">$</td><td style="font-family: Times New Roman, Times, Serif; text-align: right">52,610</td><td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif"> </td>
<td style="font-family: Times New Roman, Times, Serif; text-align: left">$</td><td style="font-family: Times New Roman, Times, Serif; text-align: right">0</td><td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif"> </td>
<td style="font-family: Times New Roman, Times, Serif; text-align: right">$0</td></tr>
<tr style="vertical-align: bottom">
<td style="font-family: Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt">Warrant</td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right">47,344</td><td style="padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right">0</td><td style="padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right">0</td><td style="padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right">47,344</td></tr>
<tr style="vertical-align: bottom">
<td style="font-family: Times New Roman, Times, Serif; text-align: center; padding-bottom: 2.5pt; text-indent: 0.25in">Total</td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </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"> </td><td style="padding-bottom: 2.5pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right">99,954</td><td style="padding-bottom: 2.5pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right">52,610</td><td style="padding-bottom: 2.5pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right">0</td><td style="padding-bottom: 2.5pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right">$47,344</td></tr>
<tr style="vertical-align: bottom">
<td style="font-family: Times New Roman, Times, Serif; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Liabilities:</b></font></td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-family: Times New Roman, Times, Serif; text-align: center">Convertible note payable derivative liability</td><td style="font-family: Times New Roman, Times, Serif"> </td>
<td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; text-align: right"> </td><td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif"> </td>
<td style="font-family: Times New Roman, Times, Serif; text-align: left">$</td><td style="font-family: Times New Roman, Times, Serif; text-align: right">601,345</td><td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif"> </td>
<td style="font-family: Times New Roman, Times, Serif; text-align: left">$</td><td style="font-family: Times New Roman, Times, Serif; text-align: right">0</td><td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif"> </td>
<td style="font-family: Times New Roman, Times, Serif; text-align: left">$</td><td style="font-family: Times New Roman, Times, Serif; text-align: right">0</td><td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif"> </td>
<td style="font-family: Times New Roman, Times, Serif; text-align: right">$601,345</td></tr>
<tr style="vertical-align: bottom">
<td style="font-family: Times New Roman, Times, Serif; text-align: center">Warrant derivative liability</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif"> </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">2,294</td><td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif"> </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">0</td><td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif"> </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">0</td><td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif"> </td>
<td style="font-family: Times New Roman, Times, Serif; text-align: right">2,294</td></tr>
<tr style="vertical-align: bottom">
<td style="font-family: Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt">Contingent consideration payable</td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right">165,862</td><td style="padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right">0</td><td style="padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right">0</td><td style="padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right">165,862</td></tr>
<tr style="vertical-align: bottom">
<td style="font-family: Times New Roman, Times, Serif; text-align: center; padding-bottom: 2.5pt; text-indent: 0.25in">Total</td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </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"> </td><td style="padding-bottom: 2.5pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right">769,501</td><td style="padding-bottom: 2.5pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right">0</td><td style="padding-bottom: 2.5pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right">0</td><td style="padding-bottom: 2.5pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right">$769,501</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-size: 11pt"> </td>
<td style="font-size: 11pt; text-align: left"> </td><td style="font-size: 11pt; text-align: right"> </td><td style="font-size: 11pt; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Changes in convertible note payable
derivative liability during the six months ended June 26, 2015 were as follows:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="width: 70%; text-align: justify; padding-left: 5.4pt">Opening balance at December 26, 2014</td><td style="width: 10%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">601,345</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify; padding-left: 5.4pt">Fair value of convertible derivative liability</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">69,686</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify; padding-left: 5.4pt">Loss on derivative liabilities</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(19,686</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt">Gain on change in fair value of derivative <br />liability</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(275,117</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify; padding-bottom: 2.5pt; padding-left: 5.4pt">Closing balance at June 26, 2015</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">376,228</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Changes in warrant derivative liability
during the six months ended June 26, 2015 were as follows:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="width: 70%; text-align: justify; padding-left: 5.4pt">Opening balance at December 26, 2014</td><td style="width: 10%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">2,294</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt">Loss on change in fair value of derivative <br />liability</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">81</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify; padding-bottom: 2.5pt; padding-left: 5.4pt">Closing balance at June 26, 2015</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,375</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Changes in contingent liability during
the six months ended June 26, 2015 were as follows:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="width: 70%; text-align: justify; padding-left: 5.4pt">Opening balance at December 26, 2014</td><td style="width: 10%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">165,862</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify; padding-left: 5.4pt">Payments</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(42,367</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt">Interest</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">8,152</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify; padding-bottom: 2.5pt; padding-left: 5.4pt">Closing balance at June 26, 2015</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">131,647</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">Equity securities comprise publicly
traded shares of common stock. The warrant gives the Company, the right but not the obligation, to purchase 100,000 shares of
Science to Consumers, Inc. (formerly Argon Beauty Corp.) (OTCBB:BEUT). The warrant is valued at the end of each accounting period
using the Black Scholes option valuation model using the following inputs at June 26, 2015: stock price $0.41, exercise price
$0.50, expected life 2.23 years, volatility 208%, dividends 0% and discount rate 1.08%.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Cash and Cash Equivalents</u></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">Cash and cash equivalents consist
of cash and short-term investments with original maturities of less than 90 days. Cash equivalents are placed with high credit
quality financial institutions and are primarily in money market funds. The carrying value of those investments approximates fair
value. The Company maintains its cash in bank deposit accounts which may exceed federally insured limits. As of June 26, 2015,
the Company’s accounts are insured for $250,000 by FDIC for US bank deposits.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Income Taxes</u></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company follows the liability method
of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences
attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective
tax balances. Deferred tax assets and liabilities are measured using enacted or substantially enacted tax rates expected to apply
to the taxable income in the years in which those differences are expected to be recovered or settled. The effect on deferred tax
assets and liabilities of a change in tax rates is recognized in income in the period that includes the date of enactment or substantive
enactment. Deferred income taxes are reported for timing differences between items of income or expense reported in the consolidated
financial statements and those reported for income tax purposes in accordance with FASB ASC 740-10, “Income Taxes,”
which requires the use of the asset/liability method of accounting for income taxes.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company provides for deferred taxes
for the estimated future tax effects attributable to temporary differences and carry-forwards when realization is more likely
than not.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Revenue Recognition</u></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">The Company recognizes revenues
and the related costs when persuasive evidence of an arrangement exists, delivery and acceptance has occurred or service has been
rendered, the price is fixed or determinable, and collection of the resulting receivable is reasonably assured. Amounts invoiced
or collected in advance of product delivery or providing services are recorded as deferred revenue. The Company accrues for customer
credits, bad debts, and other allowances based on its historical experience. Staffing revenue is recognized as the services are
performed. Revenue also includes billable travel and other reimbursable costs and is recorded net of sales tax.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Deferred Financing Costs</u></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">Deferred financing costs consist
of costs incurred to obtain debt financing, including legal fees, origination fees and administration fees. Costs associated with
the Convertible Promissory Notes are deferred and amortized in our statements of operations<i> </i>using the straight-line method,
which approximates the effective interest method, over the terms of the respective financing instrument.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Use of Estimates</u></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">The preparation of consolidated
financial statements in conformity with accounting principles generally accepted in the United States of America requires the
Company to make estimates and judgments that affect the reported amounts of assets and liabilities, revenues and expenses, and
related disclosures of contingent assets and liabilities. These estimates and judgments are based on historical information, information
that is currently available to the Company, and on various other assumptions that the Company believes to be reasonable under
the circumstances. Actual results could differ from those estimates.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Factoring Agreements and Accounts
Receivable</u></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On
July 31, 2013 the Company entered into a Purchase and Sale Agreement with Transfac Capital, Inc. (“Transfac”). Advances
to the Company from Transfac are with recourse and are secured by assets of the Company and are treated as a secured financing
arrangement. As of June 26, 2015 and December 26, 2014, factored accounts receivable total $1,839,381 and $1,638,771, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Allowance for Doubtful Accounts</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company allows for an estimated amount
of receivables that may not be collected. The Company estimates its allowance for doubtful accounts based on historical experience
and customer relationships. As of June 26, 2015 and December 26, 2014, the Company has recorded an allowance of $182,721 and $110,605,
respectively.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Property and Equipment</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Property and equipment are stated at the lower
of cost or fair value. Depreciation is provided on a straight-line basis over the estimated useful lives of the assets, as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Arial, Helvetica, Sans-Serif; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 60%; border-bottom: Black 1pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">Description</font></td>
<td style="width: 40%; border-bottom: Black 1pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">Estimated Life</font></td></tr>
<tr style="vertical-align: top">
<td><font style="font: 10pt Times New Roman, Times, Serif">Office equipment and furniture</font></td>
<td style="text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">3 years</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">The estimated useful lives are
based on the nature of the assets as well as current operating strategy and legal considerations such as contractual life. Future
events, such as property expansions, property developments, new competition, or new regulations, could result in a change in the
manner in which the Company uses certain assets requiring a change in the estimated useful lives of such assets.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><u>June 26, 2015</u></font></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><u>December 26, 2014</u></font></td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 50%; text-align: justify; padding-left: 5.4pt">Office equipment and furniture</td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 15%; text-align: right">155,929</td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 15%; text-align: right">131,295</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt">Less: accumulated depreciation</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(55,789</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(32,505</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify; padding-bottom: 2.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">100,140</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">98,790</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Depreciation expense for six months
ended June 26, 2015 and June 27, 2014 was $23,284 and $4,039, respectively.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Customer Relationships</u></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">Customer relationships comprise
customer lists acquired from Qwik Staffing Solutions, Inc. on April 29, 2013 with an estimated fair value of $294,100, from Shirley’s
Employment Service, Inc. on April 9, 2014 with an estimated fair value of $162,461 and from Kwik Jobs on September 26, 2014 with
an estimated fair value of $141,529. Customer lists are amortized on a straight-line basis over three years.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><u>June 26, 2015</u></font></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><u>December 26, 2014</u></font></td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 50%; text-align: justify; padding-left: 5.4pt">Customer lists</td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 15%; text-align: right">598,090</td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 15%; text-align: right">598,090</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt">Less: accumulated amortization</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(312,063</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(212,654</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify; padding-bottom: 2.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">286,027</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">385,436</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Amortization expense for the six months
ended June 26, 2015 and June 27, 2014 was $99,409 and $60,186 respectively.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Earnings (loss) per share</u></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Basic earnings (loss) per common share
is computed by dividing net income (loss) available to common shareholders by the weighted-average number of shares of common
stock outstanding during the period. Diluted earnings per common share is computed by dividing income available to common shareholders
by the weighted-average number of shares of common stock outstanding during the period increased to include the number of additional
shares of common stock that would have been outstanding if potentially dilutive securities had been issued. Potentially dilutive
common shares outstanding stock options assumed to be exercised or vested and paid out of shares of common stock and warrants
assumed to be exercised. Outstanding stock options and warrants are disclosed in Note 11 Stockholders’ Deficit.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Convertible Notes Payable</u></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 12pt 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: 0.5in"><font style="font-size: 10pt">i)</font></td><td style="text-align: justify"><font style="font-size: 10pt"><u>Beneficial Conversion Feature</u></font></td></tr></table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">If the conversion features
of conventional convertible debt provides for a rate of conversion that is below market value, this feature is characterized as
a beneficial conversion feature (“BCF”). A BCF is recorded by the Company as a debt discount pursuant to ASC Topic
470-20 “Debt with Conversion and Other Options.” In those circumstances, the convertible debt is recorded
net of the discount related to the BCF and the Company amortizes the discount to interest expense over the life of the debt using
the effective interest method.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><i> </i></p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 12pt 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: 0.5in"><font style="font-size: 10pt">ii)</font></td><td style="text-align: justify"><font style="font-size: 10pt"><u>Debt Discount</u></font></td></tr></table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">The Company determines if
the convertible debenture should be accounted for as liability or equity under ASC 480, Liabilities — Distinguishing Liabilities
from Equity. ASC 480, applies to certain contracts involving a company's own equity, and requires that issuers classify the following
freestanding financial instruments as liabilities. Mandatorily redeemable financial instruments, obligations that require or may
require repurchase of the issuer's equity shares by transferring assets (e.g., written put options and forward purchase contracts),
and certain obligations where at inception the monetary value of the obligation is based solely or predominantly on:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">– A fixed monetary
amount known at inception, for example, a payable settleable with a variable number of the issuer's equity shares with an issuance
date fair value equal to a fixed dollar amount,</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">– Variations in something
other than the fair value of the issuer's equity shares, for example, a financial instrument indexed to the S&P 500 and settleable
with a variable number of the issuer's equity shares, or</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">– Variations inversely
related to changes in the fair value of the issuer's equity shares, for example, a written put that could be net share settled.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">If the entity determined
the instrument meets the guidance under ASC 480 the instrument is accounted for as a liability with a respective debt discount.
The Company records debt discounts in connection with raising funds through the issuance of convertible debt (see Note 7). These
costs are amortized to non-cash interest expense over the life of the debt. If a conversion of the underlying debt occurs, a proportionate
share of the unamortized amounts is immediately expensed.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 12pt 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: 0.5in"><font style="font-size: 10pt">iii)</font></td><td style="text-align: justify"><font style="font-size: 10pt"><u>Derivative Financial Instruments</u></font></td></tr></table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">Derivative financial instruments,
as defined in ASC 815, “Accounting for Derivative Financial Instruments and Hedging Activities”, consist of financial
instruments or other contracts that contain a notional amount and one or more underlying (e.g. interest rate, security price or
other variable), require no initial net investment and permit net settlement. Derivative financial instruments may be free-standing
or embedded in other financial instruments. Further, derivative financial instruments are initially, and subsequently, measured
at fair value and recorded as liabilities or, in rare instances, assets.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">The Company does not use
derivative financial instruments to hedge exposures to cash-flow, market or foreign-currency risks. However, the Company has issued
financial instruments including senior convertible promissory notes payable and freestanding stock purchase warrants with features
that are either (i) not afforded equity classification, (ii) embody risks not clearly and closely related to host contracts, or
(iii) may be net-cash settled by the counterparty. As required by ASC 815, in certain instances, these instruments are required
to be carried as derivative liabilities, at fair value, in our consolidated financial statements.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Stock-based compensation</u></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company records stock based compensation
in accordance with the guidance in ASC Topic 505 and 718 which requires the Company to recognize expenses related to the fair value
of its employee stock option awards. This eliminates accounting for share-based compensation transactions using the intrinsic value
and requires instead that such transactions be accounted for using a fair-value-based method. The Company recognizes the cost of
all share-based awards on a graded vesting basis over the vesting period of the award. </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company accounts for equity instruments
issued in exchange for the receipt of goods or services from other than employees in accordance with FASB ASC 718-10 and the conclusions
reached by the FASB ASC 505-50. Costs are measured at the estimated fair market value of the consideration received or the estimated
fair value of the equity instruments issued, whichever is more reliably measurable. The value of equity instruments issued for
consideration other than employee services is determined on the earliest of a performance commitment or completion of performance
by the provider of goods or services as defined by FASB ASC 505-50.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Recent Accounting Pronouncements</u></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In May 2014, the FASB issued Accounting
Standards Update No. 2014-09, Revenue from Contracts with Customers (“FASB ASU 2014-09”). This standard update clarifies
the principles for recognizing revenue and develops a common revenue standard for U.S. generally accepted accounting principles
(GAAP) and International Financial Reporting Standards. The standard update intends to provide a more robust framework for addressing
revenue issues; improve comparability of revenue recognition practices across entities, industries, jurisdictions, and capital
markets; and provide more useful information to users of consolidated financial statements through improved disclosure requirements.
Upon adoption of this standard update, the Company expects that the allocation and timing of revenue recognition will be impacted.
The provisions of FASB ASU 2014-09 are effective for annual reporting periods beginning after December 15, 2016, including interim
periods within that reporting period, and are to be applied retrospectively to each prior period presented or retrospectively with
the cumulative effect recognized as of the date of adoption. Early application is not permitted. The Company is currently evaluating
the impact that this standard update will have on its consolidated financial statements.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In August 2014, the FASB issued ASU
2014-15, Presentation of Financial Statements - Going Concern. The new standard requires management of public and private companies
to evaluate whether there is substantial doubt about the entity’s ability to continue as a going concern and, if so, disclose
that fact. Management will also be required to evaluate and disclose whether its plans alleviate that doubt. The standard requires
management to evaluate, for each reporting period, whether there are conditions or events that raise substantial doubt about a
company’s ability to continue as a going concern within one year from the date the financial statements are issued. The new
standard is effective for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after
December 15, 2016. Early adoption is permitted. The Company does not expect the adoption of the ASU to have a significant impact
on our consolidated financial statements</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has implemented all new
accounting pronouncements that are in effect and that may impact its consolidated financial statements and does not believe that
there are any other new accounting pronouncements that have been issued that might have a material impact on its consolidated financial
statements.</p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="17" style="font-family: Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif"><b><u>Fair Value Measurements as of June 26, 2015 Using:</u></b></font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td> </td>
<td colspan="3" style="text-align: center"> </td><td style="font-family: Times New Roman, Times, Serif"> </td>
<td colspan="3" style="font-family: Times New Roman, Times, Serif; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Total Carrying Value as of</b></font></td><td style="font-family: Times New Roman, Times, Serif"> </td>
<td colspan="3" style="font-family: Times New Roman, Times, Serif; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Quoted Market Prices in Active Markets</b></font></td><td style="font-family: Times New Roman, Times, Serif"> </td>
<td colspan="3" style="font-family: Times New Roman, Times, Serif; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Significant Other Observable Inputs</b></font></td><td style="font-family: Times New Roman, Times, Serif"> </td>
<td style="font-family: Times New Roman, Times, Serif; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Significant Unobservable Inputs</b></font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center"> </td><td style="font-size: 11pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-family: Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid"><b>June
26, 2015</b></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-family: Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif"><b><u>(Level 1)</u></b></font></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-family: Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif"><b><u>(Level 2</u></b></font><b><u><font style="font-family: Times New Roman, Times, Serif">)</font></u></b></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="font-family: Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif"><b><u>(Level 3) </u></b></font></td></tr>
<tr style="vertical-align: bottom">
<td style="font-family: Times New Roman, Times, Serif; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Assets:</b></font></td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 40%; text-align: center">Equity securities</td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 10%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">77,960</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">77,960</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">0</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="text-align: right">$0</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center; padding-bottom: 1pt">Warrant</td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">35,650</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">0</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">0</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">35,650</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center; padding-bottom: 2.5pt; text-indent: 0.25in">Total</td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">113,610</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">77,960</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: right">$35,650</td></tr>
<tr style="vertical-align: bottom">
<td style="font-family: Times New Roman, Times, Serif; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Liabilities:</b></font></td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center">Convertible note payable derivative liability</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">376,228</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">0</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">0</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">$376,228</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center">Warrant derivative liability</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,375</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">0</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">0</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">2,375</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center; padding-bottom: 1pt">Contingent consideration payable</td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">131,647</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">0</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">0</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">131,647</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center; padding-bottom: 2.5pt; text-indent: 0.25in">Total</td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">510,250</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: right">$510,250</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center; padding-bottom: 1pt"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="17" style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: center; vertical-align: middle"><font style="font: 10pt Times New Roman, Times, Serif"><b><u>Fair Value Measurements as of December 26, 2014 Using:</u></b></font></td></tr>
<tr style="vertical-align: bottom">
<td style="font-family: Times New Roman, Times, Serif; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b> </b></font></td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif"> </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"><font style="font: 10pt Times New Roman, Times, Serif"><b>Total Carrying Value as of</b></font></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif"> </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"><font style="font: 10pt Times New Roman, Times, Serif"><b>Quoted Market Prices in Active Markets</b></font></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif"> </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"><font style="font: 10pt Times New Roman, Times, Serif"><b>Significant Other Observable Inputs</b></font></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif"> </td>
<td style="font-family: Times New Roman, Times, Serif; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Significant Unobservable Inputs</b></font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font: bold 11pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font: bold 11pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid"><font style="font-family: Times New Roman, Times, Serif"><b><u>December 26, 2014</u></b></font></td><td style="padding-bottom: 1pt; font: bold 11pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b><u>(Level 1)</u></b></font></td><td style="padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b><u>(Level 2</u></b></font><b><u><font style="font-family: Times New Roman, Times, Serif">)</font></u></b></td><td style="padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b><u>(Level 3) </u></b></font></td></tr>
<tr style="vertical-align: bottom">
<td style="font-family: Times New Roman, Times, Serif; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Assets:</b></font></td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center">Equity securities</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">52,610</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">52,610</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">0</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">$0</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center; padding-bottom: 1pt">Warrant</td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">47,344</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">0</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">0</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">47,344</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center; padding-bottom: 2.5pt; text-indent: 0.25in">Total</td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">99,954</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">52,610</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: right">$47,344</td></tr>
<tr style="vertical-align: bottom">
<td style="font-family: Times New Roman, Times, Serif; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Liabilities:</b></font></td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center">Convertible note payable derivative liability</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">601,345</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">0</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">0</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">$601,345</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center">Warrant derivative liability</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,294</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">0</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">0</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">2,294</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center; padding-bottom: 1pt">Contingent consideration payable</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">165,862</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">0</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">0</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">165,862</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center; padding-bottom: 2.5pt; text-indent: 0.25in">Total</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">769,501</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: right">$769,501</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-size: 11pt"> </td>
<td style="font-size: 11pt; text-align: left"> </td><td style="font-size: 11pt; text-align: right"> </td><td style="font-size: 11pt; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Changes in convertible note payable
derivative liability during the six months ended June 26, 2015 were as follows:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="width: 70%; text-align: justify; padding-left: 5.4pt">Opening balance at December 26, 2014</td><td style="width: 10%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">601,345</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify; padding-left: 5.4pt">Fair value of convertible derivative liability</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">69,686</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify; padding-left: 5.4pt">Loss on derivative liabilities</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(19,686</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt">Gain on change in fair value of derivative <br />liability</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(275,117</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify; padding-bottom: 2.5pt; padding-left: 5.4pt">Closing balance at June 26, 2015</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">376,228</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Changes in warrant derivative liability
during the six months ended June 26, 2015 were as follows:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="width: 70%; text-align: justify; padding-left: 5.4pt">Opening balance at December 26, 2014</td><td style="width: 10%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">2,294</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt">Loss on change in fair value of derivative <br />liability</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">81</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify; padding-bottom: 2.5pt; padding-left: 5.4pt">Closing balance at June 26, 2015</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,375</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Changes in contingent liability during
the six months ended June 26, 2015 were as follows:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="width: 70%; text-align: justify; padding-left: 5.4pt">Opening balance at December 26, 2014</td><td style="width: 10%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">165,862</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify; padding-left: 5.4pt">Payments</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(42,367</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt">Interest</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">8,152</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify; padding-bottom: 2.5pt; padding-left: 5.4pt">Closing balance at June 26, 2015</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">131,647</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 60%; border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">Description</font></td>
<td style="width: 40%; border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">Estimated Life</font></td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Times New Roman, Times, Serif">Office equipment and furniture</font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">3 years</font></td></tr>
</table>
<p style="margin-top: 0; margin-bottom: 0"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><u>June 26, 2015</u></font></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><u>December 26, 2014</u></font></td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 56%; text-align: justify; padding-left: 5.4pt">Office equipment and furniture</td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">155,929</td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">131,295</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt">Less: accumulated depreciation</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(55,789</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(32,505</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify; padding-bottom: 2.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">100,140</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">98,790</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><u>June 26, 2015</u></font></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><u>December 26, 2014</u></font></td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 56%; text-align: justify; padding-left: 5.4pt">Customer lists</td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">598,090</td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">598,090</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt">Less: accumulated amortization</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(312,063</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(212,654</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify; padding-bottom: 2.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">286,027</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">385,436</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Arial, Helvetica, Sans-Serif; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 62%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Risk free rate</font></td>
<td style="width: 38%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">1.75%</font></td></tr>
<tr style="vertical-align: top">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Expected volatility</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">183%</font></td></tr>
<tr style="vertical-align: top">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Dividend yield</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">0%</font></td></tr>
<tr style="vertical-align: top">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Expected life</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">4.25 years</font></td></tr>
</table>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 70%; text-align: justify; padding-left: 5.4pt">Opening balance at December 26, 2014</td><td style="width: 10%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">165,862</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-left: 5.4pt">Payments</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(42,367</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt">Interest</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">8,152</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 2.5pt; padding-left: 5.4pt">Closing balance at June 26, 2015</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">131,647</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid">Number of Options</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid">Weighted Average Exercise <br />Price Per Share</td></tr>
<tr style="vertical-align: bottom">
<td style="width: 56%; text-align: justify; padding-left: 5.4pt">Outstanding  - December 26, 2014</td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right">2,875,977</td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">0.23</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify; padding-left: 5.4pt">Granted</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify; padding-left: 5.4pt">Forfeited</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(445,820</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">0.05</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify; padding-left: 5.4pt">Expired</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(1,500,000</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">0.30</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt">Exercised</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify; padding-bottom: 2.5pt; padding-left: 5.4pt">Outstanding– June 26, 2015</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">930,157</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0.20</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify; padding-bottom: 2.5pt; padding-left: 5.4pt">Exercisable – June 26, 2015</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">385,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0.42</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The following table summarizes information
on stock options exercisable as of June 26, 2015:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><u>Exercise Price</u></p></td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">Number Outstanding at<u> June 26, 2015</u></font></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">Average Remaining<u> Life (Years)</u></font></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">Aggregate Intrinsic <u>Value</u></font></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 46%; text-align: left; padding-left: 5.4pt">$0.021</td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: right">25,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: right">4.36</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: right">—  </td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt">$0.105</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">25,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4.27</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt">$0.25</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">25,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3.50</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt">$0.295</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">50,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3.25</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt">$0.41</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">30,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2.82</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt">$0.50</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">130,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3.26</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt">$0.56</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">50,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2.66</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt">$0.62</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">50,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2.72</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 13.5pt 0 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The following table summarizes information
on stock options outstanding as of June 26, 2015:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><u>Exercise Price</u></p></td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">Number Outstanding at<u> June 26, 2015</u></font></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">Average Remaining<u> Life (Years)</u></font></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">Aggregate Intrinsic <u>Value</u></font></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 46%; text-align: left; padding-left: 5.4pt">$0.021</td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: right">25,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: right">4.36</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: right">—  </td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt">$0.05</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">545,157</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">8.29</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt">$0.105</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">25,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4.27</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt">$0.25</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">25,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3.50</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt">$0.295</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">50,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3.25</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt">$0.41</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">30,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2.82</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt">$0.50</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">130,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3.26</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt">$0.56</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">50,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2.66</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt">$0.62</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">50,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2.72</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid">Number of Shares</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid">Weighted Average Exercise Price</td></tr>
<tr style="vertical-align: bottom">
<td style="width: 56%; text-align: justify; text-indent: -0.25in; padding-left: 0.25in">Balance, December 26, 2014</td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right">1,841,286</td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">0.14</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify; padding-left: 9pt">Warrants granted and assumed (1) <br />Warrants canceled</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">561,160,714-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">0.0001-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify; padding-bottom: 1pt; text-indent: 10pt; padding-left: 0.25in">Warrants expired</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify; padding-bottom: 2.5pt; text-indent: -0.25in; padding-left: 0.25in">Balance, June 26, 2015</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">563,002,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0.0006</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
-1500000
0.30
P4Y10M24D
P4Y8M3D
P3Y15M0D
P3Y7M15D
P2Y24M18D
P3Y7M24D
P2Y19M24D
P2Y21M18D
25000
25000
25000
50000
30000
130000
50000
50000
0.021
0.105
0.250
0.295
0.410
0.500
0.560
0.620
P4Y10M24D
P8Y8M21D
P4Y8M3D
P3Y15M0D
P3Y7M15D
P2Y24M18D
P3Y7M24D
P2Y19M24D
P2Y21M18D
25000
545157
25000
25000
50000
30000
130000
50000
50000
0.021
0.050
0.105
0.250
0.295
0.410
0.500
0.560
0.620
77960
52610
77960
52610
0
0
0
0
35650
47344
0
0
0
0
35650
47344
113610
99954
77960
52610
0
0
35650
47344
376228
601345
0
0
0
0
376228
601345
2375
2294
0
0
0
0
2375
2294
131647
165862
0
0
0
0
131647
165862
510250
769501
0
0
0
0
510250
769501
P3Y
155929
131295
-55789
-32505
100140
98790
23284
4039
99409
60186
598090
598090
-312063
-212654
286027
385436