----

| Nevada                                                        |   | 27-3984713                             |
|---------------------------------------------------------------|--------|----------------------------------------|
| (State or other jurisdiction ofincorporation or organization) |   | (I.R.S. EmployerIdentification Number) |
|                                                          |   |                                   |
| 23 Vreeland Rd, Suite 110Florham Park, NJ                     |   | 07932                                  |
| (Address of Principal Executive Offices)                      |   | (Zip Code)                             |

|   | Large accelerated filer | ☐                                                     | Accelerated filer         | ☐ |
|--------|-------------------------|-------------------------------------------------------------|---------------------------|---------|
|   | Non-accelerated filer   | ☐  (Do not check if a smaller reporting company) | Smaller reporting company | ☒ |

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|                                                                                                                                | Page   |
|-------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                |   |
| PART I                                                                                                                              | 3      |
| Item 1. Business                                                                                                                    | 3      |
| Item 1A. Risk Factors                                                                                                               | 7      |
| Item 1B. Unresolved Staff Comments                                                                                                  | 11     |
| Item 2. Properties                                                                                                                  | 11     |
| Item 3. Legal Proceedings                                                                                                      | 11     |
| Item 4. Mine Safety Disclosures                                                                                                | 11     |
|                                                                                                                                |   |
| PART II                                                                                                                             | 12     |
| Item 5. Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities  | 12     |
| Item 6. Selected Consolidated Financial Data                                                                                   | 12     |
| Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operation                                   | 12     |
| Item 7A. Quantitative and Qualitative Disclosures About Market Risk                                                                 | 16     |
| Item 8. Consolidated Financial Statements and Supplementary Data                                                                    | 16     |
| Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure                                   | 37     |
| Item 9A. Controls and Procedures                                                                                               | 37     |
| Item 9B. Other Information                                                                                                     | 37     |
|                                                                                                                                |   |
| PART III                                                                                                                            | 38     |
| Item 10. Directors, Executive Officers and Corporate Governance.                                                          | 38     |
| Item 11.  Executive Compensation                                                                                     | 40     |
| Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.                  | 41     |
| Item 13. Certain Relationships and Related Transactions, and Director Independence.                                       | 42     |
| Item 14. Principal Accounting Fees and Services                                                                           | 43     |
|                                                                                                                                |   |
| PART IV                                                                                                                             | 44     |
| Item 15. Exhibits and Financial Statement Schedules                                                                            | 44     |

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|  | 1. | A comprehensive solution as a content source – information on a full spectrum of disciplines within the health and wellness marketplace; |
|--|----|------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 2. | Health and wellness experts that have expertise in these varied disciplines and write about their areas expertise; and |
|--|----|------------------------------------------------------------------------------------------------------------------------|

|  | 3. | Content that is both for the health and wellness of people as well as their pets (over 50% of American homes have pets). |
|--|----|--------------------------------------------------------------------------------------------------------------------------|

|  | 4. | Content in the Health and Wellness sector of cannabis.  To empower users to read and learn about the benefits and the need for the testing of the cannabis plant. |
|--|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|  | 1. | Advertising revenue through more traditional media outlets, such as television and radio. The internet has given direct response an inexpensive, effective way to test a direct response offer in terms of the product itself, the pricing of that product, the messaging associated with that product and the target audience. Limited, focused, pay per click (PPC) campaigns can be effectively executed for a fraction of broadcast costs. If a test campaign can successfully determine the elements for a profitable PPC, on line campaigns can be rolled out leading to testing for traditional media outlets such as television, radio and print. Once the consulting business has enough transactions, visibility and awareness, Pazoo can put on a forum which would be marketed using the Pazoo brand which will have substantial awareness, promoted through the pazoo.com web site and existing partnerships, and feature our own Experts. By rolling out this division in the aforementioned manner, Pazoo will be effectively able to introduce this service without exposing itself to some of the risks that others are exposed to when they enter the public forum business. During 2016, no revenue was derived from these services. |
|--|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 2. | Consulting services featuring our experts. Generally, our Experts regularly advise consumers and/or companies on matters related to each Expert's specific discipline. At some point in the future, it would be a natural extension of our relationship with the Experts to find them "for pay" consulting engagements. The consulting engagement could be in the form of working with a person one-on-one or advising a small or large group in a forum or presentation.  For Pazoo, this would be a natural extension of our relationship with our Experts (which is already provided for in their contracts with Pazoo). Additionally, with the size of the Pazoo.com audience we have a built in solicitation vehicle for our Experts' services. Additionally, the Pazoo management is regularly meeting with potential customers for consulting services. The attractive part of this additional revenue stream is that the risk is minimal because there is not meaningful overhead attached to it as a startup opportunity. And, Pazoo only has to pay the Experts when it gets paid.  During 2016, no revenue was derived from these services. |
|--|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 3. | Pazoo branded events like forums and conventions. As a further extension to our consulting business, Pazoo will put on its own health and wellness forums. Pazoo will continue to sell health and wellness products through their website www.pazoo.com as well as their subsidiary CK Distribution, LLC. |
|--|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | ● | Hire dedicated sales employees to drive testing sales to the laboratories in Nevada; |
|--|---------|-------------------------------------------------------------------------------------------|

|  | ● | Contract with independent sales agents, on a commission basis, employees to drive testing sales to the laboratories in Nevada. |
|--|---------|-------------------------------------------------------------------------------------------------------------------------------------|

|  | ● | Promote through business to business direct sales and have our lab managers and directors conduct direct sales calls as well as in person appointments and networking events; |
|--|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | ● | Promote laboratory testing and educational cannabis information on the Pazoo.com website; |
|--|---------|-------------------------------------------------------------------------------------------|

|  | ● | Promote through an array of media outlets including social media, online interviews and articles, and newspaper and magazine interviews and articles; and |
|--|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | ● | Routinely provide tours of the labs to potential new clients to introduce them to the company and answer any questions they might have. |
|--|---------|-----------------------------------------------------------------------------------------------------------------------------------------|

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|  | 1. | Cost of establishing a testing laboratory.  The cost to setting up a fully operational laboratory, depending on the variety and number of tests the laboratory can do, can range for $500,000 to $2,000,000.  Pazoo has the advantage of going through this process with MA & Associates, LLC and had built relationships with equipment suppliers for the lease and/or purchase of the equipment needed to run a laboratory. |
|--|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 2. | The Need for a Proven Set of Testing protocols.  Nevada boasts the most stringent testing laws in the nation and we are developing our own standard testing protocols by which to operate in this state and subsequently in other states in the future. |
|--|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 3. | Limited Number of Licenses to be Issued.  Each state has its own regulations for the licensing of testing laboratories.   Many states, such as Nevada, limit the number of licenses which may be issued.  Accordingly, if the maximum number of licenses has been issued, there would be a complete bar to the entry of new competitors. |
|--|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|  | 1. | Direct competitors that specialize in or derive a substantial portion of their revenues from online retail and direct marketing of health and wellness products, including Vitacost; |
|--|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 2. | Various nutrition centers and vendors of other health related products such as sports nutrition, diet or other wellness products, including General Nutrition Centers; and |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 3. | Online vendors of dietary supplements, vitamins, minerals and herbs, with significant brand awareness, sales volume and customer bases, such as and VitaminShoppe. |
|--|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 1. | Local Regulatory Risk.  The primary local regulatory risk faced by medical marijuana facilities is that of the local municipality enacting a moratorium on the issuance of business licenses.  Some of the local municipalities have gone back and forth regarding whether and what categories of medical marijuana facilities they will allow in their jurisdiction.  Municipalities from the City of Henderson to the City of North Las Vegas have vacillated between a full moratorium, a moratorium on dispensaries only, and no moratorium at all. |
|--|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 2. | State Regulatory Risk.  On November 7th, 2000, 65% of Nevada voters passed 'Question 9' which went into effect October 1st, 2001. Question 9 amended the States' constitution recognizing the medical use of marijuana and removing the state-level criminal penalties for the use, possession and cultivation of marijuana by qualified patients.  Nevada marijuana laws allow the legal use of medical marijuana by a patient with 'written documentation' and a 'registry identification card'. The will of the people was codified in Nevada Revised Statute 453A. Despite the fact that the people of the State of Nevada expressed their wish to legalize medical marijuana in 2000, NRS 453A was not fully adopted until April 1, 2014. |
|--|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|  | 3. | Federal Regulatory Risk.  Due to the current federal laws prohibiting the use of cannabis for any reason, medical or non-medical, the regulatory risks associated with federal enforcement of the Controlled Substances Act are the most serious threat to the medical marijuana industry as a whole.  Fortunately, the U.S. Department of Justice (USDOJ) thus far has taken a stance on the matter that it will enforce the law to prevent sales to minors, sales by criminal enterprises or gangs, interstate commercial trade of medical marijuana, and medical marijuana as a pretext for trafficking other controlled substances.  The USDOJ has specifically declared that it will leave all other enforcement to the States to enforce as they see fit and in compliance with their own State laws.  There is no guaranty that this policy of limited enforce by the USDOJ will continue in the future.  Strict enforcement of the Controlled Substances Act could have a crippling effect on the marijuana industry.  During the Presidential campaign, President Donald Trump stated he would seek to enforce the federal law.  In recent pronouncements, United States Attorney General Jeff Sessions said that enforcement of Federal Law in this area is a distinct possibility and would be a change over the policies of the previous administration.  Additionally, because of the uncertainly in the future outcome of federal enforcement, many conventional lenders and banking institutions are reluctant to make large investments, or create banking and clearing relationships in this industry. |
|--|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | ● | Distribution of marijuana to children; |
|--|---------|----------------------------------------|

|  | ● | Revenue from the sale of marijuana going to criminals; |
|--|---------|--------------------------------------------------------|

|  | ● | Diversion of medical marijuana from states where it is legal to states where it is not; |
|--|---------|-----------------------------------------------------------------------------------------|

|  | ● | Using state authorized marijuana activity as a pretext of other illegal drug activity; |
|--|---------|----------------------------------------------------------------------------------------|

|  | ● | Preventing violence in the cultivation and distribution of marijuana; |
|--|---------|-----------------------------------------------------------------------|

|  | ● | Preventing drugged driving; |
|--|---------|-----------------------------|

|  | ● | Growing marijuana on federal property; and |
|--|---------|--------------------------------------------|

|  | ● | Preventing possession or use of marijuana on federal property. |
|--|---------|----------------------------------------------------------------|

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| Quarter Ended |   | March 31 |   |   | June 30 |   |   | September 30 |   |   | December 31 |   |   | Year   |   |
|---------------|--------|----------|--------|--------|---------|--------|--------|--------------|--------|--------|-------------|--------|--------|--------|--------|
|          |   |     |   |   |    |   |   |         |   |   |        |   |   |   |   |
| 2016          |   |     |   |   |    |   |   |         |   |   |        |   |   |   |   |
| High          |   |     | 0.0500 |   |    |   | 0.0319 |         |   |   | 0.0010      |   |   |   | 0.0005 |   |   |   | 0.0500 |   |
| Low           |   |     | 0.0100 |   |    |   | 0.0009 |         |   |   | 0.0001      |   |   |   | 0.0002 |   |   |   | 0.0001 |   |
|          |   |     |   |   |    |   |   |         |   |   |        |   |   |   |   |   |   |   |   |   |
| 2015          |   |     |   |   |    |   |   |         |   |   |        |   |   |   |   |   |   |   |   |   |
| High          |   |     | 1.7500 |   |    |   | 1.6000 |         |   |   | 0.7500      |   |   |   | 0.4500 |   |   |   | 1.7500 |   |
| Low           |   |     | 0.4200 |   |    |   | 0.5500 |         |   |   | 0.3800      |   |   |   | 0.0300 |   |   |   | 0.0300 |   |

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| PAZOO, INC.                                                                                                                                     |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED BALANCE SHEETS                                                                                                                     |   |
|                                                                                                                                            |   |   |   |   |   |   |
|                                                                                                                                            |   |   |   |   |   |   |
|                                                                                                                                            |   | December 31, |   |   | December 31, |   |
|                                                                                                                                            |   | 2016 |   |   | 2015 |   |
|                                                                                                                                            |   |   |   |   |   |   |
| ASSETS                                                                                                                                          |   |   |   |   |   |   |
| Current assets:                                                                                                                                 |   |   |   |   |   |   |
| Cash                                                                                                                                            |   | $ | 88,909 |   |   | $ | 16,819 |   |
| Prepaid expenses                                                                                                                                |   |   | 5,536 |   |   |   | 5,448 |   |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
| Total current assets                                                                                                                            |   |   | 94,445 |   |   |   | 22,267 |   |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
| Fixed assets, net                                                                                                                               |   |   | 613,332 |   |   |   | 749,841 |   |
| Intangible assets, net                                                                                                                          |   |   | - |   |   |   | 1,590,935 |   |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
| Total other assets                                                                                                                              |   |   | 613,332 |   |   |   | 2,340,776 |   |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
| Total assets                                                                                                                                    |   | $ | 707,777 |   |   | $ | 2,363,043 |   |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS' DEFICIT                                                                                                           |   |   |   |   |   |   |   |   |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
| Current liabilities:                                                                                                                            |   |   |   |   |   |   |   |   |
| Lines of credit                                                                                                                                 |   | $ | 21,039 |   |   | $ | 19,500 |   |
| Accounts payable and accrued liabilities                                                                                                        |   |   | 608,332 |   |   |   | 406,176 |   |
| Loans payable                                                                                                                                   |   |   | 615,801 |   |   |   | 203,000 |   |
| Interest payable                                                                                                                                |   |   | 1,452,102 |   |   |   | 172,709 |   |
| Convertible debt, net of unamortized discounts of $195,827 and $533,391                                                                         |   |   | 983,621 |   |   |   | 809,644 |   |
| Contingent consideration liabilities                                                                                                            |   |   | 713,581 |   |   |   | 718,581 |   |
| Derivative liabilities                                                                                                                          |   |   | 2,925,627 |   |   |   | 1,756,435 |   |
| Capital lease liability                                                                                                                         |   |   | 373,930 |   |   |   | 304,516 |   |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
| Total current liabilities                                                                                                                       |   |   | 7,694,033 |   |   |   | 4,390,561 |   |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
| Long-term liabilities:                                                                                                                          |   |   |   |   |   |   |   |   |
| Long-term portion of convertible debt, net of unamortized discounts of $110,672, and $794,036                                                   |   |   | 1,401,828 |   |   |   | 198,464 |   |
| Capital lease liability                                                                                                                         |   |   | 136,672 |   |   |   | 242,771 |   |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
| Total long-term liabilities                                                                                                                     |   |   | 1,538,500 |   |   |   | 441,235 |   |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
| Total liabilities                                                                                                                               |   |   | 9,232,533 |   |   |   | 4,831,796 |   |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
| Commitments                                                                                                                                     |   |   |   |   |   |   |   |   |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
| Stockholders' deficit:                                                                                                                          |   |   |   |   |   |   |   |   |
| Convertible Preferred Stock, 50,000,000 shares authorized, $0.001 par value                                                                     |   |   |   |   |   |   |   |   |
| Series A; 10,000,000 shares authorized, 230,401 and 860,669 shares issued and outstanding, respectively.                                        |   |   | 230 |   |   |   | 861 |   |
| Series B; 5,000,000 shares authorized, 1,762,500 and 1,762,500 shares issued and outstanding, respectively.                                |   |   | 1,762 |   |   |   | 1,762 |   |
| Series C; 10,000,000 shares authorized, 2,621,375 and 2,051,000 shares issued and outstanding, respectively.                               |   |   | 2,621 |   |   |   | 2,051 |   |
| Series D; 12,500,000 shares authorized, 0 and 0 shares issued and outstanding, respectively.                                               |   |   | - |   |   |   | - |   |
| Series E; 12,500,000 shares authorized, 0 and 0 shares issued and outstanding, respectively.                                               |   |   | - |   |   |   | - |   |
| Common stock, $0.001 par value; 2,950,000,000 shares authorized, 2,284,407,419 and 14,865,053 shares issued and outstanding, respectively. |   |   | 2,284,408 |   |   |   | 14,865 |   |
| Additional paid-in capital                                                                                                                      |   |   | 9,880,371 |   |   |   | 9,410,382 |   |
| Accumulated deficit                                                                                                                             |   |   | (20,694,148 | ) |   |   | (11,898,674 | ) |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
| Total stockholders' deficit                                                                                                                     |   |   | (8,524,756 | ) |   |   | (2,468,753 | ) |
| Total liabilities and stockholders' deficit                                                                                                     |   | $ | 707,777 |   |   | $ | 2,363,043 |   |

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| PAZOO, INC.                                                    |   |
|----------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF OPERATIONS                          |   |
|                                                           |   |   |   |   |   |   |
|                                                           |   |   |   |   |   |   |
|                                                           |   | Years Ended |   |
|                                                           |   | December 31, |   |
|                                                           |   | 2016 |   |   | 2015 |   |
|                                                           |   |   |   |   |   |   |
| Revenues:                                                      |   |   |   |   |   |   |
| Management fees - related party                                |   | $ | 30,515 |   |   | $ | - |   |
| Advertising Sales                                              |   |   | - |   |   |   | 26,662 |   |
| Total revenues                                                 |   |   | 30,515 |   |   |   | 26,662 |   |
|                                                           |   |   |   |   |   |   |   |   |
| Operating expenses:                                            |   |   |   |   |   |   |   |   |
| Selling, general and administrative expenses                   |   |   | 2,269,494 |   |   |   | 3,143,262 |   |
| Professional fees                                              |   |   | 664,022 |   |   |   | 823,488 |   |
| Loss on impairment of license                                  |   |   | 1,540,207 |   |   |   | - |   |
| Website setup                                                  |   |   | 9,274 |   |   |   | 135,154 |   |
| Total operating expenses                                       |   |   | 4,482,997 |   |   |   | 4,101,904 |   |
|                                                           |   |   |   |   |   |   |   |   |
| Loss from operations                                           |   |   | (4,452,482 | ) |   |   | (4,075,242 | ) |
|                                                           |   |   |   |   |   |   |   |   |
| Other income/(expenses):                                       |   |   |   |   |   |   |   |   |
| Gain/(loss) on derivative liabilities                          |   |   | (3,827,703 | ) |   |   | (898,759 | ) |
| Gain on debt extinguishment                                    |   |   | 2,430,259 |   |   |   | 3,412,265 |   |
| Gain on change in fair value of contingent consideration       |   |   | 5,000 |   |   |   | 10,000 |   |
| Loss on impairment of equity method investment                 |   |   | - |   |   |   | (839,919 | ) |
| Interest expense                                               |   |   | (2,950,548 | ) |   |   | (2,087,070 | ) |
| Total other income/(expenses)                                  |   |   | (4,342,992 | ) |   |   | (403,483 | ) |
|                                                           |   |   |   |   |   |   |   |   |
| Net loss                                                       |   | $ | (8,795,474 | ) |   | $ | (4,478,725 | ) |
|                                                           |   |   |   |   |   |   |   |   |
| Series A preferred stock dividends                             |   |   | (76 | ) |   |   | (39,743 | ) |
|                                                           |   |   |   |   |   |   |   |   |
| Net loss attributable to common stockholders                   |   | $ | (8,795,550 | ) |   | $ | (4,518,468 | ) |
|                                                           |   |   |   |   |   |   |   |   |
| Net loss per common share – basic and diluted            |   | $ | (0.01 | ) |   | $ | (0.69 | ) |
|                                                           |   |   |   |   |   |   |   |   |
| Weighted average common shares outstanding - basic and diluted |   |   | 669,625,441 |   |   |   | 6,553,747 |   |

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| PAZOO, INC.                                                                 |   |
|-----------------------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF CASH FLOWS                                       |   |
|                                                                        |   |   |   |   |   |   |
|                                                                        |   |   |   |   |   |   |
|                                                                        |   | Years Ended |   |
|                                                                        |   | December 31, |   |
|                                                                        |   | 2016 |   |   | 2015 |   |
|                                                                        |   |   |   |   |   |   |
| Cash flows from operating activities:                                       |   |   |   |   |   |   |
| Net loss                                                                    |   | $ | (8,795,474 | ) |   | $ | (4,478,725 | ) |
| Adjustments to reconcile net loss to net cash used in operating activities: |   |   |   |   |   |
| Amortization of debt discounts                                              |   |   | 1,420,061 |   |   |   | 1,971,984 |   |
| Depreciation                                                                |   |   | 136,509 |   |   |   | 140,047 |   |
| Amortization                                                                |   |   | 50,728 |   |   |   | 62,337 |   |
| Change in fair value of contingent consideration                            |   |   | (5,000 | ) |   |   | (10,000 | ) |
| Stock-based compensation                                                    |   |   | 79,900 |   |   |   | 1,297,481 |   |
| (Gain)/loss on derivative liabilities                                       |   |   | 3,827,703 |   |   |   | 898,759 |   |
| (Gain)/loss on debt extinguishment                                          |   |   | (2,430,259 | ) |   |   | (3,412,265 | ) |
| (Gain)/loss on impairment of intangibles                                    |   |   | 1,540,207 |   |   |   | - |   |
| Loss on settlement                                                          |   |   | 1,146,231 |   |   |   |   |   |
| Impairment loss on equity method investment                                 |   |   | - |   |   |   | 839,919 |   |
| Changes in operating assets and liabilities:                                |   |   |   |   |   |   |   |   |
| Accounts receivable                                                         |   |   | - |   |   |   | 87,949 |   |
| Inventory                                                                   |   |   | - |   |   |   | 2,668 |   |
| Prepaid expenses and other current assets                                   |   |   | (1 | ) |   |   | 733 |   |
| Accounts payable, accrued liabilities and interest payable                  |   |   | 2,101,310 |   |   |   | 670,803 |   |
| Net cash used in operating activities                                       |   |   | (928,085 | ) |   |   | (1,928,310 | ) |
|                                                                        |   |   |   |   |   |   |   |   |
| Cash flows from investing activities:                                       |   |   |   |   |   |   |   |   |
| Cash paid for purchase of licenses                                          |   |   | - |   |   |   | (307,500 | ) |
| Acquisition of fixed assets                                                 |   |   | - |   |   |   | (4,052 | ) |
| Equity investment in equity method investee                                 |   |   | - |   |   |   | (778,639 | ) |
| Net cash used in investing activities                                       |   |   | - |   |   |   | (1,090,191 | ) |
|                                                                        |   |   |   |   |   |   |   |   |
| Cash flows from financing activities:                                       |   |   |   |   |   |   |   |   |
| Proceeds from convertible note                                              |   |   | 673,460 |   |   |   | 1,443,287 |   |
| Stock subscription receivable                                               |   |   | - |   |   |   | 18,253 |   |
| Repayments on capital leases                                                |   |   | (36,685 | ) |   |   | (67,737 | ) |
| Repayments on convertible notes and loans                                   |   |   | (175,239 | ) |   |   | (413,000 | ) |
| Proceeds from loans payable                                                 |   |   | 447,100 |   |   |   | 200,000 |   |
| Proceeds from issuing common stock                                          |   |   | - |   |   |   | 48,380 |   |
| Proceeds from sale of Series A preferred stock and warrants                 |   |   | - |   |   |   | 580,000 |   |
| Proceeds from exercise of Series A preferred warrants                       |   |   | - |   |   |   | 25,000 |   |
| Proceeds from sale of Series C preferred stock                              |   |   | 90,000 |   |   |   | 448,000 |   |
| Lines of credit                                                             |   |   | 1,539 |   |   |   | 19,500 |   |
| Net cash provided by financing activities                                   |   |   | 1,000,175 |   |   |   | 2,301,683 |   |
|                                                                        |   |   |   |   |   |   |   |   |
| Net (decrease) in cash and cash equivalents                                 |   |   | 72,090 |   |   |   | (716,818 | ) |
|                                                                        |   |   |   |   |   |   |   |   |
| Cash and cash equivalents beginning of period                               |   |   | 16,819 |   |   |   | 733,637 |   |
|                                                                        |   |   |   |   |   |   |   |   |
| Cash and cash equivalents end of period                                     |   | $ | 88,909 |   |   | $ | 16,819 |   |
|                                                                        |   |   |   |   |   |   |   |   |
| Supplemental Disclosure of Cash Flows Information                           |   |   |   |   |   |   |   |   |
| Cash paid for interest                                                      |   | $ | - |   |   | $ | - |   |
| Cash paid for income taxes                                                  |   |   | - |   |   |   | - |   |
|                                                                        |   |   |   |   |   |   |   |   |
| Noncash Investing and Financing Activities                                  |   |   |   |   |   |   |   |   |
| Fixed assets acquired through capital lease                                 |   | $ | - |   |   | $ | 615,024 |   |
| Preferred shares issued for acquisition of MA & Associates              |   |   | - |   |   |   | 1,000,000 |   |
| Contingent consideration for acquisition of MA & Associates             |   |   | - |   |   |   | 1,228,581 |   |
| Common stock issued for the conversion of Series A preferred stock          |   |   | 34,659 |   |   |   | 3,115 |   |
| Common stock issued for the conversion of Series C preferred stock          |   |   | 183,570 |   |   |   | 200 |   |
| Debt discount due to derivative liabilities                                 |   |   | 1,233,098 |   |   |   | 2,296,385 |   |
| Preferred shares issued for conversion of debt and interest                 |   |   | 30,652 |   |   |   | - |   |
| Common shares issued for conversion of debt and interest                    |   |   | 1,042,688 |   |   |   | 1,303,908 |   |
| Common shares issued with debt                                              |   |   | - |   |   |   | 93,087 |   |
| Common shares issued for accrued liability                                  |   |   | 350,000 |   |   |   | - |   |

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| PAZOO, INC.                                            |   |
|--------------------------------------------------------|--------|
| STATEMENTS OF STOCKHOLDERS' DEFICIT                    |   |
|                                                   |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                   |   | Common Stock |   |   | Series A Preferred Stock |   |   | Series B Preferred Stock |   |   | Series C Preferred Stock |   |   | AdditionalPaid-In |   |   | Accumulated |   |   |   |   |
|                                                   |   | Shares |   |   | Par |   |   | Shares |   |   | Par |   |   | Shares |   |   | Par |   |   | Shares |   |   | Par |   |   | Capital |   |   | Deficit |   |   | Total |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| December 31, 2014                                      |   |   | 1,930,304 |   |   | $ | 1,930 |   |   |   | 1,036,394 |   |   | $ | 1,036 |   |   |   | 1,187,500 |   |   | $ | 1,187 |   |   |   | - |   |   | $ | - |   |   | $ | 4,629,912 |   |   | $ | (7,419,949 | ) |   | $ | (2,785,884 | ) |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common shares issued for services                      |   |   | 522,208 |   |   |   | 522 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 135,459 |   |   |   | - |   |   |   | 135,981 |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Conversion of preferred stock to common stock          |   |   | 3,315,000 |   |   |   | 3,315 |   |   |   | (3,115,000 | ) |   |   | (3,115 | ) |   |   | - |   |   |   | - |   |   |   | (200,000 | ) |   |   | (200 | ) |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Preferred Series A stock and warrants issued for cash  |   |   | - |   |   |   | - |   |   |   | 2,542,132 |   |   |   | 2,542 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 577,458 |   |   |   | - |   |   |   | 580,000 |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Preferred shares issued for services                   |   |   | - |   |   |   | - |   |   |   | 50,000 |   |   |   | 50 |   |   |   | 575,000 |   |   |   | 575 |   |   |   | 803,000 |   |   |   | 803 |   |   |   | 1,160,072 |   |   |   | - |   |   |   | 1,161,500 |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Preferred shares issued for acquisitions               |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,000,000 |   |   |   | 1,000 |   |   |   | 999,000 |   |   |   | - |   |   |   | 1,000,000 |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Preferred sharesissued for cash                        |   |   |   |   |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 448,000 |   |   |   | 448 |   |   |   | 447,552 |   |   |   | - |   |   |   | 448,000 |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common shares issued for cash                          |   |   | 54,601 |   |   |   | 55 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 48,325 |   |   |   | - |   |   |   | 48,380 |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance of preferred stock for warrant exercises      |   |   | - |   |   |   | - |   |   |   | 347,143 |   |   |   | 348 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 24,652 |   |   |   | - |   |   |   | 25,000 |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common shares issued for conversion of debt            |   |   | 8,921,288 |   |   |   | 8,921 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,294,987 |   |   |   | - |   |   |   | 1,303,908 |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common shares issued with debt                         |   |   | 121,652 |   |   |   | 122 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 92,965 |   |   |   | - |   |   |   | 93,087 |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Loss                                               |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (4,478,725 | ) |   |   | (4,478,725 | ) |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| December 31, 2015                                      |   |   | 14,865,053 |   |   | $ | 14,865 |   |   |   | 860,669 |   |   | $ | 861 |   |   |   | 1,762,500 |   |   | $ | 1,762 |   |   |   | 2,051,000 |   |   | $ | 2,051 |   |   | $ | 9,410,382 |   |   | $ | (11,898,674 | ) |   | $ | (2,468,753 | ) |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common shares issued for services                      |   |   | 60,000 |   |   |   | 60 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2,340 |   |   |   | - |   |   |   | 2,400 |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Conversion of preferred stock to common stock          |   |   | 218,228,526 |   |   |   | 218,229 |   |   |   | (691,629 | ) |   |   | (692 | ) |   |   | - |   |   |   | - |   |   |   | (1,835,697 | ) |   |   | (1,836 | ) |   |   | (215,701 | ) |   |   | - |   |   |   | - |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Preferred Series A stock issued for debt conversion    |   |   | - |   |   |   | - |   |   |   | 61,306 |   |   |   | 61 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 30,591 |   |   |   | - |   |   |   | 30,652 |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Preferred Series A stock issued for dividends          |   |   | - |   |   |   | - |   |   |   | 55 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Preferred Series C issued for services - non cash      |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 77,500 |   |   |   | 77 |   |   |   | 77,423 |   |   |   | - |   |   |   | 77,500 |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Preferred Series C stock issued for cash               |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 128,572 |   |   |   | 129 |   |   |   | 89,871 |   |   |   | - |   |   |   | 90,000 |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Preferred Series C stock issued to ICPI for settlement |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2,200,000 |   |   |   | 2,200 |   |   |   | 1,494,031 |   |   |   | - |   |   |   | 1,496,231 |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common shares issued for conversion of debt            |   |   | 2,051,253,840 |   |   |   | 2,051,254 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (1,008,566 | ) |   |   | - |   |   |   | 1,042,688 |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Loss                                               |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (8,795,474 | ) |   |   | (8,795,474 | ) |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| December 31, 2016                                      |   |   | 2,284,407,419 |   |   | $ | 2,284,408 |   |   |   | 230,401 |   |   | $ | 230 |   |   |   | 1,762,500 |   |   | $ | 1,762 |   |   |   | 2,621,375 |   |   | $ | 2,621 |   |   | $ | 9,880,371 |   |   | $ | (20,694,148 | ) |   | $ | (8,524,756 | ) |

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| Recurring Fair Value Measurements              |   | Level 1 |   | Level 2 |   | Level 3 |   | Total  |   |
|------------------------------------------------|--------|---------|--------|---------|--------|---------|--------|--------|--------|
| LIABILITIES:                                   |   |    |   |    |   |    |   |   |   |
| Derivative liability – December 31, 2016 |   |    | $      | -       |   |    | $      | -      |   |   | $ | 2,925,627 |   |   | $ | 2,925,627 |   |
| Derivative liability – December 31, 2015 |   |    | $      | -       |   |    | $      | -      |   |   | $ | 1,756,435 |   |   | $ | 1,756,435 |   |

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| Potentially Dilutive Securities          |   |              |           |   |              |   |
|------------------------------------------|--------|-------------------|----------------|--------|-------------------|--------|
|                                     |   | December 31, 2016 |           |   | December 31, 2015 |   |
|                                     |   |              |           |   |              |   |
| Common stock warrants                    |   |              | -              |   |              |   | 3,355 |   |
| Convertible notes                        |   |              | 32,355,840,300 |   |              |   | 92,239,381 |   |
| Preferred series A shares & warrants |   |              | 23,040,100     |   |              |   | 86,066,900 |   |
| Preferred series B                       |   |              | 352,000,000    |   |              |   | 352,000,000 |   |
| Preferred series C                       |   |              | 262,137,500    |   |              |   | 205,100,000 |   |
|                                     |   |              | 32,993,017,900 |   |              |   | 735,409,636 |   |

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| ACQUIRED ASSETS:                   |   |   |      |
|------------------------------------|--------|--------|-----------|
| Current assets                     |   | $      | 4,866     |   |
| Fixed assets                       |   |   | 270,811   |   |
| Other assets                       |   |   | 56,985    |   |
| Total assets acquired              |   | $      | 332,662   |   |
|                               |   |   |      |   |
| LIABILITIES ASSUMED:               |   |   |      |   |
| Current liabilities                |   | $      | (11,756   | ) |
| Other liabilities                  |   |   | (9        | ) |
| Total liabilities assumed          |   | $      | (11,766   | ) |
| Net assets acquired                |   | $      | 320,896   |   |
|                               |   |   |      |   |
| Acquisition Price                  |   | $      | 1,666,667 |   |
| Intangible Assets from Acquisition |   | $      | 1,345,771 |   |

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| Fixed Assets                              |   |                             |   |   |             |   |     |             |   |
|-------------------------------------------|--------|----------------------------------|--------|--------|------------------|--------|----------|------------------|--------|
|                                      |   | Estimated Useful Life (in years) |   |   | December 31,2016 |   |     | December 31,2015 |   |
|                                      |   |                             |   |   |             |   |     |             |   |
| Cost:                                     |   |                             |   |   |             |   |     |             |   |
| Equipment                                 |   |                             | 3-5    |   |             | $      | 643,195  |             |   | $ | 643,195 |   |
| Furniture and fixture                     |   |                             | 7      |   |             |   | 6,687    |             |   |   | 6,687 |   |
| Leasehold improvements                    |   |                             | 3-5    |   |             |   | 238,620  |             |   |   | 238,620 |   |
| Website                                   |   |                             | 3      |   |             |   | 1,385    |             |   |   | 1,385 |   |
|                                      |   |                             |   |   |             | $      | 889,887  |             |   | $ | 889,887 |   |
|                                      |   |                             |   |   |             |   |     |             |   |   |   |   |
| Accumulated depreciation and amortization |   |                             |   |   |             |   | (276,555 | )                |   |   | (140,046 | ) |
|                                      |   |                             |   |   |             |   |     |             |   |   |   |   |
| Fixed Assets, Net                         |   |                             |   |   |             | $      | 613,332  |             |   | $ | 749,841 |   |

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|                                    |   | Short Term |       |   | Long Term |   |      | Total  |   |
|-----------------------------------------|--------|------------|------------|--------|-----------|--------|-----------|--------|--------|
|                                    |   |       |       |   |      |   |      |   |   |   |   |   |
| Balance as of January 1, 2015 - Gross   |   | $          | 1,309,562  |   |      | $      | 812,500   |   |   | $ | 2,122,062 |   |
| Cash additions                          |   |       | 1,263,287  |   |      |   | 180,000   |   |   |   | 1,443,287 |   |
| Interest added to notes payable         |   |       | 331,193    |   |      |   | -         |   |   |   | 331,193 |   |
| Cash payments                           |   |       | (413,000   | )      |      |   | -         |   |   |   | (413,000 | ) |
| Conversions                             |   |       | (1,224,163 | )      |      |   | -         |   |   |   | (1,224,163 | ) |
| Original issue discount                 |   |       | 76,156     |   |      |   | -         |   |   |   | 76,156 |   |
| Total                                   |   | $          | 1,343,035  |   |      | $      | 992,500   |   |   | $ | 2,335,535 |   |
| Less:  unamortized discount   |   |       | (533,391   | )      |      |   | (794,036  | )      |   |   | (1,327,427 | ) |
| Balance as of December 31, 2015 - Net   |   | $          | 809,644    |   |      | $      | 198,464   |   |   | $ | 1,008,108 |   |
| Add back: unamortized discount          |   |       | 533,391    |   |      |   | 794,036   |   |   |   | 1,327,427 |   |
| Balance as of December 31, 2015 - Gross |   | $          | 1,343,035  |   |      | $      | 992,500   |   |   | $ | 2,335,535 |   |
| Cash additions                          |   |       | 373,460    |   |      |   | 300,000   |   |   |   | 673,460 |   |
| Interest added to notes payable         |   |       | 111,778    |   |      |   | 116,600   |   |   |   | 228,378 |   |
| Cash payments                           |   |       | (118,223   | )      |      |   | -         |   |   |   | (118,223 | ) |
| Conversions                             |   |       | (474,777   | )      |      |   | -         |   |   |   | (474,777 | ) |
| Reassignments                           |   |       | (103,400   | )      |      |   | 103,400   |   |   |   | - |   |
| Original issue discount                 |   |       | 47,575     |   |      |   | -         |   |   |   | 47,575 |   |
| Total                                   |   | $          | 1,179,448  |   |      | $      | 1,512,500 |   |   | $ | 2,691,948 |   |
| Less: unamortized discount         |   |       | (195,827   | )      |      |   | (110,672  | )      |   |   | (306,499 | ) |
| Balance as of December 31, 2016 - Net   |   | $          | 983,621    |   |      | $      | 1,401,828 |   |   | $ | 2,385,449 |   |

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|              |   | Year Ended December 31, 2016 |      |   |   |   |
|-------------------|--------|------------------------------|-----------|--------|--------|--------|
|              |   | 2017                         |      |   | 2018   |   |   | 2019 |   |   | 2020 |   |   | 2021 |   |   | Thereafter |   |   | Total |   |
|              |   |                         |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Convertible notes |   |                         | 1,179,448 |   |   |   | 220,000 |   |   |   | - |   |   |   | - |   |   |   | 1,062,500 |   |   |   | 230,000 |   |   |   | 2,691,948 |   |
| Loans payable     |   |                         | 615,801   |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 615,801 |   |
| Total             |   |                         | 1,795,249 |   |   |   | 220,000 |   |   |   | - |   |   |   | - |   |   |   | 1,062,500 |   |   |   | 230,000 |   |   |   | 3,307,749 |   |

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| Balance as of January 1, 2015   |   | $      | 2,576,025  |   |
|---------------------------------|--------|--------|------------|--------|
|                            |   |   |       |   |
| Initial value derivatives       |   |   | 5,962,270  |   |
| Extinguished                    |   |   | (4,014,734 | )      |
| Change in fair value            |   |   | (2,767,126 | )      |
|                            |   |   |       |   |
| Balance as of December 31, 2015 |   | $      | 1,756,435  |   |
|                            |   |   |       |   |
| Initial value derivatives       |   |   | 4,070,636  |   |
| Extinguished                    |   |   | (3,891,703 | )      |
| Change in fair value            |   |   | 990,165    |   |
|                            |   |   |       |   |
| Balance as of December 31, 2016 |   | $      | 2,925,627  |   |

|                    |   | 2015            |   | 2016            |   |
|-------------------------|--------|-----------------|--------|-----------------|--------|
|                    |   |            |   |            |   |   |
| Dividend yield:         |   |            | 0      | %               |   |   | 0 | % |
| Expected volatility     |   | 145.0% to 228.0 | %      | 163.0% to 489.2 | %      |
| Risk free interest rate |   | .03% to 1.63    | %      | .51% to 1.93    | %      |
| Expected life (years)   |   | 0.13 to 4.89    |   | 0.09 to 5.05    |   |

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|                                  |   |     |       |   | Weighted       |   |
|---------------------------------------|--------|----------|------------|--------|----------------|--------|
|                                  |   |     |       |   | Average        |   |
|                                  |   | Warrants |       |   | Exercise Price |   |
|                                  |   |     |       |   |           |   |
| Outstanding – December 31, 2014 |   |     | 1,030,226  |   |           | $      | 2.23 |   |
| Granted                               |   |     | 2,325,000  |   |           |   | 0.50 |   |
| Forfeited/canceled                    |   |     | (50,000    | )      |           |   | 0.05 |   |
| Exercised                             |   |     | (347,143   | )      |           |   | 0.01 |   |
| Outstanding – December 31, 2015 |   |     | 2,958,083  |   |           | $      | 1.17 |   |
| Granted                               |   |     | -          |   |           |   | - |   |
| Forfeited/canceled                    |   |     | (2,958,083 | )      |           |   | 1.17 |   |
| Exercised                             |   |     | -          |   |           |   | - |   |
| Outstanding – December 31, 2016 |   |     | -          |   |           | $      | - |   |
| Exercisable – December 31, 2016 |   |     | -          |   |           | $      | - |   |

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|                                  |   | Warrants |       |   | WeightedAverageExercise Price |   |
|---------------------------------------|--------|----------|------------|--------|-------------------------------|--------|
|                                  |   |     |       |   |                          |   |   |   |
| Outstanding - December 31, 2014       |   |     | 3,930,470  |   |                          | $      | 0.05 |   |
| Granted                               |   |     | -          |   |                          |   | - |   |
| Forfeited/canceled                    |   |     | (2,600,000 | )      |                          |   | 0.05 |   |
| Exercised                             |   |     | (1,330,740 | )      |                          |   | 0.05 |   |
| Outstanding - December 31, 2015       |   |     | -          |   |                          | $      | - |   |
| Granted                               |   |     | -          |   |                          |   | - |   |
| Forfeited/canceled                    |   |     | -          |   |                          |   | - |   |
| Exercised                             |   |     | -          |   |                          |   | - |   |
| Outstanding – December 31, 2016 |   |     | -          |   |                          | $      | - |   |
| Exercisable – December 31, 2016 |   |     | -          |   |                          | $      | - |   |

| Deferred tax assets       |   |   |       |
|---------------------------|--------|--------|------------|
| Net operating losses      |   | $      | 4,389,477  |   |
| Less: valuation allowance |   |   | (4,389,477 | ) |
| Net deferred tax asset    |   | $      | -          |   |

| Deferred tax assets       |   |   |       |
|---------------------------|--------|--------|------------|
| Net operating losses      |   | $      | 3,171,007  |   |
| Less: valuation allowance |   |   | (3,171,007 | ) |
| Net deferred tax asset    |   | $      | -          |   |

|                                              |   | 2016   |   |   | 2015   |   |
|---------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                              |   |   |   |   |   |   |   |   |
| U.S. Federal statutory tax rate                   |   |   | 35.0   | %      |   |   | 35.0 | % |
| State income tax, net of U.S. Federal tax benefit |   |   | 6.5    | %      |   |   | 6.5 | % |
| Change in valuation allowance                     |   |   | (41.5  | %)     |   |   | (41.5 | %) |
| Annual tax rate                                   |   |   | 0.0    | %      |   |   | 0.0 | % |

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| Name               |   | Age |   | Title                                                      |
|--------------------|--------|-----|--------|------------------------------------------------------------|
| Steven Basloe      |   | 65  |   | President, Chairman of the Board of Directors              |
| David Cunic        |   | 37  |   | Co-Chief Executive Officer, Director                       |
| Ben Hoehn          |   | 35  |   | Chief Operating Officer, Chief Financial Officer, Director |
| Antonio Del Hierro |   | 34  |   | Director                                                   |
| David Lieberthal   |   | 44  |   | Director                                                   |

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| ● | honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships                                          |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                                            |
| ● | full, fair, accurate, timely, and understandable disclosure in reports and documents that the Company files with, or submits to, the SEC and in other public communications made by the Company |
|    |                                                                                                                                                                                            |
| ● | compliance with applicable governmental laws, rules and regulations                                                                                                                             |
|    |                                                                                                                                                                                            |
| ● | the prompt internal reporting of violations of the Code of Ethics to an appropriate person or persons identified in the Code of Ethics; and                                                     |
|    |                                                                                                                                                                                            |
| ● | accountability for adherence to the Code of Ethics.                                                                                                                                             |

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| Summary Compensation Table  |
|-----------------------------|
| Nameandprincipalposition(a) |   | Year(b) |   | Salary($)(c) |   | Bonus($)(d) |   | StockAwards($)(e) |   | OptionAwards($)(f) |   | Non-EquityIncentivePlanCompensation($)(g) |   | NonqualifiedDeferredCompensationEarnings($)(h) |   | All OtherCompensation($)(i) |   | Total($)(j) |
| Steven Basloe,              |   | 2016 |   | - |   |  - |   | - |   | - |   | - |   | - |   | - |   | - |
| President and Director      |   | 2015 |   | - |   |  - |   | - |   | - |   | - |   | - |   | - |   | - |
|                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| David Cunic,                |   | 2016 |   | - |   |  - |   | - |   | - |   | - |   | - |   | 18,626(1) |   | 18,626 |
| CEO and Director            |   | 2015 |   | - |   | - |   | - |   | - |   | - |   | - |   | 15,310 |   | 15,310 |
|                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ben Hoehn,                  |   | 2016 |   | 24,680 |   |  - |   | - |   | - |   | - |   | - |   | 3.892(2) |   | 28,572 |
| COO/Acting CFO              |   | 2015 |   | 55,022 |   | - |   | - |   | - |   | - |   | - |   | - |   | 55,022 |
|                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Antonio Del Hierro          |   | 2016 |   | - |   |  - |   | - |   | - |   | - |   | - |   | - |   | - |
| Director                    |   | 2015 |   | 34,029 |   | - |   | - |   | - |   | - |   | - |   | - |   | 34,029 |
|                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| David Lieberthal            |   | 2016 |   | - |   |  - |   | - |   | - |   | - |   | - |   | - |   | - |
| Director                    |   | 2015 |   | 37,019 |   | - |   | - |   | - |   | - |   | - |   | - |   | 37,019 |

| (1) | David Cunic earned $18,626 as a 1099 consultant.                              |
|-----|-------------------------------------------------------------------------------|
| (2) | Ben Hoehn earned $24,680 as a Pazoo employee and $3,892 as a 1099 consultant. |

| Officers and Directors             |   | Series B |      |   | Series B Vote |   |          | Common Stock |   |   | Combined Vote (Series B + Common) |   |   | % of Voting Power |          |
|------------------------------------|--------|----------|-----------|--------|---------------|--------|---------------|--------------|--------|--------|-----------------------------------|--------|--------|-------------------|---------------|
| David Cunic                        |   |     | 500,000   |   |          |   | 500,000,000   |         |   |   | 150,000                           |   |   |              | 500,150,000   |   |   |   | 10.47 | % |
| Antonio Del Hierro                 |   |     | 200,000   |   |          |   | 200,000,000   |         |   |   | -                                 |   |   |              | 200,000,000   |   |   |   | 4.19 | % |
| Steve Basloe                       |   |     | 550,000   |   |          |   | 550,000,000   |         |   |   | 150,000                           |   |   |              | 550,150,000   |   |   |   | 11.52 | % |
| David Lieberthal                   |   |     | 200,000   |   |          |   | 200,000,000   |         |   |   | -                                 |   |   |              | 200,000,000   |   |   |   | 4.19 | % |
| Ben Hoehn                          |   |     | 300,000   |   |          |   | 300,000,000   |         |   |   | 25,000                            |   |   |              | 300,025,000   |   |   |   | 6.28 | % |
|                               |   |     | 1,750,000 |   |          |   | 1,750,000,000 |         |   |   | 325,000                           |   |   |              | 1,750,325,000 |   |   |   | 36.64 | % |
|                               |   |     |      |   |          |   |          |         |   |   |                              |   |   |              |          |   |   |   |   |   |
| Outstanding – April 19, 2017 |   |     | 2,150,000 |   |          |   | 2,150,000,000 |         |   |   | 2,627,589,893                     |   |   |              | 4,777,589,893 |   |   |   |   |   |

| (1) | Mr. Basloe's beneficial ownership includes 10,000 shares of stock issued in the names of his four children at his request and direction. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Directors David Lieberthal and Antonio Del Hierro were not issued common shares.                                                         |

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|               |   | 2016   |   |   | 2015   |   |
|--------------------|--------|--------|--------|--------|--------|--------|
|               |   |   |   |   |   |   |
| Audit fees         |   | $      | 60,900 |   |   | $      | 70,600 |   |
| Audit related fees |   |   | -      |   |   |   | - |   |
| Tax fees           |   |   | -      |   |   |   | - |   |
| All other fees     |   |   | 3,000  |   |   |   | 4,500 |   |
| Total              |   | $      | 63,900 |   |   | $      | 75,100 |   |

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| ExhibitNumber |   | Description                                                                                                                                                        |
|---------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|          |   |                                                                                                                                                          |
| 31.1          |   | Certification of David Cunic, Chairman and Chief Executive Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934.                              |
| 31.2          |   | Certification of Ben Hoehn, Acting Chief Financial Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934.                                      |
| 32.1          |   | Certification of David Cunic, Chief Executive Officer pursuant to 18 U.S.C Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.      |
| 32.2          |   | Certification of Ben Hoehn, Acting Chief Financial Officer pursuant to 18 U.S.C Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |

| April 21, 2017 | PAZOO, INC. |                                 |
|----------------|-------------|--------------------------------------|
|           |        |                                 |
|           | By:         | /s/ David M. Cunic                   |   |
|           |        | David M. Cunic, Individually and as  |   |
|           |        | Chief Executive Officer and Director |   |
|           |        | (Principal Executive Officer)        |   |

| April 21, 2017 | PAZOO, INC.   |                                                                 |
|----------------|--------------------|----------------------------------------------------------------------|
|           |               |                                                                 |
|           | By:                | /s/ Benjamin Hoehn                                                   |   |
|           |               | Benjamin Hoehn, Individually and as                                  |   |
|           |               | Chief Operating Officer, Acting Chief Financial Officer and Director |   |
|           |               | (Principal Financial and Accounting Officer)                         |   |