UNITED
STATES

SECURITIES
AND EXCHANGE COMMISSION

Washington,
D.C. 20549



FORM
10-K /A

Amendment No. 1



[X]
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934



For
the Fiscal Year Ended December 31, 2014



OR



[  ]
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934



|STL
    MARKETING GROUP, INC.                             
|----------------------------------------------------------
|(Exact
    name of registrant as specified in its charter)



|Colorado                            |  | 000-55013        |  | 20-4387296                
|----------------------------------- |  | ---------------- |  | --------------------------
|(State
    or other jurisdiction of |  | (Commission      |  | (I.R.S.
    Employer      
|incorporation
    or organization)  |  | File
    Number) |  | Identification
    Number)



10
Boulder Crescent, Suite 102

Colorado
Springs, CO 80903

(Address
of Principal Executive Offices)



(Former
name or former address, if changed since last report)



(719)
219-5797

(Registrant’s
telephone number, including area code)



Securities
registered pursuant to Section 12(b) of the Act:None



Securities
registered pursuant to Section 12(g) of the Act:Common Stock, $0.001 par value



Indicate
by check mark whether the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes [  ]
No [X]



Indicate
by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes [  ]
No [X]



Indicate
by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports),
and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [  ]



Indicate
by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive
Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the
preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes [X] No [  ]



Indicate
by check mark if disclosure of delinquent filers in response to Item 405 of Regulation S-K is not contained herein, and will not
be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference
in Part III of this Form 10-K or any amendment to this Form 10-K. [  ]



Indicate
by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer, or a smaller
reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller
reporting company” in Rule 12b-2 of the Exchange Act. (Check one):



|Large
    accelerated filer | [  ] | Accelerated
    filer         | [  ]
|--------------------------- | ---- | ----------------------------- | ----
|Non-accelerated
    filer   | [  ] | Smaller reporting
    company | [X] 



Indicate
by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes [  ] No [X]



The
aggregate market value of the voting and non-voting common equity held by non-affiliates of the registrant on June 30, 2014, based
on a closing price of .0255 was approximately $254,894 (reflecting the 1:15 reverse split effective March 5, 2015). As of April
15, 2015, the registrant had 145,697,286 shares of its common stock, 0.001 par value per share, outstanding.



Documents
Incorporated By Reference: None.
















STL
MARKETING GROUP, INC.

INDEX
TO REPORT ON FORM 10-K



|PART
    I   |                                                                                                                   |    |   
|------------ | ----------------------------------------------------------------------------------------------------------------- | -- | --
|             |                                                                                                                   |    |   
|Item
    1.  | Business.                                                                                                         |    | 3 
|Item
    1A. | Risk
    Factors.                                                                                                 |    | 10
|Item
    1B. | Unresolved
    Staff Comments.                                                                                    |    | 19
|Item
    2.  | Properties.                                                                                                       |    | 19
|Item
    3.  | Legal
    Proceedings.                                                                                            |    | 20
|Item
    4.  | Mine
    Safety Disclosures.                                                                                      |    | 20
|             |                                                                                                                   |    |   
|PART
    II  |                                                                                                                   |    |   
|             |                                                                                                                   |    |   
|Item
    5.  | Market
    For Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. |    | 21
|Item
    6.  | Selected
    Financial Data.                                                                                      |    | 21
|Item
    7.  | Management’s
    Discussion and Analysis of Financial Condition and Results of Operation.                         |    | 22
|Item
    7A. | Quantitative
    and Qualitative Disclosures About Market Risk.                                                   |    | 23
|Item
    8.  | Financial
    Statements and Supplementary Data.                                                                  |    | 23
|Item
    9.  | Changes
    In And Disagreements With Accountants on Accounting and Financial Disclosure.                         |    | 24
|Item
    9A. | Controls
    And Procedures.                                                                                      |    | 24
|Item
    9B. | Other
    Information.                                                                                            |    | 25
|             |                                                                                                                   |    |   
|PART
    III |                                                                                                                   |    |   
|             |                                                                                                                   |    |   
|Item
    10. | Directors,
    Executive Officers and Corporate Governance.                                                       |    | 26
|Item
    11. | Executive
    Compensation.                                                                                       |    | 28
|Item
    12. | Security
    Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.               |    | 29
|Item
    13. | Certain
    Relationships and Related Transactions, and Director Independence.                                    |    | 32
|Item
    14. | Principal
    Accounting Fees and Services.                                                                       |    | 34
|             |                                                                                                                   |    |   
|PART
    IV  |                                                                                                                   |    |   
|             |                                                                                                                   |    |   
|Item
    15. | Exhibits,
    Financial Statements Schedules.                                                                     |    | 34
|             |                                                                                                                   |    |   
|SIGNATURES   |                                                                                                                   | 35



2







FORWARD
LOOKING STATEMENTS



Included
in this Form 10-K are “forward-looking” statements, as well as historical information. Although we believe that the
expectations reflected in these forward-looking statements are reasonable, we cannot assure you that the expectations reflected
in these forward-looking statements will prove to be correct. Our actual results could differ materially from those anticipated
in forward-looking statements as a result of certain factors, including matters described in the section titled “Risk Factors.”
Forward-looking statements include those that use forward-looking terminology, such as the words “anticipate,” “believe,”
“estimate,” “expect,” “intend,” “may,” “project,” “plan,”
“will,” “shall,” “should,” and similar expressions, including when used in the negative. Although
we believe that the expectations reflected in these forward-looking statements are reasonable and achievable, these statements
involve risks and uncertainties and we cannot assure you that actual results will be consistent with these forward-looking statements.
We undertake no obligation to update or revise these forward-looking statements, whether to reflect events or circumstances after
the date initially filed or published, to reflect the occurrence of unanticipated events or otherwise.



Item
1. Business.



General
Information



Our
business address is 10 Boulder Crescent, Suite 102, Colorado Springs, CO 80903. Our telephone number is (719) 219-5797 and our
Internet website address is www.stlmarketinggroup.com. The information contained in, or that can be accessed through, our website
is not part of this registration statement.



History



STL
Marketing Group, Inc. (the “Company,” “our Company,” “we,” “us,” “our,”
or “STL,” was incorporated under the laws of the State of Colorado on February 16, 1999 under the original name of
Fountain Colony Ventures, Inc. Fountain Colony Ventures, Inc. changed its name to SGT Ventures, Inc. in March 2006. In June 2006,
SGT Ventures, Inc. changed its name to Stronghold Industries, Inc. On October 30, 2007, Stronghold Industries, Inc. entered into
a share purchase and exchange agreement with Image Worldwide, Inc. The Company name was officially changed with the Secretary
of State to Image Worldwide, Inc. (“Image Worldwide”) on November 21, 2007. In 2008, Image Worldwide concentrated
its business activities on helping clients create, market and promote their brands and image in print, online and at live events.
Image Worldwide entered into a share exchange agreement with St. Louis Packaging Inc. on January 31, 2009. In April 2009, the
Company changed its name to STL Marketing Group, Inc. On December 1, 2009, the Company sold majority of the STL Brands to Alliance
Creative Group, Inc. In March of 2011, the Company entered into a distribution agreement with United Fuel Savers and entered into
an option agreement to purchase land in Texas for a potential business opportunity. Prior to October 15, 2012, this distribution
agreement and option agreement was canceled. On October 15, 2012, the Company agreed to merge with Versant Corporation, a Colorado
based renewable energy company. On February 4, 2013 the Company entered into a share exchange agreement with Versant whereby Versant
became the Company’s wholly owned operating subsidiary. The transaction is being accounted for as a reverse merger. Accordingly,
the historical financial information going forward will be that of Versant Corporation and subsidiaries.



On
May 29, 2014, the Board of Directors (the “Board”) of STL Marketing Group, Inc. (the “Company”) approved
the formation of PhoneSuite Solutions, Inc. (“PSS”), as a Delaware corporation and a wholly owned subsidiary of the
Company. On June 16, 2014, the Board approved the issuance of one-hundred (100) shares of common stock of PSS to the Company (the
“Subsidiary Shares”). The Subsidiary Shares represent 100% of the authorized shares of common stock of PSS.



On
June 24, 2014, PSS, as the Company’s wholly owned subsidiary, entered into a Strategic Alliance and Distribution Agreement
(the “Agreement”) with Call Management Products, Inc. (“CMP”), a Colorado corporation in the business
of designing, manufacturing, marketing, and selling telecommunications products. The Agreement provides that PSS will establish
a dealer network and market and sell CMP’s products both internationally and in the United States (the “Territory”).
In the domestic market PSS will market to the general business market, excluding the hospitality and assisted living verticals.
Internationally, PSS may sell to all markets and develop both the hospitality and general business marketplaces.



Additionally,
the Agreement provides that PSS will develop the Territories at its cost and promote CMP’s brands, name and products consistently
across the globe. PSS is an exclusive Strategic Ally for CMP’s products in the Territory. The Agreement provides that, each
year, PSS and CMP will mutually establish a sales quota for PSS to meet, with the first quota set for fiscal 2015.



As
a result, our business operations are currently (i) the sale and distribution of telecommunications under the brand name PhoneSuite;
and (ii) the prospective sale of electricity through a planned wind park to a government owned utility company in Costa Rica.
The Company continues to evaluate additional opportunities to bolster its revenue stream. Our corporate organization is as follows:







STL
Marketing Group, Inc. has been trading on the OTC Market Pink Sheets under the symbol ’STLK’ since April 2009.



3







OVERVIEW
OF OUR RENEWABLE ENERGY BUSINESS



STL
Marketing Group, Inc. (OTC: STLK), (the “Company”) is a Colorado corporation seeking to provide wind energy to the
Costa Rican government from a wind power generation plant the Company intends to build and operate pursuant to a PPA (as
defined below), which the Company expects to initiate in 2016. The Company has two wholly owned subsidiaries in Costa Rica that
handle the development of the business and are expected to operate the power generation plant within the country. Energia Renovable
Versant SRL (“ERV”) is a 100% owned subsidiary and is used as a holding company for potential future renewable energy
operating companies. ERV intends to consolidate common tasks for the operating companies in Costa Rica. VTRES BACHE SRL (“VTRES”)
is 100% owned by ERV. VTRES is the legal entity that we intend to operate the first proposed wind farm in the northern area of
the province of Guanacaste, Costa Rica.



Costa
Rica has a variety of laws that govern the generation of electricity. Due to the location of our primary site, we cannot use the
existing law for private generation (Ley 7200/7508). This is a result of the lack of an existing sub-station of Grupo ICE in the
vicinity. The lack of a sub-station requires us to partner with one of the various State-Owned Entities charged with the distribution
and generation of electricity for their respective regions. Candidates for partnership include JASEC, CNFL, COOPELESCA, ESPH and
COOPEGUANACASTE.



Under
its proposed long-term land agreement, the Company is seeking to develop its first field on 270 hectares (the “primary
site”). Due to the current political delays revolving around the eighteen-month review period for the generation of electricity
by private entities, the Company is also working on alternatives for sites that are more amenable to the development under Costa
Rica’s private generation law (Law 7200/ 7508) with proximity to existing substations. Law 7200/7508 is an existing process
by which private generation companies can, and do, contract with Grupo ICE for the purchase of electricity. This process is well
developed and has existed for several decades. As mentioned above, the lack of an existing sub-station at our proposed 270-hectare
site requires a Power Purchase Agreement through other existing laws. The Company believes it is important to explore other potential
sites during this review period to avoid any potential future delays.



In
November 2013, President Luis Guillermo Solis was elected in Costa Rica. Initially, the Company believed that Mr. Solis was amicable
to private entities generating electricity as part of an overall solution to the energy crisis in Costa Rica based on his campaign
promises and positions. However, Mr. Solis has made various post election representations that would seem to indicate his non-approval
of such a position, mainly the appointment of a new chairman for the country’s Grupo ICE committee. We believe the Grupo
ICE appointee, and now CEO and Chairman of Grupo ICE, has a public position generally against private enterprise’s participation
in the power generation spectrum. The Company believes that this appointment will likely trigger opposition by the Costa Rican
government against companies such as ERV from establishing privatized energy solutions.



The
Company is actively engaged in lobbying through different government channels. The Company will also be exploring alternatives
to the previous government approval process, including the possibility of a 7200/7508 license, which allows the Company to produce
up to 20MW of electricity. However, due to the preceding events in the Costa Rican government, we cannot state with any certainty
or provide any assurances of an expected timeline for regulatory approval.



Energy
Market in Costa Rica



Costa
Rica is in need of inexpensive energy sources, as it does not possess any petroleum or coal and its natural gas reserves are,
as of yet, untapped. As a result of this lack of fossil fuel, Costa Rica has had to develop new sources of renewable energy. As
stated in the article, Environmental Entrepreneurs Update June 28, 2007, President Aims for Carbon Neutrality,Costa
Rica already uses hydroelectric and geo thermal methods and, in 2007, set 2021 as the year to become carbon neutral. According
to TheDelhi Planet, Being Carbon Neutral- What It Means And Whats Being Done, July 16, 2008, “In
2004 itself, 46.7% of Costa Rica’s primary energy came from renewable sources, while 94% of its electricity was generated
from hydroelectric power, wind farms and geothermal energy in 2006.” Costa Rica is pro-active about being carbon neutral.
Currently, there is a 3.5% tax on gasoline in the country that is used for payments to compensate landowners for growing trees
and protecting forests.”



Grupo
ICE is the largest of the State Owned Enterprises in Costa Rica and is the institution that controls all of the country’s
electrical distribution. According to the Business Wire article titled Fitch Affirms Instituto Costarricense de Electridad’s
Ratings at BB+, The Instituto Costarricense de Electricidad (“ICE”) is the largest power generator and electric
distribution utility company in the country. ICE’s role is to develop, operate and ensure that telecommunication and electric
services and distributions are provided to the Country. ICE is a State Owned Enterprise and its revenues are approximately $1
billion per year, which includes telecommunications services (fixed, data and cellular).



4







Based
on the experience of Ing. Pedro P. Quiros, our founding Chairman, and the previous Chief Executive Officer and Chairman of Grupo
ICE, the Company believes, that as much as 90% of the country’s hydroelectric facilities are losing effectiveness because
of variations in the rainfall in the past few decades in Costa Rica. Additionally, it is his opinion that most hydroelectric facilities
are reaching their useful life (50 years) and will need replacement or major maintenance. We believe this will place a serious
burden on the country’s electric providers, as it will take much needed infrastructure investment away from new developments.
We believe these developments are already taking place, which is straining the country’s sole petroleum-based 200 MW facility
(“Garabito”).



Based
on Grupo ICE’s public reports and our founding Chairman’s knowledge, we believe that Costa Rica is 8-10 years behind
in developing the necessary electrical infrastructure to maintain pace with its needs. Grupo ICE is working to develop various
projects, however, over the past few decades, government funding support has been diverted to other governmental priorities, such
as housing. We believe this has left the electrical development delayed and behind with the country’s needs and electrical
projects are large, expensive, complicated, and time consuming. We believe this infrastructure delay is pitting electric rates
against the country’s competitiveness. The Company believes that the government has a projected investment requirement of
$10 billion for electric generation alone over the next decade (2010-2020) with a maximum investment capacity of $5 billion over
the same time frame.



Law
8660 passed in large part due to the efforts of the former Chief Executive Officer and Chairman of Grupo ICE, Ing, Pedro P. Quiros,
who regulated the possible maximum investment that can be made by Grupo ICE at approximately $5 billion. Based on their revenue,
we believe ICE’s current legal framework allows it to invest about $850 million per year for its core businesses. This means
that about $350 million per year is allocated for electric generation (the remainder is split between electrical distribution-
$150 million- and telecommunications- $350 million). We believe that this leaves the government with an approximate, and very
conservative, shortfall of $5 billion for electric generation in the next decade ($10 billion in required investment, less $350
million in electric generation plus $150 in electrical distribution times 10 years, equals a $5 billion shortfall). These internal
forecasts do not take into account the possible reduced telecommunications revenues as a result of competition in the cellular
market and possible credit issues due to the effect of the latest Moody’s downgrade of the country’s credit rating
in September 2014 to Ba1 from Baa3, which was the downgrade given in 2010 from BB+.



Over
approximately the last two years, numerous complaints by the Costa Rican public have been made and the local newspapers have covered
the rate hikes Grupo ICE has instituted as a result of the very high use of its main 200 MW reserve facility, Garabito. Garabito
uses petroleum-based fuel and runs continuously, primarily in the summer months (October-March) when the rains stop and hydro
plants slow as a result of the lack of water. According to the article “Tarifa electrica impacta competitividad” dated
March 26, 2013 in La Republica, one of the major newspapers in Costa Rica, electric rates have risen 50-60% since 2007 as a result
of underdevelopment of infrastructure.



Legal
and Regulatory Framework



The
situation related to the state of the energy market in Costa Rica has highlighted to the public the limited existing legal framework
that allows the private generation and sale of electricity. As a result, there has been discussion in the legislature on how to
expand and strengthen private rights and participation in the electric generation space. Currently, new laws are expected to improve
the current legal framework in favor of private enterprise. However, these new laws are not expected for a few more years. Our
business plan currently utilizes existing legislation and any future improvements would be a welcome benefit. However, the new
government changes have delayed our progress and we may have to reinitiate the process to put the power purchase agreement in
place. We cannot guarantee that any such future improvements will ever take place.



The
current legal framework allows a few options to generate electric power. Law 7200/7508 controls the provision of concessions for
private enterprises and specifically delineates the process by which any private enterprise receives, operates and commercializes
its concession. This law is applicable to limited capacity facilities selling to ICE in amounts less than 20 MW. Law 8345 specifically
grants the eight Costa Rican electric utility companies the right to generate power and specifies other rights like the “right
of way” and the power to appropriate via “eminent domain”. There are various smaller electric utility companies
(state cooperatives) in the country charged with other public services like street lighting, waste removal and sewage. These other
electric utility companies bill their constituents directly, and as a group, handle half (50%) of the electrical distribution
in the country with the other 50% handled by ICE. The bylaws as passed in Costa Rica for these utility companies allow them to
enter into agreements with private entities to develop their services. These utility companies do not need further legislative
approval or bidding to enter into these partnership agreements, so long as (i) Costa Rican ownership levels are within the law
(35%), (ii) no Costa Rican government funds are used in the development, and that (iii) “a clear benefit is provided by
entering into these arrangements” as stated in Law 8345.



Laws
established for the Public Service companies such as Compañía Nacional Fuerza y Luz (an ICE subsidiary), JASEC (“Cartago”)
and ESPH (“Heredia”), are similar to the one of four electric cooperatives regarding power generation and distribution.
These entities have their own legal framework. All are allowed private partnerships to generate electricity and all have the credit
rating of the Costa Rican government.



5







Off-Taker
and Distribution Channel



An
off-taker is a buyer of a resource to purchase and sell portions of a producer’s future production. An Off-Taker Agreement,
or Power Purchase Agreement (“PPA”), is normally negotiated prior to the construction of a facility such as our proposed
wind farm, in order to secure a market for the future output of the facility. On December 21, 2012, the Company received a Letter
of Interest from the Compañia Nacional de Fuerza y Luz (“CNFL” or the proposed “Off-Taker”). CNFL
is a private company 98% owned by Grupo ICE. Its market is “El Valle Central” or Central Valley, the area of San Jose
and its environs. According to a public article published in Costa Rica, “El Potgam a la luz del censo 2011”, Central
Valley is the largest market in the country with approximately 2 million customers in its general area.



The
Company negotiated key terms and conditions with CNFL for a proposed PPA, including potential price and term. As a result of these
negotiations, the Company tendered an official offer on April 16, 2013. The parties agreed in principle to a price (net of taxes)
of $0.083/kWh and a term of twenty-five years. The price of electricity for wind, as many other services, is regulated by ARESEP
and the above price is what we believe to be on the lower edge of the accepted pricing range in Costa Rica. Based on current information
from the potential buyer, they delayed the internal process due to changes in regulation and later on due to new policies of the
government winning the elections early in 2014. Currently, all private generation is on hold for an internal government review,
which began in summer of 2014 and is expected to last through early 2016. In the event that the Off-Taker does not execute the
PPA, there is no guarantee that the Company will be able to secure another Off-Taker on similar terms or at all. Should the Company
not be able to secure another Off-Taker it would have a material adverse effect on our business and may cause us to cease operations
entirely.



Costa
Rica held elections in May 2014 and the new administration has advised, as of June 2014, that all projects for private generation
are on hold until a review period of 18 months can be completed. Due to the delay presented by this review period, the Company
is exploring 7200/7508 possibilities, the case being that these smaller plants are easier to accept within the existing legislation
and are outside the current review process. We are currently pursuing alternative sites that allow us to utilize the 7200/7508
legislation, in the same area as our primary site. The Company will only seek alternative sites, compliant with Law 7200/7508,
with existing sub-stations and access to high tension lines already provided by Grupo ICE. If successful, the ensuing PPA would
be with Grupo ICE.



Interconnection



An
“interconnection” is a power grid that operates at a synchronized frequency and is electrically tied together during
normal system conditions. Synchronous grids with ample capacity facilitate electricity market trading across wide areas. Per the
terms of our offer, CNFL intends to collect their electricity “at site” which means that they would be ensuring the
interconnection and transport of the electricity generated by our wind farm to their substation. In our opinion this could greatly
reduce our risk, as CNFL is an entity that has, as ICE’s subsidiary, full control and rights to the high-tension transmission
lines of Costa Rica. ICE is the exclusive agent for high-tension lines including access to this network. This high-tension network
is how electricity is delivered to CNFL’s grid and from there to its customers. The 7200/7508 contracts contemplate delivery
at the substation and are by law with Grupo ICE, however, there is no existing substation at the primary site described above
and therefore, we are looking for alternative smaller sites as well.



The
substation in the primary site where the Company intends to connect to the high transmission lines to transport the electricity
is less than 500 meters from the Sistema de Interconexion Electricapara America Central or Central American Electrical
Interconnection System(“SIEPAC”). SIEPAC is a planned interconnection of the power grids of six Central
American nations. In Central America, few electrical interconnections currently exist, and those that do are often old and unreliable.
SIEPAC has been discussing plans to link the region’s electricity grids since 1987. The proposed project entails the construction
of transmission lines connecting 37 million consumers in Panama, Costa Rica, Honduras, Nicaragua, El Salvador, and Guatemala.
It is not clear if Belize, which buys much of its power from Mexico, will also be included. SIEPAC would cost about US$320 million
without the interconnections with Mexico (US$40m), Belize (US$30m) and Panama (US$200m) and, back in 2003, was scheduled for completion
in 2006. More recently, it has been estimated it would be completed in 2009. As of April 2013, all but about 20 km in southern
Costa Rica is operating.



6







We
believe because our proximity to the substation is so close to the SIEPAC transmission line that it may be possible to avoid paying
the SIEPAC interconnection line costs and that an interagency arrangement could be handled under CNFL/ICE’s already existing
agreements with SIEPAC. The Company and SIEPAC have entered into a non-binding letter of intent, whereby SIEPAC intends to serve
as an interconnection and will provide the power generated, by the company’s proposed wind farm, to customers across Costa
Rica. Please see a copy of the Letter of Intent between the Company and SIEPAC filed as Exhibit 10.1 to the amended registration
statement on Form 10. Filed on December 4, 2013.



Wind
Studies



Wind
studies have been conducted on the primary site for the past several years. There are six active wind measurement towers on site,
each 80 meters high, gradually built since 2007. In addition, there are two older towers of 50 meters high, which are out of service
today, but have provided data along with neighboring MET masts for reference into the overall wind mapping conditions of the region.
These stations offer different height levels of measurements for five years. The compiled data will be used for the revised Annual
Energy Production Report (as defined below).



The
Company engaged and paid GL Garrad Hassan approximately $80,000 to evaluate and generate an annual Energy Production Report (“AEP
Report”) with five different wind turbine generators (WTGs). According to our current AEP Report, the Company can generate
approximately 135,000,000 kWh per year (P75). The Company has moved the site slightly to the north (approximately 5 km) to gain
access to the interconnection lines. Other benefits of this land include:



| | ● | Large
    enough to increase capacity (5,300 hectares of land).                                                                                                         
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   |                                                                                                                                                                         
| | ● | The
    land is level and generally flat.                                                                                                                               
| |   |                                                                                                                                                                         
| | ● | The
    SIEPAC regional (Central America) grid traverses through the property. This allows us to transport electricity to the power
    grid and to our final customers.



We
have also commissioned a new AEP Report from Garrad Hassan for updated information. We have made a $20,000 payment to Garrad Hassan
for the new AEP Report, and plan to pay the remaining $18,120 upon completion of certain amendments.



Competition



We
face competition from other wind energy companies, renewable energy generators, and traditional energy companies in our bidding
and signing for a long-term PPA with the government of Costa Rica. However, if we are successful in signing the PPA, we believe
we will have no competition for the wind energy generated by our anticipated wind farm. This is not to say that Costa Rica does
not have other wind farms or sources of renewable energy but rather that once the wind farm is completed, the sales will be guaranteed
for the term of the PPA, which is currently proposed as twenty-five (25) years. If the PPA is signed, our proposed contract covers
our entire production and the Off-Taker is committed to buying this electricity over the 25-year term. Additionally, each government
utility in Costa Rica has exclusive territory to its client base by law.



The
Company would not make any sales without the execution of the PPA. Should the PPA be cancelled or otherwise terminated, it would
have a material adverse effect on the Company and may force us to cease our business operations entirely.



Going
Concern



Our
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. As shown in the accompanying financial statements, we incurred a net operating
loss in the years ended December 31, 2014 and 2013, have a working capital deficit of approximately $5,108,000 at December 31,
2014 and have no revenues at this time. These conditions raise substantial doubt about the Company’s ability to continue
as a going concern.



7







The
ability of the Company to continue as a going concern is dependent upon the Company’s ability to further implement its business
plan, generate revenues, and continue to raise additional investment capital. No assurance can be given that the Company will
be successful in these efforts. The lack of additional capital could force the Company to curtail or cease operations and would,
therefore, have a material adverse effect on its business.



Employees



As
of April 15, 2015 the Company had two full-time employees and one consultant.



OVERVIEW
OF OUR TELECOMMUNICATIONS BUSINESS



On
May 29, 2014, the Board of Directors (the “Board”) of STL Marketing Group, Inc. (the “Company”) approved
the formation of PhoneSuite Solutions, Inc. (“PSS”), as a Delaware corporation and a wholly owned subsidiary of the
Company. On June 16, 2014, the Board approved the issuance of one-hundred (100) shares of common stock of PSS to the Company (the
“Subsidiary Shares”). The Subsidiary Shares represent 100% of the authorized shares of common stock of PSS.



On
June 24, 2014, PSS, as the Company’s wholly owned subsidiary, entered into a Strategic Alliance and Distribution Agreement
(the “Agreement”) with Call Management Products, Inc. (“CMP”), a Colorado corporation in the business
of designing, manufacturing, marketing, and selling telecommunications products. The Agreement provides that PSS will establish
a dealer network and market and sell CMP’s products both internationally and in the United States (the “Territory”).
In the domestic market PSS will market to the general business market, excluding the hospitality and assisted living verticals.
Internationally, PSS may sell to all markets and develop both the hospitality and general business marketplaces.



Additionally, the
Agreement provides that PSS will develop the Territories at its cost and promote CMP’s brands, name and products consistently
across the globe. PSS is an exclusive Strategic Ally for CMP’s products in the Territory , and under the Agreement, is
the exclusive agent for PhoneSuite branded products in its assigned international Territory. The Agreement provides that,
each year, PSS and CMP will mutually establish a sales quota for PSS to meet, with the first quota set for fiscal 2015.



At
this time, internal work has been completed on both the structural necessities for this type of transactional business and the
necessary training and certifications processes to ensure the proper infrastructure in instituting a process to establish dealers.
Internal review of our accounting systems has also been completed and is now loaded and adapted to quoting, entering orders, and
invoicing. PSS has adjusted its accounting system to properly create, manage, and collect from dealers. Dealers have their
own unique identification and price levels, and the system can generate a quotation, convert the quotation to an order, and convert
to an invoice once sold. Additionally, PSS has undergone both SIP School and PhoneSuite training programs, certifying it for both
SIP and PhoneSuite installation and service. Furthermore, PSS has developed a business process to gather new potential dealer
information and vet these prospects through credit agencies and a standard dealer contract to ensure dealers are inspected and
contracted for the marketing, sale, installation, and support of PhoneSuite branded products.



To
date, the Company has issued quotes to interested, potential customers for VoIP equipment. While there is no guarantee these quotes
will be sold, it is an important milestone, as we believe this sales funnel does begin to indicate that we may have revenue in
the near term, which we believe will help to establish a baseline to provide future goals based on previous sales.



We locate our customers in a variety of
ways. As a dealer-based, business-to-business model, we establish dealers and support them, forward leads in their respective
territories. The dealers in turn promote and generate marketing in their local territories to generate their own leads. All dealers
are established businesses in the hospitality industry, so as clients need communications products they engage in the sales process.
We estimate that within a few quarters our dealer channel will begin to produce sales on a regular, more consistent basis. We
are introducing the brand to new markets, a process that has proven to be time-consuming. Additionally, CMP lists most major hotel
chains as clients, so as they develop needs overseas, we receive those opportunities and reach out to them to provide sales support
and any information required.



To
ensure an active and successful dealer program and sales funnel, we have begun the process of establishing our dealer network.
In this area, we are actively working with a handful of potential dealers that we believe will execute dealer agreements in the
short term. We have announced one partnership with VTECH’s CALA hospitality division whereby VTECH will provide us leads
for the PhoneSuite product line and vice versa. This also provides us access to their dealer network if applicable. Additionally,
we have had preliminary discussions with UNIDEN to explore providing business telephones with the IP PBX as a whole solution.
All of this is underway as we await progress on the energy front. We can provide no assurances that these dealer agreements will
be successful in generating sales for our business operations.



We have extended experience and a developed
network of dealers around the world. Concerning our ongoing efforts, we expect to have the development as clients begin to purchase
equipment and consider the brand for new projects outside original arenas. Often, hotel management companies and chains have other
properties in geographically separated areas and those new opportunities already have service and installation partners that are
dealers. Our plan is to utilize new opportunities to offer the installation and ongoing support contracts to the existing hotels,
or to a local dealer already operating in the area, as an incentive to sign with us.



The
Company has successfully signed three distribution agreements covering the United Arab Emirates and India, Barbados and Nigeria
and currently has six additional and active overseas distribution possibilities. These possible partners are located in Australia,
Bangladesh, Guatemala, Saipan, Malta, and Mexico. Active quotes to potential customers are significant for our current stage.
We can provide no assurances that these distribution agreements will lead to sales.



In
2015, we believe PhoneSuite Solutions, Inc. will begin to generate revenue, add dealers, and follow through with our goal to gain
financial independence. We believe that this should ease dependence on fundraising over the near term and lessen our need for
the current funding mechanisms.



8







Competition



Competitors
vary by region. However, we believe our major competitors include Avaya, Shoretel, NEC, Mitel and Cisco. PSS is focused on providing
newer technologies such as Voiceware (full VoIP) and the Series 2 (VoIP/ Analog hybrid) for its dealer business vertical.



Business
Plan



PSS
is focused on the promotion, marketing, and sales of two of PhoneSuite’s core products (i) Voiceware and (ii) the Series2.
These products are already deployed in the United States, with PSS now developing the dealer channel to achieve sales revenues
overseas. These products are VoIP Private Branch Exchange products, designed to provide a feature rich communications system to
businesses.



| | 1. | Voiceware
    -Voiceware is a VoIP phone system (IP-PBX) application designed for today’s hospitality voice communication needs.
    The server-based core makes Voiceware extremely flexible, and enables PhoneSuite to continually enhance and improve a hotel
    PBX feature set without expensive equipment upgrades.                                                                   
| | -- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                                                                              
| | 2. | Series
    2 -Series2 VoIP combines a traditional telephone platform (analog room phones and digital and analog telephone lines)
    with a Voiceware server. This converts traditional analog and digital end points to be compatible with VoIP technology. With
    this technology a customer will be able to use existing wiring plans and phones without potentially expensive upgrades.



PSS
is the exclusive distributor of PhoneSuite branded products to both the international market, as well as the Small Business Market
(SMB) here in the United States. PSS currently has plans to offer products in geographic areas including, but not limited to:
Asia, the Caribbean, Africa, Australia, the Middle East and India, Europe, Central America, and South America.



Going
Concern



Our
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. As shown in the accompanying financial statements, we incurred a net operating
loss in the years ended December 31, 2014 and 2013, have a working capital deficit of approximately $5,108,000 at December 31,
2014 and have no revenues at this time. These conditions raise substantial doubt about the Company’s ability to continue
as a going concern.



The
ability of the Company to continue as a going concern is dependent upon the Company’s ability to further implement its business
plan, generate revenues, and continue to raise additional investment capital. No assurance can be given that the Company will
be successful in these efforts. The lack of additional capital could force the Company to curtail or cease operations and would,
therefore, have a material adverse effect on its business.



Reports
to Security Holders.



| | 1. | The
    Company will file with the SEC reports as required under the Exchange Act and comply with the requirements of the Exchange
    Act.                                                                                                                                                                                                                                                                                                                                                                                                       
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | 2. | The
    public may read and copy any materials the Company files with the SEC in the SEC’s Public Reference Section, Room 1580,
    100 F Street N.E., Washington, D.C. 20549. The public may obtain information on the operation of the Public Reference Section
    by calling the SEC at 1-800-SEC-0330. Additionally, the SEC maintains an Internet site that contains reports, proxy and information
    statements, and other information regarding issuers that file electronically with the SEC, which can be found at http://www.sec.gov.



9







Where
You Can Find More Information



The
public may read and copy any materials the Company files with the U.S. Securities and Exchange Commission (the “SEC”)
at the SEC’s Public Reference Room at 100 F Street, NE, Washington, DC 20549. The public may obtain information on the operation
of the Public Reference Room by calling the SEC at 1-800-SEC-0030. The SEC maintains an Internet website (http://www.sec.gov)
that contains reports, proxy and information statements and other information regarding issuers that file electronically with
the SEC.



Item
1A. Risk Factors.



OUR
AUDITORS HAVE EXPRESSED SUBSTANTIAL DOUBT ABOUT OUR ABILITY TO CONTINUE AS A GOING CONCERN.



As
of December 31, 2014, we had a net loss of $771,742. A significant amount of capital will be necessary to advance the development
of our projects to the point at which they will become commercially viable, and these conditions raise substantial doubt about
our ability to continue as a going concern.



Our
independent auditors included an explanatory paragraph regarding this uncertainty in their report on our financial statements
as of December 31, 2014. The Company plans to raise additional debt and/or equity financing to allow us the ability to cover our
current cash flow requirements and meet our obligations as they become due. There can be no assurances that financing will be
available or if available, that it will be under favorable terms. In the event that we are unable to generate adequate revenues
to cover expenses and cannot obtain additional financing in the near future, we may need to cease operations or seek protection
under bankruptcy laws. These financial statements do not include any adjustments that might result from the uncertainty as to
whether we will continue as a “going concern”. Our ability to continue status as a “going concern”
is dependent upon our generating cash flow sufficient to fund operations. If we continue incurring losses and fail to achieve
profitability, we may have to cease our operations. Our business plan may not be successful in addressing these issues.



RISKS
RELATED TO OUR BUSINESSES



WE
HAVE GENERATED SUBSTANTIAL NET LOSSES AND NEGATIVE OPERATING CASH FLOWS SINCE OUR INCEPTION AND EXPECT TO CONTINUE TO DO SO AS
WE BEGIN TO DEVELOP AND CONSTRUCT OUR FUTURE ENERGY AND TELECOMMUNICATIONS PROJECTS.



We
have generated substantial net losses and negative operating cash flows from operating activities since our operations commenced.



We
expect that our net losses will continue and our cash used in operating activities will grow during the next several years, as
compared with prior periods, as we increase our development activities. Energy and telecommunications projects typically incur
operating losses prior to commercial operation at which point the projects begin to generate positive operating cash flow. We
also expect to incur additional costs, contributing to our losses and operating uses of cash, as we incur the incremental costs
of operating as a fully reporting public company. Our costs may also increase due to factors such as higher than anticipated financing
and other costs; increases in the costs of labor or materials; and major incidents or catastrophic events. If any of those factors
occurs, our losses could increase significantly and the value of our common stock could decline. As a result, our net losses and
accumulated deficit could increase significantly.



WE
DO NOT HAVE SUFFICIENT CASH ON HAND. IF WE DO NOT GENERATE SUFFICIENT REVENUES FROM SALES, AMONG OTHER FACTORS, WE WILL BE UNABLE
TO CONTINUE OUR OPERATIONS.



There
is limited history upon which to base any assumption as to the likelihood that we will prove to be successful, and we may not
be able to generate enough operating revenues or ever achieve profitable operations. If we are unsuccessful in addressing these
risks, our business will be adversely affected.



10







WE
HAVE A LIMITED OPERATING HISTORY. IF WE ARE NOT SUCCESSFUL IN CONTINUING TO GROW THE BUSINESS, THEN WE MAY HAVE TO SCALE BACK
OR EVEN CEASE ONGOING BUSINESS OPERATIONS.



We
have no history of revenues from operations. We have yet to generate positive earnings and there can be no assurance that we will
ever operate profitably. Operations will be subject to all the risks inherent in the establishment of a developing enterprise,
such as difficulties in commercializing our wind energy power generation plant and telecommunications business, and the uncertainties
arising from the absence of a significant operating history. We may be unable to sign customer contracts or operate on a profitable
basis. If the business plan is not successful, and we are not able to operate profitably, investors may lose some or all of their
investment.



IF
WE ARE UNABLE TO OBTAIN ADDITIONAL FUNDING, BUSINESS OPERATIONS WILL BE HARMED, AND IF WE DO OBTAIN ADDITIONAL FINANCING THEN
EXISTING SHAREHOLDERS MAY SUFFER SUBSTANTIAL DILUTION.



Additional
capital will be required to effectively support the operations and otherwise implement overall business strategy. We currently
do not have any contracts or commitments for additional financing. There can be no assurance that financing will be available
in amounts or on terms acceptable to us, if at all. The inability to obtain additional capital will restrict our ability to grow
and may reduce our ability to continue to conduct business operations. If we are unable to obtain additional financing, we will
likely be required to curtail and possibly cease operations. Any additional equity financing may involve substantial dilution
to then existing shareholders.



THE
LOSS OF ONE OR MORE MEMBERS OF OUR SENIOR MANAGEMENT OR KEY EMPLOYEES MAY ADVERSELY AFFECT OUR ABILITY TO IMPLEMENT OUR STRATEGY.



We
depend on our experienced management team and the loss of one or more key executives could have a negative impact on our business.
Our success depends to a significant extent upon the continued services of Mr. Jose P. Quiros, our Chief Executive Officer. The
loss of the services of Mr. Quiros could have a material adverse effect on our growth, revenues, and prospective business. Mr.
Quiros does have an employment agreement with the Company.



In
order to successfully implement and manage our business plan, we will be dependent upon, among other things, successfully recruiting
qualified managerial and company personnel having experience in the small wind turbine and telecommunications business. Competition
for qualified individuals is intense. Additionally, because the wind industry is relatively new, there is a scarcity of top-quality
employees with experience in the wind industry, including qualified technical personnel with significant experience in the design,
development, manufacture and construction of wind power generation plants, and we may face challenges hiring and retaining these
types of employees.



We
also depend on our ability to retain and motivate key employees and attract qualified new employees. There can be no assurance
that we will be able to retain existing employees or that we will be able to find, attract and retain qualified personnel on acceptable
terms. If we lose a member of the management team or a key employee, we may not be able to replace him or her. Integrating
new employees into our management team and training new employees with no prior experience in the wind industry could prove disruptive
to our operations, require a disproportionate amount of resources and management attention and ultimately prove unsuccessful.
An inability to attract and retain sufficient technical and managerial personnel could limit or delay our development efforts,
which could have a material adverse effect on our business, financial condition and results of operations.



11







WE
NEED TO ESTABLISH AND MAINTAIN REQUIRED DISCLOSURE CONTROLS AND PROCEDURES AND INTERNAL CONTROLS OVER FINANCIAL REPORTING
AND TO MEET THE PUBLIC REPORTING AND THE FINANCIAL REQUIREMENTS FOR OUR BUSINESS, WHICH WILL BE TIME CONSUMING FOR OUR MANAGEMENT.



Our
management has a legal and fiduciary duty to establish and maintain disclosure controls and control procedures in compliance with
the securities laws, including the requirements mandated by the Sarbanes-Oxley Act of 2002. The standards that must be met for
management to assess the internal control over financial reporting as effective are new and complex, and require significant documentation,
testing and possible remediation to meet the detailed standards. Because we have limited resources, we may encounter problems
or delays in completing activities necessary to make an assessment of our internal control over financial reporting, and other
disclosure controls and procedures. In addition, the attestation process by our independent registered public accounting firm
is new and we may encounter problems or delays in completing the implementation of any requested improvements and receiving an
attestation of our assessment by our independent registered public accounting firm. If we cannot assess our internal control over
financial reporting as effective or provide adequate disclosure controls or implement sufficient control procedures, or our independent
registered public accounting firm is unable to provide an unqualified attestation report on such assessment, investor confidence
and share value may be negatively impacted.



IF
WE CANNOT EFFECTIVELY MANAGE OUR INTERNAL GROWTH, OUR POTENTIAL BUSINESS PROSPECTS, REVENUES AND PROFIT MARGINS MAY SUFFER.



If
we fail to effectively manage our internal growth in a manner that minimizes strains on our resources, we could experience disruptions
in our operations and ultimately be unable to generate revenues or profits. We expect that we will need to significantly expand
our operations to successfully implement our business strategy. As we add manufacturing, marketing, sales and installation and
build our infrastructure, we expect that our operating expenses and capital requirements will increase. To effectively manage
our growth, we must continue to expend funds to improve our operational, financial and management controls and our reporting systems
and procedures. In addition, we must effectively expand, train and manage our employee base. If we fail in our efforts to manage
our internal growth, our prospects, revenue and profit margins may suffer.



THE
PRODUCTION OF WIND ENERGY DEPENDS HEAVILY ON SUITABLE WIND CONDITIONS. IF WIND CONDITIONS ARE UNFAVORABLE OR BELOW OUR ESTIMATES,
OUR ELECTRICITY PRODUCTION, AND THEREFORE OUR REVENUES, MAY BE SUBSTANTIALLY BELOW OUR EXPECTATIONS.



The
electricity produced and revenues generated by a wind energy project depend heavily on wind conditions, which are variable and
difficult to predict. Operating results for projects vary significantly from period to period depending on the wind resource during
the periods in question. We base our decisions about which sites to develop in part on the findings of long-term wind and other
meteorological studies conducted in the proposed area, which measure the wind’s speed, prevailing direction and seasonal
variations. Actual wind conditions, however, may not conform to the measured data in these studies and may be affected by variations
in weather patterns, including any potential impact of climate change. Therefore, the electricity generated by our projects may
not meet our anticipated production levels or the rated capacity of the turbines located there, which could adversely affect our
business, financial condition and results of operations. If the wind resources at a project are below the average level we expect,
our rate of return for the project would be below our expectations and we would be adversely affected. Projections of wind resources
also rely upon assumptions about turbine placement, interference between turbines and the effects of vegetation, land use and
terrain, which involve uncertainty and require us to exercise considerable judgment. We or our consultants may make mistakes in
conducting these wind and other meteorological studies. Any of these factors could cause us to develop sites that have less wind
potential than we had expected, or to develop sites in ways that do not optimize their potential, which could cause the return
on our investment in these projects to be lower than expected.



If
our wind energy assessments turn out to be wrong, our business could suffer a number of material adverse consequences, including:



|● | our
    energy production and sales may be significantly lower than we predict;                                                                                                                                                 
|- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  |                                                                                                                                                                                                                                 
|● | any
    future hedging arrangements may be ineffective or more costly;                                                                                                                                                          
|  |                                                                                                                                                                                                                                 
|● | we
    may not produce sufficient energy to meet future commitments to sell electricity as a result, we may have to pay damages;
    and                                                                                        
|  |                                                                                                                                                                                                                                 
|● | our
    projects may not generate sufficient cash flow to make payments of principal and interest as they become due on any future
    project-related debt, and we may have difficulty obtaining financing for future projects.





12







NATURAL
EVENTS MAY REDUCE ENERGY PRODUCTION BELOW OUR EXPECTATIONS.



A
natural disaster, severe weather or an accident that damages or otherwise adversely affects any of our operations could have a
material adverse effect on our business, financial condition and results of operations. Lightning strikes, icing, earthquakes,
tornados, extreme wind, severe storms, wildfires and other unfavorable weather conditions or natural disasters could damage or
require us to shut down our turbines or related equipment and facilities, impeding our ability to maintain and operate our facilities
and decreasing electricity production levels and our revenues. Operational problems, such as degradation of turbine components
due to wear or weather or capacity limitations on the electrical transmission network, can also affect the amount of energy we
are able to deliver. Any of these events, to the extent not fully covered by insurance, could have a material adverse effect on
our business, financial condition and results of operations.



OPERATIONAL
PROBLEMS MAY REDUCE ENERGY PRODUCTION BELOW OUR EXPECTATIONS.



Spare
parts for wind turbines and key pieces of electrical equipment may be hard to acquire or unavailable to us. Sources for some significant
spare parts and other equipment are located outside of North America. If we were to experience a shortage of or inability to acquire
critical spare parts, we could incur significant delays in returning facilities to full operation. In addition, we may not hold
spare substation main transformers. These transformers are designed specifically for each wind energy project, and the current
lead time to receive an order for this type of equipment is over eight months. If we had to replace any future substation main
transformers, we could be unable to sell electricity from the affected wind energy project until a replacement is installed. That
interruption to our business might not be fully covered by insurance.



WE
FACE COMPETITION PRIMARILY FROM OTHER RENEWABLE ENERGY SOURCES AND, IN PARTICULAR, OTHER WIND ENERGY COMPANIES.



We
believe our primary competitors are developers and operators focused on renewable energy generation, specifically wind energy
companies. We will compete with other wind energy companies primarily for sites with good wind resources that can be built in
a cost-effective manner. We will also compete for access to transmission or distribution networks. Because the wind energy industry
in the United States is at an early stage, we will also compete with other wind energy developers for the limited pool of personnel
with requisite industry knowledge and experience. Furthermore, in recent years, there have been times of increased demand for
wind turbine related components, causing turbine suppliers to have difficulty meeting the demand. If these conditions return in
the future, component manufacturers may give priority to other market participants, including our competitors, who may have resources
greater than ours.



We
compete with other renewable energy companies (and energy companies in general) for the financing needed to pursue our development
plan. Once we have developed a project and put a project into operation, we may compete on price if we sell electricity into power
markets at wholesale market prices. Depending on the regulatory framework and market dynamics of a region, we may also compete
with other wind energy companies, as well other renewable energy generators, when we bid on or negotiate for a long-term PPA.



WE
WILL ALSO COMPETE WITH TRADITIONAL ENERGY COMPANIES.



We
will also compete with traditional energy companies. For example, depending on the regulatory framework and market dynamics of
a region, we also compete with traditional electricity producers when we bid on or negotiate for a long-term PPA. Furthermore,
technological progress in traditional forms of electricity generation (including technology that reduces or sequesters greenhouse
gas emissions) or the discovery of large new deposits of traditional fuels could reduce the cost of electricity generated from
those sources or make them more environmentally friendly, and as a consequence reduce the demand for electricity from renewable
energy sources or render existing or future wind energy projects uncompetitive. Any of these developments could have a material
adverse effect on our business, financial condition and results of operations.



13







NEGATIVE
PUBLIC OR COMMUNITY RESPONSE TO WIND ENERGY PROJECTS IN GENERAL OR OUR PROJECTS SPECIFICALLY CAN ADVERSELY AFFECT OUR ABILITY
TO DEVELOP OUR WIND FARM PROJECTS.



Negative
public or community response to our wind energy projects can adversely affect our ability to develop, construct and operate our
projects. This type of negative response can lead to legal, public relations and other challenges that impede our ability to meet
our development and construction targets, achieve commercial operations for a project on schedule, address the changing needs
of our projects over time, and generate revenues. If we are unable to develop, construct and operate the production capacity that
we expect from our future development projects in our anticipated timeframes, it could have a material adverse effect on our business,
financial condition and results of operations.



WE
NEED GOVERNMENTAL APPROVAL FROM THE COSTA RICAN GOVERNMENT AND PERMITS TO CONSTRUCT AND OPERATE OUR PROJECTS. ANY FAILURE TO PROCURE
AND/OR MAINTAIN NECESSARY PERMITS WOULD ADVERSELY AFFECT ONGOING DEVELOPMENT, CONSTRUCTION AND CONTINUING OPERATION OF OUR PROJECTS.



The
design, construction and operation of wind energy projects are highly regulated, require various approvals from the government
of Costa Rica and permits, including environmental approvals and permits, and may be subject to the imposition of related conditions
that vary by jurisdiction. In some cases, these approvals and permits require periodic renewal, which we may not be able to successfully
obtain. We cannot predict whether all permits required for a given project will be granted or whether the conditions associated
with the permits will be achievable. The denial of a permit essential to a project or the imposition of impractical conditions
would impair our ability to develop the project. In addition, we cannot predict whether the permits will attract significant opposition
or whether the permitting process will be lengthened due to complexities and appeals. Delay in the review and permitting process
for a project can impair or delay our ability to develop that project or increase the cost so substantially that the project is
no longer attractive to us. In the future, we may experience delays in developing our future projects due to delays in obtaining
non-appealable permits. If we were to commence construction in anticipation of obtaining the final, non-appealable permits needed
for a project, we would be subject to the risk of being unable to complete the project if all the permits were not obtained. If
this were to occur, we would likely lose a significant portion of our investment in the project and could incur a loss as a result.
Any failure to procure and maintain necessary permits would adversely affect ongoing development, construction and continuing
operation of our projects.



The regulatory environment in Costa Rica
has proved to be unresponsive and capricious. Based on our dealings with their regulatory bodies, we have no reason to believe
there is any timeframe in which we can expect to hear back regarding requests and the like. Consequently, there is uncertainty
as to whether we will ever be able to pursue business opportunities there.



OUR
DEVELOPMENT ACTIVITIES AND OPERATIONS ARE SUBJECT TO NUMEROUS ENVIRONMENTAL, HEALTH AND SAFETY LAWS AND REGULATIONS.



We
are subject to numerous environmental, health and safety laws and regulations in each of the jurisdictions in which we intend
to operate. These laws and regulations will require us to obtain approvals and maintain permits, undergo environmental impact
assessments and review processes and implement environmental, health and safety programs and procedures to control risks associated
with the citing, construction, operation and decommissioning of wind energy projects. For example, to obtain permits we could
be required to undertake expensive programs to protect and maintain local endangered species. If such programs are not successful,
we could be subject to penalties or to revocation of our permits. In addition, permits frequently specify permissible sound levels.



If
we do not comply with applicable laws, regulations or permit requirements, we may be required to pay penalties or fines or curtail
or cease operations of the affected projects. Violations of environmental and other laws, regulations and permit requirements,
including certain violations of laws protecting migratory birds and endangered species, may also result in criminal sanctions
or injunctions.



Environmental,
health and safety laws, regulations and permit requirements may change or become more stringent. Any such changes could require
us to incur materially higher costs than we have incurred to date. Our costs of complying with current and future environmental,
health and safety laws, regulations and permit requirements, and any liabilities, fines or other sanctions resulting from violations
of them, could adversely affect our business, financial condition and results of operations.



14







WE
WILL RELY ON TRANSMISSION LINES AND OTHER TRANSMISSION FACILITIES THAT ARE OWNED AND OPERATED BY THIRD PARTIES. WHEREVER WE DEVELOP
OUR OWN GENERATOR LEADS, WE WILL BE EXPOSED TO TRANSMISSION FACILITY DEVELOPMENT AND CURTAILMENT RISKS, WHICH MAY DELAY AND INCREASE
THE COSTS OF OUR PROJECTS OR REDUCE THE RETURN TO US ON THOSE INVESTMENTS.



We
will depend on electric transmission lines owned and operated by third parties to deliver the electricity we generate. Some of
our projects may have limited access to interconnection and transmission capacity because there can be many parties seeking access
to the limited capacity that may be available. We may not be able to secure access to this limited interconnection or transmission
capacity at reasonable prices or at all. Moreover, a failure in the operation by third parties of these transmission facilities
could result in our losing revenues because such a failure could limit the amount of electricity we deliver. In addition, our
production of electricity may be curtailed due to third-party transmission limitations, reducing our revenues and impairing our
ability to capitalize fully on a particular project’s potential. Such a failure could have a material adverse effect on
our business, financial condition and results of operations.



In
certain circumstances, we may develop our own generator leads in the future from our projects to available electricity transmission
or distribution networks when such facilities do not already exist. In some cases, these facilities may cover significant distances.
To construct such facilities, we need approvals, permits and land rights, which may be difficult or impossible to acquire or the
acquisition of which may require significant expenditures. We may not be successful in these activities, and our projects that
rely on such generator lead development may be delayed, have increased costs or not be feasible. Our failure in operating these
generator leads could result in lost revenues because it could limit the amount of electricity we are able to deliver. In addition,
we may be required by law or regulation to provide service over our facilities to third parties at regulated rates, which could
constrain transmission of our power from the affected facilities, or we could be subject to additional regulatory risks associated
with being considered the owner of a transmission line.



WE
MAY BE UNABLE TO CONSTRUCT OUR WIND ENERGY PROJECTS ON TIME, AND OUR CONSTRUCTION COSTS COULD INCREASE TO LEVELS THAT MAKE A PROJECT
TOO EXPENSIVE TO COMPLETE OR MAKE THE RETURN ON OUR INVESTMENT IN THAT PROJECT LESS THAN EXPECTED.



There
may be delays or unexpected developments in completing our future wind energy projects, which could cause the construction costs
of these projects to exceed our expectations. We may suffer significant construction delays or construction cost increases as
a result of a variety of factors, including, without limitation:



| | ● | failure
    to manufacture turbines on the required schedule;                                                                        
| | - | -------------------------------------------------------------------------------------------------------------------------------------
| |   |                                                                                                                                      
| | ● | failure
    to receive other critical components and equipment, including batteries, that meet our design specifications on schedule;
| |   |                                                                                                                                      
| | ● | failure
    to complete interconnection to transmission networks;                                                                    
| |   |                                                                                                                                      
| | ● | failure
    to obtain all necessary rights to land access and use;                                                                   
| |   |                                                                                                                                      
| | ● | failure
    to receive quality and timely performance of third-party services;                                                       
| |   |                                                                                                                                      
| | ● | failure
    to secure and maintain environmental and other permits or approvals;                                                     
| |   |                                                                                                                                      
| | ● | appeals
    of environmental and other permits or approvals that we obtain;                                                          
| |   |                                                                                                                                      
| | ● | failure
    to obtain capital to develop our planned wind farm projects;                                                             
| |   |                                                                                                                                      
| | ● | shortage
    of skilled labor;                                                                                                       
| |   |                                                                                                                                      
| | ● | inclement
    weather conditions;                                                                                                    
| |   |                                                                                                                                      
| | ● | adverse
    environmental and geological conditions; and                                                                             
| |   |                                                                                                                                      
| | ● | force
    majeure or other events out of our control.                                                                                



15







Any
of these factors could give rise to construction delays and construction costs in excess of our expectations. This could prevent
us from completing construction of a project, cause defaults under any potential financing agreements or under PPAs that require
completion of project construction by a certain time, cause the project to be unprofitable for us, or otherwise impair our business,
financial condition and results of operations.



FUTURE
LITIGATION OR ADMINISTRATIVE PROCEEDINGS RELATED TO OUR WIND FARM PROJECTS COULD HAVE A MATERIAL ADVERSE EFFECT ON OUR BUSINESS,
FINANCIAL CONDITION AND RESULTS OF OPERATIONS.



In
the future, we may be involved in legal proceedings, administrative proceedings, claims and/or litigation that arise in the ordinary
course of business of wind farm projects. Individuals and interest groups may sue to challenge the issuance of a permit for a
wind energy project or seek to enjoin construction of a wind energy project. In addition, we may be subject to legal proceedings
or claims contesting the construction or operation of future wind energy projects. Unfavorable outcomes or developments relating
to any such proceedings, such as judgments for monetary damages, injunctions or denial or revocation of permits, could have a
material adverse effect on our business, financial condition and results of operations.



WE
ARE NOT ABLE TO INSURE AGAINST ALL POTENTIAL RISKS AND MAY BECOME SUBJECT TO HIGHER INSURANCE PREMIUMS.



Our
wind energy division will be exposed to the risks inherent in the construction and operation of wind energy projects, such as
breakdowns, manufacturing defects, natural disasters, terrorist attacks and sabotage, not all of which is insurable. We may also
be exposed to environmental risks. We will have insurance policies covering certain risks associated with our business. However,
any such insurance policies will not cover losses as a result of force majeure, natural disasters, terrorist attacks
or sabotage, among other things. We do not expect to maintain insurance for certain environmental risks, such as environmental
contamination with respect to our wind energy business. In addition, our insurance policies may be subject to annual review by
our insurers and may not be renewed at all or on similar or favorable terms. A serious uninsured loss or a loss significantly
exceeding the limits of our future insurance policies could have a material adverse effect on our business, financial condition
and results of operations.



WE
FACE FORMIDABLE COMPETITION FROM NUMEROUS ESTABLISHED FIRMS THAT PROVIDE BOTH TRADITIONAL ENTERPRISE VOICE COMMUNICATIONS SOLUTIONS
AS WELL AS PROVIDERS OF TECHNOLOGY RELATED TO BUSINESS COLLABORATION AND CONTACT CENTER SOLUTIONS; AS THESE MARKETS EVOLVE, WE
EXPECT COMPETITION TO INTENSIFY AND EXPAND TO INCLUDE COMPANIES THAT DO NOT CURRENTLY COMPETE DIRECTLY AGAINST US.



We
compete against providers of both traditional enterprise voice communications solutions, as well as providers of technology related
to business collaboration and contact center solutions.In
addition, because the business collaboration market continues to evolve and technology continues to develop rapidly, we may face
competition in the future from companies that do not currently compete against us, but whose current business activities may bring
them into competition with us in the future. In particular, information technology and communications applications deployed on
converged networks become more integrated to support business collaboration. We may face increased competition from current leaders
in information technology infrastructure, information technology, consumer products companies, personal and business applications
and the software that connects the network infrastructure to those applications. Several of our existing competitors have,
and many of our future competitors may have, greater financial, personnel, technical, research and development and other resources,
more well-established brands or reputations and broader customer bases and, as a result, these competitors may be in a stronger
position to respond quickly to potential acquisitions and other market opportunities, new or emerging technologies and changes
in customer requirements. Some of these competitors may have customer bases that are more geographically balanced and therefore,
may be less affected by an economic downturn in a particular region. Other competitors may have deeper expertise in a particular
stand-alone technology that develops more quickly than we anticipate. Competitors with greater resources also may be able to offer
lower prices, additional products or services or other incentives. Industry consolidations may also create competitors with broader
and more geographic coverage and the ability to reach enterprises through communications service providers. Existing customers
of data networking companies that compete against us may be inclined to purchase enterprise communications solutions from their
current data networking or software vendors. Additionally, as communications and data networks converge, we may face competition
from systems integrators that traditionally have been focused on data network integration.



16







RISKS
RELATED TO THE TELECOMMUNICATIONS INDUSTRY - REGULATION OF IP-BASED NETWORKS AND COMMERCE IN THE UNITED STATES AND ELSEWHERE MAY
INCREASE, COMPLIANCE WITH THESE REGULATIONS MAY BE TIME-CONSUMING, DIFFICULT AND COSTLY AND, IF WE FAIL TO COMPLY, OUR SALES MIGHT
DECREASE.



In
general, the telecommunications industry is highly regulated. Regulatory treatment of VoIP telephony outside the United States
varies from country to country and often the laws are unclear. We currently plan to distribute our products and services directly
through resellers that may be subject to telecommunications regulations in their home countries. The failure by us or our resellers
to comply with these laws and regulations could impact our business operations. Such regulations could include matters such as
using or providing VoIP services or protocols, encryption technology and access charges for service providers. The adoption of
such regulations could prohibit entry into a target market or force us to withdraw products in one or more jurisdictions. As a
result, overall demand for our products could decrease and, at the same time, the cost of selling our products could increase,
either of which, or the combination of both, could have a material adverse effect on our business, operating results and financial
condition.



In
addition, the convergence of the public switched telephone network, or PSTN, and IP-based networks could become subject to governmental
regulation, including the imposition of access fees or other tariffs, and such regulation could adversely affect the market for
our products and services. User uncertainty regarding future policies and regulations may also affect demand for communications
products such as ours. We may be required, or we may otherwise deem it necessary or advisable, to alter our products to address
actual or anticipated changes in the regulatory environment. Our inability to timely alter our products or address any regulatory
changes may have a material adverse effect on our financial condition, results of operations or cash flows.



WE
MAY NOT BE ABLE TO COMPETE SUCCESSFULLY IN OUR HIGHLY COMPETITIVE INDUSTRIES, WHICH COULD ADVERSELY AFFECT OUR BUSINESS, RESULTS
OF OPERATIONS AND FINANCIAL CONDITION.



We
face significant competition in many of the markets in which we do business and expect that this competition will intensify. The
principal competitive factors in our business are range of service offerings, global capabilities and price and quality of services.
In addition, we believe there has been an industry trend to move agent-based operations toward offshore sites. The trend toward
international expansion by foreign and domestic competitors and continuous technological changes may erode profits by bringing
new competitors into our markets and reducing prices. Our competitors’ products, services and pricing practices, as well
as the timing and circumstances of the entry of additional competitors into our markets, could adversely affect our business,
results of operations and financial condition.



We
rely on a combination of an internal sales effort and third party relationships to market our services. If we are unable to offset
pricing declines through increased transaction volume and greater efficiency due to a failure of our sales efforts or otherwise,
our business, results of operations and financial condition could be adversely affected.



THE
LOSS OF ONE OR MORE MEMBERS OF OUR SENIOR MANAGEMENT OR KEY EMPLOYEES MAY ADVERSELY AFFECT OUR ABILITY TO IMPLEMENT OUR STRATEGY.



We
depend on our experienced management team and the loss of one or more key executives could have a negative impact on our business.
Our success depends to a significant extent upon the continued services of Mr. Jose P. Quiros, our Chief Executive Officer. The
loss of the services of Mr. Quiros could have a material adverse effect on our growth, revenues, and prospective business. Mr.
Quiros does have an employment agreement with the Company.



We
also depend on our ability to retain and motivate key employees and attract qualified new employees. There can be no assurance
that we will be able to retain existing employees or that we will be able to find, attract and retain qualified personnel on acceptable
terms. If we lose a member of the management team or a key employee, we may not be able to replace him or her. Integrating
new employees into our management team and training new employees with no prior experience in the wind industry could prove disruptive
to our operations, require a disproportionate amount of resources and management attention and ultimately prove unsuccessful.
An inability to attract and retain sufficient technical and managerial personnel could limit or delay our development efforts,
which could have a material adverse effect on our business, financial condition and results of operations.



17







RISKS
RELATED TO COMMON STOCK



POTENTIAL
FUTURE FINANCINGS MAY DILUTE THE HOLDINGS OF OUR CURRENT SHAREHOLDERS.



In
order to provide capital for the operation of our business, in the future we may enter into financing arrangements. These arrangements
may involve the issuance of new shares of common stock, preferred stock that is convertible into common stock, debt securities
that are convertible into common stock or warrants for the purchase of common stock. Any of these items could result in a material
increase in the number of shares of common stock outstanding, which would in turn result in a dilution of the ownership interests
of existing common shareholders. In addition, these new securities could contain provisions, such as priorities on distributions
and voting rights, which could affect the value of our existing common stock.



WE
CURRENTLY DO NOT INTEND TO PAY DIVIDENDS ON OUR COMMON STOCK. AS A RESULT, YOUR ONLY OPPORTUNITY TO ACHIEVE A RETURN ON YOUR INVESTMENT
IS IF THE PRICE OF OUR COMMON STOCK APPRECIATES.



We
currently do not expect to declare or pay dividends on our common stock. In addition, in the future we may enter into agreements
that prohibit or restrict our ability to declare or pay dividends on our common stock. As a result, your only opportunity to achieve
a return on your investment will be if the market price of our common stock appreciates and you sell your shares at a profit.



YOU
MAY EXPERIENCE DILUTION OF YOUR OWNERSHIP INTEREST DUE TO THE FUTURE ISSUANCE OF ADDITIONAL SHARES OF OUR COMMON STOCK.



We
are in a capital intensive business and we do not have sufficient funds to finance the growth of our natural gas, oil and wind
energy divisions of our business or the construction costs of our development projects or to support our projected capital expenditures.
As a result, we will require additional funds from future equity or debt financings, including tax equity financing transactions
or sales of preferred shares or convertible debt, to complete the development of new projects and pay the general and administrative
costs of our business. We may in the future issue our previously authorized and unissued securities, resulting in the dilution
of the ownership interests of holders of our common stock. We are currently authorized to issue 2,600,000,000 shares of common
stock and 1,401,925,000 shares of preferred stock with preferences and rights as determined by our board of directors. The
potential issuance of such additional shares of common stock or preferred stock or convertible debt may create downward pressure
on the trading price of our common stock. We may also issue additional shares of common stock or other securities that are convertible
into or exercisable for common stock in future public offerings or private placements for capital raising purposes or for other
business purposes. The future issuance of a substantial number of common shares into the public market, or the perception that
such issuance could occur, could adversely affect the prevailing market price of our common shares. A decline in the price of
our common shares could make it more difficult to raise unds through future offerings of our common shares or securities convertible
into common shares.



18







THERE
IS CURRENTLY A LIMITED PUBLIC MARKET FOR OUR COMMON STOCK. FAILURE TO DEVELOP OR MAINTAIN A TRADING MARKET COULD NEGATIVELY AFFECT
ITS VALUE AND MAKE IT DIFFICULT OR IMPOSSIBLE FOR YOU TO SELL YOUR SHARES.



There
has been a limited public market for our common stock and an active public market for our common stock may never develop. Failure
to develop or maintain an active trading market could make it difficult for you to sell your shares or recover any part of your
investment in us. Even if a market for our common stock does develop, the market price of our common stock may be highly
volatile. In addition to the uncertainties relating to future operating performance and the profitability of operations,
factors such as variations in interim financial results or various, as yet unpredictable, factors, many of which are beyond our
control, may have a negative effect on the market price of our common stock.



“PENNY
STOCK” RULES MAY MAKE BUYING OR SELLING OUR COMMON STOCK DIFFICULT.



If
the market price for our common stock is below $5.00 per share, trading in our common stock will be subject to the “penny
stock” rules. The SEC has adopted regulations that generally define a penny stock to be any equity security that has a market
price of less than $5.00 per share, subject to certain exceptions. These rules would require that any broker-dealer that would
recommend our common stock to persons other than prior customers and accredited investors, must, prior to the sale, make a special
written suitability determination for the purchaser and receive the purchaser’s written agreement to execute the transaction.
Unless an exception is available, the regulations would require the delivery, prior to any transaction involving a penny stock,
of a disclosure schedule explaining the penny stock market and the risks associated with trading in the penny stock market. In
addition, broker-dealers must disclose commissions payable to both the broker-dealer and the registered representative and current
quotations for the securities they offer. The additional burdens imposed upon broker-dealers by such requirements may discourage
broker-dealers from effecting transactions in our common stock, which could severely limit the market price and liquidity of our
common stock.



Item
1B. Unresolved Staff Comments.



Not
applicable.



Item
2. Properties.



Currently,
we are headquartered in Colorado Springs, Colorado and operate our main office located at 10 Boulder Crescent, Suite 102, Colorado
Springs, CO 80903. The office is approximately 973 square feet. The original lease including operating building costs increased
to $1,135 per month in November 2012 and ended on October 31, 2013. On November 13, 2013, the Company entered into a second rental
amendment to the original lease agreement by and between G. Douglas and Janis Wasson and Engelage Real Estate One, LLC, (Landlord)
and Versant Corporation, (Tenant), dated October 15, 2010. The lease expires on November 14, 2016. Not including operating building
costs, the minimum base rent schedule is $694.08 per month for the year beginning November 15, 2013, $742.66 per month for the
year beginning November 15, 2014, and $794.65 per month for the year beginning November 15, 2015.



Energia
Renovable Versant SRL, the Company’s subsidiary, has a lease agreement in Guanacaste, Costa Rica for its wind development
project. The lease agreement is not effective until “the moment the Company starts generating electricity.” The term
of the lease is for 25 years and is for over 5,300 hectares (over 13,000 acres) of land with a proven wind resource according
to our AEP Report. The lease states that cost will be equivalent to 4% of the potential energy generated and sold from the facility.
No other payments are required for the lease. If we are unable to generate electricity on the site the lease agreement will not
become effective. If we are unsuccessful in executing the PPA, we may have to cease our business operations. The Board believes
this Lease Agreement is material due to the term and size of the land contracted for with a proven wind resource.



At the time of the original 10-K filing
we intended to pursue business opportunities associated with Guanacaste lease. In the months since, we have been met with delays
and non-performance that have prevented us from using the leased space at all, and consequently, we have elected not to pursue
this further.



19







Item
3. Legal Proceedings.



Arbitration-
Grupo Aldesa- (Pending)



In
2012, the Company filed an arbitration claim with the “Centro Internacional de Conciliacion y Arbitraje” or “CICA”
alleging that Grupo Aldesa, S.A., its then investment bank, withheld $195,400 of investor funds from the Company in mid-2011 for
its own use and benefit and contrary to the executed agreement between the companies. The case claims that Aldesa received funds
from two investors and remitted 50% of those funds and keeping the balance without authorization. Additionally, the Company did
notify the Federal Bureau of Investigation (FBI), as well as, the State Attorney General of both Delaware and Colorado in mid-2012.
Grupo Aldesa appealed to the Sala Primera de la Corte Suprema (the Supreme Court over these types of legal matters) in October
of 2012 claiming CICA did not have subject matter jurisdiction or the right to adjudicate the case. In a strongly worded opinion
Sala Primera rejected Aldesa’s appeal in the Company’s favor. CICA has received the official notice from the Sala
Primera regarding the opinion and has taken up the case from where we were before the appeal.



The
CICA process has reached its final legal stage, we are awaiting the final judgment which is expected this year.



Exchange
Under Section 3(a)(10)



On
March 19, 2014, the Circuit Court of the Second Judicial Circuit in and for Leon County, Florida (the “Court”),
entered an order (the “Order”) approving, among other things, the fairness
of the terms and conditions of an exchange pursuant to Section 3(a)(10) of the Securities Act of 1933, as amended (the “Securities
Act”), in accordance with a stipulation of settlement (the “Settlement
Agreement”) between STL Marketing Group, Inc., a Colorado corporation (the “Company”),
and Tarpon Bay Partners, LLC, a Florida limited liability company (“Tarpon”),
in the matter entitledTarpon Bay Partners, LLC v. STL Marketing Group, Inc.,
Case No. 2014-CA-278 (the “Action”). Tarpon commenced the Action against
the Company on February 6, 2014 to recover an aggregate of $519,281.96 of past-due accounts payable of the Company, which Tarpon
had purchased from certain service providers of the Company pursuant to the terms of separate receivable purchase agreements between
Tarpon and each of such vendors (the “Assigned Accounts”), plus fees
and costs (the “Claim”). The Assigned Accounts relate to certain legal,
accounting, and financial services. The Order provides for the full and final settlement of the Claim and the Action. The Settlement
Agreement became effective and binding upon the Company and Tarpon upon execution of the Order by the Court on March 19, 2014. Please
see the current report on Form 8-K filed with the Securities and Exchange Commission on March 25, 2014.



From
time to time, we may become involved in various lawsuits and legal proceedings, which arise, in the ordinary course of business.
However, litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time
to time that may harm our business. Except for the foregoing, we are not currently involved in any litigation that we believe
could have a materially adverse effect on our financial condition or results of operations. There is no action, suit, proceeding,
inquiry or investigation before or by any court, public board, government agency, self-regulatory organization or body pending
or, to the knowledge of the executive officers of our Company or any of our subsidiaries, threatened against or affecting our
Company, our common stock, any of our subsidiaries or of our Company’s or our Company’s subsidiaries’ officers
or directors in their capacities as such, in which an adverse decision could have a material adverse effect.



Item
4. Mine Safety Disclosures.



Not
applicable



20







PART
II



Item
5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.



(a)
Market Information



Our
shares of common stock are currently quoted on the OTCQB under the symbol “STLK”. We have provided ranges of high
and low bids per share of our common stock for the applicable periods as available.



The
following table sets forth the range of available high and low bid quotations as reported on the OTCQB for the periods indicated.



|Fiscal
    Year Ended December 31, 2013 |  | High |       |  | Low |  
|--------------------------------------- |  | ---- | ----- |  | --- | -
|Quarter ended December 31, 2013         |  | $    | .3585 |  |     | $
|Quarter ended September 30, 2013        |  | $    | .2685 |  |     | $
|Quarter ended June 30, 2013             |  | $    | .27   |  |     | $
|Quarter ended March 31, 2013            |  |      | .24   |  |     |  



|Fiscal
    Year Ended December 31, 2014 |  |   | High  |  |  | Low |      
|--------------------------------------- |  | - | ----- |  |  | --- | -----
|Quarter
    ended December 31, 2014     |  | $ | .006  |  |  | $   | .004 
|Quarter ended
    September 30, 2014    |  |   | .0735 |  |  |     | .003 
|Quarter ended
    June 30, 2014         |  |   | .1575 |  |  |     | .0165
|Quarter ended
    March 31, 2014        |  |   | .3555 |  |  |     | .1155



(b)
Holders



As
of April 15, 2015, a total of 145,697,286 shares of the Company’s common stock are currently outstanding held by approximately
195 shareholders of record. This figure does not take into account those shareholders whose certificates are held in the name
of broker-dealers or other nominees.



(c)
Dividends



We
have not declared or paid any dividends on our common stock and intend to retain any future earnings to fund the development and
growth of our business. Therefore, we do not anticipate paying dividends on our common stock for the foreseeable future. There
are no restrictions on our present ability to pay dividends to stockholders of our common stock, other than those prescribed by
Delaware law.



(d)
Securities Authorized for Issuance under Equity Compensation Plans



We
currently do not have an equity compensation plan.



Rule
10B-18 Transactions



During
the year ended December 31, 2014, there were no repurchases of the Company’s common stock by the Company.



Recent
Sales of Unregistered Securities



There
were no sales of unregistered securities not already reported on the Company’s quarterly filings on Form 10-Q or on a Current
Report on Form 8-K.



Item
6. Selected Financial Data.



Pursuant
to permissive authority under Regulation S-K, Rule 301, we have omitted Selected Financial Data.



21







Item
7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.



Results
of Operations



THE
FOLLOWING DISCUSSION OF OUR PLAN OF OPERATION AND RESULTS OF OPERATIONS SHOULD BE READ IN CONJUNCTION WITH THE FINANCIAL STATEMENTS
AND RELATED NOTES TO THE FINANCIAL STATEMENTS INCLUDED ELSEWHERE IN THIS ANNUAL REPORT. THIS DISCUSSION CONTAINS FORWARD-LOOKING
STATEMENTS THAT RELATE TO FUTURE EVENTS OR OUR FUTURE FINANCIAL PERFORMANCE. THESE STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS,
UNCERTAINTIES AND OTHER FACTORS THAT MAY CAUSE OUR ACTUAL RESULTS, LEVELS OF ACTIVITY, PERFORMANCE OR ACHIEVEMENTS TO BE MATERIALLY
DIFFERENT FROM ANY FUTURE RESULTS, LEVELS OF ACTIVITY, PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY THESE FORWARD-LOOKING
STATEMENTS. THESE RISKS AND OTHER FACTORS INCLUDE, AMONG OTHERS, THOSE LISTED UNDER “FORWARD-LOOKING STATEMENTS” AND
“RISK FACTORS” AND THOSE INCLUDED ELSEWHERE IN THIS ANNUAL REPORT.



Plan
of Operation



The
Company’s efforts through the fiscal year ended December 31, 2014 and for the next 12 months are focused on the following
two key areas: (i) continuing efforts to pursue the proposed Power Purchase Agreement (“PPA”) to begin generating
renewable wind energy in Costa Rica, and (ii) the initiation of our telecommunications business focused on the distribution and
sales of VoIP telecommunications equipment (“PBX Systems”).



Efforts
to Finalize the Power Purchase Agreement



In
December 2012, we received an official letter affirming our PPA proposal from the Compañia Nacional de Fuerza y Luz (“CNFL”)
issued and signed by its General Manager and filed with the Securities and Exchange Commission on July 30, 2013 (the “PPA
Letter”). In 2013, based on the PPA Letter and ongoing meetings with the CNFL, the Company had its personnel in Costa Rica
providing additional technical and tender information in an effort to finalize the PPA. However, since November 2013, the Costa
Rica presidential elections were in process and our progress was delayed.



The
Costa Rica presidential elections resulted in Mr. Luis Guillermo Solis becoming the President of Costa Rica (as the candidate
from the Partido Accion Ciudadana or PAC). We believed Mr. Solis, as a candidate, took a very favorable position to the generation
of electricity by private enterprises as part of an overall solution to the energy crisis of the country. However, since his election,
President Solis has since appointed the new Grupo ICE Chairman and CEO whom we believe opposes any private generation of electricity.
Further complicating matters, the General Manager who issued us the PPA Letter from CNFL, was unexpectedly removed from office.
In fact, a great majority of the CNFL executive staff, who the Company believes was key in its efforts to finalize the PPA have
been removed and replaced.



As
a result, the Board has reached out to CNFL and requested a meeting with the new General Manager to move forward on our PPA proposal
as reflected in the PPA Letter. The Company will also be exploring alternatives to CNFL, including the possibility of a 7200/7508
license (maximum of 20MW). At this time, it is unclear on how these changes affect our progress to date. Due to the governmental
changes in Costa Rica, we may have to reinitiate the process with CNFL.



In
the interim, the Company has cut its operating costs in Costa Rica by approximately $13,000 per month. Most of the professional
studies and technical assessments for the PPA have been paid for and will continue to be applicable in the future leaving minimal
costs for us to continue pursuing the PPA. Additionally, the Company believes that all of the services related to the PPA can
be easily reinstated or expanded as needed.



In
October 2014, the Company met with representatives of CNFL and has also met with a variety of business and government officials
to gather more information on the eighteen-month review of private generation in Costa Rica. We believe from these meetings that
there is a possibility that the delay may be less than the announced eighteen months and that the Company may be allowed to continue
its PPA work in 2016. The Company is cautiously optimistic about this possibility and is continuing its political work to ensure
we are up to date and fully informed. We believe the political pressure to address rising energy costs is becoming a point of
concern for the new administration. For now, the Company continues to operate in Costa Rica at reduced staff levels.



22







PhoneSuite
Solutions, Inc.



On
May 29, 2014, the Board of Directors (the “Board”) of STL Marketing Group, Inc. (the “Company”) approved
the formation of PhoneSuite Solutions, Inc. (“PSS”), as a Delaware corporation and a wholly owned subsidiary of the
Company. On June 16, 2014, the Board approved the issuance of one-hundred (100) shares of common stock of PSS to the Company (the
“Subsidiary Shares”). The Subsidiary Shares represent 100% of the authorized shares of common stock of PSS.



On
June 24, 2014, PSS, as the Company’s wholly owned subsidiary, entered into a Strategic Alliance and Distribution Agreement
(the “Agreement”) with Call Management Products, Inc. (“CMP”), a Colorado corporation in the business
of designing, manufacturing, marketing, and selling telecommunications products. The Agreement provides that PSS will establish
a dealer network and market and sell CMP’s products both internationally and in the United States (the “Territory”).
In the domestic market PSS will market to the general business market, excluding the hospitality and assisted living verticals.
Internationally, PSS may sell to all markets and develop both the hospitality and general business marketplaces.



We believe that in 2016 PhoneSuite Solutions,
Inc. will begin to generate revenue, add dealers, and follow through with our goal to gain financial independence. We are actively
pursuing sales leads and are in discussion with at least one major chain to enlist PSS for all its overseas properties based on
a master contract with CMP. Because our overhead is very small, we only need two or three sales each month to maintain profitability.
We believe that this should ease dependence on fundraising over the near term and lessen our need for the current funding mechanisms.



For
the years ended December 31, 2014 and 2013



For
the years ended December 31, 2014 and 2013, the Company reported a net loss of $(771,742) and $(2,458,632), respectively. The
change in net loss between the periods ended December 31, 2014 and 2013 is due to a decrease in derivative liabilities.



Operating
expenses decreased by roughly 8% during the year ended December 31, 2014, as compared to the year ended December 31, 2013. The
$60,635 decrease in operating expenses is primarily attributed to the following changes in operating expenses: decrease in professional
fees of $89,041 and increase in general and administrative of $33,405 primarily related to the additional startup expenses of
PhoneSuite Solutions.



The
Company has no revenues to date.



Liquidity
and Capital Resources



As
of December 31, 2014, we had a working deficit of $5,017,677 as compared to December 31, 2013 of $5,402,299 a decrease of $384,622.
The decrease in working capital deficit for the period ended December 31, 2014, is primarily attributed to an increase in the
Company’s assets deferred offering costs of $59,070, as well as a decrease in derivative liabilities of $810,674. In addition,
the Company had an increase in liabilities related to accrued payables and expenses of $201,151, additional convertible notes,
net of discount of $280,381 and settlement and stock liability of a net $29,848. There was also a decrease in notes payable of
$57,100 and notes payable – related party of $31,198.



Net
cash used in operating activities for the year ended December 31, 2014 and 2013, was $(286,175) and $(331,349), respectively.
The net loss for the year ended December 31, 2014 and 2013 was $(771,742) and $(2,458,632), respectively.



Net
cash provided by investing activities for the year ended December 31, 2014 was $2,758, as compared to the year ended December
31, 2013 was $14,806.



Net
cash provided by all financing activities for the year ended December 31, 2014 was $282,802, as compared to $317,075 for the year
ended December 31, 2013. During the year period ended December 31, 2014, the Company sold notes for the proceeds of $314,000.



As
reflected in the accompanying financial statements, the Company has a net loss and net cash used in operations of $771,742 and
$286,175, respectively, for the year ended December 31, 2014.



Item
7A. Quantitative and Qualitative Disclosures About Market Risk.



We
do not hold any derivative instruments and do not engage in any hedging activities.



Item
8. Financial Statements.



Our
consolidated financial statements begin on page F-1 at the end of this Annual Report.



23







Item
9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.



Not
applicable.



Item
9A. Controls and Procedures.



(a)
EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES



Based
on their evaluation as of the end of the period covered by this Annual Report on Form 10-K, our principal executive officer and
principal financial officer have concluded that our disclosure controls and procedures (as defined in Rules 13a-15(c) and 15d-15(e)
under the Exchange Act) are not effective to ensure that information required to be disclosed by us in report that we file or
submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the U.S. Securities
and Exchange Commission’s rules and forms and to ensure that information required to be disclosed by us in the reports that
we file or submit under the Exchange Act is accumulated and communicated to our management, including our chief executive officer
and chief financial officer, as appropriate to allow timely decisions regarding required disclosure.



(b)
MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING



Company
management is responsible for establishing and maintaining internal controls over financial reporting and disclosure controls.
Internal Control Over Financial Reporting is a process designed by, or under the supervision of, the Company’s principal
executive and principal financial officers, or persons performing similar functions, and effected by the issuer’s board
of directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting
and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles
and includes those policies and procedures that:



|(1) | Pertain
    to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of
    the assets of the issuer;                                                                                                                                                                                     
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                          
|(2) | Provide
    reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance
    with generally accepted accounting principles, and that receipts and expenditures of the issuer are being made only in accordance
    with authorizations of management and directors of the registrant; and
|    |                                                                                                                                                                                                                                                                                                                                                          
|(3) | Provide
    reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the issuer’s
    assets that could have a material effect on the financial statements.                                                                                                                                      



Disclosure
controls and procedures are designed to ensure that information required to be disclosed in reports filed under the Securities
Exchange Act of 1934, as amended, is appropriately recorded, processed, summarized and reported within the specified time periods.



Management
has conducted an evaluation of the effectiveness of our internal control over financial reporting as of December 31, 2014, based
on the framework established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the
Treadway Commission (“COSO”).



Based
on this assessment, management concluded that as of December 31, 2014, it had material weaknesses in its internal control procedures.



As
of December 31, 2014, we have concluded that our internal control over financial reporting was ineffective. The Company’s
assessment identified certain material weaknesses which are set forth below:



24







Functional
Controls and Segregation of Duties



Because
of the Company’s limited resources, there are limited controls over information processing.



There
is an inadequate segregation of duties consistent with control objectives. Our Company’s management is composed of a small
number of individuals resulting in a situation where limitations on segregation of duties exist. In addition, we lack sufficient
internal accounting expertise with respect to SEC reporting requirements. In order to remedy this situation we would need to hire
additional staff. Currently, it is not feasible to hire additional staff to obtain optimal segregation of duties. Management will
reassess this matter in the following year to determine whether improvement in segregation of duty is feasible.



Accordingly,
as the result of identifying the above material weaknesses we have concluded that these control deficiencies resulted in a reasonable
possibility that a material misstatement of the annual or interim financial statements will not be prevented or detected on a
timely basis by the Company’s internal controls.



Management
believes that the material weaknesses set forth above were the result of the scale of our operations and are intrinsic to our
small size. Management believes these weaknesses did not have a material effect on our financial results and intends to take remedial
actions upon receiving funding for the Company’s business operations.



This
annual report does not include an attestation report of our registered public accounting firm regarding internal control over
financial reporting. Management’s report was not subject to attestation by our registered public accounting firm pursuant
to temporary rules of the SEC that permit the Company to provide only management’s report herein.



(c)
CHANGES IN INTERNAL CONTROLS OVER FINANCIAL REPORTING



We
are committed to improving our financial organization. As part of this commitment, we will create a position to segregate duties
consistent with control objectives and will increase our personnel resources and technical accounting expertise within the accounting
function when funds are available to us by preparing and implementing sufficient written policies and checklists which will set
forth procedures for accounting and financial reporting with respect to the requirements and application of US GAAP and SEC disclosure
requirements.



Management
believes that preparing and implementing sufficient written policies and checklists will remedy the material weaknesses pertaining
to insufficient written policies and procedures for accounting and financial reporting with respect to the requirements and application
of US GAAP and SEC disclosure requirements. We intend to take appropriate and reasonable steps to make the necessary improvements
to remediate these deficiencies, including:



|(1) | We
    will revise processes to provide for a greater role of independent board members in the oversight and review until such time
    that we are adequately capitalized to permit hiring additional personnel to address segregation of duties issues, ineffective
    controls over the revenue cycle and insufficient supervision and review by our corporate management.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                               
|(2) | We
    will continue to update the documentation of our internal control processes, including formal risk assessment of our financial
    reporting processes.                                                                                                                                                                                                                



We
intend to consider the results of our remediation efforts and related testing as part of our year-end 2014 assessment of the effectiveness
of our internal control over financial reporting.



Subsequent
to December 31, 2014, we have undertaken the following steps to address the deficiencies stated above:



| | ● | Continued
    the development and documentation of internal controls and procedures surrounding the financial reporting process, primarily
    through the use of account reconciliations, and supervision.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Item
9B. Other Information.



Not
applicable.



25







PART
III



Item
10. Directors, Executive Officers and Corporate Governance.



Directors
and Executive Officers



The
following table discloses our directors and executive officers as of April 15, 2015.



|Name                     |  | Age |  | Position                             
|------------------------ |  | --- |  | -------------------------------------
|Jose P. Quiros           |  | 47  |  | Chief Executive
    Officer, Chairman
|                         |  |     |  |                                      
|Jaime L. Kniep           |  | 38  |  | Chief Financial
    Officer, Director
|                         |  |     |  |                                      
|Ing. Pedro P.
    Quiros |  | 76  |  | Director                             



Jose
P. Quiros, age 47, Chief Executive Officer, Chairman



Mr.
Quiros has worked at a variety of industries and companies from start-ups to Fortune 1000 companies. He has operated companies
in the UK, Dubai, India, Russia and the US. Most recently, Mr. Quiros was the Chief Operating Officer for CETIS, a telecommunications
manufacturer from 2006 through 2010. While at CETIS, he undertook a multi continent expansion and completed two successful mergers
and acquisitions.



Mr.
Quiros received two Bachelor of Science from Barry University in Miami. He holds degrees in Economics/ Finance & International
Business Management and graduated Summa Cum Laude. Mr. Quiros also attended the University of Miami School of Law.



Ing.
Pedro P. Quiros, age 76, Director



Ing.
Pedro P. Quiros (“Ing. Quiros”), began his career as a high level executive at the Instituto Costarricense de Electricidad
(ICE). Over the past 50 years, he has had a varied career where he worked at a variety of multinational corporations such as Ascom-Timeplex,
ITT, Harris Corporation, General Electric and GTECH to name a few. He has operated, restructured and started companies in more
than a dozen countries including telecommunications systems in Saudi Arabia, Jordan, Brazil and Colombia. Most recently, Ing.
Quiros served, from 2006 through 2010, as the Chief Executive Officer & Chairman of the Instituto Costarricense de
Electricidad(Grupo ICE) where he oversaw that company’s telecommunications and electrical utilities companies.
ICE has revenue of $1 billion, over twenty thousand employees and is Costa Rica’s predominant state owned telecommunications
and energy company.



Ing.
Quiros received his Bachelor’s Degree in Mathematics from St. Michael’s College, Vermont, (magna cum laude) and Bachelor’s
Degree Electrical Engineering degree from Purdue University, Indiana.



26







Jaime
L. Kniep, age 38, Chief Financial Officer, Director



Ms.
Kniep has focused her career in business management and accounting. She has worked for several companies directly handling their
financials, daily accounting practices and overall internal procedures. From 2000 to 2010, Ms. Kniep served in a variety or roles
and rose to be the Financial Controller for CETIS, Inc., a manufacturer of telecommunications equipment, where she managed $30
mm in revenues. In this role, she managed four offices containing a staff of ten accountants, bookkeepers, and administrative
people on three continents.



Ms.
Kniep attended Utah State University.



Family
Relationships.



The
Chairman of the Board, Mr. Jose Quiros is the son of our Director, Mr. Ing. Pedro P. Quiros.



Board
Committees and Charters



We
currently have no committees of the Board of Directors of the Company.



Involvement
in Certain Legal Proceedings



During
the past five years no director, person nominated to become a director, executive officer, promoter or control person of the Company
has: (i) had any bankruptcy petition filed by or against any business of which such person was a general partner or executive
officer either at the time of the bankruptcy or within two years prior to that time; (ii) been convicted in a criminal proceeding
or been subject to a pending criminal proceeding (excluding traffic violations and other minor offenses); (iii) been subject to
any order, judgment, or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently
or temporarily enjoining, barring, suspending or otherwise limiting his involvement in any type of business, securities or banking
activities; or (iv) been found by a court of competent jurisdiction (in a civil action), the Commission or the Commodity Futures
Trading Commission to have violated a federal or state securities or commodities law, and the judgment has not been reversed,
suspended, or vacated.



COMPLIANCE
WITH SECTION 16(A) OF THE EXCHANGE ACT



Section
16(a) of the Exchange Act requires the Company’s directors, executive officers and persons who beneficially own 10% or more
of a class of securities registered under Section 12 of the Exchange Act to file reports of beneficial ownership and changes in
beneficial ownership with the SEC. Directors, executive officers and greater than 10% stockholders are required by the rules and
regulations of the SEC to furnish the Company with copies of all reports filed by them in compliance with Section 16(a).



Based
solely on our review of certain reports filed with the Securities and Exchange Commission pursuant to Section 16(a) of the Securities
Exchange Act of 1934, as amended, the reports required to be filed with respect to transactions in our common stock during the
fiscal year ended December 31, 2014, were timely.



Code
of Ethics



The
Company has had a Code of Ethics since the merger and has this Code posted on its website along with its Corporate Governance
documents.



27







Item
11. Executive Compensation.



The
following summary compensation table sets forth all compensation awarded to, earned by, or paid to the named executive officers
paid by us during the periods ended December 31, 2014, 2013 and 2012.



|Name
    andPrincipalPosition              |  | Year |      |  | Salary$) |   |         | Bonus($) |  |   | StockAwards($) |  |  | OptionAwards($) |      |  | NonequityIncentivePlanCompensation($) |   |      | NonqualifiedDeferredCompensationEarnings ($) |  | All
    OtherCompensation($) |      |  | Total($)
|------------------------------------------ |  | ---- | ---- |  | -------- | - | ------- | -------- |  | - | -------------- |  |  | --------------- | ---- |  | ------------------------------------- | - | ---- | -------------------------------------------- |  | ---------------------------- | ---- |  | --------
|(a)                                        |  | (b)  |      |  | (c)      |   |         | (d)      |  |   | (e)            |  |  | (f)             |      |  | (g)                                   |   |      | (h)                                          |  | (i)                          |      |  | (j)     
|Jose P. Quiros President & CEO(1)          |  |      | 2014 |  |          | $ | 130,000 |          |  | $ | 0.00           |  |  | $               | 0.00 |  |                                       | $ | 0.00 |                                              |  | $                            | 0.00 |  |         
|                                           |  |      | 2013 |  |          | $ | 130,000 |          |  | $ | 0.00           |  |  | $               | 0.00 |  |                                       | $ | 0.00 |                                              |  | $                            | 0.00 |  |         
|                                           |  |      | 2012 |  |          | $ | 130,000 |          |  | $ | 0.00           |  |  | $               | 0.00 |  |                                       | $ | 0.00 |                                              |  | $                            | 0.00 |  |         
|                                           |  |      |      |  |          |   |         |          |  |   |                |  |  |                 |      |  |                                       |   |      |                                              |  |                              |      |  |         
|Jaime L. Kniep Chief Financial  Officer(2) |  |      | 2014 |  |          | $ | 100,000 |          |  | $ | 0.00           |  |  | $               | 0.00 |  |                                       | $ | 0.00 |                                              |  | $                            | 0.00 |  |         
|                                           |  |      | 2013 |  |          | $ | 100,000 |          |  | $ | 0.00           |  |  | $               | 0.00 |  |                                       | $ | 0.00 |                                              |  | $                            | 0.00 |  |         
|                                           |  |      | 2012 |  |          | $ | 100,000 |          |  | $ | 0.00           |  |  | $               | 0.00 |  |                                       | $ | 0.00 |                                              |  | $                            | 0.00 |  |         



| | (1) | The
    following amounts were accrued $72,231, $82,820, $125,000, for 2014, 2013 and 2012, respectively.
| | --- | ---------------------------------------------------------------------------------------------------------
| |     |                                                                                                          
| | (2) | The
    following amounts were accrued $91,569, $55,000, $95,000 for 2014, 2013 and 2012, respectively.  



We
currently do not have any retirement, pension, profit-sharing, stock options or insurance programs for the benefit of our employees.



Members
of the Company’s Board of Directors receive a stipend of $100 per meeting per director.



Currently,
the Company does not have an equity incentive plan and therefore has no outstanding equity awards as of April 15, 2015.



Employment
Contracts



Currently,
the Company has employment contracts with Mr. Jose P. Quiros and Mrs. Jaime L. Kniep.



Mr.
Jose Quiros



Effective
October 15, 2012, the Company and Mr. Jose P Quiros, our President and Chief Executive Officer, entered into a five (5) year employment
agreement, which provides for an annual salary of $130,000. Under such agreement, Mr. Quiros shall administer, supervise, manage
and control the business development of the Company and conduct day to day managerial duties as are customary for such a position.
The Company will provide Mr. Quiros with medical dental and life insurance. The Company will reimburse of all his reasonable and
necessary travel, entertainment or other related expenses incurred by him in carrying out his duties and responsibilities under
the agreement.



The
Company may terminate Mr. Quiros with or without cause upon thirty (30) days written notice. In the event that Mr. Quiros is terminated
without cause all compensation owed to him will be due immediately upon such termination. During the term of his employment, Mr.
Quiros will not work for or provide any services in any capacity to any competitor during the term of his employment and for (1)
year thereafter.



Mrs.
Jaime L. Kniep.



Effective
October 15, 2012, the Company and Mrs. Jaime L Kniep, our Chief Financial Officer, entered into a five (5) year employment agreement,
which provides for an annual salary of $100,000. Under such agreement, Mrs. Kniep shall perform such duties as are customary with
her position including, but not limited to, managing the Company’s finances and reviewing and preparing financials statements.
The Company will provide Mrs. Kniep with medical dental and life insurance. The Company will reimburse of all her reasonable and
necessary travel, entertainment or other related expenses incurred by him in carrying out her duties and responsibilities under
the agreement.



The
Company may terminate Mrs. Kniep with or without cause upon thirty (30) days written notice. In the event that Mrs. Kniep is terminated
without cause all compensation owed to her will be due immediately upon such termination. During the term of her employment, Mrs.
Kniep will not work for or provide any services in any capacity to any competitor during the term of her employment and for (1)
year thereafter.



28







Item
12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.



The
following table summarizes certain information regarding the beneficial ownership (as such term is defined in Rule 13d-3 under
the Securities Exchange Act of 1934) of outstanding Common Stock and Preferred Stock as of April 15, 2015, by (i) each person
known by us to be the beneficial owner of more than 5% of the outstanding Common Stock, (ii) each of our directors, (iii) each
of our named executive officers (as defined in Item 403(a) of Regulation S-K under the Securities Act), and (iv) all executive
officers and directors as a group. Except as indicated in the footnotes below, the security and stockholders listed on the following
page possess sole voting and investment power with respect to their shares.





|                                                |  | Common
    Stock (4)       |             |  | Series
    A Preferred Stock (4) |  |       | Series
    B Preferred Stock (4) |  |  | Series
    C Preferred Stock (4) |  |  |                            | 
|----------------------------------------------- |  | -------------------------- | ----------- |  | -------------------------------- |  | ----- | -------------------------------- |  |  | -------------------------------- |  |  | -------------------------- | 
|Nameand Address of Beneficial Owner(1)(2)       |  | Number
    of Shares Owned |             |  | Percent
    of Class             |  |       | Number
    of Shares Owned       |  |  | Percent
    of Class             |  |  | Number
    of Shares Owned | 
|Versant I, Inc. (3)                             |  |                            | 100,000,000 |  |                                  |  | 11.05 | %                                |  |  |                                  |  |  |                            | 
|José P. Quiros                                  |  |                            |             |  |                                  |  |       |                                  |  |  |                                  |  |  |                            | 
|Jaime L. Kniep                                  |  |                            |             |  |                                  |  |       |                                  |  |  |                                  |  |  |                            | 
|Pedro Quiros                                    |  |                            |             |  |                                  |  |       |                                  |  |  |                                  |  |  |                            | 
|All Directors and Executive Officers as a Group |  |                            | 100,000,000 |  |                                  |  | 11.05 | %                                |  |  |                                  |  |  |                            | 





29







(1)
Except as otherwise indicated, the persons named in this table have sole voting and investment power with respect to all shares
of common stock shown as beneficially owned by them, subject to community property laws where applicable and to the information
contained in the footnotes to this table. Unless otherwise stated, the address of all beneficial owners is 10 Boulder Crescent,
Suite 102, Colorado Springs, CO 80903.



(2)
Pursuant to Rules 13d-3 and 13d-5 of the Exchange Act, beneficial ownership includes any shares as to which a shareholder has
sole or shared voting power or investment power, and also any shares which the shareholder has the right to acquire within 60
days, including upon exercise of common shares purchase options or warrants. There are 145,697,286 shares of common stock, 1,800,000
shares of Series A Preferred Stock, 1,400,000,000 shares of Series B Preferred stock and 0 shares of series C Preferred Stock,
respectively, issued and outstanding as of April 15, 2015 including securities exercisable or convertible into shares of Common
Stock within sixty (60) days hereof for each stockholder.



(3)
The shares held by Versant I, Inc. are owned by Jose P. Quiros, our Chief Executive Officer.



(4)
The Common Stock, Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock have voting rights of 1 vote
per share, 1 vote per share, 1.6 votes per share and 0 votes per shares, respectively.



General



The
Company is authorized by its Certificate of Incorporation to issue an aggregate of 4,001,925,000 shares of capital stock, of which
2,600,000,000 are shares of common stock, par value $0.001 per share (the “Common Stock”), and 1,800,000 are shares
of Series A preferred stock, par value $1.00 per share, 1,400,000,000 are shares of Series B preferred stock, par value $0.001
per share, and 125,000 are shares of Series C preferred stock, par value $0.001 per share (collectively the “Preferred Stock”).
As of April 15, 2015, 145,697,286 shares of Common Stock, 1,800,000 shares of Series A Preferred Stock, and 1,400,000,000 shares
of Series B Preferred Stock were issued and outstanding.



(1)
Common Stock



The
holders of our Common Stock (i) have equal ratable rights to dividends from funds legally available therefore, when, as and if
declared by our Board of Directors; (ii) are entitled to share ratably in all of our assets available for distribution to holders
of common stock upon liquidation, dissolution or winding up of our affairs; (iii) do not have pre-emptive, subscription or conversion
rights and there are no redemption or sinking fund provisions or rights; and (iv) are entitled to one non-cumulative vote per
share on all matters on which shareholders may vote.



The
shares of our Common Stock are not subject to any future call or assessment and all have equal voting rights. There are no special
rights or restrictions of any nature attached to any of the shares of our Common Stock and they all rank at equal rate or “paripassu”,
or each with the other, as to all benefits, which might accrue to the holders of the shares of our Common Stock. All registered
shareholders are entitled to receive a notice of any general annual meeting to be convened.



At
any general meeting, subject to the restrictions on joint registered owners of shares of our Common Stock, on a showing of hands,
every shareholder who is present in person and entitled to vote has one vote, and on a poll every shareholder has one vote for
each share of our Common Stock of which he is the registered owner and may exercise such vote either in person or by proxy. Holders
of shares of our Common Stock do not have cumulative voting rights, which means that the holders of more than 50% of the outstanding
shares, voting for the election of directors, can elect all of the directors to be elected, if they so choose, and, in such event,
the holders of the remaining shares will not be able to elect any of our directors.



(2)
Preferred Stock



Our
Board of Directors is authorized to issue 1,401,925,000 shares of preferred stock in one or more series, from time to time, with
each such series to have such designation, relative rights, preferences or limitations as shall be stated and expressed in the
resolution or resolutions providing for the issue of such series adopted by the Board of Directors, subject to the limitations
prescribed by law and in accordance with the provisions of our Certificate of Incorporation, the Board of Directors being expressly
vested with authority to adopt any such resolution or resolutions.



30







Shares
of voting or convertible preferred stock could be issued, or rights to purchase such shares could be issued, to create voting
impediments or to frustrate persons seeking to effect a takeover or otherwise gain control of our Company. The ability of the
Board to issue such additional shares of preferred stock, with rights and preferences it deems advisable, could discourage an
attempt by a party to acquire control of our Company by tender offer or other means. Such issuances could therefore deprive shareholders
of benefits that could result from such an attempt, such as the realization of a premium over the market price for their shares
in a tender offer or the temporary increase in market price that such an attempt could cause.



Series
A Convertible Preferred Stock



As
of April 15, 2015, 1,800,000 shares of our Series A Preferred Stock (the “Series A Preferred”) have been designated,
of which 1,800,000 are issued and outstanding and held by five shareholders. Each share of the Series A Preferred has one vote
per share and the holder(s) of the Series A Preferred shall have the right to vote with the holders of the Company’s Common
Stock on all matters that are submitted to the Company’s stockholders. Each share of the Series A Preferred Stock shall
be entitled to a 10% preferred annual dividend on Par ($0.10 per share) non-cumulative on any dividends, whether ordinary or liquidating
that may be declared or paid by this Company. At the option of the holder of the Series A Preferred, each share of the Series
A Preferred may be converted into the Company’s common stock at any time and from time to time after March 1, 2018. The
Series A Preferred does not contain any sinking fund provisions.



Series
B Convertible Preferred Stock



As
of April 15, 2015, 1,400,000,000 shares of our Series B Preferred Stock have been designated, of which all are issued and outstanding
and held by one shareholder. Each share of the Series B Preferred Stock (the “Series B Preferred”) shall have a 1.6
votes per share and shall be entitled to any non-preferred dividends, whether ordinary or liquidating, that may be declared or
paid by the Company. The Series Preferred do not have contain any sinking fund provisions and have no conversion rights.



Series
C Convertible Preferred Stock



As
of April 15, 2015, 125,000 shares of our Series C Preferred Stock (the “Series C Preferred”) have been designated,
of which none are currently issued and outstanding. The Series C Preferred do not have voting rights and are not entitled to any
dividends. The Series C preferred do not contain any sinking fund provisions.



At
the option of the holder of the Series C Preferred, each share of the Series C Preferred may be converted into the Company’s
Common Stock at a 50% discount to the average of the lowest three (3) trading prices in the ten trading days immediately prior
to the date upon which the Series C Preferred is converted.



Dividends



We
have not paid any cash dividends to our shareholders. The declaration of any future cash dividends is at the discretion of our
board of directors and depends upon our earnings, if any, our capital requirements and financial position, our general economic
conditions, and other pertinent conditions. It is our present intention not to pay any cash dividends in the foreseeable future,
but rather to reinvest earnings, if any, in our business operations.



While
there is not an established public trading market for our Common Stock, our Common Stock is quoted on the OTCQB under the symbol
“STLK”.



The
market price of our Common Stock is subject to significant fluctuations in response to variations in our quarterly operating results,
general trends in the market and other factors, over many of which we have little or no control. In addition, broad market fluctuations,
as well as general economic, business and political conditions, may adversely affect the market for our Common Stock, regardless
of our actual or projected performance.



31







Transfer
Agent and Registrar



The
Company’s transfer agent is VStock Transfer, LLC, 18 Lafayette Place, Woodmere, NY 11598. VStock Transfer, LLC is registered
under the Exchange Act and is a Securities and Exchange Commission (“SEC”) approved transfer agent, under the regulatory
authority of the SEC.



Holders



As
of April 15, 2015, we have 145,697,286 shares of our common stock par value, $0.001, issued and outstanding. There are approximately
195 holders of our common stock.



Item
13. Certain Relationships and Related Transactions, and Director Independence.



Our Director, Mr. Ing. Pedro P. Quiros is
the father of our Chief Executive Officer, Mr. Jose P. Quiros.



The
Company incurred consulting expenses to a company, which is owned by Pedro P. Quiros, a board member, and for the fiscal year
ended December 31, 2014 amount was $82,500. These consulting expenses correlate to the setup of the wind farm operation in Costa
Rica.



The
Company executed various promissory notes to related parties since inception. New notes were issued for the year ending December
31, 2014.



The
notes had the following range of terms:



|● | Maturing
    in 3 months to 1 year;        
|- | -------------------------------------------
|  |                                            
|● | Non-interest
    bearing                   
|  |                                            
|● | Unsecured                                  
|  |                                            
|● | Default
    interest rate at 6%, per annum;



During
the year ended December 31, 2014 and December 31, 2013, the Company repaid $34,071 and $2,925, respectively leaving a balance
of $42,751 and $73,949 respectively.



The
Company is currently in default on $39,877 of these notes.



The
Company has not had and does not currently have any promoters.



32







Related
Party Notes Payable



|                                                                                                                                                                                                                                                         |  | Amount
    Outstanding at December 31, 2014 |        |  | Amount
    Outstanding at December 31, 2013 |  
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------------------------------------- | ------ |  | ------------------------------------------- | -
|In October 2010, Jaime L. Kniep loaned the Company $3,500. This note has an interest
    rate of 6% and has been paid in full as of December 31, 2014                                                                                                    |  |                                             | -      |  |                                             | $
|                                                                                                                                                                                                                                                         |  |                                             |        |  |                                             |  
|In November 2010, Pedro P. Quiros loaned the Company $20,000. This note has an interest rate
    of 6% and is in default. Accrued interest is $3,600 as of December 31, 2014. No payments to interest or principle have been
    made against this note. |  |                                             | 20,000 |  |                                             |  
|                                                                                                                                                                                                                                                         |  |                                             |        |  |                                             |  
|In November 2010, Jaime L. Kniep loaned the Company $20,000. This note has an interest rate
    of 6% and has been paid in full as of December 31, 2014                                                                                                  |  |                                             | -      |  |                                             |  
|                                                                                                                                                                                                                                                         |  |                                             |        |  |                                             |  
|In December 2010, Jaime L. Kniep loaned the Company $2,000. This note has an interest rate
    of 6% and has been paid in full as of December 31, 2014                                                                                                   |  |                                             | -      |  |                                             |  
|                                                                                                                                                                                                                                                         |  |                                             |        |  |                                             |  
|In February 2011, Jaime L. Kniep loaned the Company $4,000. This note has an interest rate
    of 6% and has been paid in full as of December 31, 2014                                                                                                   |  |                                             | -      |  |                                             |  
|                                                                                                                                                                                                                                                         |  |                                             |        |  |                                             |  
|In February 2012, Jaime L. Kniep loaned the Company $3,500. This note has an interest rate
    of 6% and has been paid in full as of December 31, 2014                                                                                                   |  |                                             | -      |  |                                             |  
|                                                                                                                                                                                                                                                         |  |                                             |        |  |                                             |  
|In March 2012, Pedro P. Quiros loaned the Company $10,000. This note has an interest rate
    of 6% and is in default. Accrued interest is $1,350 as of December 31, 2014. No payments to interest or principle have been
    made against this note.    |  |                                             | 10,000 |  |                                             |  
|                                                                                                                                                                                                                                                         |  |                                             |        |  |                                             |  
|In March 2012, Jaime L. Kniep loaned the Company $3,500. This note has an interest rate of
    6% and has been paid in full as of December 31, 2014                                                                                                      |  |                                             | -      |  |                                             |  
|                                                                                                                                                                                                                                                         |  |                                             |        |  |                                             |  
|In April 2012, Jaime L. Kniep loaned the Company $7,500. This note has an interest rate of
    6% and has been paid in full as of December 31, 2014                                                                                                      |  |                                             | -      |  |                                             |  
|                                                                                                                                                                                                                                                         |  |                                             |        |  |                                             |  
|In May 2012, Jaime L. Kniep loaned the Company $1,100. This note has an interest rate of 6%
    and has been paid in full as of December 31, 2014                                                                                                        |  |                                             | -      |  |                                             |  
|                                                                                                                                                                                                                                                         |  |                                             |        |  |                                             |  
|In July 2012, Pedro P. Quiros loaned the Company $9,878. This note has an interest rate of
    6% and is in default. Accrued interest is $1,185 as of December 31, 2014. No payments to interest or principle have been made
    against this note.      |  |                                             | 9,878  |  |                                             |  
|                                                                                                                                                                                                                                                         |  |                                             |        |  |                                             |  
|                                                                                                                                                                                                                                                         |  |                                             |        |  |                                             |  
|In December 31, 2014, Pedro P. Quiros loaned the Company $2,873. This note has an interest
    rate of 6%, beginning in 2015.. No payments to interest or principle have been made against this note.                                                    |  |                                             | 2,873  |  |                                             |  
|                                                                                                                                                                                                                                                         |  | $                                           | 42,751 |  |                                             | $



Director
Independence



The
common stock of the Company is currently quoted on the OTCQB quotation systems which currently do not have director independence
requirements. On an annual basis, each director and executive officer will be obligated to disclose any transactions with the
Company in which a director or executive officer, or any member of his or her immediate family, have a direct or indirect material
interest in accordance with Item 407(a) of Regulation S-K. Following completion of these disclosures, the Board will make an annual
determination as to the independence of each director using the current standards for “independence” that satisfy
the criteria for the NASDAQ.



For
purposes of determining independence, the Company has adopted the definition of independence as contained in NASDAQ Market Place
Rules 4200.



33







Item
14. Principal Accounting Fees and Services.



Audit
Fees



Audit
Fees consist of assurance and related services that are reasonably related to the performance of the audit or review of our financial
statements. The aggregate audit fees billed during the fiscal years ended December 31, 2014 and 2013 were $36,650 and $50,000,
respectively.



Audit
Related Fees



The
aggregate fees billed for assurance and related services by our principal accountant that are reasonably related to the performance
of the audit or review of our financial statements, other than those previously reported in this Item 14, during the fiscal years
ended December 31, 2014 and 2013 were $3,880 and $11,000, respectively.



Tax
Fees



Tax
fees consist of the aggregate fees billed for professional services rendered by our principal accounts for tax compliance, tax
advice, and tax planning. These services include preparation for federal and state income tax returns. The aggregate tax fees
billed for the fiscal years ended December 31, 2014 and 2013 were $0 and $0, respectively.



Audit
Committee Pre-Approval Policies and Procedures



As
of December 31, 2014 we did not have an audit committee. Our board of directors pre-approved all services provided by our independent
auditors



Item
15. Exhibits, Financial Statement Schedules



|3.1     |  | Amended
    and restated Articles of Incorporation (incorporated by reference to Exhibit 3.1 to the Company’s Form 10 registration
    statement filed with the Securities and Exchange Commission on July 30, 2013)                                                                                              
|------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|        |  |                                                                                                                                                                                                                                                                                                                   
|3.2     |  | By-Laws
    (incorporated by reference to Exhibit 3.2 to the Company’s Form 10 registration statement filed with the Securities
    and Exchange Commission on July 30, 2013)                                                                                                                                     
|        |  |                                                                                                                                                                                                                                                                                                                   
|10.1    |  | Employment
    Agreement, dated October 15, 2012 by and between the Company and Jose Quiros (incorporated by reference to Exhibit 10.1 to
    the Company’s Form 10 registration statement filed with the Securities and Exchange Commission on July 30, 2013)                                                    
|        |  |                                                                                                                                                                                                                                                                                                                   
|10.2    |  | Employment
    Agreement, dated October 15, 2012 by and between the Company and Jaime L. Kniep (incorporated by reference to Exhibit 3102
    to the Company’s Form 10 registration statement filed with the Securities and Exchange Commission on July 30, 2013)                                                 
|        |  |                                                                                                                                                                                                                                                                                                                   
|10.3    |  | Letter
    of Intent with SIEPAC (including English translation) (incorporated by reference to Exhibit 10.3 to the Company’s Form
    10 registration statement filed with the Securities and Exchange Commission on December 9, 2013)                                                                            
|        |  |                                                                                                                                                                                                                                                                                                                   
|10.4    |  | Letter
    of Interest from CNFL (incorporated by reference to Exhibit 10.4 to the Company’s Form 10 registration statement filed
    with the Securities and Exchange Commission on July 30, 2013)                                                                                                               
|        |  |                                                                                                                                                                                                                                                                                                                   
|10.5    |  | Letter
    of Interest from Ex-Im Bank (incorporated by reference to Exhibit 10.5 to the Company’s Form 10 registration statement
    filed with the Securities and Exchange Commission on July 30, 2013)                                                                                                         
|        |  |                                                                                                                                                                                                                                                                                                                   
|10.6    |  | Strategic Alliance and Distribution Agreement,
    dated June 26, 2014, by and between the Company and Call Management Products, Inc. (incorporated by reference to Exhibit 10.7
    of the Company’s Form 10/A registration statement filed with the Securities and Exchange Commission on December 11,
    2015)
|        |  |                                                                                                                                                                                                                                                                                                                   
|31.1    |  | Certification
    by the Principal Executive Officer of Registrant pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (Rule 13a-14(a)
    or Rule 15d-14(a)).*                                                                                                                                             
|        |  |                                                                                                                                                                                                                                                                                                                   
|31.2    |  | Certification
    by the Principal Financial Officer of Registrant pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (Rule 13a-14(a)
    or Rule 15d-14(a)).*                                                                                                                                             
|        |  |                                                                                                                                                                                                                                                                                                                   
|32.1    |  | Certification
    by the Principal Executive Officer pursuant to 18 U.S.C. 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act
    of 2002.*                                                                                                                                                        
|        |  |                                                                                                                                                                                                                                                                                                                   
|32.2    |  | Certification
    by the Principal Financial Officer pursuant to 18 U.S.C. 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act
    of 2002.*                                                                                                                                                        
|        |  |                                                                                                                                                                                                                                                                                                                   
|101.INS |  | XBRL
    Instance Document**                                                                                                                                                                                                                                                                                      
|        |  |                                                                                                                                                                                                                                                                                                                   
|101.SCH |  | XBRL
    Taxonomy Extension Schema Document**                                                                                                                                                                                                                                                                     
|        |  |                                                                                                                                                                                                                                                                                                                   
|101.CAL |  | XBRL
    Taxonomy Extension Calculation Linkbase Document**                                                                                                                                                                                                                                                       
|        |  |                                                                                                                                                                                                                                                                                                                   
|101.DEF |  | XBRL
    Taxonomy Extension Definition Linkbase Document**                                                                                                                                                                                                                                                        
|        |  |                                                                                                                                                                                                                                                                                                                   
|101.LAB |  | XBRL
    Taxonomy Extension Label Linkbase Document**                                                                                                                                                                                                                                                             
|        |  |                                                                                                                                                                                                                                                                                                                   
|101.PRE |  | XBRL
    Taxonomy Extension Presentation Linkbase Document**                                                                                                                                                                                                                                                      



*
Filed Herewith.



**In
accordance with Regulation S-T, the XBRL-formatted interactive data files that comprise Exhibit 101 in this annual report on Form
10-K shall be deemed “furnished” and not “filed”.



34







SIGNATURES



Pursuant
to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report
to be signed on its behalf by the undersigned, thereunto duly authorized.



|                             | STL
    MARKETING GROUP, INC.
|---------------------------- | -----------------------------
|                             |                              
|Date: December
    11 , 2015 | By:                          
|                             | Name:                        
|                             | Title:                       
|                             |                              
|                             |                              
|                             | By:                          
|Date: December
    11 , 2015 | Name:                        
|                             | Title:                       
|                             |                              
|                             |                              



In
accordance with the Exchange Act, this report has been signed below by the following persons on behalf of the registrant and in
the capacities and on the dates indicated.



|Signature                   |  | Title                                                            |  | Date                  
|--------------------------- |  | ---------------------------------------------------------------- |  | ----------------------
|                            |  |                                                                  |  |                       
|/s/
    Jose P. Quiros      |  | Chief
    Executive Officer, Chairman                            |  | December
    11 , 2015
|Jose P. Quiros              |  | (Principal Executive
    Officer)                                |  |                       
|                            |  |                                                                  |  |                       
|/s/
    Ing. Pedro P.Quiros |  | Director                                                         |  | December
    11 , 2015
|Ing. Pedro P.Quiros         |  |                                                                  |  |                       
|                            |  |                                                                  |  |                       
|/s/
    Jaime Kniep         |  | Chief
    Financial Officer, Director                            |  | December 11 , 2015    
|Jaime Kniep                 |  | (Principal Financial
    Officer) (Principal Accounting Officer) |  |                       



35







STL
Marketing Group, Inc. & Subsidiaries

Consolidated
Financial Statements



December
31, 2014 and 2013



INDEX TO CONSOLIDATED
FINANCIAL STATEMENTS



|                                                            |  | PAGES
|----------------------------------------------------------- |  | -----
|Report of Independent
    Registered Public Accounting Firm |  | F-2  
|Consolidated balance sheets                                 |  | F-3  
|Consolidated statements of
    operations                   |  | F-4  
|Consolidated statements of
    cash flows                   |  | F-5  
|Consolidated statements of
    stockholders’ deficit        |  | F-6  
|Notes to the consolidated
    financial statements          |  | F-7  



F-1







REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM





To the Board
of Directors and
Stockholders of STL Marketing Group, Inc.



We
have audited the accompanying consolidated balance sheets of STL Marketing Group, Inc. as of December 31, 2014 and 2013, and the
related statements of operations, stockholders’ deficit, and cash flows for the years then ended. STL Marketing Group Inc.’s
management is responsible for these financial statements. Our responsibility is to express an opinion on these financial statements
based on our audits.



We
conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those
standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are
free of material misstatement. The company is not required to have, nor were we engaged to perform, an audit of its internal control
over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing
audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes
examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting
principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.



In
our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of STL
Marketing Group, Inc. as of December 31, 2014 and 2013, and the results of its operations and its cash flows for the years then
ended in conformity with accounting principles generally accepted in the United States of America.



The
accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern.
As more fully discussed in Note 2 to the financial statements, the Company had a net loss of $771,742, net cash used in operations
of $286,175 and a working capital deficit approximately $5,108,000. These conditions raise substantial doubt about its ability
to continue as a going concern. Management’s plans in regard to these matters are also described in Note 2. The financial
statements do not include any adjustments that might result from the outcome of this uncertainty.



/s/
Rosenberg Rich Baker Berman & Company



Somerset, NJ

April 21, 2015



F-2







STL
Marketing Group, Inc. & Subsidiaries

Consolidated
Balance Sheets



|                                                                                                                                                                                          |  | December
    31, 2014 |            |   | December
    31, 2013 |  
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | --------------------- | ---------- | - | --------------------- | -
|                                                                                                                                                                                          |  |                       |            |   |                       |  
|Assets                                                                                                                                                                                    |  |                       |            |   |                       |  
|                                                                                                                                                                                          |  |                       |            |   |                       |  
|Current Assets                                                                                                                                                                            |  |                       |            |   |                       |  
|Cash                                                                                                                                                                                      |  | $                     | 102        |   |                       | $
|Deferred offering costs                                                                                                                                                                   |  |                       | 84,070     |   |                       |  
|Total
    Current Assets                                                                                                                                                                  |  |                       | 84,172     |   |                       |  
|                                                                                                                                                                                          |  |                       |            |   |                       |  
|Property and Equipment,
    net                                                                                                                                                           |  |                       | 5,755      |   |                       |  
|                                                                                                                                                                                          |  |                       |            |   |                       |  
|Other Assets                                                                                                                                                                              |  |                       |            |   |                       |  
|Security deposits                                                                                                                                                                         |  |                       | 1,135      |   |                       |  
|Total
    Other Assets                                                                                                                                                                    |  |                       | 1,135      |   |                       |  
|                                                                                                                                                                                          |  |                       |            |   |                       |  
|Total Assets                                                                                                                                                                              |  | $                     | 91,062     |   |                       | $
|                                                                                                                                                                                          |  |                       |            |   |                       |  
|Liabilities and
    Stockholders’ Deficit                                                                                                                                                 |  |                       |            |   |                       |  
|                                                                                                                                                                                          |  |                       |            |   |                       |  
|Current Liabilities:                                                                                                                                                                      |  |                       |            |   |                       |  
|Accounts payable and accrued liabilities                                                                                                                                                  |  | $                     | 1,062,173  |   |                       | $
|Accounts payable - related party                                                                                                                                                          |  |                       | 385,677    |   |                       |  
|Notes payable - related party                                                                                                                                                             |  |                       | 42,751     |   |                       |  
|Liability to be settled in stock                                                                                                                                                          |  |                       | 114,500    |   |                       |  
|Liability settlement                                                                                                                                                                      |  |                       | 18,681     |   |                       |  
|Notes payable, net of current maturities                                                                                                                                                  |  |                       | 60,000     |   |                       |  
|Current maturities of convertible notes payable, net of discount                                                                                                                          |  |                       | 978,069    |   |                       |  
|Derivative liabilities                                                                                                                                                                    |  |                       | 2,439,998  |   |                       |  
|Total
    Current Liabilities                                                                                                                                                             |  |                       | 5,101,849  |   |                       |  
|                                                                                                                                                                                          |  |                       |            |   |                       |  
|Total Liabilities                                                                                                                                                                         |  |                       | 5,101,849  |   |                       |  
|                                                                                                                                                                                          |  |                       |            |   |                       |  
|Commitments and
    Contingencies                                                                                                                                                         |  |                       |            |   |                       |  
|                                                                                                                                                                                          |  |                       |            |   |                       |  
|Stockholders’
    Deficit                                                                                                                                                                 |  |                       |            |   |                       |  
|Class A - Preferred Stock, 10% of Par Value, Non-Cumulative, $1.00 Par Value,
    1,800,000 Shares Authorized, 1,800,000 Shares Issued and 1,800,000 outstanding                          |  |                       | 1,800,000  |   |                       |  
|Class B - Preferred Stock, $0.001 Par Value, 1,400,000,000 Shares Authorized,
    1,400,000,000 Shares Issued and 1,400,000,000 outstanding                                               |  |                       | 1,400,000  |   |                       |  
|Class C - Preferred Stock, $0.001 Par Value, 125,000 Shares Authorized, Zero
    Shares Issued and Outstanding                                                                            |  |                       | -          |   |                       |  
|Common Stock, $0.001 Par Value, 2,600,000,000 Shares Authorized, 59,763,616
    Shares Issued and Outstanding at December 31, 2014, 9,281,568 Issued and Outstanding at December 31, 2013 |  |                       | 59,764     |   |                       |  
|Additional paid in capital - Preferred Stock                                                                                                                                              |  |                       | (232,000   | ) |                       |  
|Discount on Preferred Stock                                                                                                                                                               |  |                       | (2,466,999 | ) |                       |  
|Additional paid in capital - Common Stock                                                                                                                                                 |  |                       | 1,305,726  |   |                       |  
|Deficit                                                                                                                                                                                   |  |                       | (6,877,278 | ) |                       |  
|Total
    Stockholders’ Deficit                                                                                                                                                           |  |                       | (5,010,787 | ) |                       |  
|                                                                                                                                                                                          |  |                       |            |   |                       |  
|Total Liabilities
    and Stockholders’ Deficit                                                                                                                                           |  | $                     | 91,062     |   |                       | $



See
accompanying notes to the consolidated financial statements



F-3







STL
Marketing Group, Inc. & Subsidiaries

Consolidated
Statements of Operations



|                                                             |  | For
    the Year Ended |           
|------------------------------------------------------------ |  | ---------------------- | ----------
|                                                             |  | December
    31, 2014  |           
|                                                             |  |                        |           
|Revenues                                                     |  | $                      | -         
|                                                             |  |                        |           
|Cost
    of revenues                                         |  |                        | -         
|                                                             |  |                        |           
|Gross
    profit                                             |  |                        | -         
|                                                             |  |                        |           
|Operating expenses                                           |  |                        |           
|Compensation                                                 |  |                        | 243,304   
|Professional fees                                            |  |                        | 284,589   
|Selling, general and administrative                          |  |                        | 135,686   
|Total
    operating expenses                                 |  |                        | 663,579   
|                                                             |  |                        |           
|Loss
    from operations                                     |  |                        | (663,579  
|                                                             |  |                        |           
|Other income (expense):                                      |  |                        |           
|Interest expense                                             |  |                        | (461,234  
|Interest expense - discount on notes                         |  |                        | (407,398  
|Loss on Settlement Liability                                 |  |                        | (83,428   
|Change in fair value of derivative liabilities               |  |                        | 1,369,729 
|Derivative expense                                           |  |                        | (525,832  
|Loss on abandonment of land lease                            |  |                        | -         
|                                                             |  |                        |           
|Other
    income (expense) - net                             |  |                        | (108,163  
|                                                             |  |                        |           
|Loss
    before income tax provision                         |  |                        | (771,742  
|                                                             |  |                        |           
|Income
    tax provision                                     |  |                        | -         
|                                                             |  |                        |           
|Net
    Income (Loss)                                        |  | $                      | (771,742  
|                                                             |  |                        |           
|Net income/(loss) per common share - basic & diluted         |  | $                      | (0.03     
|                                                             |  |                        |           
|Weighted average common shares outstanding - basic & diluted |  |                        | 25,456,577



See
accompanying notes to the consolidated financial statements



F-4







STL
Marketing Group, Inc. & Subsidiaries

Consolidated
Statements of Cash Flows



|                                                                                          |  | For the Year Ended |           
|----------------------------------------------------------------------------------------- |  | ------------------ | ----------
|                                                                                          |  | December 31, 2014  |           
|                                                                                          |  |                    |           
|Cash Flows From
    Operating Activities:                                                 |  |                    |           
|Net Loss                                                                                  |  | $                  | (771,742  
|Adjustments to reconcile net loss to net cash used in operating activities                |  |                    |           
|Depreciation and amortization                                                             |  |                    | 2,116     
|Stock based compensation                                                                  |  |                    | 122,140   
|Amortization of debt discount                                                             |  |                    | 407,398   
|Change in fair value of derivative liabilities                                            |  |                    | (1,369,729
|Derivative expense                                                                        |  |                    | 509,902   
|Amortization of deferred offering costs                                                   |  |                    | 15,930    
|Financing fees                                                                            |  |                    | 83,428    
|Interest of debt converted below par                                                      |  |                    | 354,920   
|Changes in operating
    assets and liabilities:                                          |  |                    |           
|(Increase) decrease
    in:                                                               |  |                    |           
|Prepaid expenses                                                                          |  |                    | -         
|                                                                                          |  |                    |           
|Increase (decrease)
    in:                                                               |  |                    |           
|                                                                                          |  |                    |           
|Accounts payable and accrued liabilities                                                  |  |                    | 298,037   
|Accounts payable - related party                                                          |  |                    | 61,425    
|Net
    Cash Used in Operating Activities                                                 |  |                    | (286,175  
|                                                                                          |  |                    |           
|Cash Flows From
    Investing Activities:                                                 |  |                    |           
|Cash acquired in merger                                                                   |  |                    | -         
|Purchase of property and equipment                                                        |  |                    | (640      
|Loan to related party                                                                     |  |                    | -         
|Security deposits                                                                         |  |                    | 3,398     
|Net
    Cash Provided by (Used in) Investing Activities                                   |  |                    | 2,758     
|                                                                                          |  |                    |           
|Cash Flows From Financing Activities:                                                     |  |                    |           
|Proceeds from related party notes                                                         |  |                    | 2,873     
|Repayment of related party notes                                                          |  |                    | (34,071   
|Proceeds from issuance of common stock                                                    |  |                    | -         
|Proceeds from convertible notes                                                           |  |                    | 314,000   
|Net
    Cash Provided by Financing Activities                                             |  |                    | 282,802   
|                                                                                          |  |                    |           
|Net change in cash                                                                        |  |                    | (615      
|                                                                                          |  |                    |           
|Cash at beginning of period                                                               |  |                    | 717       
|                                                                                          |  |                    |           
|Cash
    at end of period                                                                 |  | $                  | 102       
|                                                                                          |  |                    |           
|Supplemental disclosure of non-cash investing
    and financing activities:               |  |                    |           
|                                                                                          |  |                    |           
|As part of the reverse merger, the Company acquired the following assets and liabilities: |  |                    |           
|Cash                                                                                      |  | $                  | -         
|Convertible Debt, Net of Discount                                                         |  | $                  | -         
|Accounts Payable & Accrued Liabilities                                                    |  | $                  | -         
|Promissory Notes                                                                          |  | $                  | -         
|Liability to be settled in stock                                                          |  | $                  | -         
|Reduction of deposit for acquisition                                                      |  | $                  | -         
|Debt issued in acquisition                                                                |  | $                  | -         
|Net liabilities acquired & non-cash acquisition costs                                     |  | $                  | -         
|                                                                                          |  |                    |           
|Conversion of convertible notes payable into common stock                                 |  | $                  | 142,181   
|Note payable issued for deferred offering costs                                           |  | $                  | 25,000    
|Common stock issued for deferred offering costs                                           |  | $                  | 50,000    
|Liabilities settled in connection with the Liabilities Purchase Agreement                 |  | $                  | 165,447   



See
accompanying notes to the consolidated financial statements



F-5







STL Marketing Group, Inc.
& Subsidiaries

Consolidated
Statements of Stockholders’ Deficit

For the Years Ended
December 31, 2014 and 2013



|                                                                        |  | Preferred
    Stock,Class APar Value $1.00 |           |  | Preferred
    Stock,Class BPar Value $0.001 |   |           | AdditionalPaid-InCapital |  |  | Discount
    on |  |  | Common
    Stock,Class BPar Value $0.001 |           |  | AdditionalPaid-InCapital |   |          |        |  |   |            |  
|----------------------------------------------------------------------- |  | ------------------------------------------ | --------- |  | ------------------------------------------- | - | --------- | ------------------------ |  |  | --------------- |  |  | ---------------------------------------- | --------- |  | ------------------------ | - | -------- | ------ |  | - | ---------- | -
|                                                                        |  | Shares                                     |           |  | Amount                                      |   |           | Shares                   |  |  | Amount          |  |  | Preferred
    Stock                      |           |  | Preferred
    Stock      |   |          | Shares |  |   | Amount     |  
|                                                                        |  |                                            |           |  |                                             |   |           |                          |  |  |                 |  |  |                                          |           |  |                          |   |          |        |  |   |            |  
|Balance
                                         12/31/2012             |  |                                            | 1,800,000 |  |                                             | $ | 1,800,000 |                          |  |  | 1,400,000,000   |  |  | $                                        | 1,400,000 |  |                          | $ | (232,000 | )      |  | $ | (2,466,999 | )
|                                                                        |  |                                            |           |  |                                             |   |           |                          |  |  |                 |  |  |                                          |           |  |                          |   |          |        |  |   |            |  
|Effect
    of merger and recapitalization                               |  |                                            | -         |  |                                             |   | -         |                          |  |  | -               |  |  |                                          | -         |  |                          |   | -        |        |  |   | -          |  
|Purchase of Treasury
    Shares ($15.00 per share)                      |  |                                            | -         |  |                                             |   | -         |                          |  |  | -               |  |  |                                          | -         |  |                          |   | -        |        |  |   | -          |  
|Stock
    issued for cash ($0.03 per share)                             |  |                                            | -         |  |                                             |   | -         |                          |  |  | -               |  |  |                                          | -         |  |                          |   | -        |        |  |   | -          |  
|Net
    Loss                                                            |  |                                            | -         |  |                                             |   | -         |                          |  |  | -               |  |  |                                          | -         |  |                          |   | -        |        |  |   | -          |  
|Balance
    12/31/2013                                                  |  |                                            | 1,800,000 |  |                                             | $ | 1,800,000 |                          |  |  | 1,400,000,000   |  |  | $                                        | 1,400,000 |  |                          | $ | (232,000 | )      |  | $ | (2,466,999 | )
|                                                                        |  |                                            |           |  |                                             |   |           |                          |  |  |                 |  |  |                                          |           |  |                          |   |          |        |  |   |            |  
|Stock
    issued for service ($0.30 per share)                          |  |                                            | -         |  |                                             |   | -         |                          |  |  | -               |  |  |                                          | -         |  |                          |   | -        |        |  |   | -          |  
|Stock
    issued for service ($0.21 per share)                          |  |                                            | -         |  |                                             |   | -         |                          |  |  | -               |  |  |                                          | -         |  |                          |   | -        |        |  |   | -          |  
|Stock
    issued for service ($0.195 per share)                         |  |                                            | -         |  |                                             |   | -         |                          |  |  | -               |  |  |                                          | -         |  |                          |   | -        |        |  |   | -          |  
|Stock
    issued for service ($0.048 per share)                         |  |                                            | -         |  |                                             |   | -         |                          |  |  | -               |  |  |                                          | -         |  |                          |   | -        |        |  |   | -          |  
|Stock
    issued for service ($0.0225 per share)                        |  |                                            | -         |  |                                             |   | -         |                          |  |  | -               |  |  |                                          | -         |  |                          |   | -        |        |  |   | -          |  
|Stock
    issued for service ($0.0105 per share)                        |  |                                            | -         |  |                                             |   | -         |                          |  |  | -               |  |  |                                          | -         |  |                          |   | -        |        |  |   | -          |  
|Stock
    issued for service ($0.003 per share)                         |  |                                            | -         |  |                                             |   | -         |                          |  |  | -               |  |  |                                          | -         |  |                          |   | -        |        |  |   | -          |  
|Stock
    issued for conversion of note payable                         |  |                                            | -         |  |                                             |   | -         |                          |  |  | -               |  |  |                                          | -         |  |                          |   | -        |        |  |   | -          |  
|Reclasification
    of derivative liabilities due to conversion of debt |  |                                            | -         |  |                                             |   | -         |                          |  |  | -               |  |  |                                          | -         |  |                          |   | -        |        |  |   | -          |  
|Liabilities
    settled under Laibility Purchase Agreement              |  |                                            | -         |  |                                             |   | -         |                          |  |  | -               |  |  |                                          | -         |  |                          |   | -        |        |  |   | -          |  
|Net
    Profit/(Loss)                                                   |  |                                            | -         |  |                                             |   | -         |                          |  |  | -               |  |  |                                          | -         |  |                          |   | -        |        |  |   | -          |  
|Balance
    12/31/2014                                                  |  |                                            | 1,800,000 |  |                                             | $ | 1,800,000 |                          |  |  | 1,400,000,000   |  |  | $                                        | 1,400,000 |  |                          | $ | (232,000 | )      |  | $ | (2,466,999 | )





F-6







STL
Marketing Group, Inc. & Subsidiaries

Notes
to the Consolidated Financial Statements

December
31, 2014 and 2013



Note
1 – Nature of Operations and Summary of Significant Accounting Policies



Nature
of Operations



On
October 15,2012, STL Marketing Group, Inc. (“STLK”) entered into a merger agreement with Versant Corporation,
a Delaware corporation (“Versant”). The agreement consisted of $75,000 for the Series A and C Preferred Stock. On
January 23 and January 29, the respective Boards of Versant and STLK respectively approved the Share Exchange Plan (“SEP”).
As a result of the Share Exchange Plan, on February 4, 2013: (1) the STL Marketing holders of Preferred A and Preferred C Series
stock, returned their shares to Treasury for the reclassification and restructuring of these shares; (2) STLK’s Preferred
Series A, B and C were restructured and amended to reflect the SEP agreed to by the companies; (3) Versant Class X shareholders
exchanged their 1,000 Versant Class X Common shares for 1,400,000,000 Preferred Series B STLK Stock; (4) Versant Class A shareholders
exchanged their 1,800,000 Versant Class A shares for 1,800,000 Preferred Series A Convertible STLK Stock; (5) of the 200,003 Versant’s
Class B Common Stock shareholders, 200,000 shares ($200,000 value) received convertible notes in STLK and the remaining 3 shares
($219,000 value) received 6,666,667 restricted STLK Common Stock; (6) Versant issued 7,500,000 Class B, Common Shares to STL Marketing
Group, granting them 100% of the common shares in Versant. Upon finalization of the merger the accounting acquirer held 100,120,000
shares or 98.26% of the combined entity and the legal acquirer held 1,774,902 shares of 1.74% of the combined entity.



STL
Marketing Group, Inc. was a “shell company” prior to the Merger and did not conduct an active trade or business. From
and after the consummation of the Merger on February 4, 2013 STL Marketing Group, Inc.’s primary operations consisted of
the business and operations of Versant Corporation. Because STL Marketing Group, Inc. was a shell company at the time of the Merger;
we filed a general form for registration under Form 10 under the Securities Exchange Act of 1934, as amended (the “Exchange
Act”).



For
accounting purposes, the Merger transaction has been accounted for as a reverse acquisition, with STL Marketing Group, Inc. as
the acquirer. The consolidated financial statements of STL Marketing Group, Inc. for the fiscal year ended December 31, 2013 represent
a continuation of the financial statements of Versant Corporation, with one adjustment, which is to retroactively adjust the legal
capital of Versant Corporation to reflect the legal capital of STL Marketing Group, Inc.



The
Company has recently added the sale and distribution of PBX equipment (VoIP technology) to its original focus in the development
of renewable energy projects. As a result our business is the sales and distribution of VoIP PBXs under the brand name PhoneSuite,
as well as the prospective sale of electricity through a wind park to a government owned utility company in Costa Rica. The Company
continues to evaluate additional opportunities to bolster its revenue stream.



F-7







STL
Marketing Group, Inc. & Subsidiaries

Notes
to the Consolidated Financial Statements

December
31, 2014 and 2013



Summary
of Significant Accounting Policies



Principles
of Consolidation



The
Company’s consolidated subsidiaries and/or entities are as follows:



|Name of consolidated subsidiary/entity |  | State or other jurisdiction
    of incorporation or
    organization |  | Date of incorporation
    or formation (date of acquisition, if
    applicable) |  | Attributable
    interest |    
|-------------------------------------- |  | -------------------------------------------------------------------- |  | ------------------------------------------------------------------------------- |  | ------------------------- | ---
|                                       |  |                                                                      |  |                                                                                 |  |                           |    
|Energia Renovable Versant SRL (ER) (1) |  | Costa Rica                                                           |  | November, 2010                                                                  |  |                           | 100
|                                       |  |                                                                      |  |                                                                                 |  |                           |    
|V Tres Bache SRL (V3) (2)              |  | Costa Rica                                                           |  | November, 2010                                                                  |  |                           | 100
|                                       |  |                                                                      |  |                                                                                 |  |                           |    
|Versant Corporation (VC) (3)           |  | Delaware                                                             |  | April, 2010                                                                     |  |                           | 100
|                                       |  |                                                                      |  |                                                                                 |  |                           |    
|PhoneSuite Solutions, Inc. (PSS) (4)   |  | Delaware                                                             |  | May, 2014                                                                       |  |                           | 100



| | (1) | ER
    was incorporated to establish renewable energy wind parks in Costa Rica. ER is the sole stockholder of V3.
| | --- | -----------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                  
| | (2) | V3
    was incorporated to build and operate the first energy development on the Bache site.                     
| |     |                                                                                                                  
| | (3) | VC
    was incorporated as the original US holding company for the wind development in Costa Rica.               
| |     |                                                                                                                  
| | (4) | PSS
    was incorporated to handle the distribution markets of PhoneSuite products.                              



All
inter-company balances and transactions have been eliminated in consolidation.



Use
of Estimates and Assumptions



The
preparation of financial statements in conformity with accounting principles generally accepted in the United States of America
requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure
of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses
during the reporting period.



Making
estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect
of a condition, situation or set of circumstances that existed at the date of the consolidated financial statements, which management
considered in formulating its estimate, could change in the near term due to one or more future confirming events. Accordingly,
the actual results could differ significantly from our estimates.



Fair
Value of Financial Instruments



The
fair value of our financial assets and liabilities reflects our estimate of amounts that we would have received in connection
with the sale of the assets or paid in connection with the transfer of the liabilities in an orderly transaction between market
participants at the measurement date. In connection with measuring the fair value of our assets and liabilities, we seek to maximize
the use of observable inputs (market data obtained from independent sources) and to minimize the use of unobservable inputs (internal
assumptions about how market participants would price assets and liabilities). The following fair value hierarchy is used to classify
assets and liabilities based on the observable inputs and unobservable inputs used in order to value the assets and liabilities:



F-8







STL
Marketing Group, Inc. & Subsidiaries

Notes
to the Consolidated Financial Statements

December
31, 2014 and 2013



|Level
    1 | Quoted
    market prices available in active markets for identical assets or liabilities as of the reporting date.                                                 
|----------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------
|            |                                                                                                                                                                    
|Level 2     | Pricing
    inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable
    as of the reporting date.
|            |                                                                                                                                                                    
|Level 3     | Pricing
    inputs that are generally unobservable inputs and not corroborated by market data.                                                                     



The
following are the major categories of liabilities measured at fair value on a recurring basis at December 31, 2014 and December
31, 2013, using quoted prices in active markets for identical assets (Level 1); significant other observable inputs (Level 2);
and significant unobservable inputs (Level 3):



|                       |  | December 31, 2014 |   |  | December 31, 2013 |  
|---------------------- |  | ----------------- | - |  | ----------------- | -
|                       |  | Assets            |   |  | Liabilities       |  
|                       |  |                   |   |  |                   |  
|Level 1                |  |                   |   |  |                   |  
|None                   |  | $                 | - |  |                   | $
|                       |  |                   |   |  |                   |  
|Level 2                |  |                   |   |  |                   |  
|None                   |  |                   | - |  |                   |  
|                       |  |                   |   |  |                   |  
|Level 3                |  |                   |   |  |                   |  
|Derivative Liabilities |  |                   | - |  |                   |  
|                       |  |                   |   |  |                   |  
|                       |  | $                 | - |  |                   | $



Changes
in the unobservable input values could potentially cause material changes in the fair value of the Company’s Level 3 financial
instruments. The significant unobservable input used in the fair value measurements is the expected volatility assumption. A significant
increase (decrease) in the expected volatility assumption could potentially result in a higher (lower) fair value measurement.



Carrying
Value, Recoverability and Impairment of Long-Lived Assets



The
Company has adopted paragraph 360-10-35-17 of the FASB Accounting Standards Codification for its long-lived assets. The Company’s
long-lived assets, which include property and equipment, are reviewed for impairment whenever events or changes in circumstances
indicate that the carrying amount of an asset may not be recoverable.



The
Company assesses the recoverability of its long-lived assets by comparing the projected undiscounted net cash flows associated
with the related long-lived asset or group of long-lived assets over their remaining estimated useful lives against their respective
carrying amounts. Impairment, if any, is based on the excess of the carrying amount over the fair value of those assets. Fair
value is generally determined using the asset’s expected future discounted cash flows or market value, if readily determinable.
When long-lived assets are determined to be recoverable, but the newly determined remaining estimated useful lives are shorter
than originally estimated, the net book values of the long-lived assets are depreciated over the newly determined remaining estimated
useful lives.



The
Company considers the following to be some examples of important indicators that may trigger an impairment review: (i) significant
under-performance or losses of assets relative to expected historical or projected future operating results; (ii) significant
changes in the manner or use of assets or in the Company’s overall strategy with respect to the manner or use of the acquired
assets or changes in the Company’s overall business strategy; (iii) significant negative industry or economic trends;
(iv) increased competitive pressures; (v) a significant decline in the Company’s stock price for a sustained period
of time; and (vi) regulatory changes. The Company evaluates acquired assets for potential impairment indicators at least
annually and more frequently upon the occurrence of such events.



F-9







STL
Marketing Group, Inc. & Subsidiaries

Notes
to the Consolidated Financial Statements

December
31, 2014 and 2013



The
key assumptions used in management’s estimates of projected cash flow deal largely with forecasts of sales levels, gross
margins, and operating costs. These forecasts are typically based on historical trends and take into account recent developments
as well as management’s plans and intentions. Any difficulty in sourcing materials on a cost effective basis would significantly
impact the projected future cash flows of the Company’s manufacturing facilities and potentially lead to an impairment charge
for long-lived assets. Other factors, such as increased competition or a decrease in the desirability of the Company’s products,
could lead to lower projected sales levels, which would adversely impact cash flows. A significant change in cash flows in the
future could result in an impairment of long-lived assets.



The
impairment charges, if any, are included in operating expenses in the accompanying statements of operations. The Company has not
recorded any impairment charges during the years ended December 31, 2014 and 2013.



Cash



The
Company considers all highly liquid investments with maturities of three months or less at the time of purchase to be cash equivalents.



Property
and Equipment



Property
and equipment is stated at cost. Depreciation is calculated on a straight-line basis over the estimated useful lives of the related
assets, which ranges from three to seven years.



Leasehold
improvements, if any, are amortized on a straight-line basis over the term of the lease or the estimated useful lives, whichever
is shorter.



Research
and Development



Research
and development is expensed as incurred.



Advertising
Costs



We
expense advertising costs in the period in which they are incurred.



Stock-Based
Compensation for Obtaining Employee Services



The
Company accounts for its stock based compensation in which the Company obtains employee services in share-based payment transactions
under the recognition and measurement principles of the fair value recognition provisions of section 718-10-30 of the FASB Accounting
Standards Codification. Pursuant to paragraph 718-10-30-6 of the FASB Accounting Standards Codification, all transactions in which
goods or services are the consideration received for the issuance of equity instruments are accounted for based on the grant-date
fair value of the equity instrument issued and are recognized in the statement of operations as compensation over the relevant
service period.



F-10







STL
Marketing Group, Inc. & Subsidiaries

Notes
to the Consolidated Financial Statements

December
31, 2014 and 2013



Equity
Instruments Issued to Parties Other Than Employees for Acquiring Goods or Services



The
Company accounts for equity instruments issued to parties other than employees for acquiring goods or services under guidance
of Sub-topic 505-50 of the FASB Accounting Standards Codification (“Sub-topic 505-50”).



Pursuant
to ASC Section 505-50-30, all transactions in which goods or services are the consideration received for the issuance of equity
instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument
issued, whichever is more reliably measurable. The measurement date used to determine the fair value of the equity instrument
issued is the earlier of the date on which the performance is complete or the date on which a commitment for performance by the
counterparty to earn the equity instrument is reached (a performance commitment).



Pursuant
to ASC paragraph 505-50-25-7, if fully vested, non-forfeitable equity instruments are issued at the date the grantor and grantee
enter into an agreement for goods or services (no specific performance is required by the grantee to retain those equity instruments),
then, because of the elimination of any obligation on the part of the counterparty to earn the equity instruments, a measurement
date has been reached. A grantor shall recognize the equity instruments when they are issued (in most cases, when the agreement
is entered into). Whether the corresponding cost is an immediate expense or a prepaid asset (or whether the debit should be characterized
as contra-equity under the requirements of paragraph 505-50-45-1) depends on the specific facts and circumstances. Pursuant to
ASC paragraph 505-50-45-1, a grantor may conclude that an asset (other than a note or a receivable) has been received in return
for fully vested, non-forfeitable equity instruments that are issued at the date the grantor and grantee enter into an agreement
for goods or services (and no specific performance is required by the grantee in order to retain those equity instruments). Such
an asset shall not be displayed as contra-equity by the grantor of the equity instruments. The transferability (or lack thereof)
of the equity instruments shall not affect the balance sheet display of the asset. This guidance is limited to transactions in
which equity instruments are transferred to other than employees in exchange for goods or services. Section 505-50-30 provides
guidance on the determination of the measurement date for transactions that are within the scope of this Subtopic.



Pursuant
to Paragraphs 505-50-25-8 and 505-50-25-9, an entity may grant fully vested, non-forfeitable equity instruments that are exercisable
by the grantee only after a specified period of time if the terms of the agreement provide for earlier exercisability if the grantee
achieves specified performance conditions. Any measured cost of the transaction shall be recognized in the same period(s) and
in the same manner as if the entity had paid cash for the goods or services or used cash rebates as a sales discount instead of
paying with, or using, the equity instruments. A recognized asset, expense, or sales discount shall not be reversed if a share
option and similar instrument that the counterparty has the right to exercise expires unexercised.



Derivative
Financial Instruments



Derivative financial
instruments consist of conversion features embedded in convertible debentures which meet the criteria for bifurcation from their
host contract. These financial instruments are recorded in the balance sheet at fair value. In determining the appropriate fair
value, the Company uses the Black-Scholes option-pricing model. In assessing the convertible debt instruments, management determines
if the convertible debt host instrument is conventional convertible debt and further if there is a beneficial conversion feature
requiring measurement. If the instrument is not considered conventional convertible debt, the Company will continue its evaluation
process of these instruments as derivative financial instruments.



Once
determined, derivative liabilities are adjusted to reflect fair value at each reporting period end, with any increase or decrease
in the fair value being recorded in results of operations as an adjustment to fair value of derivatives. In addition, the fair
value of freestanding derivative instruments such as warrants, are also valued using the Black-Scholes option-pricing model.



F-11







STL
Marketing Group, Inc. & Subsidiaries

Notes
to the Consolidated Financial Statements

December
31, 2014 and 2013



Debt
Issue Costs and Debt Discount



The
Company may pay debt issue costs, and record debt discounts in connection with raising funds through the issuance of convertible
debt. These costs are amortized to 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.



Income
Tax Provision



The
Company accounts for income taxes under Section 740-10-30 of the FASB Accounting Standards Codification, which requires recognition
of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial
statements or tax returns. Under this method, deferred tax assets and liabilities are based on the differences between the financial
statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are
expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent management concludes it is more likely
than not that the assets will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected
to apply to taxable income in the years in which those temporary 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 the Consolidated Statements of Income and Comprehensive
Income in the period that includes the enactment date.



The
Company adopted section 740-10-25 of the FASB Accounting Standards Codification (“Section 740-10-25”). Section 740-10-25
addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the
financial statements. Under Section 740-10-45, the Company may recognize the tax benefit from an uncertain tax position only if
it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical
merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based
on the largest benefit that has a greater than fifty (50) percent likelihood of being realized upon ultimate settlement. Section
740-10-40 also provides guidance on de-recognition, classification, interest and penalties on income taxes, accounting in interim
periods and requires increased disclosures.



The
estimated future tax effects of temporary differences between the tax basis of assets and liabilities are reported in the accompanying
consolidated balance sheets, as well as tax credit carry-backs and carry-forwards. The Company periodically reviews the recoverability
of deferred tax assets recorded on its consolidated balance sheets and provides valuation allowances, as management deems necessary.



Management
makes judgments as to the interpretation of the tax laws that might be challenged upon an audit and cause changes to previous
estimates of tax liability. In addition, the Company operates within multiple taxing jurisdictions and is subject to audit in
these jurisdictions. In management’s opinion, adequate provisions for income taxes have been made for all years. If actual
taxable income by tax jurisdiction varies from estimates, additional allowances or reversals of reserves may be necessary.



Uncertain
Tax Positions



The
Company did not take any uncertain tax positions and had no adjustments to its income tax liabilities or benefits pursuant to
the provisions of Section 740-10-45 for the years ended December 31, 2014 and 2013. The Company believes that all prior periods
are still subject to examination by tax authorities.



F-12







STL
Marketing Group, Inc. & Subsidiaries

Notes
to the Consolidated Financial Statements

December
31, 2014 and 2013



Reverse
Stock Split



In
October 2014, the Company’s board of directors and stockholders approved an amended and restated certificate of incorporation
to effect a reverse split of shares of our common stock at a 1-for-15 ratio. The reverse split became effective in March 2015.
The par value and the authorized shares of the common and convertible preferred stock were not adjusted as a result of the reverse
split. All issued and outstanding common stock and per share amounts contained in the financial statements have been retroactively
adjusted to reflect this reverse split for all periods presented.



Net
Loss per Common Share



Basic
earnings per share (“EPS”) is computed by dividing net loss available to common stockholders by the weighted average
number of common shares outstanding during the period, excluding the effects of any potentially dilutive securities. Diluted EPS
gives effect to all dilutive potential of shares of common stock outstanding during the period including stock options or warrants,
using the treasury stock method (by using the average stock price for the period to determine the number of shares assumed to
be purchased from the exercise of stock options or warrants), and convertible debt or convertible preferred stock, using the if-converted
method.



During
the years ended December 31, 2014 and December 31, 2013, the Company reported a net loss, and accordingly dilutive instruments
were excluded from the net loss per share calculation for such periods.



Common
stock equivalents are as follows:



|                                                                         |  | December 31, 2014 |             |  | December 31, 2013 | 
|------------------------------------------------------------------------ |  | ----------------- | ----------- |  | ----------------- | 
|                                                                         |  |                   |             |  |                   | 
|Convertible Debt                                                         |  |                   | 151,220,218 |  |                   | 
|Liability to be settled in common stock (1)                              |  |                   | 2,422,222   |  |                   | 
|Liability to be settled in common stock (exercise price $0.01/share) (2) |  |                   | 4,289,961   |  |                   | 
|Common stock equivalents                                                 |  |                   | 157,932,401 |  |                   | 



| | (1) | Fair value was
    $54,500 at December 31, 2014 and $43,333 at December 31, 2013. See Note 6.
| | --- | ---------------------------------------------------------------------------------------------
| |     |                                                                                              
| | (2) | Fair value was
    $60,000 at December 31, 2014 and $60,000 at December 31, 2013. See Note 6.



Other
Recently Issued, but Not Yet Effective Accounting Pronouncements



On
July 18, 2013, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2013-11, “Presentation
of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists”
(“ASU 2013-11”). ASU 2013-11 states that an unrecognized tax benefit, or a portion of an unrecognized tax benefit,
should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward,
a similar tax loss or a tax credit carryforward, except as follows. The unrecognized tax benefit should be presented in the financial
statements as a liability and should not be combined with deferred tax assets to the extent (a) a net operating loss carryforward,
a similar tax loss or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction
to settle any additional income taxes that would result from the disallowance of a tax position, or (b) the tax law of the
applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax assets for
such purpose. The amendments in ASU 20103-11 are effective prospectively for interim and annual reporting periods beginning after
December 15, 2013. The adoption of ASU 2013-11 has not had a material impact on our financial position, results of operations
or cash flows.



F-13







STL
Marketing Group, Inc. & Subsidiaries

Notes
to the Consolidated Financial Statements

December
31, 2014 and 2013



In
May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”), which
requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount
that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. The new
guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising
from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to
obtain or fulfill a contract. ASU 2014-09 is effective for fiscal years, and interim periods within those years, beginning after
December 15, 2016. The Company is currently evaluating the impact of the new standards.



In
June 2014, the FASB issued ASU No. 2014-12, “Accounting for Share-Based Payments When the Terms of an Award Provide That
a Performance Target Could Be Achieved after the Requisite Service Period.” This ASU requires that a performance target
that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As
such, the performance target should not be reflected in estimating the grant date fair value of the award. This update further
clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will
be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already
been rendered. The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning
after December 15, 2015, and early adoption is permitted. The Company is currently evaluating this guidance and the impact it
will have on its consolidated financial statements.



In
August 2014, the FASB issued ASU No. 2014-15, “Disclosure of Uncertainties About an Entity’s Ability to Continue as
a Going Concern” (“ASU 2014-15”), which provides guidance on management’s responsibility in evaluating
whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote
disclosures. ASU 2014-15 is effective for the annual period ending after December 15, 2016, and for annual and interim periods
thereafter. The adoption of ASU 2014-15 is not expected to have a material impact on our financial position, results of operations
or cash flows.



In April 2015, the FASB  issued Accounting
Standards Update No. 2015-03, “Interest - Imputation of Interest (Subtopic 835-30),” which requires that debt issuance
costs be presented in the balance sheet as a direct deduction from the carrying amount of debt liability, consistent with debt
discounts or premiums. This guidance will be effective at the beginning of fiscal year 2017. The Company is currently evaluating
the impact of the new standards.



Management
does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material
effect on the accompanying consolidated financial statements.



Note
2 – Going Concern



As
reflected in the accompanying condensed consolidated financial statements, the Company had a net loss of $771,742, net cash used
in operations of $286,175 and has a working capital deficit of approximately $5,108,000 for the year ended December 31, 2014.
The Company does not yet have a history of financial stability. Historically, the principal source of liquidity has been the issuance
of debt and equity securities. These factors raise substantial doubt about the Company’s ability to continue as a going
concern.



The
ability of the Company to continue as a going concern is dependent on management’s plans, which include further implementation
of its business plan and continuing to raise funds through debt and/or equity raises.



The
accompanying 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. These financial statements do not include any adjustments relating
to the recovery of the recorded assets or the classification of the liabilities that might be necessary should the Company be
unable to continue as a going concern.



Note
3 – Property and Equipment



|Property and equipment are as follows:    |  | December 31, 2014 |        |   | December 31, 2013 |  
|----------------------------------------- |  | ----------------- | ------ | - | ----------------- | -
|Furniture and fixtures                    |  | $                 | 4,909  |   |                   | $
|Machinery and equipment                   |  |                   | 8,191  |   |                   |  
|Leasehold improvements                    |  |                   | 2,507  |   |                   |  
|                                          |  |                   | 15,607 |   |                   |  
|Accumulated depreciation and amortization |  |                   | (9,852 | ) |                   |  
|Property and equipment - net              |  | $                 | 5,755  |   |                   | $



F-14







STL
Marketing Group, Inc. & Subsidiaries

Notes
to the Consolidated Financial Statements

December
31, 2014 and 2013



Depreciation
expense for the year ended December 31, 2014 and 2013 was $2,116 and $2,828 respectively.



Note
4 – Due From Investment Bank



In
April 2011, the Company engaged a Costa Rican investment bank, as its exclusive agent to advise the Company on the structuring
of corporate openness and equity placement. During 2012 the Company entered into a dispute with the investment bank. The Company
contends that the investment bank retained more than the fee allowed by the contract on the sale of equity securities (the “Closings”)
that took place during the period April 2011 through December 2011. At December 31, 2014 and December 31, 2013, the Company believes
they are owed $195,400 and $195,400, respectively, from the investment bank relating to excess fees withheld from the Closings.
Due to the uncertainty surrounding the recoverability of the funds from the investment bank the Company has recorded a full allowance
against the receivable. This amount has been recorded in additional paid in capital in the statement of stockholders equity. If
the company wins the dispute and actually recovers the funds it will be recorded to additional paid in capital.



Note
5 – Notes Payable



|                                                                                                                                                                                                                                                                                                                      |  | December 31, 2014 |        |  | December 31, 2013 |  
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----------------- | ------ |  | ----------------- | -
|In October 2010, a third party loaned the Company $50,000 under a demand note bearing
    zero interest. This note is in default.                                                                                                                                                                                     |  | $                 | 50,000 |  |                   | $
|                                                                                                                                                                                                                                                                                                                      |  |                   |        |  |                   |  
|In March 2011, third parties loaned the Company $11,500 under demand notes bearing interest from
    8-10% per year. The notes were acquired in the merger and are in default. A payment of $1,500 was made as of June 2014, leaving
    a balance of $10,000 as of December 31, 2014.                                |  |                   | 10,000 |  |                   |  
|                                                                                                                                                                                                                                                                                                                      |  |                   |        |  |                   |  
|In December 2011, third parties loaned the Company $5,600 under demand notes bearing interest
    at 10%, plus a late fee of an additional 2% per month. The notes were acquired in the merger and were in default. The note
    was paid in full during the year ended December 31, 2014.                            |  |                   | -      |  |                   |  
|                                                                                                                                                                                                                                                                                                                      |  |                   |        |  |                   |  
|In February 2013, the Company executed a promissory note in the principal
    amount of $50,000, bearing an interest rate of 5%, with a default rate of 18%. The payment terms involve two payments of $25,000
    each. This note was in default. The note was paid in full during the year ended December 31, 2014. |  |                   | -      |  |                   |  
|                                                                                                                                                                                                                                                                                                                      |  | $                 | 60,000 |  |                   | $



F-15







STL
Marketing Group, Inc. & Subsidiaries

Notes
to the Consolidated Financial Statements

December
31, 2014 and 2013



Note
6 – Liability to be Settled in Stock



In
March of 2008, the Company entered into an asset purchase agreement to purchase certain tangible and intangible assets for $65,000
in STLK common stock. As of December 31, 2014 and December 31, 2013, a liability totaling $0 and $43,333 respectively, exists
related to these unissued shares. This liability was acquired in the merger. In coordination with Section 3(a)(10) of the Securities
Act of 1933, stated by the Circuit Court of the Second Judicial Circuit in Florida, the Company agreed to pay for this debt and
therefore moved this debt from the Liability to be Settled in Stock to a Settlement Liability (see Note 7).



In
August 2012, the Company executed a consulting agreement with a third party to provide various services. Under the terms of the
agreement, the consultant would be paid $10,000 per month for six months in the form of free trading shares. The share total is
computed as follows:



|● | Earned
    compensation will accrue interest at 6%; and                                                                                                
|- | -------------------------------------------------------------------------------------------------------------------------------------------------------
|  |                                                                                                                                                        
|● | Accrued
    compensation will be convertible into 70% of the average of the lowest three closing bid prices of the 20 days preceding any
    conversion



At
December 31, 2014, the fully recorded amount of $60,000 remains outstanding and available to be converted. This liability was
acquired in the merger.



In
January of 2014, the Company executed a three-month consulting agreement with a third party to provide strategic planning matters.
The consultant would be paid $15,000 per month for three months in the form of restricted common stock, using the average of the
last five trading days of the month. As of December 31, 2014 the last remaining months balance of $15,000 has yet to be issued.
There is no interest under this agreement.



In
February of 2014, the Company engaged Lucosky Brookman LLP as its counsel. According to the contract, a portion of the fees from
Lucosky Brookman would be paid in restricted common shares. As of December 31, 2014 the Company has fees in the amount of $39,500,
which is available to be converted.



Note
7 – Settlement Liability



In
coordination with Section 3(a)(10) of the Securities Act of 1933, stated by the Circuit Court of the Second Judicial Circuit in
Florida, the Company agreed to a settlement liability to pay for its outstanding stock liability debt of $43,333. Total payments
of $24,652 were made during the year ending December 31, 2014, leaving a balance of $18,681 and $0 as of December 31, 2014 and
December 31, 2013 respectively.



F-16







Note
8 – Convertible Notes Payable



| | (A) | Convertible
                                         Notes Payable
| | --- | ------------------------------------------------------------------



At
December 31, 2014 and December 31, 2013, convertible debt consisted of the following:



|                                                                                                                                                                                                                                                                                                                                                                     |  | December 31, 2014 |         |  | December 31, 2013 |  
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----------------- | ------- |  | ----------------- | -
|                                                                                                                                                                                                                                                                                                                                                                     |  |                   |         |  |                   |  
|Convertible into 50% of the average of the lowest three closing prices during
    the 20 trading days immediately preceding conversion. These notes matured in July 2008 ($75,000), November 2008 ($100,000)
    and February 2010 ($15,000). These notes bear an interest rate of 8%-10%. These notes were acquired in the merger and are
    currently in default. |  | $                 | 190,000 |  |                   | $
|                                                                                                                                                                                                                                                                                                                                                                     |  |                   |         |  |                   |  
|Convertible into 50% of the five day average closing bid prices immediately preceding conversion.
    This note matured in July 2008. This note has an interest rate of 8%. This note was acquired in the merger and is currently
    in default.                                                                                                                    |  |                   | 50,000  |  |                   |  
|                                                                                                                                                                                                                                                                                                                                                                     |  |                   |         |  |                   |  
|Convertible into 10% of the average of the lowest three closing prices during the 20 trading
    days immediately preceding conversion. This note matured in March 2008 and bears a 6% interest rate. This note was acquired
    in the merger and is currently in default.                                                                                          |  |                   | 40,000  |  |                   |  
|                                                                                                                                                                                                                                                                                                                                                                     |  |                   |         |  |                   |  
|Convertible into 75% of the average of the lowest three closing prices during the 20 trading
    days immediately preceding conversion. These notes matured in May and June of 2010 and bear an 8% interest rate. These notes
    were acquired in the merger and are currently in default.                                                                          |  |                   | 25,000  |  |                   |  
|                                                                                                                                                                                                                                                                                                                                                                     |  |                   |         |  |                   |  
|Convertible into 50% of the average of the lowest three closing prices during the 10 trading
    days immediately preceding conversion. Notes mature in July 2013 – May 2014 and bear an 8% interest rate. These notes
    are currently in default. As of December 31, 2014, $5,000 of these notes has been converted.                                              |  |                   | 487,000 |  |                   |  
|                                                                                                                                                                                                                                                                                                                                                                     |  |                   |         |  |                   |  
|Convertible into 60% of the lowest of any day during the 10 trading days immediately preceding
    conversion. Note matured in September 2014 and bears a 9.9% interest rate. As of December 31, 2014, $16,641 of this note has
    been converted, leaving a balance of $10,859.                                                                                    |  |                   | 10,859  |  |                   |  
|                                                                                                                                                                                                                                                                                                                                                                     |  |                   |         |  |                   |  
|Convertible at the greater (a) $0.015 or (b) at 50% of the lowest closing bid price during
    the 30 trading days immediately preceding conversion. This note matured in May 2014, bears a 10% interest rate and is currently
    in default.                                                                                                                       |  |                   | 25,000  |  |                   |  
|                                                                                                                                                                                                                                                                                                                                                                     |  |                   |         |  |                   |  
|Convertible at a 42% discount of the lowest three closing prices during the 15 trading days
    immediately preceding conversion. Note matures in August 2014 and bears an 8% interest rate. As of December 31, 2014, this
    note has been converted in full.                                                                                                      |  |                   | -       |  |                   |  
|                                                                                                                                                                                                                                                                                                                                                                     |  |                   |         |  |                   |  
|Convertible at a 42% discount of the lowest three closing prices during the 15 trading days
    immediately preceding conversion. Note matures in October 2014 and bears an 8% interest rate. As of September 30, 2014, this
    note has been converted in full.                                                                                                    |  |                   | -       |  |                   |  
|                                                                                                                                                                                                                                                                                                                                                                     |  |                   |         |  |                   |  
|Convertible at a 42% discount of the lowest three closing price during the 15 trading days
    immediately preceding conversion. Note matures in December 2014 and bears an 8% interest rate. As of September 30, 2014, this
    note has been converted in full.                                                                                                    |  |                   | -       |  |                   |  
|                                                                                                                                                                                                                                                                                                                                                                     |  |                   |         |  |                   |  
|Convertible at a 50% discount of the lowest of any day during the 15 trading days immediately
    preceding conversion. Note matures in March 2015 and bears an 8% interest rate. As of December 31, 2014, $4,720 of this note
    has been converted, leaving a balance of $16,780.                                                                                 |  |                   | 16,780  |  |                   |  
|                                                                                                                                                                                                                                                                                                                                                                     |  |                   |         |  |                   |  
|Convertible at a 50% of the lowest closing bid price during the 30 trading days immediately
    preceding conversion. Note matures in September 2014 and bears a 10% interest rate. As of December 31, 2014, $8,320 of this
    note has been converted, leaving a balance of $16,680.                                                                               |  |                   | 16,680  |  |                   |  



F-17







STL
Marketing Group, Inc. & Subsidiaries

Notes
to the Consolidated Financial Statements

December
31, 2014 and 2013



|Convertible at the lessor of (a) $0.004 or (b) at 40% discount of the lowest trade
    price during the 25 trading days immediately preceding conversion. Note matures in May 2016, has a 10% OID and bears a one
    time interest charge of 12% after ninety days (August 2014).                                                                                                                                                                                                                                                                                                                                                                                                                             |  |   | 27,500    |  |  |   | -       | 
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | - | --------- |  |  | - | ------- | 
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |  |   |           |  |  |   |         | 
|Convertible at a 42% discount of the lowest three closing prices during the 15 trading days
    immediately preceding conversion. Note matures in March 2015 and bears an 8% interest rate.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  |   | 32,500    |  |  |   | -       | 
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |  |   |           |  |  |   |         | 
|Convertible at a 42% discount of the lowest three closing prices during the 15 trading days
    immediately preceding conversion. Note matures in March 2015 and bears an 8% interest rate.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  |   | 32,500    |  |  |   | -       | 
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |  |   |           |  |  |   |         | 
|Convertible into 50% of the lowest close price during the 10 trading days immediately preceding
    conversion. Note matures in July 2015 and bears an 8% interest. The Back End convertible note portion of this agreement was
    cancelled as of December 31, 2014.                                                                                                                                                                                                                                                                                                                                                                                                                                         |  |   | 40,000    |  |  |   | -       | 
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |  |   |           |  |  |   |         | 
|Convertible at a 42% discount of the lowest three closing prices during the 15 trading days
    immediately preceding conversion. Note matures in April 2015 and bears an 8% interest rate.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  |   | 32,500    |  |  |   | -       | 
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |  |   |           |  |  |   |         | 
|Convertible into 50% of the lowest close price during the 10 trading days immediately preceding
    conversion. Note matures in August 2015 and bears an 8% interest. In connection with this convertible note, the Company issued
    a Back End convertible note, in the principal amount of $25,000. The Back End Note has the same terms, due dates and conditions
    the convertible note. This Back End note is secured by a $25,000 Promissory Note to the Company, issued by the Holder. The
    Company has the right to cancel the Back End note. If it elects to disallow such funding, then the Company’s Back End
    Note will be cancelled along with the offsetting Holder’s Promissory Note. |  |   | 25,000    |  |  |   | -       | 
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |  |   |           |  |  |   |         | 
|Convertible at the lessor of (a) $0.004 or (b) at 40% discount of the
    lowest trade price during the 25 trading days immediately preceding conversion. Note matures in September 2016, has a 10%
    OID and bears a one time interest charge of 12% after ninety days (December 2014).                                                                                                                                                                                                                                                                                                                                                                                                                     |  |   | 33,000    |  |  |   | -       | 
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |  | $ | 1,084,319 |  |  | $ | 882,000 | 



The
debt holders are entitled, at their option, to convert all or part of the principal and accrued interest into shares of the Company’s
common stock at conversion prices and terms discussed above. The Company classifies embedded conversion features in these notes
as a derivative liability due to the discount to market feature, which could require a settlement in shares that cannot be determined
until such conversions occur. The Company may not be able to determine if sufficient authorized shares exist in connection with
contemplated conversions, which requires liability classification.



F-18







STL
Marketing Group, Inc. & Subsidiaries

Notes
to the Consolidated Financial Statements

December
31, 2014 and 2013



Convertible
debt consisted of the following activity and terms:



|                                                       |  |   |           |   | Interest Rate |        | Maturity | 
|------------------------------------------------------ |  | - | --------- | - | ------------- | ------ | -------- | 
|                                                       |  |   |           |   |               |        |          | 
|Convertible Debt Balance as of December 31, 2013       |  | $ | 882,000   |   |               | 8% -12 | %        | 
|                                                       |  |   |           |   |               |        |          | 
|Borrowings during the year ended December 31, 2014     |  |   | 344,500   |   |               | 8% -12 | %        | 
|                                                       |  |   |           |   |               |        |          | 
|Conversions during the year ended December 31, 2014    |  |   | (142,181  | ) |               |        |          | 
|Convertible Debt Balance as of September 30, 2014      |  |   | 1,084,319 |   |               |        |          | 
|                                                       |  |   |           |   |               |        |          | 
|Debt Discount                                          |  |   | (106,250  | ) |               |        |          | 
|                                                       |  |   |           |   |               |        |          | 
|Convertible Debt Balance as of December 31, 2014 - Net |  | $ | 978,069   |   |               |        |          | 



| | (B) | Debt
                                         Discount
| | --- | ------------------------------------------------------



During
the year ended December 31, 2014 and 2013, the Company recorded debt discounts totaling $329,336 and $518,489 respectively.



The
debt discounts pertain to convertible debt that contains embedded conversion options that are required to be bifurcated and reported
at fair value.



The
Company amortized $407,398 and $371,924 during the year ended December 31, 2014 and December 31, 2013, respectively, to interest
expense.



|                              |  | December 31, 2014 |          |   | December 31, 2013 |  
|----------------------------- |  | ----------------- | -------- | - | ----------------- | -
|                              |  |                   |          |   |                   |  
|Debt Discount                 |  | $                 | 762,644  |   |                   | $
|Amortization of debt discount |  |                   | (656,394 | ) |                   |  
|Debt Discount - net           |  | $                 | 106,250  |   |                   | $



Note
9 – Derivative Liabilities



|Derivative liability – December 31, 2013                         |  | $ | 3,250,672  |  
|---------------------------------------------------------------- |  | - | ---------- | -
|Fair value mark to market adjustment for convertible instruments |  |   | (1,369,726 | )
|Reduction in fair value due to debt conversions                  |  |   | (280,186   | )
|Fair value at the commitment date for convertible instruments    |  |   | 839,238    |  
|Derivative liability – December 31, 2014                         |  | $ | 2,439,998  |  



The
Company records debt discount to the extent of the gross proceeds raised, any excess amount is recorded as a derivative expense.
The Company recorded a derivative expense of $525,832 and $793,097 for the year ended December 31, 2014 and 2013.



F-19







STL
Marketing Group, Inc. & Subsidiaries

Notes
to the Consolidated Financial Statements

December
31, 2014 and 2013



The
Company uses the Black-Scholes model to estimate the fair value of its derivative liabilities at the end of each reporting period.
The fair value at the commitment and re-measurement dates for the Company’s derivative liabilities were based upon the following
management assumptions as of December 31, 2014:



|                         |  | Commitment Date |                                                         |   | December 31, 2014 | 
|------------------------ |  | --------------- | ------------------------------------------------------- | - | ----------------- | 
|                         |  |                 |                                                         |   |                   | 
|Expected dividends:      |  |                 | 0                                                       | % |                   | 
|Expected volatility:     |  |                 | 238%
                                         - 449     | % |                   | 
|Expected term:           |  |                 | 0.50
                                         - 2 years |   |                   | 
|Risk free interest rate: |  |                 | 0.08%
                                         - 0.37   | % |                   | 



Note
10 – Related Party Transactions



|(A) | Accounts Payable
    – Related Party
|--- | ------------------------------------



As
of December 31, 2014 and December 31, 2013 the Company had accounts payable due to board members and companies owned by board
members of $385,677 and $324,252. Since April 8, 2010 through December 31, 2014, management and board members have been loaning
money to the Company, paying expenses on behalf of the Company and deferring salaries and consulting fees.



|(B) | Related Party
    Consulting Services
|--- | -------------------------------------



The
Company incurred consulting expenses to a company that is owned by a board member, and for the year ending December 31, 2014 and
December 31, 2013 the amounts were $82,500 and $150,000 respectively.



|(C) | Notes Payable
    – Related Parties
|--- | -----------------------------------



The
Company executed various promissory notes to related parties since inception. New notes were issued for the year ending December
31, 2014, in the amount of $2,373..



The
notes had the following range of terms:



|● | Maturing
    in 3 months to 1 year;        
|- | -------------------------------------------
|  |                                            
|● | Non-interest
    bearing                   
|  |                                            
|● | Unsecured                                  
|  |                                            
|● | Default
    interest rate at 6%, per annum;



During
the years ended December 31, 2014 and 2013, the Company repaid $34,071 and $2,925 respectively leaving a balance of $42,751 and
$73,949 respectively. The Company is currently in default on $39,877 of these notes.



Debt
under these obligations at December 31, 2014 and December 31, 2013 is as follows:



|                                         |  | December 31, 2014 |         |   | December 31, 2013 |  
|---------------------------------------- |  | ----------------- | ------- | - | ----------------- | -
|                                         |  |                   |         |   |                   |  
|Notes payable                            |  | $                 | 42,751  |   |                   | $
|Less: Current maturities                 |  |                   | (42,751 | ) |                   |  
|Notes payable, net of Current maturities |  | $                 | -       |   |                   | $



F-20







STL
Marketing Group, Inc. & Subsidiaries

Notes
to the Consolidated Financial Statements

December
31, 2014 and 2013



Note
11 – Retirement Plan



401(k)



The
Company provided a 401(k) employee savings and retirement plan (the “Plan”). The Plan covered all employees who have
completed six months of consecutive service with 160 hours monthly or have completed one year of service. The Company matched
100 percent of a participant’s elective deferrals up to 3 percent of the participant’s compensation, plus 50 percent
of the participant’s elective deferrals that exceed 3 percent of the participant’s compensation, up to 5 percent of
the participant’s compensation. The Company has not contributed to the Plan for the year ended December 31, 2014 and 2013.



Note
12 – Foreign Operations



Costa
Rica



Operations
outside the U.S. include subsidiaries in Costa Rica. Foreign operations are subject to risks inherent in operating under different
legal systems and various political and economic environments. Among the risks are changes in existing tax laws, possible limitations
on foreign investment and income repatriation, government price or foreign exchange controls, and restrictions on currency exchange.
These subsidiaries are still in the development stage and have not generated any revenues.



The
consolidated financial statements of the Company’s subsidiary, located in Costa Rica, are translated from colones, its functional
currently, into U.S. dollars, the Company’s functional currency. All foreign currency assets and liabilities are translated
at the exchange rate in effect at the reporting date, and all revenue and expenses are translated at the month-end exchange rate.
The effects of translating the financial statements of the foreign subsidiary into U.S. dollars are reported as a cumulative translation
adjustment, a separate component of the accumulated other comprehensive income (loss) in the consolidated statements of the shareholders’
equity (deficit). Foreign currency transaction gains/losses are reported as a component of other income – net in the consolidated
statements of operations. The amount of foreign currency transaction gains and losses and translation adjustments were de minimis
during the year periods ended December 31, 2014 and 2013.



Note
13 – Stockholders Deficit



Common
Stock –



Common
Stock has 2,600,000,000 shares authorized at $0.001 par value. Subject to the foregoing provisions, dividends may be declared
on the Common Stock, and each Share of Common Stock shall entitle the holder thereof to one vote in all proceedings in which action
shall be taken by stockholders of the Corporation.



For
the year ended December 31, 2014 the following Common Stock has been issued:



-
256,410 Restricted Common Stock to Iconic Holdings, LLC. of Bethesda, MD. Stock was issued against the agreement for an Equity
Line of Credit of up to five million dollars ($5,000,000). This is the first of two tranches for their commitment fee of the contract.



-
122,200 Restricted Common Stock to Uptick Capital, LLC. of Stamford, CT. Stock was issued against services for consulting in strategic
planning initiatives to enhance and accelerate the commercialization of the Company’s business objectives.



F-21







STL
Marketing Group, Inc. & Subsidiaries

Notes
to the Consolidated Financial Statements

December
31, 2014 and 2013



-
2,777,131 Common Stock the Holder of various convertible notes that converted $32,500 in principal and $1,300 in accrued interest
for a note with the maturity date of August 2014.



-
14,692,867 Common Stock to Tarpon Bay Partners, LLC., pursuant to Section 3(a)(10) of the Securities Act of 1933, stated by the
Circuit Court of the Second Judicial Circuit in Florida.



-
2,952,307 Common Stock the Holder of various convertible notes that converted $42,500 in principal and $1,700 in accrued interest
for a note with the maturity date of October 2014.



-
8,468,925 Common Stock the Holder of various convertible notes that converted $32,500 in principal and $1,300 in accrued interest
for a note with the maturity date of December 2014.



-
7,511,667 Common Stock the Holder of a convertible note that converted $16,641 in principal and $0 in accrued interest for a note
with the maturity date of September 2014.



-
1,613,333 Common Stock (Restricted) to Investor News Source Consulting, LLC. for services rendered during a four-month period.



-
5,903,598 Common Stock to Tarpon Bay Partners, LLC. Holder of a convertible note that converted $8,320 in principal, $2,271 in
accrued interest and 2,415 in fees for a note with the maturity date of September 2014.



-
835,204 Common Stock the Holder of a convertible note that converted $5,000 in principal and $673 in accrued interest for a note
with the maturity date of October 2013.



-
5,348,407 Common Stock the Holder of a convertible note that converted $4,720 in principal and $234 in accrued interest for a
note with the maturity date of March 2015.



Note
14 – Commitments and Contingencies



Operating
Leases



On
November 1, 2010, the Company began leasing office space in Colorado Springs. This lease has been renewed for an additional three-year
term. Monthly rent begins at $694 per month and increases over the term of the lease. The Company is also responsible for paying
a share of the landlord’s property operating costs. The renewal lease began in November 2013 and expires in October 2016.



Rent
expense amounted to $20,237 and $44,501 for the year ending December 31, 2014 and December 31, 2013, respectively and is included
in selling, general and administrative expenses in the consolidated statements of operations.



Future
minimum lease payments under these operating leases are approximately as follows:



|Period Ending December 31, |  |  |   |       
|-------------------------- |  |  | - | ------
|2015                       |  |  |   | 15,256
|2016                       |  |  |   | 13,147
|Total                      |  |  | $ | 28,403



F-22







STL
Marketing Group, Inc. & Subsidiaries

Notes
to the Consolidated Financial Statements

December
31, 2014 and 2013



Agreements
with Placement Agents and Finders



In
April 2011, the Company engaged, a Costa Rican investment bank, as its exclusive agent to advise the Company on the structuring
of corporate openness and equity placement with the following terms:



|● | To
    assist the Company in connection with a best efforts private placement of up to $9.5 million of the Company’s equity
    and/or debt securities
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------
|  |                                                                                                                                                       
|● | Compensation
    – a fee in an amount equal to 5% of the aggregate gross proceeds raised                                                              



A
former principal member of the board of directors of the Company is an employee of the investment bank.



During
the year ended December 31, 2011 the Company paid the investment bank fees of $262,000. The Company is disputing $195,400 of these
fees. (See Note 4)



Liability
Purchase Agreement



On
March 19, 2014, the Circuit Court of the Second Judicial Circuit in and for Leon County, Florida, entered an order approving,
among other things, the fairness of the terms and conditions of an exchange pursuant to Section 3(a)(10) of the Securities Act
of 1933, as amended, in accordance with a stipulation of settlement between STL Marketing Group, Inc., a Colorado corporation,
and Tarpon Bay Partners, LLC, a Florida limited liability company, in the matter entitled Tarpon Bay Partners, LLC v.
STL Marketing Group, Inc., Case No. 2014-CA-278. Tarpon commenced the Action against the Company on February 6, 2014
to recover an aggregate of $519,282 of past-due accounts payable of the Company, which Tarpon had purchased from certain service
providers of the Company pursuant to the terms of separate receivable purchase agreements between Tarpon and each of such vendors,
plus fees and costs. The Assigned Accounts relate to certain legal, accounting, and financial services. The Order provides for
the full and final settlement of the Claim and the Action. The Settlement Agreement became effective and binding upon the Company
and Tarpon upon execution of the Order by the Court on March 19, 2014.



Pursuant
to the Settlement Agreement, the Company shall issue and deliver to Tarpon shares (the “Settlement Shares”) of the
Company’s Common Stock in one of more tranches as necessary, and subject to adjustment and ownership limitations, sufficient
to generate proceeds such that the aggregate Remittance Amount (as defined in the Settlement Agreement) equals the Claim.



In
addition, pursuant to the terms of the Settlement Agreement, the Company issued to Tarpon the Tarpon Initial Note in the principal
amount of $25,000. Under the terms of the Tarpon Initial Note, the Company shall pay Tarpon $25,000 on the date of maturity which
was May 31, 2014. This Note is convertible by Tarpon into the Company’s Common Shares (See Note 8).



Also
per the Company’s agreement with Tarpon, the Company issued the Tarpon Success Fee Note in the principal amount of $25,000
in favor of Tarpon as a commitment fee. The Tarpon Success Fee Note is due on September 20, 2014. The Tarpon Success Fee Note
is convertible into shares of the Company’s common stock (See Note 8).



In
connection with the settlement, and during the year ending December 31, 2014, the Company issued Tarpon 14,692,867 shares of Common
Stock from which gross proceeds of $246,734 were generated from the sale of the Common Stock. In connection with the transaction,
Tarpon received fees of $81,287 and providing payments of $165,447 to settle outstanding vendor payables. A portion of the fees
that Tarpon has received, has not been fully documented by Tarpon to the Company as requested, and therefore are in dispute and
are pending of file date. For audit purposes, we have recorded these fees as fees paid to Tarpon.



Any
shares not used by Tarpon are subject to return to the Company. Accordingly, the Company accounts for these shares as issued but
not outstanding until the shares have been sold by Tarpon and the proceeds are known. Net proceeds received by Tarpon are included
as a reduction to accounts payable or other liability as applicable, as such funds are legally required to be provided to the
party Tarpon purchased the debt from.



F-23







STL
Marketing Group, Inc. & Subsidiaries

Notes
to the Consolidated Financial Statements

December
31, 2014 and 2013



Litigations,
Claims and Assessments



The
Company may become involved in various lawsuits and legal proceedings, which arise in the ordinary course of business. However,
litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise that may harm its business.
Other than the litigation with Costa Rican Investment Bank, as discussed in Note 4, the Company is currently not aware of any
such legal proceedings or claims that they believe will have, individually or in the aggregate, a material adverse affect on its
business, financial condition or operating results.



Note
15 – Subsequent Events



The
Company has evaluated all events that occurred after the balance sheet date through the date when the financial statements were
available to be issued to determine if they must be reported. The Management of the Company determined that there are certain
reportable subsequent events to be disclosed as follows:





On
March 4, 2015, the Company received notice from the Financial Industry Regulatory Authority (the “FINRA Notice”) that
the Company’s application for a 1:15 reverse split was approved. In accordance with the FINRA Notice, the 1:15 reverse split
of the Company’s common stock went effective on March 5, 2015.



The
following conversions have been made;



-
5,338,888 Common Stock the Holder of a convertible note that converted $961 in principal and $0
in accrued interest for a note with the maturity date of September 2014.



- 5,994,829
Common Stock the Holder of a various convertible notes that converted $2,000 in principal and $98 in accrued interest for a note
with the maturity date of August 2015.



- 43,180,986
Common Stock the Holder of various convertible notes that converted $17,995 in principal and $0 in accrued interest for a note
with the maturity date of March 2015.



- 21,848,938
Common Stock the Holder of various convertible notes that converted $7,690 in principal and $389 in accrued interest for a note
with the maturity date of March 2015.



- 8,450,000
Common Stock the Holder of various convertible notes that converted $1,521 in principal and $0 in accrued interest for a note
with the maturity date of May 2016.







F-24