----

| [X]             | QUARTERLY REPORT UNDER TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2017 |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------|
|            |                                                                                                                                   |
|            | OR                                                                                                                                     |
|            |                                                                                                                                   |
| [   ] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934                                               |
| Large Accelerated Filer                                                 | [   ] | Accelerated Filer         | [   ] |
|-------------------------------------------------------------------------|-----------------|---------------------------|-----------------|
| Non-accelerated Filer  (Do not check if smaller reporting company) | [   ] | Smaller Reporting Company | [X]             |
| Emerging Growth Company                                                 | [   ] |                      |            |

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|          | Page                                                                                   |
|---------------|----------------------------------------------------------------------------------------|
|          |                                                                                   |
|          | PART I.                                                                                | 3 |
|          |                                                                                   |   |
| Item 1.       | Unaudited Consolidated Financial Statements.                                           | 3 |
|          |                                                                                   |   |
| Item 2.       | Management's Discussion and Analysis of Financial Condition and Results of Operations. | 3 |
|          |                                                                                   |   |
| Item 3.       | Quantitative and Qualitative Disclosures About Market Risk.                            | 3 |
|          |                                                                                   |   |
| Item 4.       | Controls and Procedures.                                                               | 3 |
|          |                                                                                   |   |
|          | PART II.                                                                               | 3 |
|          |                                                                                   |   |
| Item 1.       | Legal Proceedings.                                                                     | 3 |
|          |                                                                                   |   |
| Item 1A.      | Risk Factors.                                                                          | 4 |
|          |                                                                                   |   |
| Item 2.       | Unregistered Sales of Equity Securities and Use of Proceeds.                           | 4 |
|          |                                                                                   |   |
| Item 3.       | Defaults Upon Senior Securities.                                                       | 4 |
|          |                                                                                   |   |
| Item 4.       | Mine Safety Disclosures.                                                               | 4 |
|          |                                                                                   |   |
| Item 5.       | Other Information.                                                                     | 4 |
|          |                                                                                   |   |
| Item 6.       | Exhibits.                                                                              | 4 |
|          |                                                                                   |   |
| Signatures    | 6                                                                                      |
|          |                                                                                   |
| Exhibit Index | 7                                                                                      |

----

| Consolidated Balance Sheets (unaudited)                    | F–1 |
|------------------------------------------------------------|-----------|
|                                                       |      |
| Consolidated Statements of Operations (unaudited)          | F–2 |
|                                                       |      |
| Consolidated Statements of Cash Flows (unaudited)          | F–3 |
|                                                       |      |
| Notes to the Consolidated Financial Statements (unaudited) | F–4 |

----

|                                                                                                                                                  |   | September 30,2017$ |       |   | December 31,2016$ |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|------------|--------|-------------------|--------|
|                                                                                                                                                  |   |               |       |   |              |   |
| ASSETS                                                                                                                                                |   |               |       |   |              |   |
|                                                                                                                                                  |   |               |       |   |              |   |
| Cash                                                                                                                                                  |   |               | 226,732    |   |              |   | 456,967 |   |
| Accounts receivable, net of allowance for doubtful accounts of $2,500 and $nil, respectively                                                          |   |               | 313,803    |   |              |   | 853,755 |   |
| Accounts receivable – related party, net of allowance for doubtful accounts of $207,807 and $nil, respectively                                  |   |               | –    |   |              |   | 59,926 |   |
| Prepaid expenses                                                                                                                                      |   |               | 202,725    |   |              |   | 162,725 |   |
| Prepaid expenses – related party                                                                                                                |   |               | 413        |   |              |   | – |   |
| Inventory                                                                                                                                             |   |               | 395,804    |   |              |   | 396,518 |   |
|                                                                                                                                                  |   |               |       |   |              |   |   |   |
| Total Current Assets                                                                                                                                  |   |               | 1,139,477  |   |              |   | 1,929,891 |   |
|                                                                                                                                                  |   |               |       |   |              |   |   |   |
| Intangible assets, net                                                                                                                                |   |               | 3,963      |   |              |   | 102,337 |   |
|                                                                                                                                                  |   |               |       |   |              |   |   |   |
| Total Assets                                                                                                                                          |   |               | 1,143,440  |   |              |   | 2,032,228 |   |
|                                                                                                                                                  |   |               |       |   |              |   |   |   |
| LIABILITIES                                                                                                                                           |   |               |       |   |              |   |   |   |
|                                                                                                                                                  |   |               |       |   |              |   |   |   |
| Current Liabilities                                                                                                                                   |   |               |       |   |              |   |   |   |
|                                                                                                                                                  |   |               |       |   |              |   |   |   |
| Accounts payable and accrued liabilities                                                                                                              |   |               | 693,637    |   |              |   | 1,120,632 |   |
| Accounts payable – related party                                                                                                                |   |               | –    |   |              |   | 9,587 |   |
| Deferred revenue                                                                                                                                      |   |               | 146,250    |   |              |   | 146,370 |   |
| Derivative liabilities                                                                                                                                |   |               | 102,546    |   |              |   | 1,944 |   |
| Loan payable                                                                                                                                          |   |               | 120,000    |   |              |   | 120,000 |   |
| Due to related parties                                                                                                                                |   |               | 121,597    |   |              |   | 163,798 |   |
| Liability for shares issuable – related party                                                                                                   |   |               | 611,186    |   |              |   | 843,616 |   |
| Convertible debentures, net of unamortized discount of $76,214 and $nil, respectively                                                                 |   |               | 72,399     |   |              |   | 70,000 |   |
|                                                                                                                                                  |   |               |       |   |              |   |   |   |
| Total Current Liabilities                                                                                                                             |   |               | 1,867,615  |   |              |   | 2,475,947 |   |
|                                                                                                                                                  |   |               |       |   |              |   |   |   |
| STOCKHOLDERS' DEFICIT                                                                                                                                 |   |               |       |   |              |   |   |   |
|                                                                                                                                                  |   |               |       |   |              |   |   |   |
| Preferred Stock                                                                                                                                       |   |               |       |   |              |   |   |   |
| Authorized: 500,000,000 preferred shares with a par value of $0.001 per shareIssued and outstanding: 1,000,000 preferred shares                       |   |               | 1,000      |   |              |   | 1,000 |   |
|                                                                                                                                                  |   |               |       |   |              |   |   |   |
| Common Stock                                                                                                                                          |   |               |       |   |              |   |   |   |
| Authorized: 750,000,000 common shares with a par value of $0.001 per shareIssued and outstanding: 7,075,107 and 6,439,550 common shares, respectively |   |               | 7,075      |   |              |   | 6,440 |   |
|                                                                                                                                                  |   |               |       |   |              |   |   |   |
| Additional paid-in capital                                                                                                                            |   |               | 2,799,068  |   |              |   | 2,576,869 |   |
|                                                                                                                                                  |   |               |       |   |              |   |   |   |
| Accumulated deficit                                                                                                                                   |   |               | (3,531,318 | )      |              |   | (3,028,028 | ) |
|                                                                                                                                                  |   |               |       |   |              |   |   |   |
| Total Stockholders' Deficit                                                                                                                           |   |               | (724,175   | )      |              |   | (443,719 | ) |
|                                                                                                                                                  |   |               |       |   |              |   |   |   |
| Total Liabilities and Stockholders' Deficit                                                                                                           |   |               | 1,143,440  |   |              |   | 2,032,228 |   |

----

|                                                          |   | Three months endedSeptember 30,2017$ |      |   | Three months endedSeptember 30,2016$ |   |      | Nine months endedSeptember 30,2017$ |   |   | Nine months endedSeptember 30,2016$ |   |
|---------------------------------------------------------------|--------|--------------------------------------|-----------|--------|--------------------------------------|--------|-----------|-------------------------------------|--------|--------|-------------------------------------|--------|
|                                                          |   |                                 |      |   |                                 |   |      |                                |   |   |                                |   |
| Revenue of goods                                              |   |                                 | 750,557   |   |                                 |   | 1,192,845 |                                |   |   | 2,391,941                           |   |   |   | 2,946,269 |   |
| Revenue of services – related party                     |   |                                 | –   |   |                                 |   | 117,500   |                                |   |   | 147,881                             |   |   |   | 354,444 |   |
|                                                          |   |                                 |      |   |                                 |   |      |                                |   |   |                                |   |   |   |   |   |
| Total revenue                                                 |   |                                 | 750,557   |   |                                 |   | 1,310,345 |                                |   |   | 2,539,822                           |   |   |   | 3,300,713 |   |
|                                                          |   |                                 |      |   |                                 |   |      |                                |   |   |                                |   |   |   |   |   |
| Cost of goods sold                                            |   |                                 | (387,281  | )      |                                 |   | (548,576  | )                                   |   |   | (1,289,225                          | )      |   |   | (1,347,806 | ) |
|                                                          |   |                                 |      |   |                                 |   |      |                                |   |   |                                |   |   |   |   |   |
| Gross Margin                                                  |   |                                 | 363,276   |   |                                 |   | 761,769   |                                |   |   | 1,250,597                           |   |   |   | 1,952,907 |   |
|                                                          |   |                                 |      |   |                                 |   |      |                                |   |   |                                |   |   |   |   |   |
| Operating Expenses                                            |   |                                 |      |   |                                 |   |      |                                |   |   |                                |   |   |   |   |   |
|                                                          |   |                                 |      |   |                                 |   |      |                                |   |   |                                |   |   |   |   |   |
| Amortization                                                  |   |                                 | 25,399    |   |                                 |   | 37,092    |                                |   |   | 98,374                              |   |   |   | 110,471 |   |
| Consulting                                                    |   |                                 | –   |   |                                 |   | 15,317    |                                |   |   | 68,115                              |   |   |   | 986,159 |   |
| General and administrative                                    |   |                                 | 605,382   |   |                                 |   | 425,719   |                                |   |   | 1,220,818                           |   |   |   | 1,271,377 |   |
| Payroll                                                       |   |                                 | 77,391    |   |                                 |   | 138,025   |                                |   |   | 317,666                             |   |   |   | 394,510 |   |
| Professional fees                                             |   |                                 | 66,429    |   |                                 |   | 38,485    |                                |   |   | 201,371                             |   |   |   | 145,022 |   |
| Research and development                                      |   |                                 | –   |   |                                 |   | 41,054    |                                |   |   | 38,002                              |   |   |   | 43,654 |   |
|                                                          |   |                                 |      |   |                                 |   |      |                                |   |   |                                |   |   |   |   |   |
| Total Operating Expenses                                      |   |                                 | 774,601   |   |                                 |   | 695,692   |                                |   |   | 1,944,346                           |   |   |   | 2,951,193 |   |
|                                                          |   |                                 |      |   |                                 |   |      |                                |   |   |                                |   |   |   |   |   |
| Income (Loss) Before Other Income (Expense)                   |   |                                 | (411,325  | )      |                                 |   | 66,077    |                                |   |   | (693,749                            | )      |   |   | (998,286 | ) |
|                                                          |   |                                 |      |   |                                 |   |      |                                |   |   |                                |   |   |   |   |   |
| Other Income (Expense)                                        |   |                                 |      |   |                                 |   |      |                                |   |   |                                |   |   |   |   |   |
|                                                          |   |                                 |      |   |                                 |   |      |                                |   |   |                                |   |   |   |   |   |
| Gain (loss) on change in fair value of derivative liabilities |   |                                 | (2,107    | )      |                                 |   | 19,413    |                                |   |   | (4,328                              | )      |   |   | 418,878 |   |
| Gain on forgiveness of debt                                   |   |                                 | –   |   |                                 |   | 19,988    |                                |   |   | –                             |   |   |   | 19,988 |   |
| Interest expense                                              |   |                                 | (14,745   | )      |                                 |   | (22,547   | )                                   |   |   | (32,643                             | )      |   |   | (75,770 | ) |
| Make whole expense with related party                         |   |                                 | (176,758  | )      |                                 |   | (281,254  | )                                   |   |   | 232,430                             |   |   |   | (295,280 | ) |
| Other expense                                                 |   |                                 | –   |   |                                 |   | –   |                                |   |   | (5,000                              | )      |   |   | – |   |
|                                                          |   |                                 |      |   |                                 |   |      |                                |   |   |                                |   |   |   |   |   |
| Total Other Income (Expense)                                  |   |                                 | (193,610  | )      |                                 |   | (264,400  | )                                   |   |   | 190,459                             |   |   |   | 67,816 |   |
| Net Loss                                                      |   |                                 | (604,935  | )      |                                 |   | (198,323  | )                                   |   |   | (503,290                            | )      |   |   | (930,470 | ) |
|                                                          |   |                                 |      |   |                                 |   |      |                                |   |   |                                |   |   |   |   |   |
| Net Loss per Share – Basic                              |   |                                 | (0.09     | )      |                                 |   | (0.03     | )                                   |   |   | (0.08                               | )      |   |   | (0.17 | ) |
|                                                          |   |                                 |      |   |                                 |   |      |                                |   |   |                                |   |   |   |   |   |
| Net Loss per Share – Diluted                            |   |                                 | (0.09     | )      |                                 |   | (0.03     | )                                   |   |   | (0.09                               | )      |   |   | (0.17 | ) |
| Weighted Average Shares Outstanding – Basic             |   |                                 | 6,779,214 |   |                                 |   | 6,129,552 |                                |   |   | 6,599,633                           |   |   |   | 5,454,847 |   |
| Weighted Average Shares Outstanding – Diluted           |   |                                 | 6,779,214 |   |                                 |   | 6,129,552 |                                |   |   | 8,140,339                           |   |   |   | 5,454,847 |   |

----

|                                                                          |   | Nine months endedSeptember 30,2017$ |     |   | Nine months endedSeptember 30,2016$ |   |
|-------------------------------------------------------------------------------|--------|-------------------------------------|----------|--------|-------------------------------------|--------|
| Operating Activities                                                          |   |                                |     |   |                                |   |
|                                                                          |   |                                |     |   |                                |   |
| Net loss for the period                                                       |   |                                | (503,290 | )      |                                |   | (930,470 | ) |
|                                                                          |   |                                |     |   |                                |   |   |   |
| Adjustments to reconcile net (loss) to net cash used in operating activities: |   |                                |     |   |                                |   |   |   |
| Accretion of discount on convertible debentures                               |   |                                | 26,060   |   |                                |   | – |   |
| Amortization of intangible assets                                             |   |                                | 98,374   |   |                                |   | 110,471 |   |
| Bad debts                                                                     |   |                                | 210,307  |   |                                |   | – |   |
| Change in fair value of make whole expense with related party                 |   |                                | (232,430 | )      |                                |   | 295,280 |   |
| Gain on forgiveness of debt                                                   |   |                                | –  |   |                                |   | (19,989 | ) |
| Imputed interest                                                              |   |                                | –  |   |                                |   | 4,504 |   |
| Issuance of shares for consulting services                                    |   |                                | 222,834  |   |                                |   | 247,561 |   |
| Issuance of shares for employee bonuses                                       |   |                                | –  |   |                                |   | 671,831 |   |
| Loss (gain) on change in fair value of derivative liabilities                 |   |                                | 4,328    |   |                                |   | (418,878 | ) |
|                                                                          |   |                                |     |   |                                |   |   |   |
| Changes in operating assets and liabilities:                                  |   |                                |     |   |                                |   |   |   |
| Accounts receivable                                                           |   |                                | 537,452  |   |                                |   | 331,444 |   |
| Accounts receivable – related party                                     |   |                                | (147,881 | )      |                                |   | (311,944 | ) |
| Prepaid expenses                                                              |   |                                | (40,000  | )      |                                |   | (159,860 | ) |
| Prepaid expense – related party                                         |   |                                | (413     | )      |                                |   | – |   |
| Inventory                                                                     |   |                                | 714      |   |                                |   | (45,612 | ) |
| Prepaid inventory                                                             |   |                                | –  |   |                                |   | 297,305 |   |
| Accounts payable and accrued liabilities                                      |   |                                | (426,995 | )      |                                |   | 653,306 |   |
| Accounts payable – related party                                        |   |                                | (9,587   | )      |                                |   | (193,904 | ) |
| Deferred revenue                                                              |   |                                | (120     | )      |                                |   | 146,250 |   |
| Due to related parties                                                        |   |                                | (42,201  | )      |                                |   | 83,795 |   |
|                                                                          |   |                                |     |   |                                |   |   |   |
| Net cash provided by (used in) operating activities                           |   |                                | (302,848 | )      |                                |   | 761,090 |   |
|                                                                          |   |                                |     |   |                                |   |   |   |
| Investing Activities                                                          |   |                                |     |   |                                |   |   |   |
| Acquisition of intangible assets                                              |   |                                | –  |   |                                |   | (2,247 | ) |
|                                                                          |   |                                |     |   |                                |   |   |   |
| Net cash used in investing activities                                         |   |                                | –  |   |                                |   | (2,247 | ) |
|                                                                          |   |                                |     |   |                                |   |   |   |
| Financing Activities                                                          |   |                                |     |   |                                |   |   |   |
| Repayments of loans payable                                                   |   |                                | –  |   |                                |   | (19,491 | ) |
| Proceeds from convertible debentures                                          |   |                                | 120,000  |   |                                |   | – |   |
| Repayments of convertible debentures                                          |   |                                | (47,387  | )      |                                |   | (210,000 | ) |
|                                                                          |   |                                |     |   |                                |   |   |   |
| Net cash provided by (used in) financing activities                           |   |                                | 72,613   |   |                                |   | (229,491 | ) |
|                                                                          |   |                                |     |   |                                |   |   |   |
| Change in cash                                                                |   |                                | (230,235 | )      |                                |   | 529,352 |   |
|                                                                          |   |                                |     |   |                                |   |   |   |
| Cash, beginning of period                                                     |   |                                | 456,967  |   |                                |   | 388,183 |   |
|                                                                          |   |                                |     |   |                                |   |   |   |
| Cash, end of period                                                           |   |                                | 226,732  |   |                                |   | 917,535 |   |
|                                                                          |   |                                |     |   |                                |   |   |   |
| Non-cash Financing Activity                                                   |   |                                |     |   |                                |   |   |   |
| Debt discount resulting from derivative liability                             |   |                                | 96,274   |   |                                |   | – |   |
|                                                                          |   |                                |     |   |                                |   |   |   |
| Supplemental Disclosures                                                      |   |                                |     |   |                                |   |   |   |
| Interest paid                                                                 |   |                                | 2,613    |   |                                |   | – |   |
| Income tax paid                                                               |   |                                | –  |   |                                |   | – |   |

----

| 2. | Summary of Significant Accounting Policies |
|----|--------------------------------------------|

|  | a) | Basis of Presentation and Principles of Consolidation |
|--|----|-------------------------------------------------------|

----

| 2. | Summary of Significant Accounting Policies |
|----|--------------------------------------------|

|                          |   | Three months endedSeptember 30, 2017 |     |   | Three months endedSeptember 30, 2016 |   |
|-------------------------------|--------|--------------------------------------|----------|--------|--------------------------------------|--------|
|                          |   | Net Income (loss)(Numerator)         |     |   | Shares(Denominator)                  |   |   | Per ShareAmount |   |   | Net Income (loss)(Numerator) |   |   | Shares(Denominator) |   |   | Per ShareAmount |   |
| Basic EPS                     |   | $                                    | (604,935 | )      |                                 |   | 6,779,214 |   |   | $ | (0.09 | ) |   | $ | (198,323 | ) |   |   | 6,129,552 |   |   | $ | (0.03 | ) |
| Effect of dilutive securities |   |                                 | -        |   |                                 |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Convertible debentures        |   |                                 | -        |   |                                 |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Diluted EPS                   |   | $                                    | (604,935 | )      |                                 |   | 6,779,214 |   |   | $ | (0.09 | ) |   | $ | (198,323 | ) |   |   | 6,129,552 |   |   | $ | (0.03 | ) |
|                          |   | Nine months endedSeptember 30, 2017 |     |   | Nine months endedSeptember 30, 2016 |   |
|-------------------------------|--------|-------------------------------------|----------|--------|-------------------------------------|--------|
|                          |   | Net Income (loss)(Numerator)        |     |   | Shares(Denominator)                 |   |   | Per ShareAmount |   |   | Net(Numerator) |   |   | Shares(Denominator) |   |   | Per ShareAmount |   |
| Basic EPS                     |   | $                                   | (503,290 | )      |                                |   | 6,599,633 |   |   | $ | (0.08 | ) |   | $ | (930,470 | ) |   |   | 5,454,847 |   |   | $ | (0.17 | ) |
| Effect of dilutive securities |   |                                | -        |   |                                |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Convertible debentures        |   |                                | (195,459 | )      |                                |   | 1,540,706 |   |   |   | (0.13 | ) |   |   | - |   |   |   | - |   |   |   | - |   |
| Diluted EPS                   |   | $                                   | (698,749 | )      |                                |   | 8,140,339 |   |   | $ | (0.09 | ) |   | $ | (930,470 | ) |   |   | 5,454,847 |   |   | $ | (0.17 | ) |

----

|                                                |   | Level 1$ |     |   | Level 2$ |   |    | Level 3$ |   |   | Total gains and(losses) |   |
|-----------------------------------------------------|--------|----------|----------|--------|----------|--------|---------|----------|--------|--------|-------------------------|--------|
|                                                |   |     |     |   |     |   |    |     |   |   |                    |   |
|                                                |   |     |     |   |     |   |    |     |   |   |                    |   |
| Liability for shares issuable – related party |   |     | (611,186 | )      |     |   | – |     |   |   | –                 |   |   |   | 232,430 |   |
| Derivative liabilities                              |   |     | –  |   |     |   | – |     |   |   | (102,546                | )      |   |   | (4,328 | ) |
|                                                |   |     |     |   |     |   |    |     |   |   |                    |   |   |   |   |   |
| Total                                               |   |     | (611,186 | )      |     |   | – |     |   |   | (102,546                | )      |   |   | 228,102 |   |
|                                                |   | Level 1$ |     |   | Level 2$ |   |    | Level 3$ |   |   | Total gains and(losses) |   |
|-----------------------------------------------------|--------|----------|----------|--------|----------|--------|---------|----------|--------|--------|-------------------------|--------|
|                                                |   |     |     |   |     |   |    |     |   |   |                    |   |
| Liability for shares issuable – related party |   |     | (843,616 | )      |     |   | – |     |   |   | –                 |   |   |   | (12,383 | ) |
| Derivative liabilities                              |   |     | –  |   |     |   | – |     |   |   | (1,944                  | )      |   |   | 489,305 |   |
|                                                |   |     |     |   |     |   |    |     |   |   |                    |   |   |   |   |   |
| Total                                               |   |     | (843,616 | )      |     |   | – |     |   |   | (1,944                  | )      |   |   | 476,922 |   |

| a) | On June 20, 2014, the Company entered into a consulting agreement for consulting services. Pursuant to the agreement, the Company is to pay the consultant a commencement fee of $250,000. On June 23, 2014, the Company issued a $250,000 convertible note which is unsecured, non-bearing interest and due on June 22, 2015. The note is convertible into shares of common stock 180 days after the date of issuance (December 17, 2014) at a conversion rate of 90% of the lowest closing bid prices of the Company's common stock for the ten trading days ending one trading day prior to the date the conversion notice is sent by the holder to the Company. As at September 30, 2017, accrued interest of $27,461 (December 31, 2016 - $27,461) has been recorded in accounts payable and accrued liabilities. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 3. | Convertible Debentures (continued) |
|----|------------------------------------|

|  | b) | On May 23, 2017, the Company issued a $63,000 convertible note which is unsecured, bears interest at 8% per annum, and is due on May 23, 2018. The note is convertible into shares of common stock at a conversion rate of 55% of the lowest closing bid prices of the Company's common stock for the twenty trading days ending one trading day prior to the date the conversion notice is sent by the holder to the Company. As at September 30, 2017, accrued interest of $1,808 (December 31, 2016 - $nil) has been recorded in accounts payable and accrued liabilities. |
|--|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | c) | On May 23, 2017, the Company issued a $63,000 convertible note which is unsecured, bears interest at 8% per annum, and is due on May 23, 2018. The note is convertible into shares of common stock at a conversion rate of 55% of the lowest closing bid prices of the Company's common stock for the twenty trading days ending one trading day prior to the date the conversion notice is sent by the holder to the Company. As at September 30, 2017, accrued interest of $1,808 (December 31, 2016 - $nil) has been recorded in accounts payable and accrued liabilities. |
|--|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | The stock price for the valuation of the derivative instruments at September 30, 2017 was $0.195 per share of common stock;  |
|--------|-----------------------------------------------------------------------------------------------------------------------------------|

| · | The debtholder would redeem (with penalties of 0% to 50% depending on the date and full-partial redemption) based on availability of alternative financing of 95%;  |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | The debtholder would automatically convert note at maturity if the registration was effective and the Company is not in default;  |
|--------|----------------------------------------------------------------------------------------------------------------------------------------|

| · | The projected annual volatility for each valuation period based on the historic volatility of the Company 274% - 305%; and  |
|--------|----------------------------------------------------------------------------------------------------------------------------------|

| · | Capital raising events of $100,000 would occur in each quarter at 75% of market generating dilutive reset events at prices below $0.015 (rounded) for the convertible debentures. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 4. | Derivative Liabilities (continued) |
|----|------------------------------------|

|                                           |   |   | $       |   |
|------------------------------------------------|--------|--------|---------|--------|
|                                           |   |   |    |   |
| Balance, December 31, 2016                     |   |   | 1,944   |   |
| Debt discount                                  |   |   | 96,274  |   |
| Loss in change in fair value of the derivative |   |   | 4,328   |   |
|                                           |   |   |    |   |
| Balance, September 30, 2017                    |   |   | 102,546 |   |

| a) | As at September 30, 2017, the Company was owed $nil (December 31, 2016 - $59,926) in trade accounts receivable, net of allowance for doubtful accounts of $$207,807 (December 31, 2016 - $nil) from a significant shareholder, which is non-interest bearing, unsecured, and due on demand. This amount has been included in accounts receivable – related party.  |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b) | As at September 30, 2017, the Company owed $61,523 (December 31, 2016 - $75,964) to the President of the Company, which is non-interest bearing, unsecured, and due on demand.  |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c) | As at September 30, 2017, the Company owed $60,074 (December 31, 2016 - $87,834) to the Chief Financial Officer of the Company, which is non-interest bearing, unsecured, and due on demand.  |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d) | As at September 30, 2017, the Company recorded a liability for shares issuable of $611,186 (December 31, 2016 - $843,616) relating to 3,134,285 common shares to be issued to a significant shareholder pursuant to the acquisition agreement for the intangible assets. During the period ended September 30, 2017, the Company recorded $232,430 (2016 –$295,280) as a gain in the fair value of the shares issuable to the significant shareholder.  |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| e) | During the nine months ended September 30, 2017, the Company generated net service revenues of $147,881 (2016 - $354,444) for sales revenue to a significant shareholder.  |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| f) | During the nine months ended September 30, 2017, the Company incurred payroll expense of $317,666 (2016 - $394,510) to management and officers of the Company.  |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| g) | During the nine months ended September 30, 2017, the Company incurred bonuses on sales of stealth cards of $nil (2016 - $182,198) to management and officers of the Company which has been included in cost of sales. Bonuses accrue on total gross sales at a rate of 5% each to the Chief Executive Officer and the Chief Financial Officer of the Company.  |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| h) | During the nine months ended September 30, 2017, the Company issued nil (2016 – 1,544,437) common shares with a fair value of $nil (2016 - $671,830) to management and officers of the Company which has been included in consulting expenses.  |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| i) | During the nine months ended September 30, 2017, the Company incurred engineering expense of $nil (2016 - $7,025), which was included in cost of goods sold, and research and development costs of $38,002 (2016 - $42,600) to a company owned by the mother of the President of the Company. As at September 30, 2017, the Company was owed $413 (December 31, 2016 - $nil) from the company owned by the mother of the President of the Company, which is non-interest bearing, unsecured, and due on demand. The amount owing has been recorded as prepaid expense – related party. As at September 30, 2017, the Company owed $nil (December 31, 2016 – $9,587) to the company owned by the mother of the President of the Company, which has been recorded as accounts payable – related party. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| a) | On January 24, 2017, the Company issued 66,667 common shares with a fair value of $25,000 to a non-related party for consulting services. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------|

| b) | On February 1, 2017, the Company issued 13,334 common shares with a fair value of $7,000 to a non-related party for consulting services. |
|----|------------------------------------------------------------------------------------------------------------------------------------------|

| c) | On August 18, 2017, the Company issued 555,556 common shares with a fair value of $190,834 to a non-related party for advertising services, which has been recorded in general and administrative expenses. The fair value of the common shares was determined on June 20, 2017, which was the effective date of the advertising services. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| a) | On February 1, 2016, the Company received notice that a third party was seeking compensation for damages as a result of false advertisements made by the Company in regards to the Company's stealth cards. The plaintiff is a manufacturer and distributor of radio frequency identification (RFID) chip protection cards which are in competition with the Company's stealth cards. The Company has filed an answer to the plaintiff's complaint, with denials and affirmative defenses, and is unable to estimate the likelihood of any outcome as at September 30, 2017. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b) | On February 22, 2016, the Company received notice that a consultant was seeking compensation for breach of agreement. Pursuant to the agreement, the parties agreed to equally split any net profits generated from the sale of Stealth cards made by the consultant. The Company asserts that historical sales generated from the sale of the Stealth Cards were not as a result of the consultant's services, and therefore the Company should not be liable for any compensation due to the consultant. The Company has filed its Answer and Affirmative Defenses on July 18, 2016 and has asserted counterclaims against the consultant. The Company is currently awaiting the response from the consultant and is unable to estimate the likelihood of any outcome as at September 30, 2017. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c) | On October 23, 2017, the Company received notice that a consultant was seeking compensation for breach of agreement. Pursuant to the agreement, the Company agreed to compensate the consultant for services performed and for commission earned on the sale of Stealth cards promoted by the consultant. The Company asserts that the agreement was terminated with just cause, and therefore the Company should not be liable for any compensation due to the consultant. The Company intends to defend itself against the consultant and is unable to estimate the likelihood of any outcome as at the date of the report. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Table of Contents

| ITEM 2. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. |
|---------|----------------------------------------------------------------------------------------|

|                 | September 30, 2017$ | December 31, 2016$ |
|---------------------------|---------------------|--------------------|
| Current Assets            | 1,139,477           | 1,929,891          |
| Current Liabilities       | (1,867,615)         | (2,475,947)        |
| Working Capital (Deficit) | (728,138)           | (546,056)          |
|                                             | September 30, 2017$ | September 30, 2016$ |
|-------------------------------------------------------|---------------------|---------------------|
| Cash Flows provided by (used in) Operating Activities | (302,848)           | 761,090             |
| Cash Flows provided by (used in) Investing Activities | -                   | (2,247)             |
| Cash Flows provided by (used in) Financing Activities | 72,613              | (229,491)           |
| Net Change in Cash During Period                      | (230,235)           | 529,352             |

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| - | Insufficient number of qualified accounting personnel governing the financial close and reporting process |
|---|-----------------------------------------------------------------------------------------------------------|

| - | Lack of proper segregation of duties |
|---|--------------------------------------|

|  | a) | An action was initiated against us in Scanner Guard Corporation v. Excelsis Investments, Inc., et al., Case No. 16-516, pending in the United States District Court for the Eastern District of Pennsylvania wherein Scanner Guard alleges that we made false statements about our stealth card.  The plaintiff is a manufacturer and distributor of radio frequency identification (RFID) chip protection cards which are in competition with our stealth cards. We filed an answer to Scanner's complaint, denying the allegations in Scanner's complaint and have asserted certain affirmative defenses.  We intend to vigorously defend this matter. |
|--|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | b) | An action was initiated against us in The Marketing Source, Inc. v. Mobile Dynamic Marketing, Inc., a Florida corporation, et al, Case No. 2016-000823-CI, pending in the Circuit Court of the Sixth Judicial Circuit in and for Pinellas County, Florida wherein The Marketing Source alleges that we breached the terms a Marketing Agreement and as a result The Marketing Source is entitled to an unspecified amount of damages, an accounting, and an injunction.  We deny The Marketing Source's allegations and intend to vigorously defend this action. |
|--|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | c) | An action was initiated against Stealth Card, Inc. (the "Company") in HD Group Enterprises LLC v. Stealth Card, Inc. f/k/a Mobile Dynamic Marketing, Inc., Case No. 17-006359-CI, pending in the Circuit Court of the Sixth Judicial Circuit in and for Pinellas County, Florida.  In that action, the plaintiff HD Group Enterprises LLC (the "plaintiff") alleges that the Company breached a contract by failing to pay sales commissions and other sums purportedly due to the plaintiff, and by refusing to indemnify the plaintiff regarding two lawsuits pending in the United States District Court for the Eastern District of Pennsylvania. The plaintiff seeks damages exceeding $600,000, as well as the referenced indemnification.  The Company's response is due on or before December 1, 2017.  In short, the Company denies the plaintiff's claims in their entirety, and intends to vigorously defend this matter. |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Table of Contents

| Exhibit |                                                                                                    | Incorporated by reference | Filed    |
|---------|---------------------------------------------------------------------------------------------------------|---------------------------|----------|
| Number  | Document Description                                                                                    | Form                      | Date     | Number | Herewith |
|    |                                                                                                    |                      |     |   |   |
| 2.1     | Exchange Agreement between Pub Crawl Holdings, Inc. and Mobile Dynamic Marketing, Inc.                  | 8-K                       | 01/31/13 | 2.1 |   |
| 2.2     | Exchange Agreement between Pub Crawl Holdings, Inc. and Career Start, Inc.                              | 10-Q                      | 11/19/13 | 2.2 |   |
| 3.1     | Articles of Incorporation - Pub Crawl.                                                                  | S-1                       | 10/07/10 | 3.1 |   |
| 3.2     | Articles of Incorporation - Mobile Dynamic Marketing, Inc.                                              | 10-K/A                    | 04/16/13 | 3.2 |   |
| 3.3     | Articles of Incorporation – Career Start, Inc.                                                    | 10-K                      | 04/15/14 | 3.3 |   |
| 3.4     | Bylaws - Pub Crawl Holdings, Inc.                                                                       | S-1                       | 10/07/10 | 3.2 |   |
| 3.5     | Bylaws - Mobile Dynamic Marketing, Inc.                                                                 | S-1                       | 06/14/13 | 3.4 |   |
| 3.6     | Bylaws – Career Start, Inc.                                                                       | 10-K                      | 04/15/14 | 3.6 |   |
| 3.7     | Amended Articles of Incorporation – March 26, 2013.                                               | 10-K                      | 04/15/14 | 3.7 |   |
| 3.8     | Amended Articles of Incorporation – October 24, 2013.                                             | 10-K                      | 04/15/14 | 3.8 |   |
| 3.9     | Amended Articles of Incorporation – May 26, 2016.                                                 | 8-K                       | 06/02/16 | 3.1 |   |
| 3.10    | Correction to Amended Articles of Incorporation – June 2, 2016.                                   | 8-K                       | 06/02/16 | 3.2 |   |
| 10.1    | Assignment Agreement between the Company, Peter Kremer, and PBPubCrawl.com, LLC dated June 14, 2010.    | S-1                       | 10/07/10 | 10.1 |   |
| 10.2    | Form of Management Agreement between the Company and Peter Kremer dated June 22, 2010.                  | S-1                       | 10/07/10 | 10.2 |   |
| 10.3    | Promissory Note between the Company and Sun Valley Investments dated August 5, 2010.                    | S-1                       | 10/07/10 | 10.3 |   |
| 10.4    | Consulting Agreement between the Company and Voltaire Gomez dated September 23, 2010.                   | S-1                       | 10/07/10 | 10.4 |   |
| 10.5    | Settlement Agreement between the Company and Sun Valley Investments dated May 25, 2012.                 | 8-K                       | 08/11/12 | 10.1 |   |
| 10.6    | Promissory Note between the Company and Deville Enterprises, Inc. dated June 1, 2012.                   | 8-K                       | 08/11/12 | 10.2 |   |
| 10.7    | Debt Forgiveness Agreement with Hermaytar SA.                                                           | 10-K/A-2                  | 07/21/14 | 10.7 |   |
| 10.8    | Consulting Agreement with Still Goin Inc. dated March 17, 2016.                                         | 10-Q                      | 8/22/16  | 10.1 |   |
| 10.9    | Consulting Agreement with Type A Partners Inc. dated March 17, 2016.                                    | 10-Q                      | 8/22/16  | 10.2 |   |
| 14.1    | Code of Ethics.                                                                                         | S-1                       | 10/07/10 | 14.1 |   |
| 21.1    | List of Subsidiaries.                                                                                   | S-1                       | 10/07/10 | 21.1 |   |
| 31.1    | Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |                      |     |   | X |
| 31.2    | Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |                      |     |   | X |
| 32.1    | Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.     |                      |     |   | X |
| 32.2    | Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.     |                      |     |   | X |
| 101.INS | XBRL Instance Document.                                                                                 |                      |     |   |   |
| 101.SCH | XBRL Taxonomy Extension – Schema.                                                                 |                      |     |   |   |
| 101.CAL | XBRL Taxonomy Extension – Calculations.                                                           |                      |     |   |   |
| 101.DEF | XBRL Taxonomy Extension – Definitions.                                                            |                      |     |   |   |
| 101.LAB | XBRL Taxonomy Extension – Labels.                                                                 |                      |     |   |   |
| 101.PRE | XBRL Taxonomy Extension – Presentation.                                                           |                      |     |   |   |

----

Table of Contents

|   | STEALTH TECHNOLOGIES, INC.(formerly Excelsis Investments, Inc.) |
|--------|-----------------------------------------------------------------|
|   |                                                            |   |
|   | BY:                                                             | BRIAN McFADDEN |
|   |                                                            | Brian McFadden |
|   |                                                            | President, Principal Executive Officer and Director |
|   |                                                            |   |
|   | BY:                                                             | MICHELLE PANNONI |
|   |                                                            | Michelle Pannoni |
|   |                                                            | Principal Financial Officer, Principal Accounting Officerand Treasurer |

----

Table of Contents

| Exhibit |                                                                                                   | Incorporated by reference | Filed    |
|---------|--------------------------------------------------------------------------------------------------------|---------------------------|----------|
| Number  | Document Description                                                                                   | Form                      | Date     | Number | Herewith |
|    |                                                                                                   |                      |     |   |   |
| 2.1     | Exchange Agreement between Pub Crawl Holdings, Inc. and MobileDynamic Marketing, Inc.                  | 8-K                       | 01/31/13 | 2.1 |   |
| 2.2     | Exchange Agreement between Pub Crawl Holdings, Inc. and CareerStart, Inc.                              | 10-Q                      | 11/19/13 | 2.2 |   |
| 3.1     | Articles of Incorporation - Pub Crawl.                                                                 | S-1                       | 10/07/10 | 3.1 |   |
| 3.2     | Articles of Incorporation - Mobile Dynamic Marketing, Inc.                                             | 10-K/A                    | 04/16/13 | 3.2 |   |
| 3.3     | Articles of Incorporation – Career Start, Inc.                                                   | 10-K                      | 04/15/14 | 3.3 |   |
| 3.4     | Bylaws - Pub Crawl Holdings, Inc.                                                                      | S-1                       | 10/07/10 | 3.2 |   |
| 3.5     | Bylaws - Mobile Dynamic Marketing, Inc.                                                                | S-1                       | 06/14/13 | 3.4 |   |
| 3.6     | Bylaws – Career Start, Inc.                                                                      | 10-K                      | 04/15/14 | 3.6 |   |
| 3.7     | Amended Articles of Incorporation – March 26, 2013.                                              | 10-K                      | 04/15/14 | 3.7 |   |
| 3.8     | Amended Articles of Incorporation – October 24, 2013.                                            | 10-K                      | 04/15/14 | 3.8 |   |
| 3.9     | Amended Articles of Incorporation – May 26, 2016.                                                | 8-K                       | 06/02/16 | 3.1 |   |
| 3.10    | Correction to Amended Articles of Incorporation – June 2, 2016.                                  | 8-K                       | 06/02/16 | 3.2 |   |
| 10.1    | Assignment Agreement between the Company, Peter Kremer, andPBPubCrawl.com, LLC dated June 14, 2010.    | S-1                       | 10/07/10 | 10.1 |   |
| 10.2    | Form of Management Agreement between the Company and PeterKremer dated June 22, 2010.                  | S-1                       | 10/07/10 | 10.2 |   |
| 10.3    | Promissory Note between the Company and Sun Valley Investmentsdated August 5, 2010.                    | S-1                       | 10/07/10 | 10.3 |   |
| 10.4    | Consulting Agreement between the Company and Voltaire Gomezdated September 23, 2010.                   | S-1                       | 10/07/10 | 10.4 |   |
| 10.5    | Settlement Agreement between the Company and Sun ValleyInvestments dated May 25, 2012.                 | 8-K                       | 08/11/12 | 10.1 |   |
| 10.6    | Promissory Note between the Company and Deville Enterprises, Inc.dated June 1, 2012.                   | 8-K                       | 08/11/12 | 10.2 |   |
| 10.7    | Debt Forgiveness Agreement with Hermaytar SA.                                                          | 10-K/A-2                  | 07/21/14 | 10.7 |   |
| 10.8    | Consulting Agreement with Still Goin Inc. dated March 17, 2016.                                        | 10-Q                      | 8/22/16  | 10.1 |   |
| 10.9    | Consulting Agreement with Type A Partners Inc. dated March 17, 2016.                                   | 10-Q                      | 8/22/16  | 10.2 |   |
| 14.1    | Code of Ethics.                                                                                        | S-1                       | 10/07/10 | 14.1 |   |
| 21.1    | List of Subsidiaries.                                                                                  | S-1                       | 10/07/10 | 21.1 |   |
| 31.1    | Certification of Principal Executive Officer pursuant to Section 302 ofthe Sarbanes-Oxley Act of 2002. |                      |     |   | X |
| 31.2    | Certification of Principal Financial Officer pursuant to Section 302 ofthe Sarbanes-Oxley Act of 2002. |                      |     |   | X |
| 32.1    | Certification of Chief Executive Officer pursuant to Section 906 of theSarbanes-Oxley Act of 2002.     |                      |     |   | X |
| 32.2    | Certification of Chief Financial Officer pursuant to Section 906 of theSarbanes-Oxley Act of 2002.     |                      |     |   | X |
| 101.INS | XBRL Instance Document.                                                                                |                      |     |   |   |
| 101.SCH | XBRL Taxonomy Extension – Schema.                                                                |                      |     |   |   |
| 101.CAL | XBRL Taxonomy Extension – Calculations.                                                          |                      |     |   |   |
| 101.DEF | XBRL Taxonomy Extension – Definitions.                                                           |                      |     |   |   |
| 101.LAB | XBRL Taxonomy Extension – Labels.                                                                |                      |     |   |   |
| 101.PRE | XBRL Taxonomy Extension – Presentation.                                                          |                      |     |   |   |