UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _______________  FORM 10-Q _______________  X.QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934  For the quarterly period ended December 31, 2015  .TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934  For the transition period from ___________ to ___________  WELLNESS CENTER USA, INC. (Name of small business issuer in its charter)  NEVADA333-17321627-2980395(State or other jurisdiction of incorporation or organization)Commission File Number(IRS Employee Identification No.)  1014 E Algonquin Rd, Ste. 111, Schaumburg, IL, 60173 (Address of Principal Executive Offices) _______________  (847) 925-1885 (Issuer Telephone number)  Not Applicable (Former name or former address, if changed since last report) _______________  Copies of communication to:  Ronald P.  Duplack, Esq. Rieck and Crotty, P.C. 55 West Monroe Street, Suite 3625, Chicago, IL 60603 Telephone (312) 726-4646 Fax (312) 726-0647  Securities registered under Section 12(b) of the Exchange Act:Title of each class registered:Name of each exchange on which registered:NoneNoneSecurities registered under Section 12(g) of the Exchange Act:Common Stock, par value $0.001
(Title of class)  Indicate by check mark whether the issuer (1) 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 whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company filer.  See definition of accelerated filer and large accelerated filer 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 Exchange Act. Yes .  No X.  State the number of shares issued and outstanding of each of the issuers classes of common equity, as of December 31, 2015: 71,539,685 shares of issued common stock.    2      WELLNESS CENTER USA, INC.  FORM 10-Q  December 31, 2015  INDEX   PART I-- FINANCIAL INFORMATION  Item 1.Financial Statements4Item 2.Managements Discussion and Analysis of Financial Condition and Results of Operations60Item 3Quantitative and Qualitative Disclosures About Market Risk67Item 4.Control and Procedures67  PART II-- OTHER INFORMATION  Item 1Legal Proceedings67Item 1ARisk Factors67Item 2.Unregistered Sales of Equity Securities and Use of Proceeds67Item 3.Defaults Upon Senior Securities67Item 4.Mine Safety Disclosures.67Item 5.Other Information68Item 6.Exhibits68  SIGNATURE    3    PART I-- FINANCIAL INFORMATION  ITEM 1. FINANCIAL STATEMENTS     Wellness Center USA, Inc.    December 31, 2015 and 2014   Index to the Consolidated Financial Statements  ContentsPage(s)Consolidated Balance Sheets at December 31, 2015 (Unaudited) and September 30, 20155Consolidated Statements of Operations for the Three Months Ended December 31, 2015 and 2014 (Unaudited)7Consolidated Statement of Stockholders Equity for the Reporting Period Ended December 31, 2015 (Unaudited)8Consolidated Statements of Cash Flows for the Three Months Ended December 31, 2015 and 2014 (Unaudited)9Notes to the Consolidated Financial Statements (Unaudited)10                                                 4    Wellness Center USA, Inc.Consolidated Balance SheetsDecember 31, 2015September 30, 2015(Unaudited)ASSETSCurrent AssetsCash$135,599$34,227Inventories213,470213,501Current maturity of note receivable - Chairman and CEO38,40936,299Prepayments and other current assets20,27626,571Total current assets407,754310,598Property and EquipmentProperty and equipment104,042104,042Accumulated depreciation(76,708)(74,418)Property and equipment, net27,33429,624Patents and Exclusive LicensesPatents and exclusive licenses and patents361,290361,290Accumulated amortization(76,328)(54,847)Patents and exclusive licenses, net284,962306,443Acquired TechnologiesAcquired technologies2,095,0002,095,000Accumulated amortization(323,086)(322,973)Accumulated impairment(1,749,027)(1,749,027)Acquired technologies, net22,88723,000Non-Compete AgreementsNon-compete agreements120,000120,000Accumulated amortization(92,500)(92,500)Accumulated impairment(27,500)(27,500)Non-compete agreements, net--TrademarksTrademarks630,000630,000Accumulated amortization(278,060)(277,500)Accumulated impairment(325,600)(325,600)Trademarks, net26,34026,900Website Development CostsWebsite development costs22,80922,809Accumulated amortization(22,809)(22,809)Website development costs, net--GoodwillGoodwill1,716,6032,916,603Accumulated impairment(1,661,287)(2,861,287)Goodwill, net55,31655,316Other assetsNote receivable - Chairman and CEO, net of current maturity146,983160,729Security deposits1,7601,760Total other assets148,743162,489Total assets$973,336$914,370 (Continued)  5    LIABILITIES AND STOCKHOLDERS' EQUITYCurrent LiabilitiesAccounts payable$119,344$114,454Accrued payroll - officers132,051132,051Accrued payroll liabilities37,13530,931Credit cards payable58298Deferred revenues25,00037,500Advances from related party27,69040,773Notes payable196,323114,023Accrued expenses and other current liabilities384,615456,832Total current liabilities922,216926,862Total liabilities922,216926,862Commitments and ContingenciesStockholders' EquityCommon stock par value $0.001: 75,000,000 shares authorized; 71,539,685 and 64,539,684 shares issued and outstanding, respectively71,54064,540Additional paid-in capital15,164,80914,534,003Accumulated deficit(15,077,491)(14,535,935)Total WCUI stockholders' equity158,85862,609Non-controlling interest(107,738)(75,101)Total liabilities and stockholders' equity$973,336$914,370  See accompanying notes to the consolidated financial statements.   6    Wellness Center USA, Inc.Consolidated Statements of OperationsFor the Three MonthsFor the Three MonthsEndedEndedDecember 31, 2015December 31, 2014(Unaudited)(Unaudited)RevenueClient services$7,500$-Management services - related party111,70285,490Sales7,22417,819Total revenue126,426103,309Cost of goods sold27,561274Gross margin98,865103,035Operating expensesConsulting fees195,552159,768Professional fees157,17754,235Rent expense24,36719,339Salaries - officers144,030158,608Salaries - others25,83826,678Selling expenses1,290-Depreciation and amortization1,643117,650General and administrative expenses86,69346,248Total operating expenses636,590582,526Loss from continuing operations(537,725)(479,491)Other (income) expenseChange in derivative liabilities-(54,264)Loss on loan extinguishment40,000-Interest income -  related party(2,913)(2,284)Interest expense82-Other (income)(700)-Other (income) expense, net36,469(56,548)Loss from continuing operations before income tax provision(574,194)(422,943)Income tax provision--Loss from continuing operations(574,194)(422,943)Net lossNet loss before non-controlling interest(574,194)-Net loss attributable to non-controlling interest(32,638)-Net loss attributable to WCUI stockholders$(541,557)$(422,943)Earnings  per common share- basic and diluted$(0.01)$(0.01)Weighted Average Common Shares Outstanding- basic and diluted66,898,92146,269,700  See accompanying notes to the consolidated financial statements.  7


|                                                                                                                 |                               |  |        |        |                            |   |                     |  |                                 |              |                          |   |                            |  |   |           |  |   |          
|---------------------------------------------------------------------------------------------------------------- | ----------------------------- |  | ------ | ------ | -------------------------- | - | ------------------- |  | ------------------------------- | ------------ | ------------------------ | - | -------------------------- |  | - | --------- |  | - | ---------
|Wellness Center USA, Inc.                                                                                       
|Statement of Stockholders' Equity                                                                               
|For the reporting period  ended December 31, 2015 and September 30, 2015                                        
|(Unaudited)                                                                                                     
|                                                                                                                 |                               |  |        |        |                            |   |                     |  |                                 |              |                          |   |                            |  |   |           |  |  
|                                                                                                                 | Common Stock
Par Value $0.001 |  |        |        |                            |   |                     |  |                                 |              |                          |   |                            |  |  
|                                                                                                                 | Number of Shares              |  | Amount |        | Additional Paid-in Capital |   | Accumulated Deficit |  | Total WCUI Stockholder's Equity |              | Non-controlling interest |   | Total Stockholders' Equity
|Balance,
September 30, 2015                                                                                      | 64,539,683                    |  | $      | 64,540 |                            | $ | 14,534,003          |  | $                               | (14,535,935) |                          | $ | 62,609                     |  | $ | (75,101)  |  | $ | (12,492) 
|                                                                                                                 |                               |  |        |        |                            |   |                     |  |                                 |              |                          |   |                            |  |   |           |  |   |          
|Issuance of common shares and warrants for cash at $0.09 per share during quarter ending December 31, 2015       | 1,100,001                     |  |        | 1,100  |                            |   | 97,900              |  |                                 | -            |                          |   | 99,000                     |  |   | -         |  |   | 99,000   
|                                                                                                                 |                               |  |        |        |                            |   |                     |  |                                 |              |                          |   |                            |  |   |           |  |   |          
|Issuance of common shares and warrants for cash at $0.10 per share during quarter ending December 31, 2015       | 3,100,000                     |  |        | 3,100  |                            |   | 306,900             |  |                                 | -            |                          |   | 310,000                    |  |   | -         |  |   | 310,000  
|                                                                                                                 |                               |  |        |        |                            |   |                     |  |                                 |              |                          |   |                            |  |   |           |  |   |          
|Issuance of options for director services for the quarter ended December 31, 2015                                | -                             |  |        | -      |                            |   | 5,806               |  |                                 | -            |                          |   | 5,806                      |  |   | -         |  |   | 5,806    
|                                                                                                                 |                               |  |        |        |                            |   |                     |  |                                 |              |                          |   |                            |  |   |           |  |   |          
|Exercise of Warrant with the exercise price of $0.01 per share during the quarter ending December 31, 2015       | 500,000                       |  |        | 500    |                            |   | 4,500               |  |                                 | -            |                          |   | 5,000                      |  |   | -         |  |   | 5,000    
|                                                                                                                 |                               |  |        |        |                            |   |                     |  |                                 |              |                          |   |                            |  |   |           |  |   |          
|Issuance of common shares for consulting valued at $0.09 per share on October 2, 2015 and October 12, 2015       | 1,200,000                     |  |        | 1,200  |                            |   | 106,800             |  |                                 | -            |                          |   | 108,000                    |  |   | -         |  |   | 108,000  
|                                                                                                                 |                               |  |        |        |                            |   |                     |  |                                 |              |                          |   |                            |  |   |           |  |   |          
|Issuance of common shares for satisfaction of payable due at $0.10 per share on December 23, 2015                | 1,000,000                     |  |        | 1,000  |                            |   | 99,000              |  |                                 | -            |                          |   | 100,000                    |  |   | -         |  |   | 100,000  
|                                                                                                                 |                               |  |        |        |                            |   |                     |  |                                 |              |                          |   |                            |  |   |           |  |   |          
|Issuance of common shares for cancellation of consulting services valued at $0.10 per share on December 23, 2015 | 100,000                       |  |        | 100    |                            |   | 9,900               |  |                                 | -            |                          |   | 10,000                     |  |   | -         |  |   | 10,000   
|                                                                                                                 |                               |  |        |        |                            |   |                     |  |                                 |              |                          |   |                            |  |   |           |  |   |          
|Net loss                                                                                                         | -                             |  |        | -      |                            |   | -                   |  |                                 | (541,557)    |                          |   | (541,557)                  |  |   | (32,638)  |  |   | (574,194)
|                                                                                                                 |                               |  |        |        |                            |   |                     |  |                                 |              |                          |   |                            |  |   |           |  |  
|Balance,
December 31, 2015                                                                                       | 71,539,684                    |  | $      | 71,540 |                            | $ | 15,164,709          |  | $                               | (14,077,491) |                          | $ | 158,858                    |  | $ | (107,738) |  | $ | 51,120   

See accompanying notes to the consolidated financial statements.  8    Wellness Center USA, Inc.Consolidated Statements of Cash FlowsFor the Three MonthsFor the Three MonthsEndedEndedDecember 31, 2015December 31, 2014(Unaudited)(Unaudited)Cash flows from operating activities:Net loss$(574,194)$(422,943)Adjustments to reconcile net loss to net cash used in operating activitiesGain (loss) on redemption of debts40,000-Common shares issued for compensation and services118,000149,633Warrants and options issued for compensation and services5,80650,916Amortization of original interest discount-58,179Depreciation expense2,2903,961Amortization expense22,15467,610Change in fair value of derivative liability-(54,264)Changes in operating assets and liabilities:Inventories32(6,489)Prepayments and other current assets6,295(810)Interest receivable on note receivable from Chairman and CEO-(2,284)Accounts payable4,88913,090Accrued interest82-Accrued salary - officers-(50,000)Accrued payroll liabilities6,204(7,067)Credit cards payable(240)2,910Deferred revenue(12,500)(12,500)Accrued expenses and other current liabilities(12,299)28,422Net cash used in operating activities(393,481)(181,636)Cash flows from financing activities:Repayment of note receivable - Chairman and CEO11,63635,894Advances from (repayments to) related parties(13,083)(35,489)Proceeds from notes payable82,300100,000Proceeds from sale of common stock and warrants  net of issuance cost409,000-Proceeds from exercise of warrants5,000-Net cash provided by financing activities494,853100,405Net change in cash101,372(81,231)Cash at beginning of the reporting period34,227175,671Cash at end of the reporting period$135,599$94,440Supplemental disclosure of cash flows information:Interest paid$-$-Income tax paid$-$-Non cash financing and investing activities:Reclassification of equity instrument to derivative liabilities$-$439,034Issuance of common stock for convertible notes conversion$-$90,572Common shares issued for accrued expenses payable$100,000$-  See accompanying notes to the consolidated financial statements.  9    Wellness Center USA, Inc. December 31, 2015 and 2014 Notes to the Consolidated Financial Statements (Unaudited)  Note 1 - Organization and Operations  Wellness Center USA, Inc.  Wellness Center USA, Inc. ("WCUI" or the Company) was incorporated in June, 2010 under the laws of the State of Nevada. The Company initially engaged in online sports and nutrition supplements marketing and distribution. Upon consummation of the share exchange agreements with CNS-Wellness Florida, LLC and Psoria-Shield Inc., the Company currently operates in the following business segments: (i) nutritional supplement sales; (ii) distribution of targeted Ultra Violet ("UV") phototherapy devices for dermatology; (iii) management of top-tier medical practices in the interventional and multi-modal pain management sector; and (iv) authentication and encryption products and services.  Acquisition of CNS-Wellness Florida, LLC  On May 30, 2012, the Company entered into an Exchange Agreement (Exchange Agreement) to acquire all of the limited liability company interests in CNS-Wellness Florida, LLC (CNS), a Tampa, Florida, based cognitive neuroscience company, specializing in the treatment of brain-based behavioral health disorders including developmental, emotional and stress-related problems.  On August 2, 2012, the Company consummated the Exchange Agreement and acquired all of the issued and outstanding limited liability company interests in CNS for and in consideration of the issuance of 7.3 million shares of the Companys common stock pursuant to the Exchange Agreement.   The 7.3 million common shares issued in connection with the share exchange represented 32.2% of the 22,704,773 shares of issued and outstanding common stock of the Company as of the closing date of the share exchange under the Exchange Agreement.  CNS Wellness Florida, LLC, the Successor of Cognitive Neuro Sciences, Inc.  Cognitive Neuro Sciences, Inc. (the ''CNS Predecessor") was incorporated on March 14, 2006 under the laws of the State of Florida. The CNS Predecessor specialized in the treatment of brain-based behavioral health disorders including developmental, emotional and stress-related problems. On May 26, 2009, the stockholders of CNS Predecessor decided to dissolve CNS Predecessor and form a Limited Liability Company (LLC) to carry on the business of CNS Predecessor.  CNS was formed on May 26, 2009 under the laws of the State of Florida. The sole purpose of CNS was to carry on the business of CNS Predecessor in the form of an LLC. The assets and liabilities of CNS Predecessor were carried forward to CNS and recorded at the historical cost on the date of conversion.  Suspension of the Operations of CNS Wellness Florida, LLC  The Company was forced to suspend the operations of CNS Wellness Florida, LLC as of January 24, 2014. As a result, the Company was forced to impair the remaining balances of all intangible assets and goodwill associated with the acquisition of CNS.  Discontinuance of CNS Wellness Florida, LLC  On September 30, 2014 the Company sold CNS Wellness Florida, LLC to the former members of CNS Wellness in exchange for the return of the previously issued 7.3 million shares of WCUIs common stock.  The consolidated financial statements for the reporting period ended December 31, 2014 and 2013 have been presented to give retroactive effect to the discontinuance of the operations of CNS Wellness Florida, LLC.  Acquisition of Psoria-Shield Inc.  On June 21, 2012, the Company entered into an Exchange Agreement (Exchange Agreement) to acquire all of the issued and outstanding shares of capital stock in Psoria-Shield Inc. (PSI), a Tampa, Florida, based developer and manufacturer of targeted Ultra Violet ("UV") phototherapy devices for the treatment of skin diseases, for and in consideration of the issuance of 7,686,797 shares of common stock in the Company.    10    On August 24, 2012, the Company consummated the share exchange and acquired all of the issued and outstanding shares of stock in PSI for and in consideration of the issuance of 7,686,797 shares of its common stock pursuant to the Exchange Agreement.  The 7,686,797 common shares issued in connection with the share exchange represented 25.3% of the 30,391,570 shares of issued and outstanding common stock of the Company as of the closing date of the share exchange under the Exchange Agreement.  Psoria-Shield Inc.  Psoria-Shield Inc. (PSI) was incorporated on June 17, 2009 under the laws of the State of Florida. PSI engages in the business of research and development, manufacturing, and marketing and distribution of Ultra Violet ("UV") phototherapy devices for the treatment of skin diseases.  Acquisition of National Pain Centers, Inc.  On January 28, 2014, the Company entered into an Exchange Agreement (Exchange Agreement) to acquire all of the issued and outstanding shares of common stock of National Pain Centers, Inc. ("NPC"), a Nevada holding corporation based in Deer Park, Illinois.  On February 28, 2014, the Company consummated the Exchange Agreement and acquired all of the issued and outstanding shares of common stock of NPC for and in consideration of the issuance of 5,000,000 shares of common stock of the Company pursuant to the Exchange Agreement valued at $0.24 per share or $1,200,000, the relative fair value of the PPM consummated on January 13, 2014 with a relative value of $0.11 per share for the warrants on the $0.35 offering immediately prior to the consummation of the Exchange Agreement, which was recorded as goodwill as NPC is a newly formed entity.  NPC is now operated as a wholly-owned subsidiary of the Company.  National Pain Centers, Inc. ("NPC")  National Pain Centers, Inc. ("NPC") was incorporated on January 24, 2014 under the laws of the State of Nevada. NPC engages in management of top-tier medical practices in the interventional and multi-modal pain management sector.  Formation of StealthCo, Inc. and Acquisition of Certain Assets of SMI Holdings, Inc.  On March 18, 2014, the Company formed a wholly-owned subsidiary, StealthCo, Inc. (StealthCo or SCI) under the laws of the State of Illinois. Prior to the acquisition of certain assets from SMI Holdings, Inc., a Minnesota corporation d/b/a StealthMark, Inc. (SMI), StealthCo was inactive.  StealthCo engages in the business of selling, licensing or otherwise providing certain authentication and encryption products and services from facilities located in Centerville, Minnesota upon entry into an Asset Purchase Agreement (Purchase Agreement) and consummation of the acquisition of certain assets of SMI and settlement of certain debt on April 4, 2014.  Formation of Psoria Development Company, LLC  On January 15, 2015, the Company entered into a joint venture agreement betweenWCUI/PSI with The Medical Alliance Inc ("TMA"). The Company owns a 50% of interest in the newly formed entity Psoria Development Company, LLC ( PDC).  Note 2 - Significant and Critical Accounting Policies and Practices  The Management of the Company is responsible for the selection and use of appropriate accounting policies and the appropriateness of accounting policies and their application.  Critical accounting policies and practices are those that are both most important to the portrayal of the Companys financial condition and results and require managements most difficult, subjective, or complex judgments, often as a result of the need to make estimates about the effects of matters that are inherently uncertain. The Companys significant and critical accounting policies and practices are disclosed below as required by generally accepted accounting principles.  11    Basis of Presentation-Unaudited Interim Financial Information  The Companys consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP)for interim financial information, and with the rules and regulations of the United States Securities and Exchange Commission (SEC) to Form 10-Q and Article 8 of Regulation S-X.  Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements.  The unaudited interim financial statements furnished reflect all adjustments (consisting of normal recurring accruals) which are, in the opinion of management, necessary to a fair statement of the results for the interim periods presented.  Interim results are not necessarily indicative of the results for the full year.  These unaudited interim consolidated financial statements should be read in conjunction with the consolidated financial statements of the Company for the fiscal year ended September 30, 2015 and notes thereto contained in the Companys Annual Report on Form 10-K filed with the SEC on January 29, 2016.  Fiscal Year End  The Company elected September 30th as its fiscal year end date upon its formation.  Use of Estimates and Assumptions and Critical Accounting 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(s) of the financial statements and the reported amounts of revenues and expenses during the reporting period(s).  Critical accounting estimates are estimates for which (a) the nature of the estimate is material due to the levels of subjectivity and judgment necessary to account for highly uncertain matters or the susceptibility of such matters to change and (b) the impact of the estimate on financial condition or operating performance is material. The Companys critical accounting estimates and assumptions affecting the financial statements were:  (i) Assumption as a going concern:Management assumes that the Company will continue as a going concern, which contemplates continuity of operations, realization of assets, and liquidation of liabilities in the normal course of business.  (ii) Allowance for doubtful accounts:Managements estimate of the allowance for doubtful accounts is based on historical sales, historical loss levels, and an analysis of the collectability of individual accounts;and general economic conditions that may affect a clients ability to pay. The Company evaluated the key factors and assumptions used to develop the allowance in determining that it is reasonable in relation to the financial statements taken as a whole.  (iii) Inventory Obsolescence and Markdowns:The Companys estimate of potentially excess and slow-moving inventories is based on evaluation of inventory levels and aging, review of inventory turns and historical sales experiences. The Companys estimate of reserve for inventory shrinkage is based on the historical results of physical inventory cycle counts.  (iv) Fair value of long-lived assets:Fair value is generally determined using the assets expected future discounted cash flows or market value, if readily determinable.  If 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.  (v) Valuation allowance for deferred tax assets:Management assumes that the realization of the Companys net deferred tax assets resulting from its net operating loss (NOL) carryforwards for Federal income tax purposes that may be offset against future taxable income was not considered more likely than not and accordingly, the potential tax benefits of the net loss carry-forwards are offset by a full valuation allowance. Management made this assumption based on (a) the Company has incurred recurring losses, (b) general economic conditions, and (c) its ability to raise additional funds to support its daily operations by way of a public or private offering, among other factors.  12    (vi) Estimates and assumptions used in valuation of equity instruments: Management estimatesexpected term of share options and similar instruments, expected volatility of the Companys common shares and the method used to estimate it, expected annual rate of quarterly dividends, and risk free rate(s) to value share options and similar instruments.  These significant accounting estimates or assumptions bear the risk of change due to the fact that there are uncertainties attached to these estimates or assumptions, and certain estimates or assumptions are difficult to measure or value.  Management bases its estimates on historical experience and on various assumptions that are believed to be reasonable in relation to the financial statements taken as a whole under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources.  Management regularly evaluates the key factors and assumptions used to develop the estimates utilizing currently available information, changes in facts and circumstances, historical experience and reasonable assumptions. After such evaluations, if deemed appropriate, those estimates are adjusted accordingly.  Actual results could differ from those estimates.  Principles of Consolidation  The Company applies the guidance of Topic 810 Consolidationof the FASB Accounting Standards Codification ("ASC") to determine whether and how to consolidate another entity.  Pursuant to ASC Paragraph 810-10-15-10 all majority-owned subsidiariesall entities in which a parent has a controlling financial interestshall be consolidated except (1) when control does not rest with the parent, the majority owner; (2) if the parent is a broker-dealer within the scope of Topic 940 and control is likely to be temporary; (3) consolidation by an investment company within the scope of Topic 946 of a non-investment-company investee. Pursuant to ASC Paragraph 810-10-15-8 the usual condition for a controlling financial interest is ownership of a majority voting interest, and, therefore, as a general rule ownership by one reporting entity, directly or indirectly, of more than 50 percent of the outstanding voting shares of another entity is a condition pointing toward consolidation.  The power to control may also exist with a lesser percentage of ownership, for example, by contract, lease, agreement with other stockholders, or by court decree. The Company consolidates all less-than-majority-owned subsidiaries, if any, in which the parents power to control exists.  The Company's consolidated subsidiaries and/or entities are as follows:  Name of consolidated
subsidiary or entityState or other jurisdiction
of incorporation
or organizationDate of incorporation
or formation
(date of acquisition/disposition,
if applicable)Attributable interestPsoria-Shield Inc. (PSI)The State of FloridaJune 17, 2009
(August 24, 2012)100%National Pain Centers, Inc. (NPC)The State of NevadaJanuary 24, 2014
(February 28, 2014)100%StealthCo, Inc. (StealthCo)The State of IllinoisMarch 18, 2014100%Psoria Development Company LLC. (PDC)The State of IllinoisJanuary 15, 201550%  The consolidated financial statements include all accounts of the Company, PSI, NPC, StealthCo and PDC as of reporting periods end date and for the reporting periods then ended from their respective dates of acquisition and disposition.  All inter-company balances and transactions have been eliminated.  As of December 31, 2015, the non-controlling interest in PDC was $107,738 and is separately disclosed on the Consolidated balance Sheet.  13    Reclassification  Certain amounts in the prior period financial statements have been reclassified to conform to the current period presentation. These reclassifications had no effect on reported losses.  Business Combinations  Business and Business Combinations  Pursuant to ASC Section 805-10-20 a business is an integrated set of activities and assets that is capable of being conducted and managed for the purpose of providing a return in the form of dividends, lower costs, or other economic benefits directly to investors or other owners, members, or participants.  Pursuant to Regulation S-X 11-01(d) the term business should be evaluated in light of the facts and circumstances involved and whether there is sufficient continuity of the acquired entitys operations prior to and after the transactions. A presumption exists that a separate entity, a subsidiary, or a division is a business. However, a lesser component of an entity may also constitute a business. Among the facts and circumstances which should be considered in evaluating whether an acquisition of a lesser component of an entity constitutes a business are the following: (1) Whether the nature of the revenue-producing activity of the component will remain generally the same as before the transaction; or (2) Whether any of the following attributes remain with the component after the transaction: (i) Physical facilities, (ii) Employee base, (iii) Market distribution system, (iv) Sales force, (v) Customer base, (vi) Operating rights, (vii) Production techniques, or (viii) Trade names.  The Company applies Topic 805 Business Combinationsof the FASB Accounting Standards Codification for transactions that represent business combinations to be accounted for under the acquisition method.  Pursuant to ASC Paragraph 805-10-25-1 in order for a transaction or other event to be considered as a business combination it is required that the assets acquired and liabilities assumed constitute a business. Upon determination of transactions representing business combinations the Company then (i) identifies the accounting acquirer; (ii) identifies and estimates the fair value of the identifiable tangible and intangible assets acquired, separately from goodwill; (iii) estimates the business enterprise value of the acquired entities; (iv) allocates the purchase price of acquired entities to the tangible and intangible assets acquired and liabilities assumed, based on their estimated fair values at the date of acquisition.  Identification of the Accounting Acquirer  The Company used the existence of a controlling financial interest to identify the acquirerthe entity that obtains control of the acquiree in accordance with ASC paragraph 805-20-25-5 and identifies the acquisition date, which is the date on which it obtains control of the acquiree in accordance with ASC paragraph 805-20-25-6.  The date on which the acquirer obtains control of the acquiree generally is the date on which the acquirer legally transfers the consideration, acquires the assets, and assumes the liabilities of the acquireethe closing date.  Intangible Assets Identification, Estimated Fair Value and Useful Lives  In accordance with ASC Section 805-20-25 as of the acquisition date, the acquirer shall recognize, separately from goodwill, the identifiable assets acquired, the liabilities assumed, and any non-controlling interest in the acquiree. Recognition of identifiable assets acquired and liabilities assumed is subject to the conditions specified in ASC paragraphs 805-20-25-2 through 25-3.  The recognized intangible assets of the acquiree were valued through the use of the market, income and/or cost approach, as appropriate. The Company utilizes the income approach on a debt-free basis to estimate the fair value of the identifiable assets acquired in the acquiree at the date of acquisition with the assistance of the third party valuation firm.  This method eliminates the effect of how the business is presently financed and provides an indication of the value of the total invested capital of the Company or its business enterprise value.  14    Business Enterprise Valuation  The Company utilizes the income approach  discounted cash flows method to estimate the business enterprise value with the assistance of the third party valuation firm.  The income approach considers a given company's future sales, net cash flow and growth potential.  In valuing the business enterprise value of business acquired, the Company forecasted sales and net cash flow for the acquiree for five (5) years into the future and used a discounted net cash flow method to determine a value indication of the total invested capital of the acquiree. The basic method of forecasting involves using past experience to forecast the future. The next step was to discount these projected net cash flows to their present values.  One of the key elements of the income approach is the discount rate used to discount the projected cash flows to their present values.  Determining an appropriate discount rate is one of the more difficult parts of the valuation process.  The applicable rate of return or discount rate, the rate investors in closely-held companies require as a condition of acquisition, varies from time to time, depending on economic and other conditions.  The discount rate is determined after considering the overall risk of the investment, which includes: (1) operating and financial risk in the business enterprise or asset; (2) current and projected profitability and growth; (3) risk of the respective industry; and (4) the equity risk premium relative to Treasury bonds.  The discount rate is also affected by an analyst's judgment regarding the credibility of the income projections.  The discount rate rises as the projections become increasingly optimistic, or falls as the degree of certainty increases.  Goodwill, Gain from Bargain Purchase and Contingent Consideration  Pursuant to ASC Paragraphs 805-30-25-1 through 805-30-25-3 the acquirer shall recognize goodwill as of the acquisition date , measured as the excess of (a) over (b): a. the aggregate of (1) the acquisition-date fair value of the consideration transferred, (2) the fair value of any non-controlling interest in the acquiree, and (3) the acquisition-date fair value of the acquirers previously held equity interest in the acquiree in a business combination achieved in stages; and (b) the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed.  Occasionally, an acquirer will make a bargain purchase, which is a business combination in which the amount in paragraph 805-30-30-1(b) exceeds the aggregate of the amounts specified in (a) in that paragraph. If that excess remains after applying the requirements in paragraph 805-30-25-4, the acquirer shall recognize the resulting gain in earnings on the acquisition date. The gain shall be attributed to the acquirer. A bargain purchase might happen in a business combination that is a forced sale in which the seller is acting under compulsion.  Pursuant to ASC Paragraphs 805-30-25-5 through 805-30-25-7 the consideration the acquirer transfers in exchange for the acquiree includes any asset or liability resulting from a contingent consideration arrangement. The acquirer shall recognize the acquisition-date fair value of contingent consideration as part of the consideration transferred in exchange for the acquiree and classify an obligation to pay contingent consideration as a liability or as equity in accordance with Subtopics 480-10 and 815-40 or other applicable generally accepted accounting principles (GAAP). Subtopic 480-10 provides guidance on whether to classify as a liability a contingent consideration arrangement that is, in substance, a put option written by the acquirer on the market price of the acquirers shares issued in the business combination. The acquirer shall classify as an asset a right to the return of previously transferred consideration if specified conditions are met.  Acquisition-Related Costs  Pursuant to FASB ASC Paragraph 805-10-25-23 acquisition-related costs are costs the acquirer incurs to effect a business combination. Those costs include finders fees; advisory, legal, accounting, valuation, and other professional or consulting fees; general administrative costs, including the costs of maintaining an internal acquisitions department; and costs of registering and issuing debt and equity securities. The acquirer shall account for acquisition related costs as expenses in the periods in which the costs are incurred and the services are received, with one exception. The costs to issue debt or equity securities shall be recognized in accordance with other applicable GAAP.  Inherent Risk in the Estimates  Management makes estimates of fair values based upon assumptions believed to be reasonable.  These estimates are based on historical experience and information obtained from the management of the acquired companies. Critical estimates in valuing certain of the intangible assets include but are not limited to: future expected cash flows from revenues, customer relationships, key management and market positions, assumptions about the period of time the acquired trade names will continue to be used in the Companys combined portfolio of products and/or services, and discount rates used to establish fair value.  These estimates are inherently uncertain and unpredictable.  Assumptions may be incomplete or inaccurate, and unanticipated events and circumstances may occur which may affect the accuracy or validity of such assumptions, estimates or actual results.  15    Fair Value of Financial Instruments  The Company follows paragraph 820-10-35-37 of the FASB Accounting Standards Codification (Paragraph 820-10-35-37) to measure the fair value of its financial instruments and paragraph 825-10-50-10 of the FASB Accounting Standards Codification for disclosures about fair value of its financial instruments. Paragraph 820-10-35-37 establishes a framework for measuring fair value in accounting principles generally accepted in the United States of America (U.S. GAAP), and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, Paragraph 820-10-35-37 establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three (3) broad levels.  The three (3) levels of fair value hierarchy defined by Paragraph 820-10-35-37 are described below:  Level 1Quoted market prices available in active markets for identical assets or liabilities as of the reporting date.Level 2Pricing 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 3Pricing inputs that are generally observable inputs and not corroborated by market data.  Financial assets are considered Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable.  The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs.  If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument.  The carrying amounts of the Companys financial assets and liabilities, such as cash, prepayment and other current assets, accounts payable, accrued payroll  officers, credit cards payable, deferred revenue and accrued expenses and other current liabilities approximate their fair values because of the short maturity of these instruments.  The Companys notes payable approximate the fair value of such instruments based upon managements best estimate of interest rates that would be available to the Company for similar financial arrangements at December 31, 2015 and September 30, 2015.  The Companys Level 3 financial liabilities consist of the derivative warrants for which there is no current market for these securities such that the determination of fair value requires significant judgment or estimation and the derivative liability on the conversion feature of the convertible notes payable.  The Company valued the automatic conditional conversion, re-pricing/down-round, change of control; default and follow-on offering provisions using a lattice model, with the assistance of a third party valuation specialist, for which management understands the methodologies.  These models incorporate transaction details such as Company stock price, contractual terms, maturity, risk free rates, as well as assumptions about future financings, volatility, and holder behavior as of the date of issuance and each balance sheet date.  Transactions involving related parties cannot be presumed to be carried out on an arm's-length basis, as the requisite conditions of competitive, free-market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm's-length transactions unless such representations can be substantiated.  Fair Value of Financial Assets and Liabilities Measured on a Recurring Basis  Level 3 Financial Liabilities  Derivative Warrant Liabilities and Derivative Liability on Conversion Feature  The Company uses Level 3 of the fair value hierarchy to measure the fair value of the derivative liabilities and revalues its derivative warrant liability and derivative liability on the conversion feature at every reporting period and recognizes gains or losses in the consolidated statements of operations that are attributable to the change in the fair value of the derivative liabilities.  16    Fair Value of Non-Financial Assets or Liabilities Measured on a Recurring Basis  The Companys non-financial assets include inventories.  The Company identifies potentially excess and slow-moving inventories by evaluating turn rates, inventory levels and other factors.  Excess quantities are identified through evaluation of inventory aging, review of inventory turns and historical sales experiences. The Company provides lower of cost or market reserves for such identified excess and slow-moving inventories. The Company establishes a reserve for inventory shrinkage, if any, based on the historical results of physical inventory cycle counts.  Carrying Value, Recoverability and Impairment of Long-Lived Assets  The Company has adopted Section 360-10-35 of the FASB Accounting Standards Codification for its long-lived assets. Pursuant to ASC Paragraph 360-10-35-17 an impairment loss shall be recognized only if the carrying amount of a long-lived asset (asset group) is not recoverable and exceeds its fair value. The carrying amount of a long-lived asset (asset group) is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset (asset group). That assessment shall be based on the carrying amount of the asset (asset group) at the date it is tested for recoverability. An impairment loss shall be measured as the amount by which the carrying amount of a long-lived asset (asset group) exceeds its fair value. Pursuant to ASC Paragraph 360-10-35-20 if an impairment loss is recognized, the adjusted carrying amount of a long-lived asset shall be its new cost basis. For a depreciable long-lived asset, the new cost basis shall be depreciated (amortized) over the remaining useful life of that asset. Restoration of a previously recognized impairment loss is prohibited.  Pursuant to ASC Paragraph 360-10-35-21 the Companys long-lived asset (asset group) is tested for recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. The Company considers the following to be some examples of such events or changes in circumstances that may trigger an impairment review: (a) significant decrease in the market price of a long-lived asset (asset group); (b) A significant adverse change in the extent or manner in which a long-lived asset (asset group) is being used or in its physical condition; (c) A significant adverse change in legal factors or in the business climate that could affect the value of a long-lived asset (asset group), including an adverse action or assessment by a regulator; (d) An accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of a long-lived asset (asset group); (e) A current-period operating or cash flow loss combined with a history of operating or cash flow losses or a projection or forecast that demonstrates continuing losses associated with the use of a long-lived asset (asset group); and (f) A current expectation that, more likely than not, a long-lived asset (asset group) will be sold or otherwise disposed of significantly before the end of its previously estimated useful life. The Company tests its long-lived assets for potential impairment indicators at least annually and more frequently upon the occurrence of such events.  Pursuant to ASC Paragraphs 360-10-35-29 through 35-36 Estimates of future cash flows used to test the recoverability of a long-lived asset (asset group) shall include only the future cash flows (cash inflows less associated cash outflows) that are directly associated with and that are expected to arise as a direct result of the use and eventual disposition of the asset (asset group). Estimates of future cash flows used to test the recoverability of a long-lived asset (asset group) shall incorporate the entitys own assumptions about its use of the asset (asset group) and shall consider all available evidence. The assumptions used in developing those estimates shall be reasonable in relation to the assumptions used in developing other information used by the entity for comparable periods, such as internal budgets and projections, accruals related to incentive compensation plans, or information communicated to others. However, if alternative courses of action to recover the carrying amount of a long-lived asset (asset group) are under consideration or if a range is estimated for the amount of possible future cash flows associated with the likely course of action, the likelihood of those possible outcomes shall be considered. A probability-weighted approach may be useful in considering the likelihood of those possible outcomes. Estimates of future cash flows used to test the recoverability of a long-lived asset (asset group) shall be made for the remaining useful life of the asset (asset group) to the entity.  For long-lived assets (asset groups) that have uncertainties both in timing and amount, an expected present value technique will often be the appropriate technique with which to estimate fair value.  Pursuant to ASC Paragraphs 360-10-45-4 and 360-10-45-5 an impairment loss recognized for a long-lived asset (asset group) to be held and used shall be included in income from continuing operations before income taxes in the income statement of a business entity. If a subtotal such as income from operations is presented, it shall include the amount of that loss. A gain or loss recognized on the sale of a long-lived asset (disposal group) that is not a component of an entity shall be included in income from continuing operations before income taxes in the income statement of a business entity. If a subtotal such as income from operations is presented, it shall include the amounts of those gains or losses.  Cash Equivalents  The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents.  17    Accounts Receivable and Allowance for Doubtful Accounts  Pursuant to FASB ASC paragraph 310-10-35-47 trade receivables that management has the intent and ability to hold for the foreseeable future shall be reported in the balance sheet at outstanding principal adjusted for any charge-offs and the allowance for doubtful accounts.. The Company follows FASB ASC paragraphs 310-10-35-7 through 310-10-35-10 to estimate the allowance for doubtful accounts. Pursuant to FASB ASC paragraph 310-10-35-9 Losses from uncollectible receivables shall be accrued when both of the following conditions are met: (a) Information available before the financial statements are issued or are available to be issued (as discussed in Section 855-10-25) indicates that it is probable that an asset has been impaired at the date of the financial statements, and (b) The amount of the loss can be reasonably estimated. Those conditions may be considered in relation to individual receivables or in relation to groups of similar types of receivables. If the conditions are met, accrual shall be made even though the particular receivables that are uncollectible may not be identifiable. The Company reviews individually each trade receivable for collectability and performs on-going credit evaluations of its customers and adjusts credit limits based upon payment history and the customers current credit worthiness, as determined by the review of their current credit information; and determines the allowance for doubtful accounts based on historical write-off experience, customer specific facts and general economic conditions that may affect a clients ability to pay. Bad debt expense is included in general and administrative expenses, if any.  Pursuant to FASB ASC paragraph 310-10-35-41 Credit losses for trade receivables (uncollectible trade receivables), which may be for all or part of a particular trade receivable, shall be deducted from the allowance. The related trade receivable balance shall be charged off in the period in which the trade receivables are deemed uncollectible. Recoveries of trade receivables previously charged off shall be recorded when received.  The Company charges off its trade account receivables against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote.  There was $0 and $12,863 for doubtful accounts at December 31, 2015 and September 30, 2015.  Off-Balance-Sheet Credit Exposures  Pursuant to FASB ASC paragraph 310-10-50-9 an entity shall disclose a description of the accounting policies and methodology the entity used to estimate its liability for off-balance-sheet credit exposures and related charges for those credit exposures. Such a description shall identify the factors that influenced management's judgment (for example, historical losses and existing economic conditions) and a discussion of risk elements relevant to particular categories of financial instruments.  The Company does not have any off-balance-sheet credit exposure to its customers at December 31, 2015 or September 30, 2015.  Inventories  Inventory Valuation  The Company values inventory, consisting of finished goods, at the lower of cost or market.  Cost is determined on the first-in and first-out (FIFO) method. The Company reduces inventory for the diminution of value, resulting from product obsolescence, damage or other issues affecting marketability, equal to the difference between the cost of the inventory and its estimated market value.  Factors utilized in the determination of estimated market value include (i) estimates of future demand, and (ii) competitive pricing pressures.  Inventory Obsolescence and Markdowns  The Company evaluates its current level of inventory considering historical sales and other factors and, based on this evaluation, classify inventory markdowns in the income statement as a component of cost of goods sold pursuant to Paragraph 420-10-S99 of the FASB Accounting Standards Codification to adjust inventory to net realizable value. These markdowns are estimates, which could vary significantly from actual requirements if future economic conditions, customer demand or competition differ from expectations.  There was no inventory obsolescence adjustments for the interim period ended December 31, 2015 and 2014.  There was no lower of cost or market adjustments for the interim period ended December 31, 2015 and 2014.  18    Property and Equipment  Property and equipment is recorded at cost.  Expenditures for major additions and betterments are capitalized.  Maintenance and repairs are charged to operations as incurred.  Depreciation is computed by the straight-line method (after taking into account their respective estimated residual values) over the estimated useful lives of the respective assets as follows:  Estimated Useful Life (Years)Auto3Computer equipment5Furniture and fixture7Leasehold improvement*Medical and office equipment5Software3  (*) Amortized on a straight-line basis over the term of the lease or the estimated useful lives, whichever is shorter.  Upon sale or retirement, the related cost and accumulated depreciation are removed from the accounts and any gain or loss is reflected in the statements of operations.  Leases  Lease agreements are evaluated to determine whether they are capital leases or operating leases in accordance with paragraph 840-10-25-1 of the FASB Accounting Standards Codification (Paragraph 840-10-25-1).  Pursuant to Paragraph 840-10-25-1 a lessee and a lessor shall consider whether a lease meets any of the following four criteria as part of classifying the lease at its inception under the guidance in the Lessees Subsection of this Section (for the lessee) and the Lessors Subsection of this Section (for the lessor): a. Transfer of ownership. The lease transfers ownership of the property to the lessee by the end of the lease term. This criterion is met in situations in which the lease agreement provides for the transfer of title at or shortly after the end of the lease term in exchange for the payment of a nominal fee, for example, the minimum required by statutory regulation to transfer title. b. Bargain purchase option. The lease contains a bargain purchase option. c. Lease term. The lease term is equal to 75 percent or more of the estimated economic life of the leased property. d. Minimum lease payments. The present value at the beginning of the lease term of the minimum lease payments, excluding that portion of the payments representing executory costs such as insurance, maintenance, and taxes to be paid by the lessor, including any profit thereon, equals or exceeds 90 percent of the excess of the fair value of the leased property to the lessor at lease inception over any related investment tax credit retained by the lessor and expected to be realized by the lessor. In accordance with paragraphs 840-10-25-29 and 840-10-25-30, if at its inception a lease meets any of the four lease classification criteria in Paragraph 840-10-25-1, the lease shall be classified by the lessee as a capital lease; and if none of the four criteria in Paragraph 840-10-25-1 are met, the lease shall be classified by the lessee as an operating lease. Pursuant to Paragraph 840-10-25-31 a lessee shall compute the present value of the minimum lease payments using the lessee's incremental borrowing rate unless both of the following conditions are met, in which circumstance the lessee shall use the implicit rate: a. It is practicable for the lessee to learn the implicit rate computed by the lessor. b. The implicit rate computed by the lessor is less than the lessee's incremental borrowing rate.  Capital lease assets are depreciated on a straight line method, over the capital lease assets estimated useful lives consistent with the Companys normal depreciation policy for tangible fixed assets.  Interest charges are expensed over the period of the lease in relation to the carrying value of the capital lease obligation.  Operating leases primarily relate to the Companys leases of office spaces. When the terms of an operating lease include tenant improvement allowances, periods of free rent, rent concessions, and/or rent escalation amounts, the Company establishes a deferred rent liability for the difference between the scheduled rent payment and the straight-line rent expense recognized, which is amortized over the underlying lease term on a straight-line basis as a reduction of rent expense.  19    Intangible Assets Other Than Goodwill  The Company has adopted Subtopic 350-30 of the FASB Accounting Standards Codification for intangible assets other than goodwill. Under the requirements, the Company amortizes the acquisition costs of intangible assets other than goodwill on a straight-line basis over the estimated useful lives of the respective assets as follows:  Estimated Useful Life (Years)Exclusive license agreements (*)18Acquired technologies20Non-compete agreements (**)3-4Patents20Trademarks (***)7  (*) Amortized on a straight-line basis over the terms of the exclusive licenses and/or agreements, or the terms of legal lives of the patents, whichever is shorter  (**) Amortized on a straight-line basis over the terms of the agreements  Upon becoming fully amortized, the related cost and accumulated amortization are removed from the accounts.  Goodwill  The Company follows Subtopic 350-20 of the FASB Accounting Standards Codification for goodwill. Goodwill represents the excess of the cost of an acquired entity over the fair value of the net assets at the date of acquisition. Under paragraph 350-20-35-1 of the FASB Accounting Standards Codification, goodwill acquired in a business combination with indefinite useful lives are not amortized; rather, goodwill is tested for impairment annually or more frequently if events or changes in circumstances indicate the asset might be impaired.  Website Development Costs  The Company has adopted Subtopic 350-50 of the FASB Accounting Standards Codification for website development costs.  Under the requirements of Sections 350-50-15 and 350-50-25, the Company capitalizes costs incurred to develop a website as website development costs, which are amortized on a straight-line basis over the estimated useful lives of three (3) years. Upon becoming fully amortized, the related cost and accumulated amortization are removed from the accounts.  Customer Deposits  Customer deposits primarily represent amounts received from customers for future delivery of products, which are fully or partially refundable depending upon the terms and conditions of the sales agreements.  Related Parties  The Company follows subtopic 850-10 of the FASB Accounting Standards Codification for the identification of related parties and disclosure of related party transactions.  20    Pursuant to Section 850-10-20 the Related parties include a. affiliates of the Company (Affiliate means, with respect to any specified Person, any other Person that, directly or indirectly through one or more intermediaries, controls, is controlled by or is under common control with such Person, as such terms are used in and construed under Rule 405 under the Securities Act); b. entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section 8251015, to be accounted for by the equity method by the investing entity; c. trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management; d. principal owners of the Company and members of their immediate families; e. management of the Company and members of their immediate families; f. other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and g. other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests.  Pursuant to ASC Paragraphs 850-10-50-1 and 50-5 financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of consolidated or combined financial statements is not required in those statements. The disclosures shall include: a. the nature of the relationship(s) involved; b. a description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; c. the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and d. amount due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement. Transactions involving related parties cannot be presumed to be carried out on an arm's-length basis, as the requisite conditions of competitive, free-market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm's-length transactions unless such representations can be substantiated  Derivative Instruments and Hedging Activities  The Company accounts for derivative instruments and hedging activities in accordance with paragraph 815-10-05-4 of the FASB Accounting Standards Codification (Paragraph 815-10-05-4). Paragraph 815-10-05-4 requires companies to recognize all derivative instruments as either assets or liabilities in the balance sheet at fair value.  The accounting for changes in the fair value of a derivative instrument depends upon: (i) whether the derivative has been designated and qualifies as part of a hedging relationship, and (ii) the type of hedging relationship.  For those derivative instruments that are designated and qualify as hedging instruments, a company must designate the hedging instrument based upon the exposure being hedged as either a fair value hedge, cash flow hedge or hedge of a net investment in a foreign operation.  Derivative Liability  The Company evaluates its convertible debt, options, warrants or other contracts, if any, to determine if those contracts or embedded components of those contracts qualify as derivatives to be separately accounted for in accordance with paragraph 815-10-05-4 and Section 815-40-25 of the FASB Accounting Standards Codification.  The result of this accounting treatment is that the fair value of the embedded derivative is marked-to-market each balance sheet date and recorded as either an asset or a liability.  In the event that the fair value is recorded as a liability, the change in fair value is recorded in the consolidated statement of operations and comprehensive income (loss) as other income or expense.  Upon conversion, exercise or cancellation of a derivative instrument, the instrument is marked to fair value at the date of conversion, exercise or cancellation and then that the related fair value is reclassified to equity.  In circumstances where the embedded conversion option in a convertible instrument is required to be bifurcated and there are also other embedded derivative instruments in the convertible instrument that are required to be bifurcated, the bifurcated derivative instruments are accounted for as a single, compound derivative instrument.  The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is re-assessed at the end of each reporting period.  Equity instruments that are initially classified as equity that become subject to reclassification are reclassified to liability at the fair value of the instrument on the reclassification date.  Derivative instrument liabilities will be classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative instrument is expected within 12 months of the balance sheet date.  21    The Company adopted Section 815-40-15 of the FASB Accounting Standards Codification (Section 815-40-15)to determine whether an instrument (or an embedded feature) is indexed to the Companys own stock.  Section 815-40-15 provides that an entity should use a two-step approach to evaluate whether an equity-linked financial instrument (or embedded feature) is indexed to its own stock, including evaluating the instruments contingent exercise and settlement provisions.   The adoption of Section 815-40-15 has affected the accounting for (i) certain freestanding warrants that contain exercise price adjustment features and (ii) convertible bonds issued by foreign subsidiaries with a strike price denominated in a foreign currency.  The Company marks to market the fair value of the embedded derivative warrants at each balance sheet date and records the change in the fair value of the embedded derivative warrants as other income or expense in the consolidated statements of operations and comprehensive income (loss).  The Company utilizes the Lattice model that values the liability of the derivative warrants based on a probability weighted discounted cash flow model with the assistance of the third party valuation firm.  The reason the Company picks the Lattice model is that in many cases there may be multiple embedded features or the features of the bifurcated derivatives may be so complex that a Black-Scholes valuation does not consider all of the terms of the instrument.  Therefore, the fair value may not be appropriately captured by simple models.  In other words, simple models such as Black-Scholes may not be appropriate in many situations given complex features and terms of conversion option (e.g., combined embedded derivatives).  The Lattice model is based on future projections of the various potential outcomes. The features that were analyzed and incorporated into the model included the exercise and full reset features. Based on these features, there are two primary events that can occur; the Holder exercises the Warrants or the Warrants are held to expiration. The Lattice model analyzed the underlying economic factors that influenced which of these events would occur, when they were likely to occur, and the specific terms that would be in effect at the time (i.e. stock price, exercise price, volatility, etc.). Projections were then made on the underlying factors which led to potential scenarios.  Probabilities were assigned to each scenario based on management projections.  This led to a cash flow projection and a probability associated with that cash flow.  A discounted weighted average cash flow over the various scenarios was completed to determine the value of the derivative warrants.  Commitment and Contingencies  The Company follows subtopic 450-20 of the FASB Accounting Standards Codification to report accounting for contingencies. Certain conditions may exist as of the date the consolidated financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur.  The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment.  In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein.  If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Companys consolidated financial statements.  If the assessment indicates that a potentially material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed.  Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed.  Non-controlling Interest  The Company follows paragraph 810-10-65-1 of the FASB Accounting Standards Codification to report the non-controlling interest in the consolidated balance sheets within the equity section, separately from the Companys stockholders equity.   Non-controlling interest represents the non-controlling interest holders proportionate share of the equity of the Companys majority-owned subsidiary. Non-controlling interest is adjusted for the non-controlling interest holders proportionate share of the earnings or losses and other comprehensive income (loss), if any, and the non-controlling interest continues to be attributed its share of losses even if that attribution results in a deficit non-controlling interest balance.  22    Revenue Recognition  The Company follows paragraph 605-10-S99-1 of the FASB Accounting Standards Codification for revenue recognition.  The Company will recognize revenue when it is realized or realizable and earned.  The Company considers revenue realized or realizable and earned when all of the following criteria are met: (i) persuasive evidence of an arrangement exists, (ii) the product has been shipped or the services have been rendered to the customer, (iii) the sales price is fixed or determinable, and (iv) collectability is reasonably assured.  In addition to the aforementioned general policy, the following are the specific revenue recognition policies for each major category of revenue:  (i) Sale of products:  The Company derives its revenues from sales contracts with customers with revenues being generated upon the shipment of merchandise.  Persuasive evidence of an arrangement is demonstrated via sales invoice or contract; product delivery is evidenced by warehouse shipping log as well as a signed bill of lading from the vessel or rail company and title transfers upon shipment, based on free on board (FOB) warehouse terms; the sales price to the customer is fixed upon acceptance of the signed purchase order or contract and there is no separate sales rebate, discount, or volume incentive. When the Company recognizes revenue, no provisions are made for returns because, historically, there have been very few sales returns and adjustments that have impacted the ultimate collection of revenues.  (ii) Management fees of medical practice:  The Company receives management fees from the management services it provides to medical practices.  The Company earns and records 50% of the fees the medical practice collects as management fees when collected per management service agreement.  (iii) Consulting service: revenue is recognized in the period services are rendered and earned under service arrangements with clients where service fees are fixed or determinable and collectability is reasonably assured.  Shipping and Handling Costs  The Company accounts for shipping and handling fees in accordance with paragraph 605-45-45-19 of the FASB Accounting Standards Codification.  While amounts charged to customers for shipping products are included in revenues, the related costs are classified in cost of goods sold as incurred.  Stock-Based Compensation for Obtaining Employee Services  The Company accounts for share-based payment transactions issued to employees under the guidance of the Topic 718 CompensationStock Compensation of the FASB Accounting Standards Codification (ASC Topic 718).  Pursuant to ASC Section 718-10-20 an employee is an individual over whom the grantor of a share-based compensation award exercises or has the right to exercise sufficient control to establish an employer-employee relationship based on common law as illustrated in case law and currently under U.S. Internal Revenue Service (IRS) Revenue Ruling 87-41. A non-employee director does not satisfy this definition of employee. Nevertheless, non-employee directors acting in their role as members of a board of directors are treated as employees if those directors were elected by the employers shareholders or appointed to a board position that will be filled by shareholder election when the existing term expires. However, that requirement applies only to awards granted to non-employee directors for their services as directors. Awards granted to non-employee directors for other services shall be accounted for as awards to non-employees.  Pursuant to ASC Paragraphs 718-10-30-2 and 718-10-30-3 a share-based payment transaction with employees shall be measured based on the fair value of the equity instruments issued and an entity shall account for the compensation cost from share-based payment transactions with employees in accordance with the fair value-based method, i.e., the cost of services received from employees in exchange for awards of share-based compensation generally shall be measured based on the grant-date fair value of the equity instruments issued or the fair value of the liabilities incurred/settled.  Pursuant to ASC Paragraphs 718-10-30-6 and 718-10-30-9 the measurement objective for equity instruments awarded to employees is to estimate the fair value at the grant date of the equity instruments that the entity is obligated to issue when employees have rendered the requisite service and satisfied any other conditions necessary to earn the right to benefit from the instruments (for example, to exercise share options). That estimate is based on the share price and other pertinent factors, such as expected volatility, at the grant date. As such, the fair value of an equity share option or similar instrument shall be estimated using a valuation technique such as an option pricing model. For this purpose, a similar instrument is one whose fair value differs from its intrinsic value, that is, an instrument that has time value.  23    If the Companys common shares are traded in one of the national exchanges the grant-date share price of the Companys common stock will be used to measure the fair value of the common shares issued, however, if the Companys common shares are thinly traded the use of share prices established in its most recent private placement memorandum (PPM), or weekly or monthly price observations would generally be more appropriate than the use of daily price observations as such shares could be artificially inflated due to a larger spread between the bid and asked quotes and lack of consistent trading in the market.  Pursuant to ASC Paragraph 718-10-55-21 if an observable market price is not available for a share option or similar instrument with the same or similar terms and conditions, an entity shall estimate the fair value of that instrument using a valuation technique or model that meets the requirements in paragraph 718-10-55-11 and takes into account, at a minimum, all of the following factors:  a.The exercise price of the option.  b.The expected term of the option, taking into account both the contractual term of the option and the effects of employees expected exercise and post-vesting employment termination behavior: The expected life of options and similar instruments represents the period of time the option and/or warrant are expected to be outstanding.  Pursuant to paragraph 718-10-S99-1, it may be appropriate to use the simplified method, i.e., expected term = ((vesting term + original contractual term) / 2), if (i) A company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate expected term due to the limited period of time its equity shares have been publicly traded; (ii) A company significantly changes the terms of its share option grants or the types of employees that receive share option grants such that its historical exercise data may no longer provide a reasonable basis upon which to estimate expected term; or (iii) A company has or expects to have significant structural changes in its business such that its historical exercise data may no longer provide a reasonable basis upon which to estimate expected term. The Company uses the simplified method to calculate expected term of share options and similar instruments as the company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate expected term.  c.The current price of the underlying share.  d.The expected volatility of the price of the underlying share for the expected term of the option.  Pursuant to ASC Paragraph 718-10-55-25 a newly publicly traded entity might base expectations about future volatility on the average volatilities of similar entities for an appropriate period following their going public. A nonpublic entity might base its expected volatility on the average volatilities of otherwise similar public entities. For purposes of identifying otherwise similar entities, an entity would likely consider characteristics such as industry, stage of life cycle, size, and financial leverage. Because of the effects of diversification that are present in an industry sector index, the volatility of an index should not be substituted for the average of volatilities of otherwise similar entities in a fair value measurement.  Pursuant to paragraph 718-10-S99-1 if shares of a company are thinly traded the use of weekly or monthly price observations would generally be more appropriate than the use of daily price observations as the volatility calculation using daily observations for such shares could be artificially inflated due to a larger spread between the bid and asked quotes and lack of consistent trading in the market.  The Company uses the average historical volatility of the comparable companies over the expected term of the share options or similar instruments as its expected volatility.  e.The expected dividends on the underlying share for the expected term of the option.  The expected dividend yield is based on the Companys current dividend yield as the best estimate of projected dividend yield for periods within the expected term of the share options and similar instruments.  f.The risk-free interest rate(s) for the expected term of the option. Pursuant to ASC 718-10-55-28 a U.S. entity issuing an option on its own shares must use as the risk-free interest rates the implied yields currently available from the U.S. Treasury zero-coupon yield curve over the contractual term of the option if the entity is using a lattice model incorporating the options contractual term. If the entity is using a closed-form model, the risk-free interest rate is the implied yield currently available on U.S. Treasury zero-coupon issues with a remaining term equal to the expected term used as the assumption in the model.  Pursuant to ASC Paragraphs 718-10-30-11 and 718-10-30-17 a restriction that stems from the forfeitability of instruments to which employees have not yet earned the right, such as the inability either to exercise a non-vested equity share option or to sell non-vested shares, is not reflected in estimating the fair value of the related instruments at the grant date. Instead, those restrictions are taken into account by recognizing compensation cost only for awards for which employees render the requisite service and a non-vested equity share or non-vested equity share unit awarded to an employee shall be measured at its fair value as if it were vested and issued on the grant date.  24    Pursuant to ASC Paragraphs 718-10-35-2 and 718-10-35-3 the compensation cost for an award of share-based employee compensation classified as equity shall be recognized over the requisite service period, with a corresponding credit to equity (generally, paid-in capital). The requisite service period is the period during which an employee is required to provide service in exchange for an award, which often is the vesting period.  The total amount of compensation cost recognized at the end of the requisite service period for an award of share-based compensation shall be based on the number of instruments for which the requisite service has been rendered (that is, for which the requisite service period has been completed). An entity shall base initial accruals of compensation cost on the estimated number of instruments for which the requisite service is expected to be rendered. That estimate shall be revised if subsequent information indicates that the actual number of instruments is likely to differ from previous estimates. The cumulative effect on current and prior periods of a change in the estimated number of instruments for which the requisite service is expected to be or has been rendered shall be recognized in compensation cost in the period of the change. Previously recognized compensation cost shall not be reversed if an employee share option (or share unit) for which the requisite service has been rendered expires unexercised (or unconverted).  Under the requirement of ASC Paragraph 718-10-35-8 the Company made a policy decision to recognize compensation cost for an award with only service conditions that has a graded vesting schedule on a straight-line basis over the requisite service period for the entire award.  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 the guidance of Sub-topic 505-50 of the FASB Accounting Standards Codification (Sub-topic 505-50).  Pursuant to ASC paragraphs 505-50-25-6 and 505-50-25-7, a grantor shall recognize the goods acquired or services received in a share-based payment transaction when it obtains the goods or as services are received. A grantor may need to recognize an asset before it actually receives goods or services if it first exchanges share-based payment for an enforceable right to receive those goods or services. Nevertheless, the goods or services themselves are not recognized before they are received. 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). 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.  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 stock option that the counterparty has the right to exercise expires unexercised.  Pursuant to ASC Paragraphs 505-50-30-2 and 505-50-30-11 share-based payment transactions with nonemployees shall be measured at the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable. The issuer shall measure the fair value of the equity instruments in these transactions using the stock price and other measurement assumptions as of the earlier of the following dates, referred to as the measurement date: (a) The date at which a commitment for performance by the counterparty to earn the equity instruments is reached (a performance commitment); or (b) The date at which the counterparty's performance is complete. If the Companys common shares are traded in one of the national exchanges the grant-date share price of the Companys common stock will be used to measure the fair value of the common shares issued, however, if the Companys common shares are thinly traded the use of share prices established in the Companys most recent private placement memorandum (PPM), or weekly or monthly price observations would generally be more appropriate than the use of daily price observations as such shares could be artificially inflated due to a larger spread between the bid and asked quotes and lack of consistent trading in the market.  Pursuant to ASC Paragraph 718-10-55-21 if an observable market price is not available for a share option or similar instrument with the same or similar terms and conditions, an entity shall estimate the fair value of that instrument using a valuation technique or model that meets the requirements in paragraph 718-10-55-11 and takes into account, at a minimum, all of the following factors:  25    a.The exercise price of the option.  b.The expected term of the option, taking into account both the contractual term of the option and the effects of employees expected exercise and post-vesting employment termination behavior: Pursuant to Paragraph 718-10-50-2(f)(2)(i) of the FASB Accounting Standards Codification the expected term of share options and similar instruments represents the period of time the options and similar instruments are expected to be outstanding taking into consideration of the contractual term of the instruments and holders expected exercise behavior into the fair value (or calculated value) of the instruments.  The Company uses historical data to estimate holders expected exercise behavior.  If the Company is a newly formed corporation or shares of the Company are thinly traded the contractual term of the share options and similar instruments is used as the expected term of share options and similar instruments as the Company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate expected term.  c.The current price of the underlying share.  d.The expected volatility of the price of the underlying share for the expected term of the option.  Pursuant to ASC Paragraph 718-10-55-25 a newly publicly traded entity might base expectations about future volatility on the average volatilities of similar entities for an appropriate period following their going public. A nonpublic entity might base its expected volatility on the average volatilities of otherwise similar public entities. For purposes of identifying otherwise similar entities, an entity would likely consider characteristics such as industry, stage of life cycle, size, and financial leverage. Because of the effects of diversification that are present in an industry sector index, the volatility of an index should not be substituted for the average of volatilities of otherwise similar entities in a fair value measurement.  Pursuant to paragraph 718-10-S99-1 if shares of a company are thinly traded the use of weekly or monthly price observations would generally be more appropriate than the use of daily price observations as the volatility calculation using daily observations for such shares could be artificially inflated due to a larger spread between the bid and asked quotes and lack of consistent trading in the market.  The Company uses the average historical volatility of the comparable companies over the expected term of the share options or similar instruments as its expected volatility.  e.The expected dividends on the underlying share for the expected term of the option.  The expected dividend yield is based on the Companys current dividend yield as the best estimate of projected dividend yield for periods within the expected term of the share options and similar instruments.  f.The risk-free interest rate(s) for the expected term of the option. Pursuant to ASC 718-10-55-28 a U.S. entity issuing an option on its own shares must use as the risk-free interest rates the implied yields currently available from the U.S. Treasury zero-coupon yield curve over the contractual term of the option if the entity is using a lattice model incorporating the options contractual term. If the entity is using a closed-form model, the risk-free interest rate is the implied yield currently available on U.S. Treasury zero-coupon issues with a remaining term equal to the expected term used as the assumption in the model.  Pursuant to ASC paragraph 505-50-S99-1, if the Company receives a right to receive future services in exchange for unvested, forfeitable equity instruments, those equity instruments are treated as unissued for accounting purposes until the future services are received (that is, the instruments are not considered issued until they vest). Consequently, there would be no recognition at the measurement date and no entry should be recorded.  Deferred Tax Assets and 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 fiscal 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 fiscal 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 Statements of Income and Comprehensive Income in the period that includes the enactment date.  26    The Company adopted section 740-10-25 of the FASB Accounting Standards Codification (Section 740-10-25) with regards to uncertainty income taxes.  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 740-10-25, 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 percent (50%) likelihood of being realized upon ultimate settlement. Section 740-10-25 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.   Earnings per Share   Earnings per share ("EPS") is the amount of earnings attributable to each share of common stock. For convenience, the term is used to refer to either earnings or loss per share.  EPS is computed pursuant to section 260-10-45 of the FASB Accounting Standards Codification.  Pursuant to ASC Paragraphs 260-10-45-10 through 260-10-45-16 Basic EPS shall be computed by dividing income available to common stockholders (the numerator) by the weighted-average number of common shares outstanding (the denominator) during the period.  Income available to common stockholders shall be computed by deducting both the dividends declared in the period on preferred stock (whether or not paid) and the dividends accumulated for the period on cumulative preferred stock (whether or not earned) from net income (loss).  The computation of diluted EPS is similar to the computation of basic EPS except that the denominator is increased to include the number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued during the period to reflect the potential dilution that could occur from common shares issuable through contingent shares issuance arrangement, stock options or warrants.  Pursuant to ASC Paragraphs 260-10-45-45-21 through 260-10-45-45-23 Diluted EPS shall be based on the most advantageous conversion rate or exercise price from the standpoint of the security holder.  The dilutive effect of outstanding call options and warrants (and their equivalents) issued by the reporting entity shall be reflected in diluted EPS by application of the treasury stock method. Equivalents of options and warrants include non-vested stock granted to employees, stock purchase contracts, and partially paid stock subscriptions (see paragraph 260105523). Under the treasury stock method: a. Exercise of options and warrants shall be assumed at the beginning of the period (or at time of issuance, if later) and common shares shall be assumed to be issued. b. The proceeds from exercise shall be assumed to be used to purchase common stock at the average market price during the period. c. The incremental shares (the difference between the number of shares assumed issued and the number of shares assumed purchased) shall be included in the denominator of the diluted EPS computation. Pursuant to ASC Paragraphs 260-10-45-40 through 45-42 convertible securities shall be reflected in diluted EPS by application of the if converted method.The convertible preferred stock or convertible debt shall be assumed to have been converted at the beginning of the period (or at time of issuance, if later). In applying the if-converted method, conversion shall not be assumed for purposes of computing diluted EPS if the effect would be anti-dilutive.   27    The Companys contingent shares issuance arrangement, stock options or warrants are as follows:


|                                                                                                                                                                                                                                                |                                                                   |           |  |                                                  |  |          
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------- | --------- |  | ------------------------------------------------ |  | ---------
|                                                                                                                                                                                                                                                | Contingent shares issuance
arrangement, stock options
or warrants
|                                                                                                                                                                                                                                                |                                                                   |           |  |                                                 
|                                                                                                                                                                                                                                                | For the Reporting Period Ended
December 31,
2015                  |           |  | For the Reporting Period Ended
December 31, 2014
|Stock Option Shares                                                                                                                                                                                                                             |                                                                   |           |  |                                                  |  |          
|                                                                                                                                                                                                                                                |                                                                   |           |  |                                                  |  |          
|Stock options issued in June, 2010 to the founder of the Company, upon formation, with an  exercise price of $0.01 per share expiring five (5) years from the date of issuance.
The options were exercised on June 30, 2015.                    |                                                                   | -         |  |                                                  |  | 1,600,000
|                                                                                                                                                                                                                                                |                                                                   |           |  |                                                  |  |          
|Stock options issued on November 30, 2010 to the members of the board of directors of the Company with an exercise price of $0.01 per share expiring five (5) years from the date of issuance. The options were exercised on December 31, 2015. |                                                                   | -         |  |                                                  |  | 200,000  
|                                                                                                                                                                                                                                                |                                                                   |           |  |                                                  |  |          
|Stock options issued on March 13, 2012  to a consultant with an exercise price of $0.44 per share expiring five (5) years from the date of issuance                                                                                             |                                                                   | 50,000    |  |                                                  |  | 50,000   
|                                                                                                                                                                                                                                                |                                                                   |           |  |                                                  |  |          
|Stock options issued on August 24, 2012 for conversion of PSI stock options originally issued on December 20, 2010 with an exercise price of $1.00 per share expiring ten (10) years from the date of original issuance upon acquisition of PSI |                                                                   | 750,000   |  |                                                  |  | 750,000  
|                                                                                                                                                                                                                                                |                                                                   |           |  |                                                  |  |          
|Stock options issued on August 24, 2012 for conversion of PSI stock options originally issued on February 22, 2012 with an exercise price of $2.00 per share expiring ten (10) years from the date of original issuance upon acquisition of PSI |                                                                   | 650,000   |  |                                                  |  | 650,000  
|                                                                                                                                                                                                                                                |                                                                   |           |  |                                                  |  |          
|Stock options issued on September 6, 2013 to the advisory board member of the Company with an exercise price of $0.75 per share expiring five (5) years from the date of issuance                                                               |                                                                   | 10,000    |  |                                                  |  | 10,000   
|                                                                                                                                                                                                                                                |                                                                   |           |  |                                                  |  |          
|Stock options issued on February 28, 2014  to the two officers of the Company with an exercise price of $0.40 per share expiring five (5) years from the date of issuance                                                                       |                                                                   | 1,800,000 |  |                                                  |  | 1,800,000
|                                                                                                                                                                                                                                                |                                                                   |           |  |                                                  |  |          
|Stock options issued on July 1, 2014  to the officer of the Company with an exercise price of $0.40 per share expiring five (5) years from the date of issuance                                                                                 |                                                                   | 250,000   |  |                                                  |  | 200,000  
|                                                                                                                                                                                                                                                |                                                                   |           |  |                                                  |  |          
|Stock options issued on September 30, 2014  to the two officers of the Company with an exercise price of $0.125 per share expiring five (5) years from the date of issuance                                                                     |                                                                   | 262,500   |  |                                                  |  | 262,500  
|                                                                                                                                                                                                                                                |                                                                   |           |  |                                                  |  |          
|Stock options issued on December 31, 2014  to the two officers of the Company with an exercise price of $0.11 per share expiring five (5) years from the date of issuance                                                                       |                                                                   | 262,500   |  |                                                  |  | 262,500  
|                                                                                                                                                                                                                                                |                                                                   |           |  |                                                  |  |          
|Stock options issued on March 31, 2015  to the two officers of the Company with an exercise price of $0.19 per share expiring five (5) years from the date of issuance                                                                          |                                                                   | 262,500   |  |                                                  |  | 262,500  
|                                                                                                                                                                                                                                                |                                                                   |           |  |                                                  |  |          
|Stock option issued on May 15, 2015  to the director of the Company with an exercise price of $0.25 per share expiring five (5) years from the date of issuance                                                                                 |                                                                   | 150,000   |  |                                                  |  | 150,000  
|                                                                                                                                                                                                                                                |                                                                   |           |  |                                                  |  |          
|Stock options issued on June 30, 2015  to the two officers of the Company with an exercise price of $0.135 per share expiring five (5) years from the date of issuance                                                                          |                                                                   | 262,500   |  |                                                  |  | 262,500  
|                                                                                                                                                                                                                                                |                                                                   |           |  |                                                  |  |          
|Stock options issued on September 30, 2015  to the two officers of the Company with an exercise price of $0.135 per share expiring five (5) years from the date of issuance                                                                     |                                                                   | 262,500   |  |                                                  |  | 262,500  

28


|                                                                                                                                                                                                                                        |  |           |  |  |  |          
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | --------- |  |  |  | ---------
|                                                                                                                                                                                                                                        |  |           |  |  |  |          
|Stock options issued on December 31, 2015  to the one officer of the Company with an exercise price of $0.14 per share expiring five (5) years from the date of issuance                                                                |  | 62,500    |  |  |  | -        
|                                                                                                                                                                                                                                        |  |           |  |  |  |          
|Sub-total: Stock option shares                                                                                                                                                                                                          |  | 5,035,000 |  |  |  | 5,840,000
|                                                                                                                                                                                                                                        |  |           |  |  |  |          
|Warrant Shares                                                                                                                                                                                                                          |  |           |  |  |  |          
|                                                                                                                                                                                                                                        |  |           |  |  |  |          
|Remaining unexercised warrants issued on November 10, 2010 to investors in connection with the Companys November 10, 2010 equity financing with an exercise price of $0.01 per share expiring five (5) years from the date of issuance |  | -         |  |  |  | 1,600,000
|                                                                                                                                                                                                                                        |  |           |  |  |  |          
|Remaining unexercised warrants originally issued on November 30, 2010 to investors with an exercise price of $0.01 per share expiring five (5) years from the date of issuance                                                          |  | -         |  |  |  | 884,334  
|                                                                                                                                                                                                                                        |  |           |  |  |  |          
|Remaining unexercised warrants issued on November 30, 2010 for services with an exercise price of $0.01 per share expiring five (5) years from the date of issuance                                                                     |  | -         |  |  |  | 375,000  
|                                                                                                                                                                                                                                        |  |           |  |  |  |          
|Warrants issued on March 8, 2012 to an investor with an exercise price of $0.50 per share expiring five (5) years from the date of issuance                                                                                             |  | 190,000   |  |  |  | 190,000  
|                                                                                                                                                                                                                                        |  |           |  |  |  |          
|Warrants issued on March 15, 2012 to an investor with an exercise price of $0.75 per share expiring five (5) years from the date of issuance                                                                                            |  | 75,000    |  |  |  | 75,000   
|                                                                                                                                                                                                                                        |  |           |  |  |  |          
|Warrants issued on April 19, 2012 to an investor with an exercise price of $1.65 per share expiring five (5) years from the date of issuance                                                                                            |  | 14,545    |  |  |  | 14,545   
|                                                                                                                                                                                                                                        |  |           |  |  |  |          
|Warrants issued on May 9, 2012 to an investor with an exercise price of $2.16 per share expiring five (5) years from the date of issuance                                                                                               |  | 9,091     |  |  |  | 9,091    
|                                                                                                                                                                                                                                        |  |           |  |  |  |          
|Warrants issued on May 14, 2012 to investors with an exercise price of $2.25 per share expiring five (5) years from the date of issuance                                                                                                |  | 18,182    |  |  |  | 18,182   
|                                                                                                                                                                                                                                        |  |           |  |  |  |          
|Warrants issued between May 21 and 25, 2012 to investors with an exercise price of $2.31 per share expiring five (5) years from the date of issuance                                                                                    |  | 112,955   |  |  |  | 112,955  
|                                                                                                                                                                                                                                        |  |           |  |  |  |          
|Remaining unexercised warrants originally issued on September 25, 2012 to investors with an exercise price of $0.45 per share expiring five (5) years from the date of issuance                                                         |  | 236,666   |  |  |  | 236,666  
|                                                                                                                                                                                                                                        |  |           |  |  |  |          
|Warrants issued on December 19, 2012 to investors with an exercise price of $0.45 per share expiring five (5) years from the date of issuance                                                                                           |  | 520,999   |  |  |  | 520,999  
|                                                                                                                                                                                                                                        |  |           |  |  |  |          
|Warrants issued on February 27, 2013 and March 17, 2013 for services with an exercise price of $0.30 per share expiring five (5) years from the date of issuance                                                                        |  | 700,000   |  |  |  | 700,000  
|                                                                                                                                                                                                                                        |  |           |  |  |  |          
|Warrants issued on March 18, 2013 to investors with an exercise price of $0.45 per share expiring five (5) years from the date of issuance                                                                                              |  | 3,096,603 |  |  |  | 3,096,603
|                                                                                                                                                                                                                                        |  |           |  |  |  |          
|Warrants issued on April 18, 2013 to investors with an exercise price of $0.45 per share expiring five (5) years from the date of issuance                                                                                              |  | 601,668   |  |  |  | 601,668  
|                                                                                                                                                                                                                                        |  |           |  |  |  |          
|Warrants issued on May 9, 2013 to investors with an exercise price of $1.00 per share expiring five (5) years from the date of issuance                                                                                                 |  | 40,000    |  |  |  | 40,000   
|                                                                                                                                                                                                                                        |  |           |  |  |  |          
|Warrants issued on August 15, 2013 to investors with an exercise price of $0.75 per share expiring five (5) years from the date of issuance                                                                                             |  | 4,121,250 |  |  |  | 4,121,250
|                                                                                                                                                                                                                                        |  |           |  |  |  |          
|Warrants issued on September 29, 2013 to an investor with an exercise price of $0.45 per share expiring five (5) years from the date of issuance                                                                                        |  | 250,000   |  |  |  | 250,000  

29


|                                                                                                                                                                                                                     |  |            |  |  |  |           
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ---------- |  |  |  | ----------
|                                                                                                                                                                                                                     |  |            |  |  |  |           
|Warrants issued on January 13, 2014  to investors with an exercise price of $0.40 per share expiring five (5) years from the date of issuance                                                                        |  | 793,333    |  |  |  | 793,333   
|                                                                                                                                                                                                                     |  |            |  |  |  |           
|Warrants issued on January 13, 2014  to investors with an exercise price of $0.45 per share expiring five (5) years from the date of issuance                                                                        |  | 228,572    |  |  |  | 228,572   
|                                                                                                                                                                                                                     |  |            |  |  |  |           
|Warrants issued on March 28, 2014  to investors with an exercise price of $0.65 per share expiring five (5) years from the date of issuance                                                                          |  | 150,000    |  |  |  | 150,000   
|                                                                                                                                                                                                                     |  |            |  |  |  |           
|Warrants issued on April 4, 2014 to the stockholders of SMI Holdings, Inc. with an exercise price of $0.665 per share expiring five (5) years from the date of issuance in connection with Asset Purchase Agreement. |  | 131,266    |  |  |  | 131,266   
|                                                                                                                                                                                                                     |  |            |  |  |  |           
|Warrants issued on April 30, 2014 to investors with an exercise price of $0.65 per share expiring five (5) years from the date of issuance.                                                                          |  | 57,222     |  |  |  | 57,222    
|                                                                                                                                                                                                                     |  |            |  |  |  |           
|Warrants issued on July 22, 2014 to the investor with an exercise price of $0.30 per share expiring five (5) years from the date of issuance.                                                                        |  | 348,000    |  |  |  | 348,000   
|                                                                                                                                                                                                                     |  |            |  |  |  |           
|Warrants issued on February 26, 2015 to the investor with an exercise price of $0.15 per share expiring five (5) years from the date of issuance.                                                                    |  | 15,211,234 |  |  |  | -         
|                                                                                                                                                                                                                     |  |            |  |  |  |           
|Warrants issued on April 9, 2015 to an investor with an exercise price of $0.15 per share expiring five (5) years from the date of issuance.                                                                         |  | 428,572    |  |  |  | -         
|                                                                                                                                                                                                                     |  |            |  |  |  |           
|Warrants issued on April 18, 2015 to the consultant with an exercise price of $0.25 per share expiring five (5) years from the date of issuance.                                                                     |  | 500,000    |  |  |  | -         
|                                                                                                                                                                                                                     |  |            |  |  |  |           
|Warrants issued in April 2015 to the investors with an exercise price of $0.25 per share expiring five (5) years from the date of issuance.                                                                          |  | 3,241,332  |  |  |  | -         
|                                                                                                                                                                                                                     |  |            |  |  |  |           
|Warrants issued in June 2015 to the investors with an exercise price of $0.25 per share expiring five (5) years from the date of issuance.                                                                           |  | 1,713,333  |  |  |  | -         
|                                                                                                                                                                                                                     |  |            |  |  |  |           
|Warrants issued in August 2015 to the investors with an exercise price of $0.25 per share expiring five (5) years from the date of issuance.                                                                         |  | 966,666    |  |  |  | -         
|                                                                                                                                                                                                                     |  |            |  |  |  |           
|Warrants issued in September 2015 to the investors with an exercise price of $0.15 per share expiring five (5) years from the date of issuance.                                                                      |  | 555,555    |  |  |  | -         
|                                                                                                                                                                                                                     |  |            |  |  |  |           
|Warrants issued in December 2015 to the investors with an exercise price of $0.15 per share expiring five (5) years from the date of issuance.                                                                       |  | 4,600,000  |  |  |  | -         
|                                                                                                                                                                                                                     |  |            |  |  |  |           
|Sub-total: Warrant shares                                                                                                                                                                                            |  | 40,012,245 |  |  |  | 14,554,686
|                                                                                                                                                                                                                     |  |            |  |  |  |           
|Total contingent shares issuance arrangement, stock options or warrants                                                                                                                                              |  | 45,047,245 |  |  |  | 24,041,650

There were approximate 62,918 and 6,571,998 incremental common shares under the treasury stock method for the reporting period ended December 31, 2015 and 2014, respectively, which were excluded from the diluted earnings per share calculation as they were anti-dilutive.  30    Cash Flows Reporting  The Company adopted paragraph 230-10-45-24 of the FASB Accounting Standards Codification for cash flows reporting, classifies cash receipts and payments according to whether they stem from operating, investing, or financing activities and provides definitions of each category, and uses the indirect or reconciliation method (Indirect method) as defined by paragraph 230-10-45-25 of the FASB Accounting Standards Codification to report net cash flow from operating activities by adjusting net income to reconcile it to net cash flow from operating activities by removing the effects of (a) all deferrals of past operating cash receipts and payments and all accruals of expected future operating cash receipts and payments and (b) all items that are included in net income that do not affect operating cash receipts and payments.  The Company reports the reporting currency equivalent of foreign currency cash flows, using the current exchange rate at the time of the cash flows and the effect of exchange rate changes on cash held in foreign currencies is reported as a separate item in the reconciliation of beginning and ending balances of cash and cash equivalents and separately provides information about investing and financing activities not resulting in cash receipts or payments in the period pursuant to paragraph 830-230-45-1 of the FASB Accounting Standards Codification.  Segment Information  The Company follows Topic 280 of the FASB Accounting Standards Codification for segment reporting.  Pursuant to Paragraph 280-10-50-1 an operating segment is a component of a public entity that has all of the following characteristics: a. It engages in business activities from which it may earn revenues and incur expenses (including revenues and expenses relating to transactions with other components of the same public entity). b. Its operating results are regularly reviewed by the public entity's chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance. c. Its discrete financial information is available.  In accordance with Paragraph 280-10-50-5 the term chief operating decision maker identifies a function, not necessarily a manager with a specific title. That function is to allocate resources to and assess the performance of the segments of a public entity. Often the chief operating decision maker of a public entity is its chief executive officer or chief operating officer, but it may be a group consisting of, for example, the public entity's president, executive vice presidents, and others.  Pursuant to Paragraph 280-10-50-10 a public entity shall report separately information about each operating segment that meets both of the following criteria: a. Has been identified in accordance with paragraphs 280-10-50-1 and 280-10-50-3 through 50-9 or results from aggregating two or more of those segments in accordance with the following paragraph; and b. Exceeds the quantitative thresholds in paragraph 280-10-50-12. In accordance with Paragraph 280-10-50-12 a public entity shall report separately information about an operating segment that meets any of the following quantitative thresholds: a. Its reported revenue, including both sales to external customers and intersegment sales or transfers, is 10 percent or more of the combined revenue, internal and external, of all operating segments. b. The absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount, of either: 1. The combined reported profit of all operating segments that did not report a loss, or 2. The combined reported loss of all operating segments that did report a loss. c. Its assets are 10 percent or more of the combined assets of all operating segments. Pursuant to Paragraphs 280-10-50-22 and 280-10-50-29, a public entity shall report a measure of profit or loss and total assets for each reportable segment and provide an explanation of the measurements of segment profit or loss and segment assets for each reportable segment. At a minimum, a public entity shall disclose all of the following: a. The basis of accounting for any transactions between reportable segments. b. The nature of any differences between the measurements of the reportable segments' profits or losses and the public entity's consolidated income (loss) before income tax provision, extraordinary items, and discontinued operations (if not apparent from the reconciliations described in paragraphs 280-10-50-30 through 50-31). c. The nature of any differences between the measurements of the reportable segments assets and the public entity's consolidated assets (if not apparent from the reconciliations described in paragraphs 280-10-50-30 through 50-31). d. The nature of any changes from prior periods in the measurement methods used to determine reported segment profit or loss and the effect, if any, of those changes on the measure of segment profit or loss. e. The nature and effect of any asymmetrical allocations to reportable segments.  Non-controlling Interest  The Company follows paragraph 810-10-65-1 of the FASB Accounting Standards Codification to report the non-controlling interest in PDC, its 50% owned subsidiary in the consolidated statements of balance sheets within the equity section, separately from the Companys stockholders equity.  Non-controlling interest represents the non-controlling interest holders proportionate share of the equity of the Companys 50%-owned subsidiary, PDC. Non-controlling interest is adjusted for the non-controlling interest holders proportionate share of the earnings or losses and other comprehensive income (loss) and the non-controlling interest continues to be attributed its share of losses even if that attribution results in a deficit non-controlling interest balance.   Subsequent Events  The Company follows the guidance in Section 855-10-50 of the FASB Accounting Standards Codification for the disclosure of subsequent events. The Company will evaluate subsequent events through the date when the financial statements were issued.  Pursuant to ASU 2010-09 of the FASB Accounting Standards Codification, the Company as an SEC filer considers its financial statements issued when they are widely distributed to users, such as through filing them on EDGAR.  31    Recently Issued Accounting Pronouncements  In May 2014, the FASB issued the FASB Accounting Standards Update No. 2014-09 Revenue from Contracts with Customers (Topic 606) (ASU 2014-09).  This guidance amends the existing FASB Accounting Standards Codification, creating a new Topic 606, Revenue from Contracts with Customer. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.  To achieve that core principle, an entity should apply the following steps:  1. Identify the contract(s) with the customer 2. Identify the performance obligations in the contract 3. Determine the transaction price 4. Allocate the transaction price to the performance obligations in the contract 5. Recognize revenue when (or as) the entity satisfies a performance obligations  The ASU also provides guidance on disclosures that should be provided to enable financial statement users to understand the nature, amount, timing, and uncertainty of revenue recognition and cash flows arising from contracts with customers.  Qualitative and quantitative information is required about the following:  1. Contracts with customers  including revenue and impairments recognized, disaggregation of revenue, and information about contract balances and performance obligations (including the transaction price allocated to the remaining performance obligations)  2. Significant judgments and changes in judgments  determining the timing of satisfaction of performance obligations (over time or at a point in time), and determining the transaction price and amounts allocated to performance obligations  3. Assets recognized from the costs to obtain or fulfill a contract.  ASU 2014-09 is effective for periods beginning after December 15, 2016, including interim reporting periods within that reporting period for all public entities.  Early application is not permitted.   In August 2014, the FASB issued the FASB Accounting Standards Update No. 2014-15Presentation of Financial StatementsGoing Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entitys Ability to Continue as a Going Concern (ASU 2014-15).  In connection with preparing financial statements for each annual and interim reporting period, an entitys management should evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entitys ability to continue as a going concern within one year after the date that the financial statements are issued(or within one year after the date that the financial statements are available to be issuedwhen applicable). Managements evaluation should be based on relevant conditions and events that are known and reasonably knowable at the date that the financial statements are issued(or at the date that the financial statements are available to be issuedwhen applicable). Substantial doubt about an entitys ability to continue as a going concern exists when relevant conditions and events, considered in the aggregate, indicate that it is probable that the entity will be unable to meet its obligations as they become due within one year after the date that the financial statements are issued (or available to be issued). The term probableis used consistently with its use in Topic 450, Contingencies.  When management identifies conditions or events that raise substantial doubt about an entitys ability to continue as a going concern, management should consider whether its plans that are intended to mitigate those relevant conditions or events will alleviate the substantial doubt. The mitigating effect of managements plans should be considered only to the extent that (1) it is probable that the plans will be effectively implemented and, if so, (2) it is probable that the plans will mitigate the conditions or events that raise substantial doubt about the entitys ability to continue as a going concern.  32    If conditions or events raise substantial doubt about an entitys ability to continue as a going concern, but the substantial doubt is alleviated as a result of consideration of managements plans, the entity should disclose information that enables users of the financial statements to understand all of the following (or refer to similar information disclosed elsewhere in the footnotes):  a. Principal conditions or events that raised substantial doubt about the entitys ability to continue as a going concern (before consideration of managements plans) b. Managements evaluation of the significance of those conditions or events in relation to the entitys ability to meet its obligations c. Managements plans that alleviated substantial doubt about the entitys ability to continue as a going concern.  If conditions or events raise substantial doubt about an entitys ability to continue as a going concern, and substantial doubt is not alleviated after consideration of managements plans, an entity should include a statement in the footnotes indicating that there is substantial doubt about the entitys ability to continue as a going concernwithin one year after the date that the financial statements are issued (or available to be issued). Additionally, the entity should disclose information that enables users of the financial statements to understand all of the following:  a. Principal conditions or events that raise substantial doubt about the entitys ability to continue as a going concern b. Managements evaluation of the significance of those conditions or events in relation to the entitys ability to meet its obligations c. Managements plans that are intended to mitigate the conditions or events that raise substantial doubt about the entitys ability to continue as a going concern.  The amendments in this Update are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted.  In November 2015, the FASB issued the FASB Accounting Standards Update No. 2015-17 Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes (ASU 2015-17).This updatesimplifies the presentation of deferred income taxes; the amendments in this Update require that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The amendments in this Update apply to all entities that present a classified statement of financial position.  For public business entities, the amendments in this Update are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods.  In January 2016, the FASB issued the FASB Accounting Standards Update No. 2016-01 Financial InstrumentsOverall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (ASU 2016-01).  This Updatemakes limited amendments to the guidance in U.S. GAAP on the classification and measurement of financial instruments. The new standard significantly revises an entitys accounting related to (1) the classification and measurement of investments in equity securities and (2) the presentation of certain fair value changes for financial liabilities measured at fair value. It also amends certain disclosure requirements associated with the fair value of financial instruments. Some of the major changes as a result of the ASU 2016-01 are summarized below.  · Requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. · Simplify the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. When a qualitative assessment indicates that impairment exists, an entity is required to measure the investment at fair value. · Eliminate the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet. · Require public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. · Require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. · Require separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements. · Clarify that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entitys other deferred tax assets.  33    For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years.  Management does not believe that any recently issued, but not yet effective accounting pronouncements, when adopted, will have a material effect on the accompanying financial statements.  Note 3  Going Concern  The Company has elected to adopt early application of Accounting Standards Update No. 2014-15, Presentation of Financial StatementsGoing Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entitys Ability to Continue as a Going Concern (ASU 2014-15).  The Companys consolidated financial statements have been prepared assuming that it will continue as a going concern, which contemplates continuity of operations, realization of assets, and liquidation of liabilities in the normal course of business.  As reflected in the consolidated financial statements, the Company had an accumulated deficit at December 31, 2015, a net loss and net cash used in operating activities for the reporting period then ended. These factors raise substantial doubt about the Companys ability to continue as a going concern.  The Company is attempting to further implement its business plan and generate sufficient revenue; however, the Companys cash position may not be sufficient to support its daily operations.  While the Company believes in the viability of its strategy to further implement its business plan and generate sufficient revenue and in its ability to raise additional funds by way of a public or private offering, there can be no assurances to that effect.  The ability of the Company to continue as a going concern is dependent upon its ability to further implement its business plan and generate sufficient revenue and its ability to raise additional funds by way of a public or private offering.  The consolidated financial statements do not include any adjustments related to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.  Note 4  Inventories  Inventories consisted of the following:  December 31,
2015September 30,
2015Purchased parts for assembly  PSI/PDC$81,267$134,385Finished goods - PSI119,51766,398Raw material - StealthCo12,68612,718$213,470$213,501  Slow-Moving or Obsolescence Markdowns  The Company recorded no inventory obsolescence adjustments for the reporting period ended December 31, 2015 and 2014.  Lower of Cost or Market Adjustments  There were no lower of cost or market adjustments for the interim period ended December 31, 2015 and 2014.  34    Note 5  Property and Equipment  Property and equipment, stated at cost, less accumulated depreciation consisted of the following:  Estimated Useful Life (Years)December 31,
2015September 30,
2015Auto3$15,000$15,000Computer equipment56,8106,810Furniture and fixture724,96624,966Leasehold improvement515,17015,170Medical and office equipment518,88918,889Software323,20723,207104,042104,042Less accumulated depreciation(76,708)(74,418)$27,334$29,624  (i) Depreciation Expense  Depreciation expense was $2,290 and $3,961 for the reporting period ended December 31, 2015 and 2014, respectively.  (ii) Impairment  The Company completed the annual impairment test of property and equipment and determined that there was no impairment as the fair value of property and equipment, exceeded their carrying values at September 30, 2015.  Note 6  Intangible Assets Other Than Goodwill  Exclusive License Agreements  (i) Exclusive License Agreement for Provisional Patent No. 1 Signed on August 25, 2009  Grant of License  An exclusive license agreement ("Exclusive License Agreement") was made and entered into on August 25, 2009, by and among Scot L. Johnson ("Johnson"),Edwin T. Longo ("Longo", and together with Johnson collectively referred to herein as "Licensors"), and Psoria-Shield Inc. (PSI or "Licensee").  Upon the execution of the Exclusive License Agreement, Licensee acquired, and Licensors granted to Licensee, for the duration of the License Term (as defined below),the sole and exclusive (including to the exclusion of Licensors), worldwide, paid-up, royalty-free right and license under the Licensed Patents,Know-how, Technical Data, and any Improvements as defined in the Exclusive License Agreement to develop,make,have made,use, sell, offer to sell, distribute, export, import,and otherwise commercialize the Licensed Product(s) in the Field. This license shall include the right of Licensee to grant sublicenses and distribution rights in the Field.  Consideration for License  As the sole and exclusive consideration for the rights and license granted in the Exclusive License Agreement,each of the Licensors received, on the date of signing, 3,000,000 shares of the common stock of PSI, or 6,000,000 shares of PSI in aggregate, which were valued at the stockholders cost basis of nil.  35    License Term  The term of the rights and license granted herein shall commence upon the date of signing of the Exclusive License Agreement and shall continue in effect in perpetuity unless and to the extent terminated as set forth in Sections 5.2 through 5.4 of the License Term of the Exclusive License Agreement.  The License may be terminated at any time by the mutual written agreement of each of the Licensors and Licensee.  (ii) Exclusive License Agreement for Provisional Patent No. 2 Signed on December 11, 2010  Grant of License  An exclusive license agreement ("Exclusive License Agreement") was made and entered into on December 11, 2010, by and between Scot L. Johnson ("Johnson" or referred to herein as "Licensor"), and Psoria-Shield Inc. (PSI or "Licensee").  Upon the execution of the Exclusive License Agreement, Licensee acquired, and Licensor granted to Licensee, for the duration of the License Term (as defined below),the sole and exclusive (including to the exclusion of Licensor), worldwide, paid-up, royalty-free right and license under the Licensed Patents,Know-how, Technical Data, and any Improvements as defined in the Exclusive License Agreement to develop,make,have made,use, sell, offer to sell, distribute, export, import,and otherwise commercialize the Licensed Product(s) in the Field. This license shall include the right of Licensee to grant sublicenses and distribution rights in the Field.  Consideration for License  As the sole and exclusive consideration for the rights and license granted in the Exclusive License Agreement,the Licensor received, on the date of signing, 5,000 shares of the common stock of PSI, which was valued at the stockholders cost basis of $5,000.  License Term  The term of the rights and licenses granted herein shall commence upon the date of signing of the Exclusive License Agreement and shall continue in effect in perpetuity unless and to the extent terminated as set forth in Sections 5.2 through 5.4 of the License Term of the Exclusive License Agreement.  The License may be terminated at any time by the mutual written agreement of each of the Licensors and Licensee.  Amortization Expense  Amortization expense was $64 and $63 for the reporting period ended December 31, 2015 and 2014.  Patents - StealthCo  The Company follows the guidelines as set out in paragraph 350-30-25-3 and paragraph 350-30-35-6 of the FASB Accounting Standards Codification for patent.  For acquired patents the Company records the costs to acquire patents as patent and amortizes the patent acquisition cost over its remaining legal life, or estimated useful life, or the term of the contract, whichever is shorter. For internal developed patents, all costs incurred to the point when a patent application is to be filed are expended as incurred as research and development expense; patent application costs, generally legal costs, thereafter incurred are capitalized, which are to be amortized once the patents are granted or expended if the patent application is rejected. The Company amortizes the internal developed patents over the shorter of the expected useful lives or the legal lives of the patents, which are generally 17 to 20 years for domestic patents and 5 to 20 years for foreign patents from the date when the patents are granted. The costs of defending and maintaining patents are expended as incurred. Upon becoming fully amortized, the related cost and accumulated amortization are removed from the accounts.  The Company acquired certain patents from the acquisition of certain assets from SMI and amortizes the acquisition cost over patent acquisition cost over its remaining legal life.  (i) Amortization Expense  Amortization expense was $21,417 for the reporting period ended December 31, 2015.  36    Summary of Patents and Exclusive Licenses  The patents and exclusive licenses were as follows:  Estimated Useful Life (Years)December 31,
2015September 30,
2015PSIExclusive license20$5,000$5,000Accumulated amortization(1,255)(1,191)Accumulated impairment--3,7453,809Stealth CoPatents20$356,290$379,803Accumulated amortization(75,073)(53,656)Accumulated impairment--281,217302,634TotalPatents and exclusive license361,290361,290Accumulated amortization(76,328)(54,847)Accumulated impairment--$284,962$306,443  Acquired Technologies  Acquired technologies, stated at cost, less accumulated amortization consisted of the following:  Estimated Useful Life (Years)December 31,
2015September 30,
2015PSIAcquired technologies202,095,0002,095,000Accumulated amortization(323,086)(322,973)Accumulated impairment(1,749,027)(1,749,027)22,88723,000   37    Impairment Testing and Amortization Expense  (i) Impairment Testing  The Company completed the annual impairment testing of acquired technologies and determined that there was $1,749,027 impaired at September 30, 2015.  (ii) Amortization Expense  Amortization expense was $113 and $893 for the reporting period ended December 31, 2015 and 2014, respectively.  Non-compete Agreements  Non-compete agreements, stated at cost, less accumulated amortization consisted of the following:  Estimated Useful Life (Years)December 31,
2015September 30,
2015PSINon-Compete agreement4120,000120,000Accumulated amortization(92,500)(92,500)Accumulated impairment(27,500)(27,500)$-$-  Impairment Testing and Amortization Expense  (i) Impairment Testing  The Company completed the annual impairment testing of non-compete agreements and determined that there was $27,500 impaired at September 30, 2015.  (ii) Amortization Expense  Amortization expense was $0 and $7,500 for the reporting period ended December 31, 2015 and 2014, respectively.  38    Trademarks  Trademarks, stated at cost, less accumulated amortization consisted of the following:  Estimated Useful Life (Years)December 31,
2015September 30,
2015PSITrademark - Psoria-Light7420,000420,000Accumulated amortization(177,780)(177,500)Accumulated impairment(222,300)(222,300)19,92020,270Trademark - Psoria-Shield7210,000210,000Accumulated amortization(100,280)(100,000)Accumulated impairment(103,300)(103,300)6,4206,700TotalTrademarks630,000630,000Accumulated amortization(278,060)(277,500)Accumulated impairment(325,600)(325,600)$26,340$26,900  Impairment Testing and Amortization Expense  (i) Impairment Testing  The Company completed the annual impairment testing of trademarks and determined that there was total $325,600 impairment to the fair value of intangible assets other than goodwill inclusive of acquired technologies, exclusive licenses, non-compete agreements, and trademarks at September 30, 2015.  (ii) Amortization Expense  Amortization expense was $560 and $22,500 for the reporting period ended December 31, 2015 and 2014, respectively.  39    Note 7  Goodwill  Goodwill, stated at cost, less accumulated impairment, if any, consisted of the following:  December 31, 2015September 30, 2015Acquisition of NPCGoodwill$1,200,000$1,200,000Accumulated impairment(1,200,000)(1,200,000)--Acquisition of PSIGoodwill1,716,6031,716,603Accumulated impairment(1,661,287)(1,661,287)55,31655,316TotalAcquired technologies2,916,6032,916,603Accumulated impairment(2,861,287)(2,861,287)$55,316$55,316  Impairment Testing  The Company completed the impairment testing of goodwill and determined that there was an impairment of $2,861,287 to the goodwill at September 30, 2015.  Note 8  Website Development Costs  Website development costs, stated at cost, less accumulated amortization consisted of the following:  Estimated Useful Life (Years)December 31,
2015September 30,
2015Website development costs3$22,809$22,809Less accumulated amortization(22,809)(22,809)$-$-  Impairment Testing and Amortization Expense  (i) Impairment Testing  The Company completed the annual impairment testing of website development costs and determined that there was no impairment as the fair value of website development costs, exceeded their carrying values at September 30, 2015.  40    (ii) Amortization Expense  Amortization expense was $0 and $2,378 for the reporting period ended December 31, 2015 and 2014, respectively.  Note 9- Notes Payable  Notes payable consisted of the following:  December 31,
2015September 30,
2015Note issued on May 14, 2014 for $2,000, with no interest and due upon demand.2,0002,000Note issued on August 21, 2014 for $7,000, with no interest and due upon demand.7,0007,000Note issued on May 6, 2015 for $20,000, with 3% interest, due in twelve months20,00020,000Note issued on May 19, 2015 for $10,000, with 3% interest, due in six months, converted to shares on January 12, 2016. (Subsequent note).10,00010,000Note issued on May 22, 2015 for $10,000, with 3% interest, due in twelve months10,00010,000Note issued on June 2, 2015 for $10,000, with 3% interest, due in twelve months10,00010,000Note issued on August 5, 2015 for $10,000, with 3% interest, due in six months, converted to shares on January 12, 2016. (Subsequent note).5,0005,000Note issued on August 31, 2015 for $10,000, with 3% interest, due in six months, converted to shares on January 12, 2016. (Subsequent note).10,00010,000Note issued on September 24, 2015 for $10,000, with 3% interest, due in twelve months,10,00010,000Note issued on September 29, 2015 for $10,000, with 3% interest, due upon demand and converted to shares on January 12, 2016. (Subsequent note).10,00010,000Note issued on September 30, 2015 for $20,000, due upon demand, converted to shares on January 14, 2016. (Subsequent note).20,00020,000Note issued on October 5, 2015 for $3,500, with 3% interest, due upon demand, converted to shares on January 12, 2016. (Subsequent note).3,500-Note issued on November 3, 2015 for $3,500, with 3% interest, due upon demand, converted to shares on January 12, 2016. (Subsequent note).1,300-Note issued on October 20, 2015 for $50,000, with 10% simple interest, due in six months.50,000-Notes issued on November 16, 2015 for $17,500, with 10% simple interest, due in six months17,500-Note issued on November 18, 2015 for $10,000, with 3% interest, due upon demand, converted to shares on January 14, 2016. (Subsequent note).10,000-196,300114,000Long-term portion(-)(-)196,300114,000Discount on convertible notes payable(-)(-)Current maturities, net of discount$196,300$114,000   41    Note 10  Related Party Transactions  Related Parties  Related parties with whom the Company had transactions are:  Related PartiesRelationshipRelated Party TransactionsBusiness Purpose of transactionsManagement and significant stockholderAndrew J. KandalepasChairman, CEO and significant stockholderNote receivable - OfficerWorking capitalJay Joshi, MDChief Medical Officer of the Company, President and CEO of NPC, stockholder and directorShareholder LoanWorking capitalEntity controlled by significant stockholderNational Pain Centers, LLCAn entity owned and controlled by Dr. Jay Joshi, MD, Chief Medical Officer of the Company, President and CEO of NPC, stockholder and directorManagement services provided to NPC, LLCManagement of medical practices.  Advances from Stockholders  From time to time, stockholders of the Company advance funds to the Company for working capital purpose. Those advances are unsecured, non-interest bearing and due on demand.  Management service agreement between NPC and National Pain Centers, LLC  On February 28, 20124, NPC, the Company's wholly-owned subsidiary, entered into a management service agreement with National Pain Centers, LLC ("NPC LLC"), which is owned by Dr. Jay Joshi, the president and CEO of NPC. Per the agreement, NPC LLC engages NPC to provide Management services for a period of five (5) years commencing on the effective date. During the term of this agreement, NPCLLC shall pay NPC the equivalent of 50% of all monies collected and as billed monthly to NPCLLC on net-30 term.   42    Note Receivable  Chairman, President and CEO  December 31,
2015September 30,
2015On September 30, 2013, Mr. Andrew Kandalepas, Chairman, President and CEO of the Company (Maker), issued a note to pay to the order of Wellness Center USA, Inc. ("Lender"), the principal sum of Two Hundred Fifty Thousand Dollars ($250,000), together with interest at 7.0% per annum, in six quarterly payments of principal and accrued interest, beginning on April 1, 2014 and continuing on the first day of each calendar quarter thereafter, with all principal and interest to be paid in full on or before July 1, 2015  (the "Maturity Date"). After the Maturity Date, and in addition to the interest described above which is due on or prior to the Maturity Date, Maker shall pay interest on the balance of principal remaining unpaid during any such period at an annual rate equal to ten percent (10%) (the "Default Rate"). The interest accruing under this paragraph shall be immediately due and payable by Maker to, and shall be additional indebtedness evidenced by, this Note. On January 5, 2015, the Company and the Maker has mutually agreed to amend the note with more favorable terms. The amended note principal is the original note balance and the accrued interest as of December 31, 2015 for a total of $197,028,  together with interest on the principal amount due shall be paid from time to time at the rate of two percent (2.0%) per annum, in 20 quarterly payments, beginning on October 1, 2015 and continuing on the first day of each calendar quarter thereafter, with all principal and interest to be paid in full on or before September 30, 2020 (the "Maturity Date"), Maker shall pay interest on the balance of principal remaining unpaid during any such period at an annual rate equal to four percent (4%) (the "Default Rate").$250,000$250,000Repayments from inception to date(64,608)(52,972)Remaining balance185,392197,028Current maturity of note receivable - Chairman, President and CEO(38,409)(36,299)Note receivable - Chairman, President and CEO, net of current maturity$146,983$160,729  Note 11  Commitments and Contingencies  Employment Agreements - NPC  Employment Agreement  Jay Joshi, MD  On February 28, 2014, the Company entered into an employment agreement (the Employment Agreement) with Jay Joshi, MD, a physician (the Executive). Under the Employment Agreement, the Company acquired from the Executive all of the Executives shares of common stock in National Pain Centers, Inc, a Nevada corporation, in exchange for 5,000,000 shares of $0.001 par value common stock of the Company, for the consideration given and received herein, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Executive and the Company hereby agree as follows:  Term  The Executives employment under this Agreement shall commence on the date hereof, and this Agreement shall commence as of that date and shall continue in effect until February 27, 2019.  The parties expressly understand that nothing in this Agreement is a guarantee or assurance of employment for any specific period of time.  Rather, subject to the notice provisions set forth in Section 6(c), the Executive understands that he is an at-will Executive, and that the Company may terminate his employment at any time, and the Executive is similarly free to resign at any time.  43    Duties  The Executive is engaged to serve as the Chief Medical Officer of the Company and the President and CEO of the Companys wholly-owned subsidiary, NPC.  Executive shall have such duties as are customarily associated with such positions including but not limited to overall responsibility and authority for general operations, management, and employment matters and relationships, as well as such other senior executive duties as may from time to time be reasonably assigned to him by the Companys CEO and/or Board of Directors.   In addition, at every election for the Company's Board of Directors while the Executive is employed by the Company hereunder, the Company will nominate the Executive to be elected to serve on the Board of Directors.  Compensations  (a) Base Salary.  The Company shall pay to the Executive as compensation for services rendered by the Executive hereunder a base annual salary of $200,000, subject to increase, but not decrease, from time to time by the CEO and/or the Board of Directors of the Company.  The base salary paid to the Executive is subject to such payroll and other deductions as may be agreed upon by the parties or required by law.  This salary shall be paid in accordance with Company's customary biweekly payroll procedure.  (b) Benefits.  Upon the signing of the agreement, Executive shall be issued a signing stock option to purchase 400,000 Shares at an exercise price of $0.40. Further, provided Executive remains employed by the Company, he will be granted additional stock options to buy up to an aggregate total of 1,000,000 shares of the Companys common stock, at a vesting schedule of 200,000 per quarter, starting with the quarter ending September 30, 2014. Each Stock option tranche shall carry an exercise price equal to the then market closing price, at the end of each quarter. All other terms and conditions not specified herein will be treated in accordance with the Companys 2010 Non-Qualified Stock Compensation Plan. In the event of an acquisition or merger of the Company, all options granted or scheduled to be granted shall convert immediately into the incumbent companys shares or be paid in cash on a cashless provision.  Termination  The Executive or the Company may voluntarily elect to terminate this Agreement (a termination "Without Cause") by delivering to the other party, at least ninety (90) days prior to the date upon which termination is desired, by written notice of such intention to terminate.  Covenant not to Compete  The Executive covenants and agrees that during the term of the Executive's employment, whether pursuant to this Agreement, any renewal hereof, or otherwise, and for a period of one year (the Restricted Period) after the later of the expiration of this Agreement or the termination of his employment with the Company, in the State(s) in which the Company conducts business as of the Executive's termination of employment, he will not, directly or indirectly (through one or more intermediaries), whether individually, or as an officer, director, agent, shareholder of 5% or more of the applicable companys outstanding equity shares, member, partner, joint venturer, investor (other than as a passive trader in publicly traded securities), consultant or otherwise, compete in whole or in part with the business then engaged in by the Company.  Employment Agreements  Stealthco Inc.  Employment Agreement  Ricky Howard  On July 1, 2014, the Company entered into an employment agreement (the Employment Agreement) with Ricky Howard, (the Executive). The Executive and the Company hereby agree as follows:  Term  The Executives employment under this Agreement shall commence on the date hereof, and this Agreement shall commence as of that date and shall continue in effect until June 30, 2017.  The parties expressly understand that nothing in this Agreement is a guarantee or assurance of employment for any specific period of time. Rather, subject to the notice provisions set forth in Section 6(c), the Executive understands that he is an at-will Executive, and that the Company may terminate his employment at any time, and the Executive is similarly free to resign at any time.  44    Duties  The Executive is engaged to serve as the Chief Executive Officer of the Companys wholly-owned Subsidiary StealthCo, reporting to the Companys CEO.  Executive shall have such duties as are customarily associated with such positions including but not limited to overall responsibility and authority for general operations, management, and employment matters and relationships, as well as such other senior executive duties as may from time to time be reasonably assigned to him by the Companys CEO and/or Board of Directors.  Compensations  (a) Base Salary.  The Company shall pay to the Executive as compensation for services rendered by the Executive hereunder a base annual salary of $100,000, subject to increase, but not decrease, from time to time by the CEO and/or the Board of Directors of the Company.  The base salary paid to the Executive is subject to such payroll and other deductions as may be agreed upon by the parties or required by law.  This salary shall be paid in accordance with Company's customary biweekly payroll procedure.  (b) Benefits.  Upon the signing of the agreement, Executive shall be (i) entitled to receive a cash signing bonus of $8,500, payable over a period of three months, (ii) issued a signing stock option to purchase 250,000 shares at an exercise price of $0.40 per share.  Further, provided Executive remains employed by the Company, he will be granted additional stock options to buy up to 750,000 shares of the Companys common stock, at a vesting schedule of 62,500 per quarter, starting with the quarter ending September 30, 2014. Each Stock option tranche shall carry an exercise price equal to the then market closing price, at the end of each quarter. All other terms and conditions not specified herein will be treated in accordance with the Companys 2010 Non-Qualified Stock Compensation Plan. In the event of an acquisition or merger of the Company, all options granted or scheduled to be granted shall convert immediately into the incumbent companys shares or be paid in cash on a cashless provision.  Termination  The Executive or the Company may voluntarily elect to terminate this Agreement (a termination "Without Cause") by delivering to the other party, at least ninety (45) days prior to the date upon which termination is desired, by written notice of such intention to terminate.  Covenant not to Compete  The Executive covenants and agrees that during the term of the Executive's employment, whether pursuant to this Agreement, any renewal hereof, or otherwise, and for a period of one year (the Restricted Period) after the later of the expiration of this Agreement or the termination of his employment with the Company, in the State(s) in which the Company conducts business as of the Executive's termination of employment, he will not, directly or indirectly (through one or more intermediaries), whether individually, or as an officer, director, agent, shareholder of 5% or more of the applicable companys outstanding equity shares, member, partner, joint venturer, investor (other than as a passive trader in publicly traded securities), consultant or otherwise, compete in whole or in part with the business then engaged in by the Company.  Employment Agreements - WCUI  Employment Agreement  Donald Swanson  On February 28, 2014, the Company entered into an employment agreement (the Employment Agreement) with Donald Swanson (the Executive) for the consideration given and received herein, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Executive and the Company hereby agree as follows:  Term  The Executives employment under this Agreement shall commence on the date hereof, and this Agreement shall commence as of that date and shall continue in effect until February 27, 2017.  The parties expressly understand that nothing in this Agreement is a guarantee or assurance of employment for any specific period of time. Rather, subject to the notice provisions set forth in Section 6(c), the Executive understands that he is an at-will Executive, and that the Company may terminate his employment at any time, and the Executive is similarly free to resign at any time.  45    Duties  The Executive is engaged to serve as the Chief Operating Officer of the Company, reporting to the Company's CEO. Executive shall have such duties as are customarily associated with such positions including but not limited to overall responsibility and authority for general operations, management, employment matters and relationships, as well as such other senior executive duties as may from time to time be reasonably assigned to him by the Company's CEO and/or Board of Directors. The Executive shall perform such services subject to the direction, supervision, and rules and regulations of the Company and the Company's Board of Directors.  Compensations  (a) Base Salary.  The Company shall pay to the Executive as compensation for services rendered by the Executive hereunder a base annual salary of $200,000, subject to increase, but not decrease, from time to time by the CEO and/or the Board of Directors of the Company.  The base salary paid to the Executive is subject to such payroll and other deductions as may be agreed upon by the parties or required by law.  This salary shall be paid in accordance with Company's customary biweekly payroll procedure.  (b) Benefits.  Upon the signing of the agreement, Executive shall be issued a signing stock option to purchase 1,400,000 Shares at an exercise price of $0.40. Further, provided Executive remains employed by the Company, he will be granted additional stock options to buy up to an aggregate total of 1,000,000 shares of the Companys common stock, at a vesting schedule of 200,000 per quarter, starting with the quarter ending September 30, 2014. Each Stock option tranche shall carry an exercise price equal to the then market closing price, at the end of each quarter. All other terms and conditions not specified herein will be treated in accordance with the Companys 2010 Non-Qualified Stock Compensation Plan. In the event of an acquisition or merger of the Company, all options granted or scheduled to be granted shall convert immediately into the incumbent companys shares or be paid in cash on a cashless provision.  Termination  The Executive or the Company may voluntarily elect to terminate this Agreement (a termination "Without Cause") by delivering to the other party, at least ninety (90) days prior to the date upon which termination is desired, by written notice of such intention to terminate.  Covenant not to Compete  The Executive covenants and agrees that during the term of the Executive's employment, whether pursuant to this Agreement, any renewal hereof, or otherwise, and for a period of one year (the Restricted Period) after the later of the expiration of this Agreement or the termination of his employment with the Company, in the State(s) in which the Company conducts business as of the Executive's termination of employment, he will not, directly or indirectly (through one or more intermediaries), whether individually, or as an officer, director, agent, shareholder of 5% or more of the applicable companys outstanding equity shares, member, partner, joint venturer, investor (other than as a passive trader in publicly traded securities), consultant or otherwise, compete in whole or in part with the business then engaged in by the Company.  Separation Agreement  On June 10, 2014, Donald Swanson entered into a separation agreement (Separation Agreement) with the Company where he resigned from all positions and employment with the Company and the Employment agreement with the Company was terminated. The Company shall pay the Executive in the amount of $1,180 representing all the payable compensation as well as $3,820 representing all the reimbursement expense through the separation date. The Company acknowledges that the Executive currently holds options to purchase 1,400,000 shares of the Companys common stock at an exercise price of $0.40 per share.  Operating Lease - PSI  The Company and the landlord have tentatively agreed to renew the non-cancellable lease for an office space of approximately 2,000 square feet of rentable area for an additional 12 months expiring January 3, 2015 at $2,000 per month plus tax and common charges.  The Company and the landlord have agreed to lease the office on a monthly basis from January 3, 2015.  46    Operating Lease - SCI  On June 26, 2013, the Company entered into a non-cancellable lease for office space of approximately 3,300 square feet of rentable area in aggregate in Centerville, Minnesota with a third party for  a period of 19 months from the date of signing at $2,100 per month. On February 1, 2015, the Company renewed the Lease for a period of Eighteen Months from the date of signing at $2,150 per month.  Future minimum lease payments required under the non-cancelable operating lease are as follows:  Fiscal year ending September 30:2016 (remainder of the year)15,050$15,050  Operating Lease - NPC  On January 1, 2015, the Company entered into a non-cancellable Sub-lease for office space in Vernon Hills, Illinois with a third party for a period of 12 months from the date of signing at $1,600 per month. On January 1, the Company renewed the Lease for a period of 12 Months from the date of signing at $1,600 per month  Future minimum lease payments required under the non-cancelable operating lease are as follows:  Fiscal year ending September 30:2016 ( remainder of the year)14,400$14.400  Note 12  Stockholders Equity (Deficit)  Shares Authorized  Upon formation the total number of shares of all classes of stock which the Company is authorized to issue is Seventy Five Million (75,000,000) shares of which Seventy Five Million (75,000,000) shares shall be Common Stock, par value $.001 per share.  Common Stock  Sale of Common Stock or Equity Units  For the quarter period ended March 31, 2015 , the Company raised $418,825 from the issuance of (i) 6,152,145 common shares of the Company; (ii) warrants to purchase 12,354,290 common shares with an exercise price of $0.15 per share, expiring five (5) years from the date of issuance, at $0.07 per unit or a net proceeds of $418,825; $269,015 ($0.04 per common share) and $155,482 ($0.01 per warrant share) were allocated as the relative fair value of the common stock and warrants, respectively.  In April, 2015 , the Company raised $240,600 from the issuance of (i) 1,603,999 common shares of the Company; (ii) warrants to purchase 3,241,332 common shares with an exercise price of $0.25 per share, expiring five (5) years from the date of issuance, at $0.15 per unit or a net proceeds of $240,600; $146,766 ($0.09 per common share) and $93,834 ($0.03 per warrant share) were allocated as the relative fair value of the common stock and warrants, respectively.  On May 11, 2015, warrants to purchase 800,000 shares with an exercise price of $0.01 per share were exercised by a shareholder for $8,000 in cash.  In June, 2015 , the Company raised $128,500 from the issuance of (i) 1,713,333 common shares of the Company; (ii) warrants to purchase 1,713,333 common shares with an exercise price of $0.25 per share, expiring five (5) years from the date of issuance, at $0.075 per unit or a net proceeds of $128,500; $111,153($0.06 per common share) and $17,347 ($0.01 per warrant share) were allocated as the relative fair value of the common stock and warrants, respectively.  On June 30, 2015, options to purchase 1,600,000 shares with an exercise price of $0.01 per share were exercised by an officer for $16,000 in cash.  47    In August, 2015, the Company sold 966,666 equity units consisting of one (1) common share and a warrant to purchase one (1) common share with an exercise price of $0.25 per share, expiring five (5) years from the date of issuance, at $0.075 per unit or $72,500; $39,730 ($0.04per common share) and $32,770 ($0.03 per warrant share) were allocated as the relative fair value of the common stock and warrants, respectively.  In September 2015, the Company sold 555,555 equity units consisting of one (1) common share and a warrant to purchase one (1) common share with an exercise price of $0.15 per share, expiring five (5) years from the date of issuance, at $0.009 per unit or $50,000; $26,650 ($0.05 per common share) and $23,350 ($0.04 per warrant share) were allocated as the relative fair value of the common stock and warrants, respectively.  During the three months ended  December 31, 2015, the Company sold 1,100,001 equity units consisting of one (1) common share and a warrant to purchase one (1) common share with an exercise price of $0.15 per share, expiring five (5) years from the date of issuance, at $0.09 per unit or $99,000; $54,747 ($0.05 per common share) and $44,253 ($0.04 per warrant share) were allocated as the relative fair value of the common stock and warrants, respectively.  During the three months ended December 31,  2015, the Company sold 3,000,000 equity units consisting of one (1) common share and a warrant to purchase one and 1/2 (1.5) common share with an exercise price of $0.15 per share, expiring five (5) years from the date of issuance, at $0.10 per unit or $300,000; $131,400 ($0.04 per common share) and $168,600 ($0.04 per warrant share) were allocated as the relative fair value of the common stock and warrants, respectively.  During the three months ended  December 31, 2015, the Company sold 100,000 equity units consisting of one (1) common share and a warrant to purchase one (1) common share with an exercise price of $0.15 per share, expiring five (5) years from the date of issuance, at $0.10 per unit or $10,000; $150 ($0.002 per common share) and $9,850 ($0.01 per warrant share) were allocated as the relative fair value of the common stock and warrants, respectively.  Issuance of Common Stock or Equity Units to Parties Other Than Employees for Acquiring Goods or Services  On October 24, 2014, the Company entered into a Agency agreement (the "Agency Agreement") with TMA (the "Consultant). Per the Agency Agreement, the Consultant will be authorized by the Company to act as its exclusive Agent solely for the purpose of introducing the Company to specific third party contacts with the objective of possible business opportunity associated with PSI, the Company's wholly owned subsidiary, for a period of ninety (90) days from execution. The Company agrees to pay an amount equal to six (6)% of the computed value of any transaction that occurs between the Company and the Third party. On October 27, 2014, the Company issued a one-time document preparation fee in the form of 35,000 shares of the Company's common shares. On November 19, 2014, the Company issued additional 300,000 common shares for the joint venture valuation services. The shares were valued at $0.10 per share, the closing price on the issuance date, or $33,500, all of which were expensed as consulting fees.  In October, 2014, the Company issued 893,333 shares of its common stock to Arthur Douglas and Associates Inc for their consulting services. The shares were valued at $0.13 per shares, the most recent PPM price, or $116,133, which were expensed as consulting fees.  During the three months ended September 30, 2015, the Company issued 750,000 shares of its common stock to consultants for their consulting services. The shares were valued at $0.075 per shares, the most recent PPM price, or $56,250, which were expensed as consulting fees.  On October 2, 2015, the Company entered into a Consulting agreement (the "Consulting Agreement") with BW Consulting (the "Consultant). Under the terms and conditions of the Consulting Agreement, the Consultant agreed to create awareness for the Company in the market for a period of 60 days from the date of signing.  As consideration for services, the Company issued 300,000 restricted shares of its common stock. The shares were valued at $0.09 per share, the most recent PPM price, or $27,000, all of which were expensed as consulting fees.  On October 12, 2015, the Company issued 900,000 shares of its common stock to Arthur Douglas and Associates Inc. for consulting fees. The shares were valued at $0.09 per share, the most recent PPM price, or $81,000, all of which were expensed as consulting fees.  On December 22, 2015, the Company cancelled the advisory agreement dated May 21, 2015 with Delaney Equity Group Inc. for a final payment of $3,000 in advisor fees and 100,000 shares of its common stock instead of the 200,000 shares in section 5.a.v of the agreement. The shares were valued at $0.10 per share, the most recent PPM price, or $10,000, all of which were expensed as consulting fees.  48    On December 23, 2015, the Company issued 1,000,000 shares of its common stock to Arthur Douglas and Associates Inc. for a satisfaction of a payment for consulting fees due of $60,000. The shares were valued at $0.10 per share, the most recent PPM price, or $100,000. The Company record $40,000 as loss from extinguishment of debt.  Stock Options  2010 Non-Qualified Stock Option Plan (2010 Option Plan)  On December 22, 2010, effective retroactively as of June 30, 2010, the Companys board of directors approved the adoption of the 2010 Non-Qualified Stock Option Plan (2010 Option Plan) by unanimous consent.  The 2010 Option Plan was initiated to encourage and enable officers, directors, consultants, advisors and key employees of the Company to acquire and retain a proprietary interest in the Company by ownership of its common stock.  A total of 7,500,000 of the authorized shares of the Companys common stock may be subject to, or issued pursuant to, the terms of the plan.  Pursuant to Section 7 - Adjustments or Changes in Capitalization of the Stock Option Plan, the number of shares to be received upon the exercise of the option and the exercise price to be paid for a share hereinafter sometimes referred to as Exercise Price which may be adjusted from time to time as hereinafter as follows:  7.1 In the event that the outstanding Common Shares of the Company are hereafter changed into or exchanged for a different number or kind of shares or other securities of the Company by reason of merger, consolidation, other reorganization, recapitalization, reclassification, combination of shares, stock split-up or stock dividend:  A. Prompt, proportionate, equitable, lawful and adequate adjustment shall be made of the aggregate number and kind of shares subject to Stock Options which may be granted under the Plan, such that the Optionee shall have the right to purchase such Common Shares as may be issued in exchange for the Common Shares purchasable on exercise of the NQSO had such merger, consolidation, other reorganization, recapitalization, reclassification, combination of shares, stock split-up or stock dividend not taken place;  B. Rights under unexercised Stock Options or portions thereof granted prior to any such change, both as to the number or kind of shares and the exercise price per share, shall be adjusted appropriately, provided that such adjustments shall be made without change in the total exercise price applicable to the unexercised portion of such NQSOs but by an adjustment in the price for each share covered by such NQSOs; or  C. Upon any dissolution or liquidation of the Company or any merger or combination in which the Company is not a surviving corporation, each outstanding Stock Option granted hereunder shall terminate, but the Optionee shall have the right, immediately prior to such dissolution, liquidation, merger or combination, to exercise his NQSO in whole or in part, to the extent that it shall not have been exercised, without regard to any installment exercise provisions in such NQSO.  7.2 The foregoing adjustments and the manner of application of the foregoing provisions shall be determined solely by the Committee, whose determination as to what adjustments shall be made and the extent thereof, shall be final, binding and conclusive. No fractional Shares shall be issued under the Plan on account of any such adjustments.  The Companys policy is to recognize compensation cost for awards with only service conditions and a graded vesting schedule on a straight-line basis over the requisite service period for the entire award.  Additionally, the Companys policy is to issue new shares of common stock to satisfy stock option exercises.  The Company applied fair value accounting for all share based payments awards. The fair value of each option granted is estimated on the date of grant using the Black-Scholes option-pricing model.  On September 30, 2014, the Company issued an option to purchase 250,000 shares of its common stock to an officer of the Company with an exercise price of $0.125 per share expiring five (5) years from the date of issuance.  49    The assumptions used for options granted during the year ended September 30, 2014 are as follows:  Exercise price$0.125 - 0.40Expected dividends-%Expected volatility47.58 - 57.09%Risk free interest rate0.51 - 0.80%Expected life of option5  During the fiscal year ended September 30, 2014, the Company recorded $225,880 for options issued as salaries - officers.  During the quarter ended December 31, 2014, the Company issued an option to purchase 262,500 shares of its common stock to two officers of the Company with an exercise price of $0.1100 per share expiring five (5) years from the date of issuance.  During the quarter ended March 31, 2015, the Company issued an option to purchase 262,500 shares of its common stock to two officers of the Company with an exercise price of $0.19 per share expiring five (5) years from the date of issuance.  On May 15, 2015, the Company issued an option to purchase 150,000 shares of its common stock to an officer of the Company with an exercise price of $0.25 per share expiring five (5) years from the date of issuance.  During the quarter ended June 30, 2015, the Company issued an option to purchase 262,500 shares of its common stock to two officers of the Company with an exercise price of $0.135 per share expiring five (5) years from the date of issuance.  During the quarter ended September 30, 2015, the Company issued an option to purchase 262,500 shares of its common stock to two officers of the Company with an exercise price of $0.130 per share expiring five (5) years from the date of issuance.  The assumptions used for options granted during the year ended September 30, 2015 are as follows:  Exercise price$0.11 - 0.19Expected dividends-%Expected volatility126.07 - 148.32%Risk free interest rate0.73 - 0.89%Expected life of option5  During the fiscal year ended September 30, 2015, the Company recorded $79,631 for options issued as salaries - officers.  During the quarter ended December 31, 2015, the Company issued an option to purchase 62,500 shares of its common stock to one officer of the Company with an exercise price of $0.14 per share expiring five (5) years from the date of issuance.  The assumptions used for options granted during the reporting period ended December 31, 2015 are as follows:  Exercise price$0.10Expected dividends-%Expected volatility139.01%Risk free interest rate1.19%Expected life of option5   During the three months ended December 31, 2015, the Company recorded $5,806 for options issued as salaries  officers.  50    Summary of the Companys Stock Option Activities  The table below summarizes the Companys stock option activities:  Number of
Option
SharesExercise
Price
Range
Per ShareWeighted
Average Exercise
PriceFair Value
at Date of
GrantAggregate
Intrinsic
ValueBalance, September 30, 20155,172,500$0.01 - 2.00$0.60$1,514,329$-Granted62,5000.11-0.250.145,806-Canceled-----Exercised(200,000)0.010.01--Expired-----Vested and exercisable, December 31, 20155,035,000$0.01 - 2.00$0.60$1,520,135$-Unvested, December 31, 2015-$-$-$-$-  The following table summarizes information concerning outstanding and exercisable options as of December 31, 2015:  Options OutstandingOptions ExercisableRange of Exercise PricesNumber
OutstandingAverage
Remaining
Contractual
Life
(in years)Weighted
Average
Exercise
PriceNumber
ExercisableAverage
Remaining
Contractual
Life
(in years)Weighted
Average
Exercise
Price$0.4450,0001.200.4450,0001.200.44$1.00750,0004.941.00750,0004.941.00$2.00650,0006.142.00650,0006.142.00$0.7510,0002.680.7510,0002.680.75$0.401,800,0003.160.401,800,0003.160.40$0.40250,0003.500.40250,0003.500.40$0.13262,5003.750.13262,5003.750.13$0.13262,5004.000.11262,5004.000.11$0.13262,5004.250.19262,5004.750.19$0.25150,0004.370.25150,0004.370.25$0.14262,5004.500.14262,5004.500.14$0.13262,5004.750.13262,5004.750.13$0.1462,5005.000.1562,5005.000.15$0.01 - 2.005,035,0004.15$0.625,035,0004.15$0.62   51    As of December 31, 2015, there were 2,425,000 shares of stock options remaining available for issuance under the 2010 Plan.  Warrants  January 2014 and March 2014 Issuances  On January 13, 2014 and March 28, 2014, the Company issued warrants to purchase 1,171,905 shares, in aggregate, consisting of warrants to purchase (i) 793,333 shares with an exercise price of $0.40 per share; (ii) 228,572 shares with an exercise price of $0.45 per share; and (iii) 150,000 shares with an exercise price of $0.65 per share expiring five (5) years from the date of issuance to the investors as part of the sale of equity units.  The Company estimated the relative fair value of the warrants on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions:  January 13, 2014March 28, 2014Expected life (year)55Expected volatility (*)58.28%56.29%Expected annual rate of quarterly dividends0.00%0.00%Risk-free rate(s)1.60%1.73%  * As a newly formed entity it is not practicable for the Company to estimate the expected volatility of its share price.  The Company selected five (5) comparable public companies listed on NYSE MKT and NASDAQ Capital Market within nutritional supplements industry which the Company engages in to calculate the expected volatility.  The Company calculated those five (5) comparable companies historical volatility over the expected life of the options or warrants and averaged them as its expected volatility.  The estimated relative fair value of the warrants was $55,097, $24,480, and $19,170, respectively, or $98,747, in aggregate, at the date of issuance using the Black-Scholes Option Pricing Model.  April 2014 Issuances  On April 4, 2014, the Company issued warrants to purchase 131,266 shares with an exercise price of $0.665 per share expiring five (5) years from the date of issuance in connection with the asset purchase agreement consummated on April 4, 2014.  The Company estimated the fair value of the warrants on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions:  April 5, 2014Expected life (year)5Expected volatility (*)56.26%Expected annual rate of quarterly dividends0.00%Risk-free rate(s)1.74%  * As a newly formed entity it is not practicable for the Company to estimate the expected volatility of its share price.  The Company selected five (5) comparable public companies listed on NYSE MKT and NASDAQ Capital Market within nutritional supplements industry which the Company engages in to calculate the expected volatility.  The Company calculated those five (5) comparable companies historical volatility over the expected life of the options or warrants and averaged them as its expected volatility.  The estimated fair value of the warrants was $0.3282 per warrant share or $43,082, respectively, at the date of issuance using the Black-Scholes Option Pricing Model.  52    On April 30, 2014, the Company issued warrants to purchase 57,222 shares with an exercise price of $0.65 per share expiring five (5) years from the date of issuance to the investors as part of the sale of equity units.  The Company estimated the relative fair value of the warrants on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions:  April 30, 2014Expected life (year)5Expected volatility (*)55.52%Expected annual rate of quarterly dividends0.00%Risk-free rate(s)1.69%  * As a newly formed entity it is not practicable for the Company to estimate the expected volatility of its share price.  The Company selected five (5) comparable public companies listed on NYSE MKT and NASDAQ Capital Market within nutritional supplements industry which the Company engages in to calculate the expected volatility. The Company calculated those five (5) comparable companies historical volatility over the expected life of the options or warrants and averaged them as its expected volatility.  The estimated relative fair value of the warrants was $7,210 at the date of issuance using the Black-Scholes Option Pricing Model.    July 2014 Issuances  On July 22, 2014, the Company issued warrants to purchase 348,000 shares with an exercise price of $0.30 per share expiring five (5) years from the date of issuance as part of the sale of equity units.  The Company estimated the fair value of the warrants on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions:  July 22, 2014Expected life (year)5Expected volatility (*)54.17%Expected annual rate of quarterly dividends0.00%Risk-free rate(s)1.68%  * As a newly formed entity it is not practicable for the Company to estimate the expected volatility of its share price.  The Company selected five (5) comparable public companies listed on NYSE MKT and NASDAQ Capital Market within nutritional supplements industry which the Company engages in to calculate the expected volatility.  The Company calculated those five (5) comparable companies historical volatility over the expected life of the options or warrants and averaged them as its expected volatility.  The estimated fair value of the warrants was $0.06 per warrant share or $20,053, respectively, at the date of issuance using the Black-Scholes Option Pricing Model.  February 2015 Issuances  Between January and March 2015, the Company issued warrants to purchase 12,354,290 shares with an exercise price of $0.15 per share expiring five (5) years from the date of issuance as part of the sale of equity units.  In February 2015, the Company issued warrants to purchase 2,874,144 shares with an exercise price of $0.15 per share expiring five (5) years from the date of issuance with loan conversion.  53    The Company estimated the fair value of the warrants on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions:  February 26, 2015Expected life (year)5Expected volatility (*)52.31%Expected annual rate of quarterly dividends0.00%Risk-free rate(s)1.54%  * As a newly formed entity it is not practicable for the Company to estimate the expected volatility of its share price.  The Company selected five (5) comparable public companies listed on NYSE MKT and NASDAQ Capital Market within nutritional supplements industry which the Company engages in to calculate the expected volatility. The Company calculated those five (5) comparable companies historical volatility over the expected life of the options or warrants and averaged them as its expected volatility.  The estimated fair value of the 12,354,290 warrants was $0.01 per warrant share or $155,482, respectively, at the date of issuance using the Black-Scholes Option Pricing Model.  The estimated fair value of the 2,874,144 warrants was $0.01 per warrant share or $52,000, respectively, at the date of issuance using the Black-Scholes Option Pricing Model.  April 9 2015 and April 18 Issuances  In April 2015, the Company issued warrants to purchase 428,572 shares with an exercise price of $0.15 per share expiring five (5) years from the date of issuance with loan conversion.  In April 2015, the Company issued warrants to purchase 500,000 shares with an exercise price of $0.25 per share expiring five (5) years from the date of issuance for consultant services.  The Company estimated the fair value of the warrants on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions:  April 9, 2015April 18, 2015Expected life (year)55Expected volatility (*)51.75%51.69%Expected annual rate of quarterly dividends0.00%0.00%Risk-free rate(s)1.40%1.33%  *      As a newly formed entity it is not practicable for the Company to estimate the expected volatility of its share price.  The Company selected five (5) comparable public companies listed on NYSE MKT and NASDAQ Capital Market within nutritional supplements industry which the Company engages in to calculate the expected volatility.  The Company calculated those five (5) comparable companies historical volatility over the expected life of the options or warrants and averaged them as its expected volatility.  The estimated fair value of the warrants was $0.057 and $0.047 per warrant share or $28,800 and $23,600, respectively, at the date of issuance using the Black-Scholes Option Pricing Model.  April 13, 2015 and June 19 Issuances  In April and June 2015, the Company issued warrants to purchase 4,954,665 shares with an exercise price of $0.25 per share expiring five (5) years from the date of issuance as part of the sale of equity units.  54    The Company estimated the fair value of the warrants on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions:  April 13, 2015June 19, 2015Expected life (year)55Expected volatility (*)51.74%51.24%Expected annual rate of quarterly dividends0.00%0.00%Risk-free rate(s)1.38%1.59%  *      As a newly formed entity it is not practicable for the Company to estimate the expected volatility of its share price.  The Company selected five (5) comparable public companies listed on NYSE MKT and NASDAQ Capital Market within nutritional supplements industry which the Company engages in to calculate the expected volatility.  The Company calculated those five (5) comparable companies historical volatility over the expected life of the options or warrants and averaged them as its expected volatility.  The estimated fair value of the warrants was $0.03 and $0.01 per warrant share or $93,834 and $17,347, respectively, at the date of issuance using the Black-Scholes Option Pricing Model.  August 18 2015 and September 10 Issuances  In August 2015, the Company issued warrants to purchase 966,666 shares with an exercise price of $0.25 per share expiring five (5) years from the date of issuance as part of the sale of equity units.  In September 2015, the Company issued warrants to purchase 555,555 shares with an exercise price of $0.15 per share expiring five (5) years from the date of issuance as part of the sale of equity units.  The Company estimated the fair value of the warrants on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions:  August 18,
2015September 10,
2015Expected life (year)55Expected volatility (*)145.49%147.59%Expected annual rate of quarterly dividends0.00%0.00%Risk-free rate(s)1.60%1.55%  The estimated fair value of the warrants was $0.03 and $0.04 per warrant share or $32,770 and $23,350, respectively, at the date of issuance using the Black-Scholes Option Pricing Model.  October 2015 and December 2015 Issuances  In October 2015, the Company issued warrants to purchase 1,100,001 shares with an exercise price of $0.15 per share expiring five (5) years from the date of issuance as part of the sale of equity units.  In December 2015, the Company issued warrants to purchase 4,600,000 shares with an exercise price of $0.15 per share expiring five (5) years from the date of issuance as part of the sale of equity units.  55    The Company estimated the fair value of the warrants on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions:  October,
2015December,
2015Expected life (year)55Expected volatility (*)167.29%167.29%Expected annual rate of quarterly dividends0.00%0.00%Risk-free rate(s)1.60%1.55%  The estimated fair value of the warrants was $0.0727 and $0.0857 per warrant share or $79,970 and $394,220, respectively, at the date of issuance using the Black-Scholes Option Pricing Model.  Summary of the Companys Warrants Activities  The table below summarizes the Companys warrants activities:  Number of
Warrant
SharesExercise
Price
Range
Per ShareWeighted
Average Exercise
PriceFair Value
at Date of
IssuanceAggregate
Intrinsic
ValueBalance, September 30, 201536,371,578$0.01-2.31$0.32$1,897,292$-Granted5,700,0010.15-0.250.15222,703-Canceled-----Exercised(300,000)0.010.01(-)-Expired(1,759,334)--(38)-Balance, December 31, 201540,012,245$0.01 - 2.31$0.28$2,119,957$Earned and exercisable, December 31, 201540,012,245$0.01 - 2.31$0.28$2,119,957$-Unvested, December 31, 2015-$-$-$-$-  The following table summarizes information concerning outstanding and exercisable warrants as of December 31, 2015:  Warrants OutstandingWarrants ExercisableRange of Exercise PricesNumber
OutstandingAverage
Remaining
Contractual
Life
(in years)Weighted
Average
Exercise
PriceNumber
ExercisableAverage
Remaining
Contractual
Life
(in years)Weighted
Average
Exercise
Price$0.01  2.3140,012,2453.65$0.2840,012,2453.65$0.28   56    Note 13 - Concentration of Credit Risk  Credit Risk Arising from Financial Instruments  Financial instruments that potentially subject the Company to significant concentration of credit risk consist primarily of cash and cash equivalents.  As of December 31, 2015 and September 30, 2015, substantially all of the Companys cash and cash equivalents were held by major financial institutions and the balance at certain accounts may exceed the maximum amount insured by the Federal Deposits Insurance Corporation (FDIC).  However, the Company has not experienced losses on these accounts and management believes that the Company is not exposed to significant risks on such accounts.  Note 14  Segment Reporting  Reportable segments are components of an enterprise about which separate financial information is available and that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company's reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company.  The Company operates in following business segments:   (i) Medical Devices: which it stems from PSI, its wholly-owned subsidiary it acquired on August 24, 2012, a developer, manufacturer, marketer and distributer of targeted Ultra Violet ("UV") phototherapy devices for the treatment of skin diseases.  (ii) Management of Client Services: which it stems from NPC, its wholly-owned subsidiary it acquired on February 28, 2014. NPC engages in management of top-tier medical practices in the interventional and multi-modal pain management sector.  (iii) Authentication and Encryption Products and Services: which it stems from StealthCo, its wholly-owned subsidiary formed on March 18, 2014. StealthCo engages in the business of selling, licensing or otherwise providing certain authentication and encryption products and services upon acquisition of certain assets from SMI.  The Company measures the segment profit or loss and segment assets for each reportable segment as follows:  a. The basis of accounting for any transactions between reportable segments: The Company allows reportable segments to freely negotiate the terms and conditions of and carries out, on an arm's-length basis, any transactions between reportable segments;  b. The nature of any differences between the measurements of the reportable segments' profits or losses and the public entity's consolidated income before income taxes, extraordinary items, and discontinued operations: There were no difference between the measurements of the reportable segments' profits or losses and the public entity's consolidated income (loss) as the Company does not allocate centrally incurred costs at the corporate headquarter;  c. The nature of any differences between the measurements of the reportable segments assets and the public entity's consolidated assets: There were no difference between the measurements of the reportable segments assets and the public entity's consolidated assets as the Company does not have any jointly used assets;  d. The nature of any changes from prior periods in the measurement methods used to determine reported segment profit or loss and the effect, if any, of those changes on the measure of segment profit or loss: There were no change from prior periods in the measurement methods used to determine reported segment profit or loss;  e. The nature and effect of any asymmetrical allocations to reportable segments: There were no asymmetrical allocations to reportable segments as the Company does not allocate depreciation expense to a reportable segment without allocating the related depreciable assets to that reportable segment.  57    The detailed segment information of the Company is as follows:


|                               |                                                             |                                     |              |                 |                   |                          |             |                               |          |         |             |         |        
|------------------------------ | ----------------------------------------------------------- | ----------------------------------- | ------------ | --------------- | ----------------- | ------------------------ | ----------- | ----------------------------- | -------- | ------- | ----------- | ------- | -------
|Wellness Center USA, Inc.     
|Assets By Segments            
|                               |                                                             |                                     |              |                 | December 31, 2015
|ASSETS                         |                                                             | Corporate                           |              | Medical
Devices |                   | Mgmt of
Medical
Practice |             | Authentication
and
Encryption |          | Total  
|Current Assets                 |                                                             |                                     |              |                 |                   |                          |             |                               |          |        
|                               | Cash                                                        |                                     | 87,740       |                 | 22,747            |                          | 10,250      |                               | 14,862   |         | 135,599    
|                               | Inventories                                                 |                                     | -            |                 | 200,784           |                          | -           |                               | 12,686   |         | 213,470    
|                               | Current maturity of note receivable - Chairman and CEO      |                                     | 38,409       |                 | -                 |                          | -           |                               | -        |         | 38,409     
|                               | Prepayments and other current assets                        |                                     | 16,924       |                 | -                 |                          | 2,700       |                               | 652      |         | 20,276     
|                               |                                                             | Total current assets                |              | 143,073         |                   | 223,531                  |             | 12,950                        |          | 28,200  |             | 407,754
|                               |                                                             |                                     |              |                 |                   |                          |             |                               |          |         |             |         |        
|Property and Equipment         |                                                             |                                     |              |                 |                   |                          |             |                               |          |        
|                               | Property and equipment                                      |                                     | 18,390       |                 | 80,956            |                          | -           |                               | 4,696    |         | 104,042    
|                               | Accumulated depreciation                                    |                                     | (10,745)     |                 | (64,114)          |                          | -           |                               | (1,849)  |         | (76,708)   
|                               |                                                             | Property and equipment, net         |              | 7,645           |                   | 16,842                   |             | -                             |          | 2,847   |             | 27,334 
|                               |                                                             |                                     |              |                 |                   |                          |             |                               |          |         |             |         |        
|Patents and Exclusive Licenses |                                                             |                                     |              |                 |                   |                          |             |                               |          |        
|                               | Patents and exclusive licenses and patents                  |                                     | -            |                 | 5,000             |                          | -           |                               | 356,290  |         | 361,290    
|                               | Accumulated amortization                                    |                                     | -            |                 | (1,255)           |                          | -           |                               | (75,073) |         | (76,328)   
|                               |                                                             | Patents and exclusive licenses, net |              | -               |                   | 3,745                    |             | -                             |          | 281,217 |             | 284,962
|                               |                                                             |                                     |              |                 |                   |                          |             |                               |          |         |             |         |        
|Acquired Technologies          |                                                             |                                     |              |                 |                   |                          |             |                               |          |        
|                               | Acquired technologies - PSI                                 |                                     | -            |                 | 2,095,000         |                          | -           |                               | -        |         | 2,095,000  
|                               | Accumulated amortization - PSI                              |                                     | -            |                 | (323,086)         |                          | -           |                               | -        |         | (323,086)  
|                               | Accumulated impairment - PSI                                |                                     | -            |                 | (1,749,027)       |                          | -           |                               | -        |         | (1,749,027)
|                               |                                                             | Acquired technologies, net          |              | -               |                   | 22,887                   |             | -                             |          | -       |             | 22,887 
|                               |                                                             |                                     |              |                 |                   |                          |             |                               |          |         |             |         |        
|Non-Compete Agreements         |                                                             |                                     |              |                 |                   |                          |             |                               |          |        
|                               | Non-compete Agreement - PSI                                 |                                     | -            |                 | 120,000           |                          | -           |                               | -        |         | 120,000    
|                               | Accumulated amortization - PSI                              |                                     | -            |                 | (92,500)          |                          | -           |                               | -        |         | (92,500)   
|                               | Accumulated impairment - PSI                                |                                     | -            |                 | (27,500)          |                          | -           |                               | -        |         | (27,500)   
|                               |                                                             | Non-compete agreements, net         |              | -               |                   | -                        |             | -                             |          | -       |             | -      
|                               |                                                             |                                     |              |                 |                   |                          |             |                               |          |         |             |         |        
|Trademarks                     |                                                             |                                     |              |                 |                   |                          |             |                               |          |        
|                               | Trademarks                                                  |                                     | -            |                 | -                 |                          | -           |                               | -        |         | 630,000    
|                               | Trade Mark:TM - PL                                          |                                     | -            |                 | 420,000           |                          | -           |                               | -        |         | -          
|                               | Trade Mark:TM - PS                                          |                                     | -            |                 | 210,000           |                          | -           |                               | -        |         | -          
|                               | Accumulated amortization                                    |                                     | -            |                 | -                 |                          | -           |                               | -        |         | (278,060)  
|                               | Accumulated amortization - PL                               |                                     | -            |                 | (177,780)         |                          | -           |                               | -        |         | -          
|                               | Accumulated amortization - PS                               |                                     | -            |                 | (100,280)         |                          | -           |                               | -        |         | -          
|                               | Accumulated impairment                                      |                                     | -            |                 | -                 |                          | -           |                               | -        |         | (325,600)  
|                               | Accumulated impairment - PL                                 |                                     | -            |                 | (325,600)         |                          | -           |                               | -        |         | -          
|                               | Accumulated impairment - PS                                 |                                     | -            |                 | -                 |                          | -           |                               | -        |         | -          
|                               |                                                             | Trademarks, net                     |              | -               |                   | 26,340                   |             | -                             |          | -       |             | 26,340 
|                               |                                                             |                                     |              |                 |                   |                          |             |                               |          |         |             |         |        
|Website Development Costs      |                                                             |                                     |              |                 |                   |                          |             |                               |          |        
|                               | Website development costs                                   |                                     | 22,809       |                 | -                 |                          | -           |                               | -        |         | 22,809     
|                               | Accumulated amortization                                    |                                     | (22,809)     |                 | -                 |                          | -           |                               | -        |         | (22,809)   
|                               |                                                             | Website development costs, net      |              | -               |                   | -                        |             | -                             |          | -       |             | -      
|                               |                                                             |                                     |              |                 |                   |                          |             |                               |          |         |             |         |        
|Goodwill                       |                                                             |                                     |              |                 |                   |                          |             |                               |          |        
|                               | Goodwill                                                    |                                     | -            |                 | -                 |                          | -           |                               | -        |         | 2,916,603  
|                               | Goodwill - NPC                                              |                                     | -            |                 | -                 |                          | 1,200,000   |                               | -        |         | -          
|                               | Goodwill - PSI                                              |                                     | -            |                 | 1,716,603         |                          | -           |                               | -        |         | -          
|                               | Accumulated impairment                                      |                                     | -            |                 | (1,661,287)       |                          | -           |                               | -        |         | (2,861,287)
|                               | Accumulated impairment - NPC                                |                                     | -            |                 | -                 |                          | (1,200,000) |                               | -        |         | -          
|                               |                                                             | Goodwill, net                       |              | -               |                   | 55,316                   |             | -                             |          | -       |             | 55,316 
|                               |                                                             |                                     |              |                 |                   |                          |             |                               |          |         |             |         |        
|Other assets                   |                                                             |                                     |              |                 |                   |                          |             |                               |          |        
|                               | Note receivable - Chairman and CEO, net of current maturity |                                     | 146,983      |                 | -                 |                          | -           |                               | -        |         | 146,983    
|                               | Security deposits                                           |                                     | -            |                 | 1,760             |                          | -           |                               | -        |         | 1,760      
|                               |                                                             | Total other assets                  |              | 146,983         |                   | 1,760                    |             | -                             |          | -       |             | 148,743
|                               |                                                             |                                     | Total assets |                 | 297,701           |                          | 350,421     |                               | 12,950   |         | 312,264     |         | 973,336

58    Wellness Center USA, Inc.Operations by SegmentsFor the Three Months EndedEndedDecember 31, 2015CorporateMedical
DevicesMgmt of
Medical
PracticeAuthentication
and
EncryptionTotalRevenueConsulting services---7,5007,500Management services - related party--111,702-111,702Sales2,224--5,0007,224Total revenue2,224-111,70212,500126,426Cost of goods sold2,4873,665-21,40927,561Gross margin(263)(3,665)111,702(8,909)98,865Operating expensesConsulting fees175,25220,300--195,552Professional fees86,85152,89317,433-157,177Rent expense - related party6,597---6,597Rent expense6,4204,8006,55017,770Salaries - officers63,993-46,15433,883144,030Salaries - others--25,838-25,838Selling expenses-1,290--1,290Depreciation and amortization906737-21,68123,324General and administrative expenses29,56124,7315,5875,13365,012Total operating expenses363,160106,37199,81267,247636,590Loss from continuing operations(363,423)(110,036)11,890(76,156)(537,725)  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 issued to determine if they must be reported.  The Management of the Company determined that there were certain reportable subsequent event(s) to be disclosed as followed:  Sale of Common Stock or Equity Units  In January 2016, the Company raised $140,200 from the issuance of (i) 1,068,667 common shares of the Company; (ii) warrants to purchase 1,219,667 common shares with an exercise price of $0.10 and $0.15 per share, expiring five (5) years from the date of issuance.  Conversions to Common Stock  In January 2016, a note holder converted $20,000 of a note dated September 30, 2015 into 200,000 shares with 300,000 warrant shares at $0.15 exercise price expiring five (5) years from the date of issuance.  In January 2016, a note holder converted $25,000 of three notes dated from May 19, 2015 to August 31, 2015 into 250,000 shares with 375,000 warrant shares at $0.15 exercise price expiring five (5) years from the date of issuance.  In January 2016, a note holder converted $4,800 of two notes dated from October 5, 2015 to November 3, 2015 into 48,000 shares with 72,000 warrant shares at $0.15 exercise price expiring five (5) years from the date of issuance.  In January 2016, a note holder converted $20,000 of two notes dated from September 29, 2015 to November 18, 2015 into 200,000 shares with 300,000 warrant shares at $0.15 exercise price expiring five (5) years from the date of issuance.  59    ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS  Forward Looking Statements  Except for historical information, the following discussion contains forward-looking statements based upon current expectations that involve certain risks and uncertainties. Such forward-looking statements include statements regarding, among other things, (a) our projected sales and profitability, (b) our growth strategies, (c) anticipated trends in our industry, (d) our future financing plans, (e) our anticipated needs for working capital, (f) our lack of operational experience and (g) the benefits related to ownership of our common stock. Forward-looking statements, which involve assumptions and describe our future plans, strategies, and expectations, are generally identifiable by use of the words may, will, should, expect, anticipate, estimate, believe, intend, or project or the negative of these words or other variations on these words or comparable terminology. This information may involve known and unknown risks, uncertainties, and other factors that may cause our actual results, performance, or achievements to be materially different from the future results, performance, or achievements expressed or implied by any forward-looking statements. These statements may be found under Description of Business, and Analysis of Financial Condition and Results of Operations, as well as in this Report generally. Actual events or results may differ materially from those discussed in forward-looking statements as a result of various factors, including, without limitation, the risks outlined under Risk Factors in our Annual Report on Form 10-K and in other Reports we have filed with the Securities and Exchange Commission, as well as  matters described in this Report generally. In light of these risks and uncertainties, there can be no assurance that the forward-looking statements contained in this Report will in fact occur as projected.  Description of Business  Background  Wellness Center USA, Inc. (the Company) was incorporated in the State of Nevada on June 30, 2010.  Following that date, we were engaged in the development of aminofactory.com, a web-based online store designed to market customized vitamins and other nutritional supplements to the sports industry and health-minded public, and expanded into additional businesses within the healthcare and medical sectors through four acquisitions: CNS-Wellness LLC (CNS), Psoria-Shield Inc. (PSI), National Pain Centers. Inc. (NPC) and certain assets of SMI Holdings, Inc., d/b/a Stealth Mark, Inc.  CNS  CNS was organized in the State of Florida on May 26, 2009 to provide alternative, scientific approaches to mental health and awareness. It was acquired by the Company through a share exchange on August 2, 2012 and was operated as a wholly-owned subsidiary of the Company. On September 30, 2014, the Company disposed of all of its issued and outstanding membership interests in CNS.  The disposition was part of a settlement of proceedings filed by the Company against management and an entity affiliated with management.  The disposition of interests was in consideration of managements return of 7,300,000 shares of common stock in the Company issued to management in connection with the Companys acquisition of CNS in 2012, which shares were returned to the Companys treasury and then cancelled as part of the settlement.  Each party to the proceedings released each of the others, and any and all claims that might be asserted against any of them, and the proceedings were dismissed with prejudice by the court.  PSI  PSI was incorporated under the laws of the state of Florida on June 17, 2009.  On August 24, 2012, we acquired all of the issued and outstanding shares of stock in PSI. PSI is a wholly-owned subsidiary of the Company and operated by Psoria Development Company LLC, an Illinois limited liability company (PDC), a joint venture between WCUI/PSI and The Medical Alliance, Inc., a Florida corporation (TMA). PDC is managed by our CEO, Andrew J. Kandalepas and TMAs principals John Yorke and Chris Waugh, with three (3) full-time employees and several independent contractors. We believe that PSIs operations and services provide an attractive complement to the Companys operations and products and represent a viable alternative to current approaches to Ultra Violet (UV) phototherapy treatment of skin diseases.  PSI is a medical device design and manufacturing company.  It designs, develops and markets a targeted ultraviolet (UV) phototherapy device called the Psoria-Light. The Psoria-Light is designated for use in targeted PUVA photochemistry and UVB phototherapy and is designed to treat certain skin conditions including psoriasis, vitiligo, atopic dermatitis (eczema), seborrheic dermatitis, and leukoderma.   PSI intends to enter into agreements with third parties, in the United States and internationally, for the manufacture of component parts that make up the Psoria-Light and to license its proprietary technology to third parties domestically and in selected foreign markets.  60    The Psoria-Light consists of three components: a base console, a color display with touchscreen control, and a hand-held delivery device with a conduit (or tether) between the handheld device and the base console.  PSI requires clearance by the United States Food and Drug Administration (FDA) to market and sell the device in the United States as well as permission from TUV SUD America Inc., PSIs Notified Body, to affix the CE mark to the Psoria-Light in order to market and sell the device in countries of the European Union. To obtain FDA clearance and permission to affix the CE mark, PSI was required to conduct EMC and electrical safety testing, which it completed in the second quarter of 2011.  PSI received FDA clearance on February 11, 2011 (no. K103540) and was granted permission to affix the CE mark on November 10, 2011.  In its 510(k) application with the FDA (application number K103540), PSI asserted that the Psoria-Light was substantially equivalent in intended use and technology to two predicate devices, the X -Trac Excimer Laser, which has wide acceptance in the medical billing literature and has a large installed base in the U.S., and the Dualight, another competing targeted UV phototherapy device.  Psoriasis, eczema, and vitiligo, are common skin conditions that can be challenging to treat, and often cause the patient significant psychosocial stress. Patients undergo a variety of treatments to address these skin conditions, including routine consumption of systemic and biologic drug therapies which are highly toxic, reduce systemic immune system function, and come with a host of chemotherapy-like side effects. Ultraviolet (UV) phototherapy is a clinically validated treatment modality for these disorders.  Traditionally, non-targeted therapy was administered by lamps that emitted either UVA or UVB light to both diseased and healthy skin. While sunblocks or other UV barriers may be used to protect healthy skin, the UV administered in this manner must be low dosage to avoid excessive exposure of healthy tissue. Today, targeted UV phototherapy devices administer much higher dosages of light only to affected tissue, resulting   in clearance in the case of psoriasis and eczema, and repigmentation in the case of vitiligo, at much faster rates than non-targeted (low dosage) UV treatments.  Targeted UV treatments are typically administered to smaller total body surface areas, and are therefore used to treat the most intense parts of a patients disease. Non-targeted UV treatment is typically used as a follow-up and for maintenance, capable of treating large surfaces of the body. Excimer laser devices (UVB at 308nm) are expensive and consume dangerous chemicals (Xenon and Chlorine). Mercury lamp devices (UVB and/or UVA) require expensive lamp replacements regularly and require special disposal (due to mercury content). Additionally, mercury lamp devices typically deliver wavelengths of light below 300nm. While within the UVB spectrum, it has been shown that wavelengths below 300nm produce significantly more sunburn type side effects than do wavelengths between 300 and 320nm without improvement in therapeutic benefit.  The Psoria-Light is a targeted UV phototherapy device which produces UVB light between 300 and 320 nm as well as UVA light between 350 and 395nm, does not consume dangerous chemicals or require special environmental disposal and is cost effective for clinicians, which will increase patient access to this type of treatment.  It has several unique and advanced features that we believe will distinguish it from the non-targeted and targeted UV phototherapy devices that are currently being used by dermatologists and other healthcare providers. These features include the following: the utilization of deep narrow-band UVB (NB-UVB) LEDs as light sources; the ability to produce both UVA or NB-UVB therapeutic wavelengths; an integrated high resolution digital camera and patient record integration capabilities; the ability to export to an external USB memory device a PDF file of patient treatment information including a patent pending graph that includes digital images plotted against user tracked metrics which can be submitted to improve medical reimbursements; an accessory port and ability to update software; ease of placement and portability; advanced treatment site detection safety sensor;  international language support;  a warranty which includes the UV lamp(s); and a non-changeable treatment log (that does not include HIPPA information).  PSI has established an ISO 13485 compliant quality system for the Psoria-Light, which was first audited in the third quarter of 2011. This system is intended to ensure PSI devices will be manufactured in a controlled and reliable environment and that its resources follow similar practices and is required for sales in countries requiring a CE mark.  PSI has also received Certified Space Technology designation from the Space Foundation, based on PSIs incorporation of established NASA-funded LED technology.  PSI has registered a variety of domain names and established an initial website to include in depth information regarding psoriasis, eczema, vitiligo, and the Psoria-Light device. It has developed informational videos, flyers, booklets and tradeshow materials, as well as a database of U.S. dermatologists that can be used to assist sales personnel in contacting dermatologists that might be interested in the Psoria-Light device.  PSI began Psoria-Light Beta deployment in January 2012. It is currently operating at a loss, and there is no assurance that its business development plans and strategies will ever be successful. PSIs success depends upon the acceptance by healthcare providers and clients of Psoria-Light treatment as a preferred method of treatment for psoriasis and other UV-treatable skin conditions.  Psoria-Light treatment appears to have been beneficial to clients, without demonstrable harmful side effects or safety issues, as evidenced by more than 10,000 treatments completed on more than 1,000 clients, domestically and Mexico, since 2012. In order for the Company to continue PSI operations it will need additional capital and it will have to successfully coordinate integration of PSI operations without materially and adversely affecting continuation and development of other Company operations.  61    On October 24, 2014, the Company entered into an Agency Agreement with TMA, to assist in the further development, marketing, licensing and/or sale of PSI technology and products. On January 12, 2015, the Company formed PDC with TMA to jointly pursue these ends.  TMA, Mr. Yorke and Mr. Waugh bring over 75 years of combined experience in delivering integrated consulting services in the medical device, supply and information technologies arenas.  NPC  NPC was incorporated under the laws of the state of Nevada on January 24, 2014. It is an Illinois-based management services provider.  It was acquired by the Company on February 28, 2014 and is operated as a wholly-owned subsidiary of the Company with four (4) full-time employees. NPC manages non-medical services in three clinics and two surgical centers in the Chicago-land area that provide diagnostic, surgical, treatment, research, advocacy, education, and setting standards and protocols within the interventional and multi-modal pain management, pursuant to a management service agreement dated as of February 28, 2014 by and between NPC and National Pain Centers, LLC ("NPC LLC"), which is owned by Dr. Jay Joshi, the president and CEO of NPC. Per the agreement, NPC LLC engages NPC to provide management services for a term period of five (5) years commencing on the effective date. During the term of this agreement, NPCLLC shall pay NPC the equivalent of 50% of all monies collected and as billed monthly to NPCLLC on net-30 term.  NPC is managed by its founder and CEO Dr. Jay Joshi, MD, DABA, DABAPM, FABAPM. Dr. Joshi also serves as the Companys Chief Medical Officer (CMO) and as a member of its Board of Directors.   Dr. Joshi is a nationally recognized double board certified Anesthesiologist and fellowship trained Interventional Spine and Pain Management physician whose capabilities combine clinical medicine, research, creativity, marketing, inventions, and business development. He is considered a National Key Opinion Leader in pain management.  He has presented to a variety of audiences over 500 times, and has worked internationally at the World Health Organization (WHO).  SCI  SCI was incorporated under the laws of the state of Illinois on March 18, 2014.  It is a Minnesota-based provider of Stealth Mark encryption and authentication solutions offering advanced product security technologies within the security and supply chain management vertical sectors. SCI acquired certain Stealth Mark assets on April 4, 2014 and operates as a wholly-owned subsidiary of the Company with our full-time CEO, Ricky Howard, and four (4) consultants. SCI provides customers premiere authentication technology for the protection of brands and products from illicit counterfeiting and diversion activities. SCI enables the Company to offer a complete, simple to use, easy to implement, and cost effective turnkey system that is extremely difficult to compromise.  SCI is managed by its CEO, Ricky Howard.  Mr. Howard has over thirty years of experience in operations management and executive positions in a variety of industries ranging from entrepreneurial startups to Fortune 500 companies. He joined Stealth Mark as V.P. of Operations at the early stage of development in 2006 and played an integral role in bringing the companys capabilities to its present status including design and creation of its manufacturing capabilities, implementation of its ERP inventory controls system, software and hardware development, marketing and sales materials processes and day-to-day operational procedures and processes.  Aminofactory.com  Since the acquisitions and disposition described above, we have focused primarily upon development of acquired and disposed products, services and operations.   During the period covered by this report, we have continued limited development of our aminofactory.com web-based online store and expansion of a wider range of nutritional supplements, including customized formulas uniquely tailored to suit an individuals needs.  However, this line of business has not presented a material source of revenue and management is currently evaluating whether to continue or to terminate aminofactory.com activities.  Supplements offered through our website are produced by unaffiliated third party manufacturers and/or product fulfillment suppliers, specializing in nutritional supplement production. Supplements produced for us can be also provided to our competitors by our suppliers and/or manufacturers. However, we are able to specifically select our product portfolio and market it through our website with our custom packaging and pricing, under a supplier or manufacturers, or under our own label, in the event that management decides to continue this line of business.  Management  Presently, all business functions of the Company are managed by our CEO/director and founder, Andrew J. Kandalepas. He is responsible for developing and planning our business units, including product development, organizational structure, financing and administrational functions. His services shall be utilized until the Company is financially capable to engage additional staffing.  62    On January 12, 2015, the Company entered into the PDC Joint Venture Agreement with TMA to further develop, market, license and/or sell PSI technology and products.  Mr. Kandalepas manages PSI activities with John Yorke and Chris Waugh, of TMA.  Mr. Yorke started his career with Abbott Labs as an FDA specialist and then joined Kendall as a product manager for OR and CV products.  He formed and operated Cardiomax, a $45M medical products distributorship. In 1991, he formed TFGI to assist start-up and small-cap companies to develop business plans, source funding and secure strategic partners. TFGI clients included PMG (Pennsylvania Merchant Group), J&J Development Company, Zures Medical Group, SCA Capital Partners, Forest Health Group and Hillman Medical.  In 2013, TFGI merged with The ComedIT Group and Ocean Medical to form TMA, with Mr. Waugh.  Mr. Waugh earned a B.S. in Political Science from Princeton University, and served Mayors in New York City, Trenton and Jacksonville. In 1975, he founded Waugh & Company, a manufacturer of health care equipment which he managed until 1986. From 1986 to 1997, Mr. Waugh was the Managing Partner at the Bales Waugh Group, a firm specializing in sales and marketing recruitment for the medical technology sector.  In 1998, he founded The ComedIT Group, which provided an integrated range of services to the medical technology market, including executive search, channel development, business-to-business brokering and consultant staffing. In 2013, The ComedIT Group became part of TMA, which combines over 75 years experience in delivering integrated consulting services to manufacturers, distributors and candidates in the medical device, supply and information technologies arenas.  Jay Joshi, M.D., DABA, DABAPM, FABAPM manages NPCs business.  Dr. Joshi is a nationally recognized double board certified Anesthesiologist and fellowship trained Interventional Spine and Pain Management physician whose capabilities combine clinical medicine, research, creativity, marketing, inventions, and business development. He is considered a National Key Opinion Leader in pain management.  He has presented to a variety of audiences over 500 times, and has worked internationally at the World Health Organization (WHO). Although we have an Employment Agreement with Dr. Joshi, we cannot guarantee that he will remain affiliated with us.  Mr. Ricky Howard manages SCIs business. Mr. Howard has over thirty years of experience in operations management and executive positions in a variety of industries ranging from entrepreneurial startups to Fortune 500 companies. He joined Stealth Mark as V.P. of Operations at the early stage of development in 2006 and played an integral role in bringing the companys capabilities to its present status including design and creation of its manufacturing capabilities, implementation of its ERP inventory controls system, software and hardware development, marketing and sales materials processes and day-to-day operational procedures and processes.  Although we have an Employment Agreement with Mr. Howard, we cannot guarantee that he will remain affiliated with us.  Analysis of Financial Condition and Results of Operations  For the Three Months Ended December 31, 2015 Compared to the Three Months Ended December 31, 2014  For the three months ended December 31, 2015, we earned $126,426 in revenues, incurred $27,561 in cost of revenues, resulting in $98,865 in gross margin. We expended $195,552; $157,177; $24,367; $171,158; and $88,336; in consulting fees, professional fees, rent, personnel, and general and administrative expenses, respectively. We had loss from operations of $537,725 for the three months ended December 31, 2015.  For the three months ended December 31, 2014, we earned $103,309 in revenues, incurred $274 in cost of revenues, resulting in $103,035 in gross margin. We expended $159,768; $54,235; $19,339; $185,286; and $163,898; in consulting fees, professional fees, rent, personnel, selling and general and administrative expenses, respectively. We had loss from operations of $479,491 for the three months ended December 31, 2014.  Results of Operations by Segment  The Company maintained three (3) business segments through the end of the period covered by this Report:  (i) Medical Devices: which it provided through PSI, its wholly-owned subsidiary acquired on August 24, 2012, a developer, manufacturer, marketer and distributer of targeted Ultra Violet ("UV") phototherapy devices for the treatment of skin diseases;  (ii) Practice Management Services:which it provided through NPC, its wholly-owned subsidiary acquired on February 28, 2014, which manages non-medical services in three clinics and two surgical centers in the Chicago-land area; and  (iii) Authentication and Encryption Products and Services: which it provided through SCI, its wholly-owned subsidiary that on April 4, 2014 acquired certain assets  of SMI Holdings, Inc. d/b/a Stealth Mark, Inc., including Stealth Mark tradenames and marks, and related encryption and authentication solutions offering advanced product security technologies within the security and supply chain management vertical sectors.  63    The detailed segment information of the Company is as follows:  Wellness Center USA, Inc.Operations by SegmentsFor the Three Months EndedEndedDecember 31, 2015CorporateMedical
DevicesMgmt of
Medical
PracticeAuthentication
and
EncryptionTotalRevenueConsulting services---7,5007,500Management services - related party--111,702-111,702Sales2,224--5,0007,224Total revenue2,224-111,70212,500126,426Cost of goods sold2,4873,665-21,40927,561Gross margin(263)(3,665)111,702(8,909)98,865Operating expensesConsulting fees175,25220,300--195,552Professional fees86,85152,89317,433-157,177Rent expense - related party6,597---6,597Rent expense6,4204,8006,55017,770Salaries - officers63,993-46,15433,883144,030Salaries - others--25,838-25,838Selling expenses-1,290--1,290Depreciation and amortization906737-21,68123,324General and administrative expenses29,56124,7315,5875,13365,012Total operating expenses363,160106,37199,81267,247636,590Loss from continuing operations(363,423)(110,036)11,890(76,156)(537,725)  Liquidity and Capital Resources  Liquidity is the ability of a company to generate adequate amounts of cash to meet its cash needs.  As of December 31, 2015, our cash balance was $135,599. Management estimated that our current monthly burn rate is approximately $131,160. Our current cash on hand is not sufficient to maintain our daily operations for the next 12 months. Management intends to raise additional capital through debt or equity financing to fund our daily operations through next 12 months. For the three months ended December 31, 2015, we raised $82,300 and $414,000 from debt and equity financing, respectively, to fund our daily operations, however no assurance can be given that we will be successful in raising sufficient capital through debt or equity financing, or that we will be able to raise the required working capital on terms favorable, or that such working capital will be available on any terms when needed during next 12 months.  Any failure to secure sufficient debt or equity financing may force the Company to modify its business plan.  In addition, we have incurred recurring losses from inception and such losses are expected to continue for the foreseeable future and until such time, if ever, as the Company is able to attain sales levels sufficient to support its operations. No assurance can be given that the Company will achieve or maintain profitability in the foreseeable future. In the event that we are unable to raise sufficient capital through debt or equity financing or to attain sales levels sufficient to support its operations we may have to curtail our operating activities to keep in operations.  Off-Balance Sheet Arrangements  We have no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.  64    Patents, Trademarks, Franchises, Concessions, Royalty Agreements, or Labor Contracts  PSI received FDA clearance for the Psoria-Light on February 11, 2011 (no. K103540) and was granted permission to affix the CE mark for the Psoria-Light in the fourth quarter of 2011.  PSIs founder and past president, Mr. Scott Johnson, filed a provisional patent application covering certain aspects of the technology that we intend to utilize in the development and commercialization of the Psoria-Light, including handheld ergonomics, emitter platform and LED arrangements, methods for treatment site detection, cooling methods, useful information displays, collection of digital images and graphical correlation to quantitative metrics, and base console designs. Two non-provisional patent applications were submitted claiming the prior filing date of the initial provisional application. The first non-provisional application describes a unique distance sensor located at the tip of the Psoria-Light hand-piece, which detects the treatment site based on a projected field. The sensor can detect electrolytic/conductive surfaces, such as human skin, without requiring any physical or direct electrical contact. Further, the unique sensor can sense the treatment site at any point about the tip of the hand-piece and without causing any attenuation of the therapeutic UV light output. The second non-provisional application describes the integration and use of a digital camera in the Psoria-Light, including the location of the digital camera and how and when it is used to conveniently correspond to real-life treatment routines, how images are displayed and captured to memory, and how the images are arranged in patient records are illustrated. Additionally, the second non-provisional application describes the inclusion of clinician defined variables, such as health-related quality of life scores, and their placement into a graphical arrangement relative to treatment site images. Both the initial provisional patent application and the two non-provisional patent applications are owned by Mr. Johnson, who  has granted PSI the  sole and exclusive, worldwide, paid-up, royalty-free, perpetual license under the initial provisional patent application, any non-provisional patent applications filed by him covering the technology described in the initial provisional patent application, and associated know-how, technical data, and improvements to develop and commercialize the Psoria-Light.  Mr. Johnson filed a second provisional patent application containing concepts for the improvement of microelectronics packages and thermal management solutions, the improvement of handheld phototherapy devices in general (either used on humans, animals, or plants, or used on inanimate objects), and replacement of laser therapy devices with LED devices. This second provisional patent application is owned by Mr. Johnson who has granted PSI the sole and exclusive, worldwide, paid-up, royalty-free, perpetual license under this second provisional patent application, any non-provisional patent applications filed by him covering the technology described in the second provisional patent application, and associated know-how, technical data, and improvements to develop and commercialize the Psoria-Light.  In addition to the foregoing, Stealth Mark devoted substantial effort and resources to develop and advance micro-particle security technologies in support of its business activities.  Protection of the acquired Stealth Mark intellectual property is maintained through a combination of Patents, Trademarks, and Trade Secrets consisting of the following:


|              |                   |                                                                                                                                                                                                        
|------------- | ----------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|U.S. Patent   | Issued            | Title  Summary                                                                                                                                                                                      
|              |                   |                                                                                                                                                                                                        
|No. 6,647,649 | November 18, 2003 | Micro-particle Taggant Systems
- Generation of Micro-particle codes from marks containing encrypted Micro-particles.                                                                                 
|              |                   |                                                                                                                                                                                                        
|No. 7,720,254 | May 18, 2010      | Automatic Micro-particle Mark Reader
- Automatic readers for interrogating Micro-particle marks.                                                                                                     
|              |                   |                                                                                                                                                                                                        
|No. 7,831.042 | November 9, 2010  | Three-Dimensional Authentication Of Micro-particle Mark
- Validation of 3D nature of micro-particle mark to protect against counterfeiting of mark.                                                   
|              |                   |                                                                                                                                                                                                        
|No. 7,885,428 | February 8, 2011  | Automatic Micro-particle Mark Reader
- Automatic readers for interrogating micro-particle marks (broadened protection).                                                                              
|              |                   |                                                                                                                                                                                                        
|No. 8,033,450 | October 11, 2011  | Expression Codes For Micro-particle Marks Based On Signature Strings
- Generation of expression codes (fingerprints) unique to each micro-particle mark to protect against counterfeiting of marks.
|              |                   |                                                                                                                                                                                                        
|No. 8,223,964 | July 17, 2012     | Three-Dimensional Authentication Of Micro-particle Mark
- Validation of 3D nature of micro-particle mark to protect against counterfeiting of marks (broadened protection).                           

65


|                     |                |                                                                                                                                                                                                        
|-------------------- | -------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                     |                |                                                                                                                                                                                                        
|Europe
WO/EP Patent  | Issued         | Title  Summary                                                                                                                                                                                      
|                     |                |                                                                                                                                                                                                        
|Appl. No. 07753043.4 | Pending        | Expression Codes For Micro-particle Marks Based On Signature Strings
- Generation of expression codes (fingerprints) unique to each micro-particle mark to protect against counterfeiting of marks.
|                     |                |                                                                                                                                                                                                        
|Appl. No. 07753034.3 | Pending        | Three-Dimensional Authentication Of Micro-particle Mark
- Validation of 3D nature of Micro-particle mark to protect against counterfeiting of mark.                                                   
|                     |                |                                                                                                                                                                                                        
|Trademarks           | Type           | Countries                                                                                                                                                                                              
|Stealth Mark®        | Registered     | United States
European Community
Australia                                                                                                                                                             
|                     |                |                                                                                                                                                                                                        
|StealthFire         | Not Registered | United States
European Community                                                                                                                                                                       

Trade Secrets  Stealth Mark proprietary technologies and capabilities being maintained as Trade Secrets include, but are not limited to:  · Micro-particle Manufacturing · Micro-particle Color Systems · Technology advancements providing improvements in Automatic Reader performance · Software solutions supporting Micro-particle security solutions  We will assess the need for any additional patent, trademark or copyright applications, franchises, concessions royalty agreements or labor contracts on an ongoing basis.  Employees  We currently employ our executive officers, PDC with three (3) full-time employees and several independent contractors for PSI, four (4) full-time employees within NPC, our full time CEO and four (4) part-time employees and independent contractors within SCI.  We have Employment Agreements with key executive management personnel with each subsidiary company, but none with Mr. Kandalepas, who currently serves as our Chairman, President, CEO and CFO.  Summary of Significant Accounting Policies.  The Company has identified significant accounting policies that, as a result of the judgments, uncertainties, uniqueness and complexities of the underlying accounting standards and operations involved could result in material changes to its financial condition or results of operations under different conditions or using different assumptions.  The Company's most critical accounting policies include, but are not limited to, those related to business combinations, fair value of financial instruments, revenue recognition, stock based compensation for obtaining employee services, and equity instruments issued to parties other than employees for acquiring goods or services.  Details regarding the Company's use of these policies and the related estimates are described in the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2015, filed with the Securities and Exchange Commission on January 29, 2016.  There have been no material changes to the Company's critical accounting policies that impact the Company's financial condition, results of operations or cash flows for the three months ended December 31, 2015.                      Going Concern  Our independent registered public accounting firm issued a going concern opinion. This means that there is substantial doubt that we can continue as an on-going business for the next 12 months.  As reflected in the consolidated financial statements, the Company had an accumulated deficit at December 31, 2015, a net loss and net cash used in operating activities for the interim period then ended. These factors raise substantial doubt about the Companys ability to continue as a going concern.  66    While the Company is attempting to further implement its business plan and generate sufficient revenues, the Companys cash position may not be sufficient enough to support the Companys daily operations. Management intends to raise additional funds by way of a public or private offering. Management believes that the actions presently being taken to further implement its business plan and generate sufficient revenues provide the opportunity for the Company to continue as a going concern. While the Company believes in the viability of its strategy to generate sufficient revenues and in its ability to raise additional funds, there can be no assurances to that effect. The ability of the Company to continue as a going concern is dependent upon the Companys ability to further implement its business plan and generate sufficient revenues.  The consolidated financial statements do not include any adjustments related to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.    Item 3.  Quantitative and Qualitative Disclosures About Market Risk  Not required for smaller reporting Companies.  Item 4.  Controls and Procedures    Disclosure controls and procedures.  Pursuant to Rule 13a-15(b) under the Securities Exchange Act of 1934 (Exchange Act), the Company carried out an evaluation, with the participation of the Companys management, including the Companys principal executive officer and principal financial officer of the effectiveness of the Companys disclosure controls and procedures (as defined under Rule 13a-15(e) under the Exchange Act) as of the end of the period covered by this report. Based upon that evaluation, the Companys principal executive officer and principal financial officer concluded that the Companys disclosure controls and procedures are not effective as of December 31, 2014 because we do not have sufficient staff to segregate responsibilities and no written documentation of internal control policies. We plan to seek to correct these deficiencies during the current fiscal year or the next.  Changes in internal control over financial reporting.  There have been no changes in our internal control over financial reporting that occurred during the quarter covered by this Quarterly Report on Form 10-Q that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.  PART II - OTHER INFORMATION  Item 1. Legal Proceedings  We are currently not involved in any litigation that we believe could have a material 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 companies or our subsidiaries officers or directors in their capacities as such, in which an adverse decision could have a material adverse effect.  Item 1A. Risk Factors  Not required for smaller reporting companies.  Item 2. Unregistered Sales of Equity Securities and Use of Proceeds  None.  Item 3. Defaults upon Senior Securities  None.  Item 4. Mine Safety Disclosures  Not applicable.  67    Item 5. Other Information  None  Item 6. Exhibits


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|----------- | ---------------------------------------------------------------------------- |  | 
|Exhibit No. | Description                                                                 
|31.1        | Certification of Principal Executive Officer Pursuant to Rule 13a-14*       
|32.1        | CEO and CFO Certification Pursuant to Section 906 of the Sarbanes-Oxley Act*
|101.INS     | XBRL Instance Document**                                                    
|101.SCH     | XBRL Taxonomy Extension Schema**                                            
|101.CAL     | XBRL Taxonomy Extension Calculation Linkbase**                              
|101.DEF     | XBRL Taxonomy Extension Definition Linkbase**                               
|101.LAB     | XBRL Taxonomy Extension Label Linkbase**                                    
|101.PRE     | XBRL Taxonomy Extension Presentation Linkbase**                             

__________________  *Filed herewith. **Pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933 or Section 18 of the Securities Exchange Act of 1934 and otherwise are not subject to liability.   68    SIGNATURES  Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.  WELLNESS CENTER USA, INC.Date: February 22, 2016By:/s/ Andrew J. KandalepasAndrew J. KandalepasChairman, President, Chief Executive Officer, Chief Accounting Officer, and Chief Financial Officer  POWER OF ATTORNEY  Each person whose signature appears below hereby constitutes and appoints severally Andrew J. Kandalepas, his true and lawful attorney-in-fact and agent, with full power of substitution and re-substitution, for him and in his name, place and stead, in any and all capacities, to sign any and all amendments to this Annual Report on Form 10-K, and to file the same, with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission, and hereby grants to such attorney-in-fact and agent, full power and authority to do and perform each and every act and thing requisite and necessary to be done, as fully to all intents and purposes as he might or could do in person, hereby ratifying and confirming all that said attorney-in-fact and agent, or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.  Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.  SIGNATURETITLEDATE/s/ Andrew J. KandalepasChairman, President, Chief Executive Officer, Chief Accounting Officer, Chief Financial Officer, and DirectorFebruary 22, 2016Andrew J. Kandalepas/s/ Periklis PapadopoulosDirectorFebruary 22, 2016Periklis Papadopoulos/s/ Jay Joshi, M.D.Director, President NPCFebruary 22, 2016Jay Joshi, M.D.      69