| Nevada                                                                    |   |  27-4092986                              |
|---------------------------------------------------------------------------|--------|-----------------------------------------------|
|  (State or other jurisdiction of incorporation or organization) |   |  (I.R.S. Employer Identification Number) |

----

| AXIM BIOTECHNOLOGIES, INC.                                                                                                  |   |
|-----------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                        |   |
|                                                                                                                        | Page   |
|                                                                                                                        |   |
| Balance Sheets for six months ended  June 30, 2014 and for the year ended December 31, 2013:                      | F-2    |
|                                                                                                                        |   |
| Statements of Operations for the three months ended June 30, 2014 and 2013 and the six months ended June 30, 2014 and 2013: | F-3    |
|                                                                                                                        |   |
| Statement of Changes in Shareholders'  Deficit for the six months ended June 30, 2014:                            | F-4    |
|                                                                                                                        |   |
| Statement of Cash Flows for the six months ended June 30, 2014 and 2013:                                                    | F-5    |
|                                                                                                                        |   |
| Notes to Financial Statements:                                                                                              | F-6    |
|                                                                                                                        |   |
| F-1                                                                                                                         |   |

----

| AXIM BIOTECHNOLOGIES, INC.          |
|-------------------------------------|
| (A Development Stage Company)       |
| Consolidated Balance Sheets         |
| June 30, 2014 and December 31, 2013 |

|                                                            |                                                                       |                              |      | June 30, 2014 |      | December 31, 2013 |
|-----------------------------------------------------------------|----------------------------------------------------------------------------|-----------------------------------|-----------|---------------|-----------|-------------------|
|                                                            |                                                                       |                              |      | (unaudited)   |      | (unaudited)       |
|                                                            |                                                                       |                              |      |          |      |              |
|                                                            |                                                                       |                              |      |          |      |              |
|                                                            |                                                                       |                              |      |          |      |              |
| ASSETS                                                          |                                                                       |                              |      |          |
|                                                            |                                                                       |                              |      |          |      |              |
| Current assets:                                                 |                                                                       |                              |      |          |
|                                                            | Cash                                                                       | $                                 | 4,838     | $             | 127       |
|                                                            | License fee receivable                                                     |                              | -         |          | 11,000    |
|                                                            | Allowance for doubtful accounts                                            |                              | -         |          | (8,000)   |
|                                                            |                                                                       | Total current assets              |      | 4,838         |      | 3,127             |
|                                                            |                                                                       |                              |      |          |      |              |
| Other assets:                                                   |                                                                       |                              |      |          |
|                                                            | Intangible asset - net                                                     |                              | -         |          | 53,696    |
|                                                            |                                                                       | Total other assets                |      | -             |      | 53,696            |
|                                                            |                                                                       |                              |      |          |      |              |
| TOTAL ASSETS                                                    | $                                                                          | 4,838                             | $         | 56,823        |
|                                                            |                                                                       |                              |      |          |      |              |
| LIABILITIES AND STOCKHOLDERS'  EQUITY (DEFICIT)       |                                                                       |                              |      |          |
|                                                            |                                                                       |                              |      |          |      |              |
| Current liabilities:                                            |                                                                       |                              |      |          |
|                                                            | Accounts payable and accrued liabilities                                   | $                                 | -         | $             | 52,988    |
|                                                            | Due to shareholder                                                         |                              | 5,000     |          | 45,002    |
|                                                            | Convertible shareholder loan                                               |                              | 50,000    |          | 50,000    |
|                                                            | Royalty fee payable                                                        |                              | -         |          | 2,750     |
|                                                            |                                                                       | Total current liabilities         |      | 55,000        |      | 150,740           |
|                                                            |                                                                       |                              |      |          |      |              |
|                                                            |                                                                       |                              |      |          |      |              |
| STOCKHOLDERS'  EQUITY (DEFICIT)                       |                                                                       |                              |      |          |
|                                                            | Preferred stock, $0.0001 par value, 5,000,000 shares authorized; 1,000,000 |
|                                                            |                                                                       | issued and outstanding            |      | 100           |      | 100               |
|                                                            | Common stock, $0.0001 par value, 195,000,000 shares authorized;            |
|                                                            |                                                                       | 33,000,000 issued and outstanding |      | 3,300         |      | 3,300             |
|                                                            | Capital in excess of par value                                             |                              | 107,841   |          | 11,700    |
|                                                            | Accumulated (deficit) during development stage                             |                              | (161,403) |          | (109,017) |
|                                                            |                                                                       |                              |      |          |      |              |
| TOTAL STOCKHOLDERS'  EQUITY (DEFICIT)                 |                                                                       | (50,162)                          |      | (93,917)      |
|                                                            |                                                                       |                              |      |          |      |              |
| TOTAL LIABILITIES AND STOCKHOLDERS'  EQUITY (DEFICIT) |
|                                                            |                                                                       |                              |      |          |      |              |
|                                                            |                                                                       |                              |      |          |

----

| AXIM BIOTECHNOLOGIES, INC.           |
|--------------------------------------|
| ( A Development Stage Company)       |
| Consolidated Statement of Operations |

|                                                       |   |               |             |   |               |    |             |             |   |   |             |   |   | For the period from |             |
|------------------------------------------------------------|--------|--------------------|------------------|--------|--------------------|---------|------------------|------------------|--------|--------|------------------|--------|--------|---------------------|------------------|
|                                                       |   |               |             |   |               |    |             |             |   |   |             |   |   | November 18, 2010   |             |
|                                                       |   | For the            |             |   | For the            |    |             | For the          |   |   | For the          |   |   | (Date of Inception) |             |
|                                                       |   | Three Months Ended |             |   | Three Months Ended |    |             | Six Months Ended |   |   | Six Months Ended |   |   | Through             |             |
|                                                       |   | June 30, 2014      |             |   | June 30, 2013      |    |             | June 30, 2014    |   |   | June 30, 2013    |   |   | June 30, 2014       |             |
|                                                       |   | (unaudited)        |             |   | (unaudited)        |    |             | (unaudited)      |   |   | (unaudited)      |   |   | (unaudited)         |             |
|                                                       |   |               |             |   |               |    |             |             |   |   |             |   |   |                |             |
| Revenues:                                                  |   |               |             |   |               |    |             |             |   |   |             |   |   |                |             |
| Sales                                                      |   | $                  | 7,500            |   |               | $       | 10,834           |             |   | $      | 10,000           |   |   | $                   | 21,667           |   |   | $ | 85,050 |   |
| Total revenues                                             |   |               | 7,500            |   |               |    | 10,834           |             |   |   | 10,000           |   |   |                | 21,667           |   |   |   | 85,050 |   |
|                                                       |   |               |             |   |               |    |             |             |   |   |             |   |   |                |             |   |   |   |   |   |
| Operating Expenses:                                        |   |               |             |   |               |    |             |             |   |   |             |   |   |                |             |   |   |   |   |   |
| General and administrative                                 |   |               | 52,265           |   |               |    | 40,627           |             |   |   | 62,386           |   |   |                | 57,278           |   |   |   | 246,453 |   |
| Total operating expenses                                   |   |               | 52,265           |   |               |    | 40,627           |             |   |   | 62,386           |   |   |                | 57,278           |   |   |   | 246,453 |   |
|                                                       |   |               |             |   |               |    |             |             |   |   |             |   |   |                |             |   |   |   |   |   |
| Loss from operations                                       |   |               | (44,765          | )      |               |    | (33,128          | )                |   |   | (62,386          | )      |   |                | (35,611          | ) |   |   | (246,453 | ) |
|                                                       |   |               |             |   |               |    |             |             |   |   |             |   |   |                |             |   |   |   |   |   |
| Other Income and Expense                                   |   |               |             |   |               |    |             |             |   |   |             |   |   |                |             |   |   |   |   |   |
| Realized (loss) gain                                       |   |               |             |   |               |    |             |             |   |   |             |   |   |                |             |   |   |   |   |   |
| Interest income                                            |   |               |             |   |               |    |             |             |   |   |             |   |   |                |             |   |   |   |   |   |
| Interest expense                                           |   |               |             |   |               |    |             |             |   |   |             |   |   |                |             |   |   |   |   |   |
|                                                       |   |               | 0                |   |               |    | 0                |             |   |   | 0                |   |   |                | 0                |   |   |   | 0 |   |
|                                                       |   |               |             |   |               |    |             |             |   |   |             |   |   |                |             |   |   |   |   |   |
|                                                       |   |               |             |   |               |    |             |             |   |   |             |   |   |                |             |   |   |   |   |   |
| NET LOSS                                                   |   | $                  | (44,765          | )      |               | $       | (22,294          | )                |   | $      | (52,386          | )      |   | $                   | (35,611          | ) |   | $ | (161,403 | ) |
|                                                       |   |               |             |   |               |    |             |             |   |   |             |   |   |                |             |   |   |   |   |   |
| Basic loss per common share                                |   | $                  | (0.00            | )      |               | $       | (0.00            | )                |   | $      | (0.00            | )      |   | $                   | (0.00            | ) |   | $ | (0.00 | ) |
| Diluted loss per common share                              |   | $                  | (0.00            | )      |               | $       | (0.00            | )                |   | $      | (0.00            | )      |   | $                   | (0.00            | ) |   | $ | (0.00 | ) |
|                                                       |   |               |             |   |               |    |             |             |   |   |             |   |   |                |             |   |   |   |   |   |
|  Weighted average common shares outstanding - Basic   |   |  $            | 33,000,000  |   |               |  $ | 33,000,000  |             |   |   | 33,000,000  |   |   |                | 33,000,000  |   |   |   | 33,000,000  |   |
|  Weighted average common shares outstanding - Diluted |   |  $            | 33,000,000  |   |               |  $ | 33,000,000  |             |   |   | 33,000,000  |   |   |                | 33,000,000  |   |   |   | 33,000,000  |   |

----

| AXIM BIOTECHNOLOGIES, INC.                            |
|-------------------------------------------------------|
| (A Development Stage Company)                         |
|  Consolidated Statement of Stockholders' Deficit |

|                                                |                                                                                                                                  |    |                                                                                              |            |                                                                                                                |     |                                                                                                                |          |                                                                                                                |    |                                                                      |    | Accumulated                                                         |
|-----------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------|---------|---------------------------------------------------------------------------------------------------|-----------------|---------------------------------------------------------------------------------------------------------------------|----------|---------------------------------------------------------------------------------------------------------------------|---------------|---------------------------------------------------------------------------------------------------------------------|---------|---------------------------------------------------------------------------|---------|---------------------------------------------------------------------|
|                                                |                                                                                                                                  |    |                                                                                              |            |                                                                                                                |     |                                                                                                                |          |                                                                                                                |    |                                                                      |    | Deficit                                                             |   |   |
|                                                |                                                                                                                                  |    |                                                                                              |            |                                                                                                                |     |                                                                                                                |          |                                                                                                                |    |                                                                      |    | During                                                              |   | Total |
|                                                | Common Stock                                                                                                                          |    | Additonal                                                                                         | Preferred Stock |                                                                                                                | Retained | Development                                                                                                         | Stockholders' |
|                                                | Shares                                                                                                                                |    | Amount                                                                                            | Paid In Capital | Shares                                                                                                              |     | Amount                                                                                                              |          | Deficit                                                                                                             |    | Stage                                                                     |    | Deficit                                                             |
|                                                |                                                                                                                                  |    |                                                                                              |            |                                                                                                                |     |                                                                                                                |          |                                                                                                                |    |                                                                      |    |                                                                |   |   |
|                                                |                                                                                                                                  |    |                                                                                              |            |                                                                                                                |     |                                                                                                                |          |                                                                                                                |    |                                                                      |    |                                                                |   |   |
| Issuance of 20,000,000 shares on December 20, 2010  |        20,000,000                                                                                  |    |          2,000                                       |            |                                                                                                                |     |       1,000,000                                                                       |          |                100                       |    |                                                                      |    |                                                                |   |            2,100 |
|                                                |                                                                                                                                  |    |                                                                                              |            |                                                                                                                |     |                                                                                                                |          |                                                                                                                |    |                                                                      |    |                                                                |   |   |
| Net loss for the period January 1, 2010             |                                                                                                                                  |    |                                                                                              |            |                                                                                                                |     |                                                                                                                |          |                                                                                                                |    |                                                                      |    |                                                                |   |
|   through December 31, 2010               |                                                                                                                                  |    |                                                                                              |            |                                                                                                                |     |                                                                                                                |          |                                                                                                                |    |            (2,932) |    |           (2,932) |   |           (2,932) |
|                                                |                                                                                                                                  |    |                                                                                              |            |                                                                                                                |     |                                                                                                                |          |                                                                                                                |    |                                                                      |    |                                                                |   |   |
| Balance at December 31, 2010                        |        20,000,000                                                                                  |  $ |          2,000                                       |  $         |                    - |  $  |       1,000,000                                                                       |  $       |                100                       |  $ |            (2,932) |  $ |           (2,932) |   |             (832) |
|                                                |                                                                                                                                  |    |                                                                                              |            |                                                                                                                |     |                                                                                                                |          |                                                                                                                |    |                                                                      |    |                                                                |   |   |
|                                                |                                                                                                                                  |    |                                                                                              |            |                                                                                                                |     |                                                                                                                |          |                                                                                                                |    |                                                                      |    |                                                                |   |   |
| Issuance of 13,000,000 shares on September 30, 2011 |        13,000,000                                                                                  |    |          1,300                                       |            |            11,700                                            |     |                                                                                                                |          |                                                                                                                |    |                                                                      |    |                                                                |   |          13,000 |
|                                                |                                                                                                                                  |    |                                                                                              |            |                                                                                                                |     |                                                                                                                |          |                                                                                                                |    |                                                                      |    |                                                                |   |   |
| Net loss for the period January 1, 2011             |                                                                                                                                  |    |                                                                                              |            |                                                                                                                |     |                                                                                                                |          |                                                                                                                |    |                                                                      |    |                                                                |   |
|   through December 31, 2011               |                       - |    |                 - |            |  -                                                                                                             |     |                    - |          |                    - |    |            (1,962) |    |           (1,962) |   |           (1,962) |
|                                                |                                                                                                                                  |    |                                                                                              |            |                                                                                                                |     |                                                                                                                |          |                                                                                                                |    |                                                                      |    |                                                                |   |   |
| Balance at December 31, 2011                        |        33,000,000                                                                                  |  $ |          3,300                                       |  $         |            11,700                                            |  $  |       1,000,000                                                                       |  $       |                100                       |  $ |            (4,894) |  $ |           (4,894) |   |          10,206 |
|                                                |                                                                                                                                  |    |                                                                                              |            |                                                                                                                |     |                                                                                                                |          |                                                                                                                |    |                                                                      |    |                                                                |   |   |
|                                                |                                                                                                                                  |    |                                                                                              |            |                                                                                                                |     |                                                                                                                |          |                                                                                                                |    |                                                                      |    |                                                                |   |   |
| Net loss for the period January 1, 2012             |                                                                                                                                  |    |                                                                                              |            |                                                                                                                |     |                                                                                                                |          |                                                                                                                |    |                                                                      |    |                                                                |   |
|   through December 31, 2012               |                       - |    |                 - |            |  -                                                                                                             |     |                    - |          |                    - |    |          (14,904)            |    |         (14,904)            |   |         (14,904) |
|                                                |                                                                                                                                  |    |                                                                                              |            |                                                                                                                |     |                                                                                                                |          |                                                                                                                |    |                                                                      |    |                                                                |   |   |
| Balance at December 31, 2012                        |        33,000,000                                                                                  |  $ |          3,300                                       |  $         |            11,700                                            |  $  |       1,000,000                                                                       |  $       |                100                       |  $ |          (19,798)            |  $ |         (19,798)            |   |           (4,698) |
|                                                |                                                                                                                                  |    |                                                                                              |            |                                                                                                                |     |                                                                                                                |          |                                                                                                                |    |                                                                      |    |                                                                |   |   |
|                                                |                                                                                                                                  |    |                                                                                              |            |                                                                                                                |     |                                                                                                                |          |                                                                                                                |    |                                                                      |    |                                                                |   |   |
| Net loss for the period January 1, 2013             |                                                                                                                                  |    |                                                                                              |            |                                                                                                                |     |                                                                                                                |          |                                                                                                                |    |                                                                      |    |                                                                |   |
|   through December 31, 2013               |                       - |    |                 - |            |  -                                                                                                             |     |                    - |          |                    - |    |          (89,219)            |    |         (89,219)            |   |         (89,219) |
|                                                |                                                                                                                                  |    |                                                                                              |            |                                                                                                                |     |                                                                                                                |          |                                                                                                                |    |                                                                      |    |                                                                |   |   |
| Balance at December 31, 2013                        |        33,000,000                                                                                  |  $ |          3,300                                       |  $         |            11,700                                            |  $  |       1,000,000                                                                       |  $       |                100                       |  $ |        (109,017)                       |  $ |       (109,017)                       |   |         (93,917) |
|                                                |                                                                                                                                  |    |                                                                                              |            |                                                                                                                |     |                                                                                                                |          |                                                                                                                |    |                                                                      |    |                                                                |   |   |
|                                                |                                                                                                                                  |    |                                                                                              |            |                                                                                                                |     |                                                                                                                |          |                                                                                                                |    |                                                                      |    |                                                                |   |   |
| Net loss for the period January 1, 2014             |                                                                                                                                  |    |                                                                                              |            |                                                                                                                |     |                                                                                                                |          |                                                                                                                |    |                                                                      |    |                                                                |   |
|   through June 30, 2014                   |                       - |    |                 - |            |            96,141                                            |     |                    - |          |                    - |    |          (52,386)            |    |         (52,386)            |   |          43,755 |
|                                                |                                                                                                                                  |    |                                                                                              |            |                                                                                                                |     |                                                                                                                |          |                                                                                                                |    |                                                                      |    |                                                                |   |   |
| Balance at June 30, 2014                            |        33,000,000                                                                                  |  $ |          3,300                                       |  $         |          107,841                                                       |  $  |       1,000,000                                                                       |  $       |                100                       |  $ |        (161,403)                       |  $ |       (161,403)                       |   |         (50,162) |
|                                                |                                                                                                                                  |    |                                                                                              |            |                                                                                                                |     |                                                                                                                |          |                                                                                                                |    |                                                                      |    |                                                                |   |   |

----

| AXIM BIOTECHNOLOGIES, INC.            |
|---------------------------------------|
| (A Development Stage Company)         |
| Consolidated Statements of Cash Flows |

|                                                         |                                                                            |    |                                                                                                                                      |             |                                                                                                                                      |      | For the period from                                                                                                                                                           |
|--------------------------------------------------------------|---------------------------------------------------------------------------------|---------|-------------------------------------------------------------------------------------------------------------------------------------------|------------------|-------------------------------------------------------------------------------------------------------------------------------------------|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                         |                                                                            |    |                                                                                                                                      |             |                                                                                                                                      |      | November 18, 2010                                                                                                                                                             |
|                                                         |                                                                            |    | For the                                                                                                                                   |             | For the                                                                                                                                   |      | (Date of Inception)                                                                                                                                                           |
|                                                         |                                                                            |    | Six Months Ended                                                                                                                          | Six Months Ended | Through                                                                                                                                   |
|                                                         |                                                                            |    | June 30, 2014                                                                                                                             |             | June 30, 2013                                                                                                                             |      | June 30, 2014                                                                                                                                                                 |
|                                                         |                                                                            |    | (unaudited)                                                                                                                               |             | (unaudited)                                                                                                                               |      | (unaudited)                                                                                                                                                                   |
|                                                         |                                                                            |    |                                                                                                                                      |             |                                                                                                                                      |      |                                                                                                                                                                          |
| CASH FLOWS FROM OPERATING ACTIVITIES                         |                                                                            |    |                                                                                                                                      |             |                                                                                                                                      |      |
|                                                         | Net loss                                                                        | $       | (52,386)                                                                                                                                  | $                | (35,611)                                                                                                                                  | $         | (161,403)                                                                                                                                                                     |
|                                                         | Adjustments to reconcile net loss to net cash                              |    |                                                                                                                                      |             |                                                                                                                                      |      |                                                                                                                                                                          |
|                                                         |   (used in) operating activities:                                     |    |                                                                                                                                      |             |                                                                                                                                      |      |                                                                                                                                                                          |
|                                                         |   Bad Debts                                                           |    |                      1,000       |             |                                                                                                                                      |      |                             8,000 |
|                                                         |   Amortization of intangible assets                                   |    |                       1,593 |             | -                                                                                                                                         |      | 17,897                                                                                                                                                                        |
|                                                         |   Impairment of intangible assets                                     |    | 52,103                                                                                                                                    |             | -                                                                                                                                         |      | 82,103                                                                                                                                                                        |
|                                                         |   Share issuance for organization expense                             |    | -                                                                                                                                         |             | -                                                                                                                                         |      | 2,100                                                                                                                                                                         |
|                                                         |   Decrease (increase) in license fee receivable and other assets, net |    | 2,000                                                                                                                                     |             |                       5,000 |      | (8,000)                                                                                                                                                                       |
|                                                         |   (Decrease) Increase in accounts payable and accrued expenses        | (4,599) |                                                                                                                                      | 11,628           |                                                                                                                                      | 48,389    |
|                                                         |   Increase in royalty fee payable                                     |    | -                                                                                                                                         |             |   -                                                                                                                                  |      | 2,750                                                                                                                                                                         |
| NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES          | (289)                                                                           |    | (18,983)                                                                                                                                  |             | (8,164)                                                                                                                                   |
|                                                         |                                                                            |    |                                                                                                                                      |             |                                                                                                                                      |      |                                                                                                                                                                          |
| CASH FLOWS FROM INVESTING ACTIVITIES                         |                                                                            |    |                                                                                                                                      |             |                                                                                                                                      |      |
|                                                         |   Acquisition of license                                              |    | -                                                                                                                                         |             | -                                                                                                                                         |      | (100,000)                                                                                                                                                                     |
| NET CASH USED IN INVESTING ACTIVITIES                        |                                                                            | 0       |                                                                                                                                      | 0                |                                                                                                                                      | (100,000) |
|                                                         |                                                                            |    |                                                                                                                                      |             |                                                                                                                                      |      |                                                                                                                                                                          |
|                                                         |                                                                            |    |                                                                                                                                      |             |                                                                                                                                      |      |                                                                                                                                                                          |
| CASH FLOWS FROM FINANCING ACTIVITIES                         |                                                                            |    |                                                                                                                                      |             |                                                                                                                                      |      |
|                                                         |   Issuance of Common Stock for Cash                                   |    | -                                                                                                                                         |             | -                                                                                                                                         |      | 13,000                                                                                                                                                                        |
|                                                         |   Proceeds from Shareholder             |    | 5,000                                                                                                                                     |             | -                                                                                                                                         |      | 50,002                                                                                                                                                                        |
|                                                         |   Proceeds from convertible shareholder loan                          |    | -                                                                                                                                         |             |                                                                                                                                      |      | 50,000                                                                                                                                                                        |
|                                                         |                                                                            |    | 5,000                                                                                                                                     |             |  -                                                                                                                                   |      |                    113,002                                                     |
|                                                         |                                                                            |    |                                                                                                                                      |             |                                                                                                                                      |      |                                                                                                                                                                          |
| NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES          | 0                                                                               |    | 0                                                                                                                                         |             | 113,002                                                                                                                                   |
|                                                         |                                                                            |    |                                                                                                                                      |             |                                                                                                                                      |      |                                                                                                                                                                          |
| NET CHANGE IN CASH                                           |                                                                            | 4,711   |                                                                                                                                      | (18,983)         |                                                                                                                                      | 4,838     |
|                                                         |                                                                            |    |                                                                                                                                      |             |                                                                                                                                      |      |                                                                                                                                                                          |
| CASH BALANCES                                                |                                                                            |    |                                                                                                                                      |             |                                                                                                                                      |      |
|                                                         |   Beginning of period                                                 |    | 127                                                                                                                                       |             | 19,128                                                                                                                                    |      | -                                                                                                                                                                             |
|                                                         |   End of period                                                       | $       | 4,838                                                                                                                                     | $                | 145                                                                                                                                       | $         | 4,838                                                                                                                                                                         |
|                                                         |                                                                            |    |                                                                                                                                      |             |                                                                                                                                      |      |                                                                                                                                                                          |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:            |                                                                            |    |                                                                                                                                      |             |
|      CASH PAID DURING THE YEAR FOR: |                                                                            |    |                                                                                                                                      |             |                                                                                                                                      |      |
|                                                         |   Interest                                                            | $       | -                                                                                                                                         | $                | -                                                                                                                                         | $         | -                                                                                                                                                                             |
|                                                         |   Income taxes                                                        | $       | -                                                                                                                                         | $                | -                                                                                                                                         | $         | -                                                                                                                                                                             |
|                                                         |                                                                            |    |                                                                                                                                      |             |                                                                                                                                      |      |                                                                                                                                                                          |
| SUPPLEMENTAL SCHEDULE OF NON-CASH TRANSACTIONS:              |                                                                            |    |                                                                                                                                      |             |
|                                                         |   Settlement of Debt                                                       | $       | 96,141                                                                                                                                    | $                | -                                                                                                                                         | $         | 96,141-                                                                                                                                                                       |
|                                                         |                                                                            |    |                                                                                                                                      |             |                                                                                                                                      |      |                                                                                                                                                                          |

----

| Settlement of debt at point of sale:                    |     |
|---------------------------------------------------------|----------|
|     Accounts payable                | (54,389) |
|     Royalty payable                 | (2,750)  |
|     Shareholder loan                | (45,002) |
|     Allowance for doubtful accounts | (9,000)  |
|     License fee receivable          | 15,000   |
|     Paid in capital                 | 96,141   |

----

| - | Supporting a clinical trial at the Free University of Amsterdam, The Netherlands in collaboration with the University of Plymouth, GB for a novel (patent pending) delivery form of cannabinoids for treatment of pain and spasticity in patients with multiple sclerosis.   The anticipated duration of the trials prior to FDA/ EMA registration is 24 months.  |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| - | Conducting research trials of a novel delivery mechanism (patent pending) for treatment of patients with ADHD.                                                                                                                                                                                                                                                                   |
| - | Development of novel pharmaceutical and nutriceutical formulations including smoking cessation, cannabinoid based preparation.                                                                                                                                                                                                                                                   |
| - | Contracting with Syncom BV, The Netherlands for provision of intellectual property for extraction, concentration and freeze-drying technology of active pharmaceutical ingredients based on cannabinoids.  The anticipated duration of the trials is 4 months.                                                                                                              |
| - | A land purchase in the city of Almere, in the province of Flevoland, The Netherlands for building of a state of the art extraction facility as well as a factory for pharmaceutical and nutriceutical preparations.                                                                                                                                          |
| - | Importation from Italy, Spain and other reputable producers of pharmaceutical grade hemp oil to Europe and North America.                                                                                                                                                                                                                                                        |
| - | Acquisition of  a phytopharmaceutical company with extensive list of IP (intellectual property) from Spain.                                                                                                                                                                                                                                                            |
| - | Development of sustainable biofuel compositions derived from industrial hemp by-products.                                                                                                                                                                                                                                                                                             |

| Other consulting fees | 12,000                                |
|-----------------------|---------------------------------------|
| Audit and accounting  | 10,000                                |
| Miscellaneous         | 4,000                                 |
|                  |                                  |
| Total                 | $     26,000 |

|                    |  Six month Period Ended June 30, 2014 | Six Month Period Ended June 30, 2013 |
|-------------------------|--------------------------------------------|--------------------------------------|
|                    |                                       |                                 |
| Legal& Other fees   | 2,597                                      | $ 22,581                             |
| Audit                   | 0                                          | 6,450                                |
| Filing fees             | 4,862                                      | 2,250                                |
| Office                  | 231                                        | 7,761                                |
| Amortization            | 1,593                                      | 5,000                                |
| Rent                    | 0                                          | 900                                  |
| Royalty fees            | 0                                          | 450                                  |
| Allowance for bad debts | 1,000                                      | 7,500                                |
| Impairment              | 52,103                                     | 0                                    |
| Total                   | $ 62,386                                   | $ 57,278                             |

| Ex. #   | Description                                                                                                                                                                                                                            |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                                                                                   |
| *3.1    | Certificate of Incorporation, as filed with the Nevada Secretary of State on November 19, 2010.                                                                                                                                        |
| *3.2    | By-laws                                                                                                                                                                                                                                |
| 3.3     | Certificate of Amendment, as filed with the Nevada Secretary of  State on July 24, 2014.                                                                                                                                     |
| 31.1    | Certification of the Company’s Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, with respect to the registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2014. |
| 32.1    | Certification of the Company’s Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                        |
| 101.INS | XBRL Instance Document                                                                                                                                                                                                                 |
| 101.SCH | XBRL Taxonomy Extension Schema Document                                                                                                                                                                                                |
| 101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document                                                                                                                                                                                  |
| 101.DEF | XBRL Taxonomy Extension Definition Linkbase Document                                                                                                                                                                                   |
| 101.LAB | XBRL Taxonomy Extension Labels Linkbase Document                                                                                                                                                                                       |
| 101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document                                                                                                                                                                                 |
|    |                                                                                                                                                                                                                                   |
| *       | Filed as an exhibit to the Company's Registration Statement on Form 10, as filed with the SEC on March 10, 2011, and incorporated herein by this reference.                                                                            |

|                              | AXIM BIOTECHNOLOGIES, INC. |
|-----------------------------------|----------------------------|
|                              |                       |   |
| Dated:  August 14, 2014 | By:                        | /s/ [Missing Graphic Reference] |
|                              |                       | Dr. George Anastassov |
|                              |                       | President and DirectorPrincipal Executive OfficerPrincipal Financial Officer |
|                              |                       |   |

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