SECURITIES AND EXCHANGE COMMISSION
Washington,
D.C. 20549

FORM 10-Q



(Mark One)

| | x | QUARTERLY
REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
| | - | ---------------------------------------------------------------------------------



For the quarterly period ended March 31,
2014



OR



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

For the transition period from              to



Commission file number 000-54545



IIM GLOBAL CORPORATION

(Exact name of registrant as specified in
its charter)



SILVERWOOD ACQUISITION CORPORATION

(Former Name of Registrant as Specified
in its Charter)



|Delaware                                                      | 46-2069547                          
|------------------------------------------------------------- | ------------------------------------
|(State or other jurisdiction ofincorporation or organization) | (I.R.S. Employer Identification No.)



160 E. Lake Brantley Drive

Longwood, Florida 32779

(Address of principal executive offices)
(zip code)



407-674-2651

(Registrant's telephone number, including
area code)



Indicate by check mark whether the registrant
(1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding
12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.

xYes ̈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. See the definitions of "large accelerated
filer", "accelerated filer", "non-accelerated filer", and "smaller reporting company" in Rule
12b-2 of the Exchange Act.



| | Large Accelerated filer |  ̈ | Accelerated filer         |  ̈
| | ----------------------- | - | ------------------------- | -
| | Non-accelerated filer   |  ̈ | Smaller reporting company | x

(do not check if smaller reporting company)



Indicate by check mark whether the registrant is a shell company
(as defined in Rule 12b-2 of the Exchange Act).

YesxNo ̈



Indicate the number of shares outstanding of each of the registrant's
classes of common stock as of the latest practicable date.



|Class                                | Outstanding at March 31, 2014
|------------------------------------ | -----------------------------
|Common Stock, par value $0.0001      | 160,623,289 shares           
|Documents
incorporated by reference: | None                         











|FINANCIAL STATEMENTS                                                                                 |     
|---------------------------------------------------------------------------------------------------- | ----
|                                                                                                     |     
|Consolidated Balance Sheets as of March 31, 2014 (unaudited) and December 31, 2013                   | 1   
|                                                                                                     |     
|Consolidated Statements of Operations for the Three Months Ended March 31, 2014 and 2013 (unaudited) | 2   
|                                                                                                     |     
|Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2014 and 2013 (unaudited) | 3   
|                                                                                                     |     
|Not Notes to Financial Statements (unaudited)                                                        | 4-10











IIM GLOBAL CORP.



(FORMERLY: SILVERWOOD ACQUISITION
CORPORATION)



CONDENSED CONSOLIDATED BALANCE SHEETS







|                                                             |  |             |            |   |              |  
|------------------------------------------------------------ |  | ----------- | ---------- | - | ------------ | -
|ASSETS                                                       |  |             |            |   |              |  
|                                                             |  | March 31,   |            |   | December 31, |  
|                                                             |  | 2014        |            |   | 2013         |  
|                                                             |  | (unaudited) |            |   |              |  
|Current Assets                                               |  |             |            |   |              |  
|Cash                                                         |  | $           | 221,351    |   |              | $
|Deposits                                                     |  |             | 103,000    |   |              |  
|Total Current Assets                                         |  |             | 324,351    |   |              |  
|                                                             |  |             |            |   |              |  
|Property and equipment, net                                  |  |             | 32,640     |   |              |  
|Intangible, net                                              |  |             | 395,882    |   |              |  
|                                                             |  |             |            |   |              |  
|Total Assets                                                 |  | $           | 752,873    |   |              | $
|                                                             |  |             |            |   |              |  
|LIABILITIES AND STOCKHOLDERS' EQUITY                         |  |             |            |   |              |  
|                                                             |  |             |            |   |              |  
|Current Liabilities                                          |  |             |            |   |              |  
|Accounts payable and accrued expenses                        |  | $           | 16,531     |   |              | $
|Related party payables                                       |  |             | 960        |   |              |  
|Promissory notes-related party                               |  |             | 600,000    |   |              |  
|Total Current Liabilities                                    |  |             | 617,491    |   |              |  
|                                                             |  |             |            |   |              |  
|Total Liabilities                                            |  |             | 617,491    |   |              |  
|                                                             |  |             |            |   |              |  
|                                                             |  |             |            |   |              |  
|Stockholder's Equity                                         |  |             |            |   |              |  
|Common stock, 300,000,000 shares authorized                  |  |             |            |   |              |  
|$0.0001 par value, 160,623,289 shares issued and outstanding |  |             |            |   |              |  
|at March 31, 2014 and December 31, 2013, respectively        |  |             | 16,062     |   |              |  
|Additional paid-in capital                                   |  |             | 1,731,878  |   |              |  
|Accumulated deficit                                          |  |             | (1,612,558 | ) |              |  
|                                                             |  |             |            |   |              |  
|Total  Stockholder's Equity                                  |  |             | 135,382    |   |              |  
|                                                             |  |             |            |   |              |  
|Total Liabilities and Stockholders' Equity                   |  | $           | 752,873    |   |              | $







The accompanying notes are an integral part
of these unaudited condensed consolidated financial statements



1







IIM GLOBAL CORP.



(FORMERLY:SILVERWOOD ACQUISITION CORPORATION)



CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS



(unaudited)



|                                            |  | For the three months ended March 31, |            
|------------------------------------------- |  | ------------------------------------ | -----------
|                                            |  | 2014                                 |            
|Revenues:                                   |  |                                      |            
|Product revenues                            |  | $                                    | -          
|Support and maintenance revenues            |  |                                      | -          
|Total Revenues                              |  |                                      | -          
|                                            |  |                                      |            
|Cost of Goods Sold                          |  |                                      | -          
|                                            |  |                                      |            
|Gross Profit                                |  |                                      | -          
|                                            |  |                                      |            
|Operating Expenses                          |  |                                      |            
|Depreciation and amortization               |  |                                      | 11,624     
|Research and development                    |  |                                      | 2,474      
|General and administrative                  |  |                                      | 98,176     
|                                            |  |                                      | 112,274    
|                                            |  |                                      |            
|Loss from operations                        |  |                                      | (112,274   
|                                            |  |                                      |            
|Other Income                                |  |                                      |            
|Interest income                             |  |                                      | -          
|Interest expense                            |  |                                      | (9,550     
|                                            |  |                                      | (9,550     
|                                            |  |                                      |            
|Loss before income taxes                    |  |                                      | (121,824   
|                                            |  |                                      |            
|Income taxes                                |  |                                      | -          
|                                            |  |                                      |            
|Net loss                                    |  | $                                    | (121,824   
|                                            |  |                                      |            
|Loss per share - basic and diluted          |  | $                                    | (0.00      
|Weighted average shares - basic and diluted |  |                                      | 160,623,289



The accompanying notes are an integral part
of these unaudited condensed consolidated financial statements





2









IIM GLOBAL CORP.



(FORMERLY:SILVERWOOD ACQUISITION CORPORATION)







CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS



(unaudited)



|                                                                            |  | For the three months ended March 31, |         
|--------------------------------------------------------------------------- |  | ------------------------------------ | --------
|                                                                            |  | 2014                                 |         
|OPERATING ACTIVITIES:                                                       |  |                                      |         
|Net loss                                                                    |  | $                                    | (121,824
|Adjustments to reconcile net loss to net cash used in operating activities: |  |                                      |         
|Depreciation and amortization expense                                       |  |                                      | 11,625  
|Changes in assets and liabilities:                                          |  |                                      |         
|Accounts receivable                                                         |  |                                      | -       
|Other assets                                                                |  |                                      | 9,000   
|Accounts payable and accrued expenses                                       |  |                                      | (33,969 
|Due to related parties                                                      |  |                                      | (15,215 
|                                                                            |  |                                      |         
|Net cash used in operating activities                                       |  |                                      | (150,383
|                                                                            |  |                                      |         
|INVESTING ACTIVITIES:                                                       |  |                                      |         
|Investment in intangibles                                                   |  |                                      | (8,990  
|                                                                            |  |                                      |         
|Net cash used in investing activities                                       |  |                                      | (8,990  
|                                                                            |  |                                      |         
|FINANCING ACTIVITIES:                                                       |  |                                      |         
|Proceeds from issuance of related party promissory notes                    |  |                                      | 724,800 
|Payment of related party promissory notes                                   |  |                                      | (349,425
|Additional contributed capital                                              |  |                                      | -       
|                                                                            |  |                                      |         
|Net cash provided by financing activities                                   |  |                                      | 375,375 
|                                                                            |  |                                      |         
|Net (decrease)/increase in cash                                             |  |                                      | 216,002 
|                                                                            |  |                                      |         
|CASH AT BEGINNING OF PERIOD                                                 |  |                                      | 5,349   
|                                                                            |  |                                      |         
|CASH AT END OF PERIOD                                                       |  | $                                    | 221,351 
|                                                                            |  |                                      |         
|Supplmental Disclsoures of cash flow information                            |  |                                      |         
|Cash paid for interest                                                      |  | $                                    | 9,550   



The accompanying notes are an integral part
of these unaudited condensed consolidated financial statements



3







IIM GLOBAL CORPORATION
Notes to the Consolidated Financial Statements



NOTE 1 – DESCRIPTION OF BUSINESS
AND MERGER



IIM Global Corporation (formerly Silverwood
Acquisition Corporation) ("IIM Global" or the "Company") was incorporated on September 21, 2011 under the laws
of the State of Delaware to engage in any lawful corporate undertaking, including, but not limited to, selected mergers and acquisitions.
IIM Global has been in the developmental stage since inception. In addition to a change in control of its management and shareholders,
the Company's operations to date have been limited to issuing shares and filing a registration statement on Form 10 pursuant to
the Securities Exchange Act of 1934. IIM Global was formed to provide a method for a foreign or domestic private company to become
a reporting company with a class of securities registered under the Securities Exchange Act of 1934.



On December 20, 2012, the shareholders
of the Corporation and the Board of Directors unanimously approved the change of the Registrant's name to IIM Global Corporation
and filed such change with the State of Delaware. The registrant redeemed an aggregate of 19,500,000 of the then 20,000,000 shares
of outstanding stock at a redemption price of $0.0001 per share for an aggregate redemption price of $1,950. The current officers
and directors resigned, and a new officer/director was appointed and elected resulting in the change of control of the Company.



On August 12, 2013, IIM Global acquired
Innovation in Motion Inc., a Florida corporation (“Innovation in Motion”), in a stock-for-stock transaction (the “Acquisition”).
The purpose of the Acquisition was to facilitate and prepare the Company for a registration statement and/or public offering of
securities.



The Acquisition
was effected by the Company through the exchange of each of the outstanding shares and interests of Innovation in Motion for 1.6
shares of common stock of the Company. As a result, in the Acquisition, 97,970,562 shares and interests of common stock of Innovation
in Motion were exchanged for, and converted into, 156,752,899 shares of common stock of the Company.



Innovation in
Motion was formed in April 2009 in the State of Florida, and was a private company operating in two technology fields: the handheld
identification market and mobile payment market. Since its inception, Innovation in Motion has provided handheld mobile biometric
devices which are used primarily by government and law enforcement agencies to capture and process the unique characteristics of
individuals to verify their identities. Additionally, the Company has recently introduced a new highly secured biometric wallet
device to store personal data including credit card and banking information to be used in a variety of transactions.  The
Company has a business focus in the identification, security and mobile payment businesses, and it had its technology used during
the election process in Ghana, Africa. The Company has a range of state-of-the-art products in these fields and has begun serious
market penetration with the sale and placement of units.



As a result of the Acquisition, Innovation
in Motion became a wholly owned subsidiary of the Company. The Company, as the sole shareholder of Innovation in Motion, has taken
over the operations and business plans of Innovation in Motion.



Reverse Merger Accounting



Since former Innovation in Motion security holders owned, after
the merger, the majority of IIM Global shares of common stock, and as a result of certain other factors, including that all members
of the Company’s executive management are from Innovation in Motion,  Innovation in Motion is deemed to be the
acquiring company for accounting purposes and the merger was accounted for as a reverse merger and a recapitalization in accordance
with generally accepted accounting principles in the United States (“GAAP”). These condensed consolidated financial
statements reflect the historical results of Innovation in Motion prior to the merger and that of the combined Company following
the merger, and do not include the historical financial results of IIM Global prior to the completion of the merger. Common stock
and the corresponding capital amounts of the Company pre-merger have been retroactively restated as capital stock shares reflecting
the exchange ratio in the merger.



Going Concern



The Company has an accumulated deficit
of $1,612,558 as of March 31, 2014. The Company’s continuation as a going concern is dependent on its ability to generate
sufficient cash flows from operations to meet its obligations, which it has not been able to accomplish to date, and /or obtain
additional financing from its stockholders and/or other third parties.



4







These unaudited condensed consolidated
financial statements have been prepared on a going concern basis, which implies the Company will continue to meet its obligations
and continue its operations for the next fiscal year. The continuation of the Company as a going concern is dependent upon financial
support from its stockholders, the ability of the Company to obtain necessary equity financing to continue operations, successfully
locating and negotiating with other business entities for potential acquisition and /or acquiring new clients to generate revenues.



Management and shareholders used their
personal funds to pay for certain expenses incurred by the Company in 2014. There is no assurance that the Company will ever be
profitable. These unaudited condensed consolidated financial statements do not include any adjustments to reflect the possible
future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result
should the Company be unable to continue as a going concern.



NOTE 2 – BASIS OF PRESENTATION
AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Condensed Consolidated Financial
Statements



The accompanying unaudited condensed consolidated
financial statements primarily reflect the financial position, results of operations and cash flows of Innovation in Motion (as
discussed above). The accompanying unaudited condensed consolidated financial statements of Innovation in Motion have been prepared
in accordance with GAAP for interim financial information and pursuant to the instructions to Form 10-Q and Article 10 of Regulation
S-X of the Securities and Exchange Commission. Accordingly, these interim financial statements do not include all of the information
and footnotes required by GAAP for annual financial statements. In the opinion of management, all adjustments (consisting only
of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three
months ended March 31, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31,
2014, or for any other period.



Use of Estimates



In preparing these condensed consolidated
financial statements in conformity with GAAP, management is required to make estimates and assumptions that may affect the reported
amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial
statements and the reported amount of revenues and expenses during the reporting periods. Actual results could differ from those
estimates. Significant estimates and assumptions included in our consolidated financial statements relate to the valuation of long-lived
assets, accruals for potential liabilities, and valuation assumptions related to equity instruments and share based payments.



Concentration of Credit Risk



The Company’s financial instruments
that potentially expose the Company to a concentration of credit risk consist of cash, accounts payable, accrued expense and a
related party payable. The Company’s cash is deposited at a financial institution and insured by the Federal Deposit Insurance
Corporation (“FDIC”). At various times during the year, the Company may have exceeded this amount insured by the FDIC.



Income Taxes



The Company accounts for income taxes under
Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 740 “Income Taxes.”Under
the asset and liability method of FASB ASC 740, deferred tax assets and liabilities are recognized for the future tax consequences
attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective
tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the
years in which those temporary differences are expected to be recovered or settled. Under FASB ASC 740, the effect on deferred
tax assets and liabilities of a change in tax rates is recognized in income in the period the enactment occurs. A valuation allowance
is provided for certain deferred tax assets if it is more likely than not that the Company will not realize tax assets through
future operations.



Property and Equipment, net



Property and equipment consisted of furniture
and fixtures and computer equipment, and are stated at cost. Property and equipment are depreciated using the straight-line method
over the estimated service lives of three years. Maintenance and repairs are expensed as incurred and improvements are capitalized.
Gains or losses on the disposition of property equipment are recorded upon disposal. All property and equipment were purchased
by one of the Company’s officers and shareholder and were recorded as additional capital contribution in the accompanying
balance sheet. Depreciation expense amounted to $5,371 for the three month periods ended March 31, 2014 and 2013.



5







Intangible Assets



Acquired intangible assets are amortized
over their useful lives unless the lives are determined to be indefinite. Acquired intangible assets are carried at cost, less
accumulated amortization. Amortization of finite-lived intangible assets is computed over the useful lives of the respective assets.
The Company amortizes intangible assets over ten years. Amortization expense amounted to $6,254 and $5,490 for the three month
periods ended March 31, 2014 and 2013, respectively.



Impairment of Long-Lived Assets



Long-lived assets are reviewed for impairment
whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability
of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash
flows expected to be generated by the asset.



If the carrying amount of an asset exceeds
its undiscounted estimated future cash flows, an impairment review is performed. An impairment charge is recognized in the amount
by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of would be separately presented
in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell, and are no longer depreciated.
The assets and liabilities of a disposed group classified as held for sale would be presented separately in the appropriate asset
and liability sections of the balance sheet. For the three month periods ended March 31, 2014 and 2013, there were no impairment
charges.



Revenue Recognition



We recognize revenue for our services when
each of the following four criteria is met: persuasive evidence of an arrangement exists; delivery has occurred or services have
been rendered; the seller’s price to the buyer is fixed or determinable; and collectability is reasonably assured. There
were no revenues recognized during the three months ended March 31, 2014 and 2013.



Net Loss per Common Share



The Company computes net loss per share
in accordance with ASC 260, "Earnings per Share". ASC 260 requires presentation of both basic and diluted earnings
per share (EPS) on the face of the income statement. Basic EPS is computed by dividing net income (loss) available to common shareholders
by the weighted average number of common shares outstanding during the period. Diluted EPS gives effect to all dilutive potential
common shares outstanding during the period including stock options, using the treasury stock method, and convertible preferred
stock, using the if-converted method. In computing diluted EPS, the average stock price for the period is used in determining the
number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential
common shares if their effect is anti-dilutive.



Fair Value Measurements



ASC 820, “Fair Value Measurements”,
requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.
ASC 820 establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to
measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level
of input that is significant to the fair value measurement. ASC 820 prioritizes the inputs into three levels that may be used to
measure fair value: Level 1, defined as observable inputs such as quoted prices in active markets for identical assets or liabilities;
Level 2, inputs other than level one that are either directly or indirectly observable such as quoted prices for identical or similar
assets or liabilities on markets that are not active; and Level 3, defined as unobservable inputs in which little or no market
data exists, therefore requiring an entity to develop its own assumptions. The Company had no assets or liabilities required to
be recorded at fair value on a recurring basis at March 31, 2014 and December 31, 2013.



Share-Based Payment Arrangements



Generally,
all forms of share-based payments, including stock option grants, restricted stock grants and stock appreciation rights are measured
at their fair value on the awards’ grant date, based on the estimated number of awards that are ultimately expected to vest.
Share-based compensation awards issued to non-employees for services rendered are recorded at either the fair value of the services
rendered or the fair value of the share-based payment, whichever is more readily determinable. The expenses resulting from share-based
payments are recorded in operating expenses in the statement of operations.



6







Recent Accounting Pronouncements



Adopted



In February 2013, FASB issued ASU 2013-04, Obligations
Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation is Fixed at the Reporting
Date.The objective of the amendments in this update is to provide guidance for the recognition, measurement, and
disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation
within the scope of this guidance is fixed at the reporting date, except for those obligations addressed within existing guidance
in U.S. GAAP.  The amendment requires an entity to measure obligations resulting from joint and several liability arrangements
for which the total amount of the obligation within the scope of this guidance is fixed at the reporting date as the sum of the
amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and an additional amount the reporting
entity expects to pay on behalf of its co-obligors.  The entity is required to disclose the nature and amount of the
obligation as well as other information about those obligations.  The Company adopted this ASU as of January 1, 2014.  This
adoption did not have an effect on our financial statements.



Not
Adopted



In April 2014, the FASB issued ASU 2014-08, Reporting
Discontinued Operations and Disclosures of Disposals of Components of an Entity to reduce diversity in practice for reporting
discontinued operations. Under the previous guidance, any component of an entity that was a reportable segment, an operating segment,
a reporting unit, a subsidiary, or an asset group was eligible for discontinued operations presentation. The revised guidance only
allows disposals of components of an entity that represent a strategic shift (e.g., disposal of a major geographical area, a major
line of business, a major equity method investment, or other major parts of an entity) and that have a major effect on a reporting
entity’s operations and financial results to be reported as discontinued operations. The revised guidance also requires expanded
disclosure in the financial statements for discontinued operations as well as for disposals of significant components of an entity
that do not qualify for discontinued operations presentation. The updated guidance is effective for periods beginning after December
15, 2014. The Company currently has operations that are reported as discontinued operations and does not expect the adoption of
this guidance to have a material effect on its financial position, results of operations, or cash flows.



Other recent accounting pronouncements
issued by the FASB (including its Emerging Issues Task Force), the American Institute of Certified Public Accountants, and the
United States Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company’s
present or future financial statements.



NOTE 3 – INTANGIBLE ASSETS



Intangible assets consist of the following:



|                  |  | March 31, 2014 |         |   | December 31, 2013 |  
|----------------- |  | -------------- | ------- | - | ----------------- | -
|                  |  | (Unaudited)    |         |   |                   |  
|                  |  |                |         |   |                   |  
|HDR               |  | $              | 155,045 |   |                   | $
|SRIO              |  |                | 102,910 |   |                   |  
|Software          |  |                | 200,000 |   |                   |  
|                  |  |                | 457,955 |   |                   |  
|Less amortization |  |                | (62,073 | ) |                   |  
|                  |  |                |         |   |                   |  
|                  |  | $              | 395,882 |   |                   | $



Intangible assets consist of legal and
global patent registration costs related to the Company’s technology HDR (Handheld biometric mobile devices) and SRIO (Biometric
wallet devices).





NOTE 4 - DEPOSITS



On October 23, 2013, the Company entered into an office building lease with purchase option, the lease
is for the Company’s corporate office in Longwood, Florida. The company has the option to purchase the building at the end
of the lease for a total purchase price of $430,000 less the non-refundable deposit of $100,000. The remaining $3,000 is for prepaid
rent for the remaining term.







7







NOTE 5 – ACCOUNTS PAYABLE AND
ACCRUED EXPENSES



Accounts payable and accrued expenses consist
of the following:



|                            |  | March 31, 2014 |        |  | December 31, 2013 |  
|--------------------------- |  | -------------- | ------ |  | ----------------- | -
|                            |  | (unaudited)    |        |  |                   |  
|                            |  |                |        |  |                   |  
|Accounts payable            |  | $              | 8,000  |  |                   | $
|Payroll related liabilities |  |                | 4,707  |  |                   |  
|Other current liabilities   |  |                | 3,824  |  |                   |  
|                            |  |                |        |  |                   |  
|                            |  | $              | 16,531 |  |                   | $
|                            |  |                |        |  |                   |  
|Due to Related Parties      |  | $              | 960    |  |                   | $



NOTE 6 – PROMISSORY NOTES –
RELATED PARTY



Promissory notes – related party
totaled $600,000 and $224,615 as of March 31, 2014 and December 31, 2013, respectively, as described below:



|                                                                                                                                                                                                                                                                                                                                                      |  | March 31,
2014 |         |  | December 31,
2013 |  
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -------------- | ------- |  | ----------------- | -
|                                                                                                                                                                                                                                                                                                                                                      |  | (Unaudited)    |         |  |                   |  
|Promissory note issued to a company owned by one of the stockholders in October 2013 with a term of six months and bear interest at the rate of 15%. The proceeds from the note were used to pay the deposit to purchase the Company’s building located in Longwood, Florida. In March 2014 the Company paid the promissory note balance of $120,000. |  | $              | –       |  |                   | $
|                                                                                                                                                                                                                                                                                                                                                      |  |                |         |  |                   |  
|Promissory notes issued to two directors in October 2013, in place of the Company’s expense reimbursement, the notes have a term of six months and bear interest at the rate of 15%. In March 2014 the Company paid the promissory notes in the amount of $62,125.                                                                                    |  |                | –       |  |                   |  
|                                                                                                                                                                                                                                                                                                                                                      |  |                |         |  |                   |  
|Promissory note issued to a stockholder in November 2013 with a term of six months and bear interest at the rate of 15%. In March 2014 the Company paid the promissory note in the amount of $20,000.                                                                                                                                                 |  |                | –       |  |                   |  
|                                                                                                                                                                                                                                                                                                                                                      |  |                |         |  |                   |  
|Promissory note issued to a stockholder in December 2013 with a term of six months and bear interest at the rate of 15%. In March 2014 the Company paid the promissory note in the amount of $22,500.                                                                                                                                                 |  |                | –       |  |                   |  
|                                                                                                                                                                                                                                                                                                                                                      |  |                |         |  |                   |  
|Promissory note issued to a company owned by one of the stockholders in March 2014, due on demand and bear interest at the rate of 15% per annum.                                                                                                                                                                                                     |  |                | 600,000 |  |                   |  
|                                                                                                                                                                                                                                                                                                                                                      |  | $              | 600,000 |  |                   | $



8







NOTE 7 – RESEARCH AND DEVELOPMENT



On April 1, 2013, the Company entered into
an engineering contract for the hardware and software development of our next generation HDR device called the HDR+.  The
device is to be used by government and enterprise customers to capture all forms of machine readable data as well as the facial
and fingerprint biometric information of persons. The total development costs for HDR+ will amount to $430,000 which will be financed
through equity and debt financing. As of March 31, 2014, the Company has paid $2,474 in cash which has been recorded as research
and development expense.



NOTE 8 – STOCK OPTIONS



There were no unvested compensation or
new stock options granted, exercised or expired during the period ended March 31, 2014.



NOTE 9–STOCKHOLDER’S
EQUITY (DEFICT)



In April 2013, the Company entered into
various stockholder subscription agreements with 5 private investors in order to provide working capital for the Company. The agreements
stipulate that the shares of common stock will not be issued to the investors until the execution of the reverse merger agreement
and subsequent Initial Public Offering. The Company raised $515,000 in cash from the stockholder subscription agreements for the
purchase of 1,910,000 shares of common stock. These shares were issued during the quarter ended September 30, 2013.



On June 30, 2013, the Company issued 670,562
pre-merger common shares to two officers in settlement of $167,640 of accrued payroll liabilities at a conversion price of $0.25
per share. Additionally, 100,000 pre-merger common shares were issued to one officer in connection with a deferred payment agreement
and were recorded as share based compensation under general and administrative expenses in the accompanying statement of operations.



On August 12, 2013, IIM Global acquired
Innovation in Motion Inc., in a stock-for-stock transaction. The purpose of the Acquisition was to facilitate and prepare the Company
for a registration statement and/or public offering of securities.



The Acquisition
was effected by the Company through the exchange of each of the outstanding shares and interests of Innovation in Motion for 1.6
shares of common stock of the Company. As a result, in the Acquisition, 97,970,562 shares and interests of common stock of Innovation
in Motion were exchanged for, and converted into, 156,752,899 shares of common stock of the Company.



On September 30, 2013, the Company issued
a total of 460,390 common shares to two shareholders to settle approximately $115,000 of accrued liabilities that was owed to these
shareholders.



NOTE 10–COMMITMENTS AND
CONTINGENCIES



Operating Leases



The Company leases its building under a
six months term lease with an option to buy at the end of the term. During the lease term, the Company is required to make a monthly
lease payment of $3,000 per month. Rent expense amounted to $9,000 and $15,281 during the three month periods ended March 31, 2014
and 2013, respectively and ends on May 31, 2014 at which time the Company will purchase the building.



Executive Compensation



On June 30, 2013, the Company officer agreed
to forgive his deferred and accrued salary amounted to $128,456 that was entitled to him under the employment agreement for the
period from January to June 2013 and was subsequently included into additional paid in capital because he was a shareholder.



On July 1, 2013, the Company’s President and CEO, David
Jones, agreed to adjust his total compensation to $1.00 per year and will not receive any other benefits or other forms of compensation
which shall be paid by the Company. On February 2014 the Company executed a new Employment Agreement with David Jones, at an annual
Salary of $60,000 per year and to include all benefits as offered to any other employee at the time.



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In February 2014 the Company hired Thomas Szoke and Douglas
Solomon to join the company as acting Chief Technology Officer and Chief Operating Officer respectively, at an annual rate of $60,000
per year to include all benefits as offered to any other employee at the time. Votes will be taken at the next full Board of Directors
meeting for the appointment of each to the post permanently.



Legal Matters



From time to time, claims are made against
the Company in the ordinary course of business, which could result in litigation. Claims and associated litigation are subject
to inherent uncertainties and unfavorable outcomes could occur, such as monetary damages, fines, penalties or injunctions prohibiting
the Company from selling one or more products or engaging in other activities. The occurrence of an unfavorable outcome in any
specific period could have a material adverse effect on the Company’s results of operations for that period or future periods.
The Company is not presently a party to any pending or threatened legal proceedings.



NOTE 11–SUBSEQUENT EVENTS



In March 2014, the Company entered into a consulting agreement
with Jamie White an independent contractor hired to provide Mechanical Design services for the development of the company’s
new products. The agreement is a month to month agreement at a rate of $1200/week.



In April 2014, the Company entered into a consulting agreement
with a stockholder whereby the stockholder provides consulting services to the Company. The Company agreed to pay a monthly fee
of $8,000 per month for 160 hours of consulting per month. Additional hours incurred by the consultant is charged to the Company
at an agreed upon rate. The Company agreed to pay a $30,000 non-refundable retainer.



In April 2014, the Company entered into a consulting agreement
with James Fegan an independent contractor hired to provide specialized embedded software and hardware design services for the
development of the company’s new products. The agreement is valued at a maximum of $88,000 at a rate of $8000/bi-weekly.



In February 2014 the Company assigned Douglas Solomon Power
of Attorney to represent and work with appropriate parties to complete the closing of the office building located at 160 E. Lake
Brantley Drive, Longwood, FL 32779. In April 2014, the Company entered into a short term promissory note for $310,000 with another
entity owned by a related party for the purpose of purchasing the building at 160 E. Lake Brantley Drive, Longwood, FL 32779.



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



As of March 31, 2014, IIM Global had not
generated revenues in 2014 and had accumulated a net loss of $1,612,558 since inception.



In August 2013 IIM
Global officially entered into a business combination with Innovation in Motion, Inc., a private company operating in two technology
fields: the handheld identification market and mobile payment market. Innovation In Motion, Inc. brought a range of state-of-the-art
products in these fields and has begun serious market penetration with the sale and placement of units.



IIM Global is further
looking to enter into a business combination with other target companies with which IIM Global may effect a business combination
thus seeking the perceived benefits of a reporting corporation. Such perceived benefits may include facilitating or improving the
terms on which additional equity financing may be sought, providing liquidity for incentive stock options or similar benefits to
key employees, increasing the opportunity to use securities for acquisitions, providing liquidity for shareholders and other factors.
Business opportunities may be available in many different industries and at various stages of development, all of which will make
the task of comparative investigation and analysis of such business opportunities difficult and complex.



In analyzing prospective
a business combination, the Company may consider such matters as the available technical, financial and managerial resources; working
capital and other financial requirements; history of operations, if any; prospects for the future; nature of present and expected
competition; the quality and experience of management services which may be available and the depth of that management; the potential
for further research, development, or exploration; specific risk factors not now foreseeable but which may be anticipated; the
potential for growth or expansion; the potential for profit; the perceived public recognition or acceptance of products, services,
or trades; name identification; and other relevant factors. This discussion of the proposed criteria is not meant to be restrictive
of the virtually unlimited discretion of the Company to search for and enter into potential business opportunities.



The search for a target
company will not be restricted to any specific kind of business entities, but may acquire a venture which is in its preliminary
or development stage, which is already in operation, or in essentially any stage of its business life. It is impossible to predict
at this time the status of any business in which the Company may become engaged, whether such business may need to seek additional
capital, may desire to have its shares publicly traded, or may seek other perceived advantages which the Company may offer.



It is anticipated that
any securities issued in any such business combination would be issued in reliance upon exemption from registration under applicable
federal and state securities laws. In some circumstances, however, as a negotiated element of its transaction, the Company may
agree to register all or a part of such securities immediately after the transaction is consummated or at specified times thereafter.
If such registration occurs, it will be undertaken by the surviving entity after the Company has entered into an agreement for
a business combination or has consummated a business combination. The issuance of additional securities and their potential sale
into any trading market which may develop in the Company's securities may depress the market value of the Company's securities
in the future if such a market develops, of which there is no assurance.



While the terms of
a business transaction to which the Company may be a party cannot be predicted, it is expected that the parties to the business
transaction will desire to avoid the creation of a taxable event and thereby structure the acquisition in a tax-free reorganization
under Sections 351 or 368 of the Internal Revenue Code of 1986, as amended.



Revenues



As of March 31, 2014, IIM Global had not
generated revenues in 2014 and had loss from operations of $112,274.



General and Administrative Expenses



General and administrative expenses decreased
by $189,973, to $98,176 for the three months ended March 31, 2014, from $288,149 for the three months ended March 31, 2013. The
main components of general and administrative expenses during the three months ended March 31, 2014 were $49,850 in professional
fees, $16,959 in salaries. The main components of general and administrative expenses during the three months ended March 31, 2013
were $168,650 in professional fees, $75,760 in salaries. The main reason for the decrease in general and administrative expenses
was more professional fees incurred in the first quarter of 2013 due to preparation the reverse merger transaction between the
private operating company and the public shell which occurred in the third quarter of 2013..



11







Liquidity and Capital Resources



As of March 31, 2014, we had total current
assets of $324,351 and we had total current liabilities of $617,491.



Operating activities used $150,383 in cash
for the three months ended March 31, 2014, as compared to using $19,718 in cash for the three months ended March 31, 2013. Our
net loss of 121,824 for the three months ended March 31, 2014, decrease in accounts receivable and other current liabilities, primarily
accounted for the increase in our negative operating cash flow. Financing activities during the three months ended March 31, 2014
generated $375,375 in net cash after repayments of $349,425 of related party notes.



As of March 31, 2014 and the date of this
report, we have insufficient cash to operate our business at the current level for the next twelve months and insufficient cash
to achieve our business goals. The success of our business plan is contingent upon us obtaining additional financing. We intend
to fund operations through debt and/or equity financing arrangements, which may be insufficient to fund our capital expenditures,
working capital, or other cash requirements. We do not have any formal commitments or arrangements for the sales of stock or the
advancement or loan of funds at this time. There can be no assurance that such additional financing will be available to us on
acceptable terms, or at all. Our failure to obtain financing would have a material adverse effect on our business.



Off-Balance Sheet Arrangements



The Company has no
off-balance sheet arrangements that 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 that
is deemed by our management to be material to investors.



Contractual Obligations



In February 2014 the Company assigned Douglas
Solomon Power of Attorney to represent and work with appropriate parties to complete the closing of the office building located
at 160 E. Lake Brantley Drive, Longwood, FL 32779. It is the plan and intent of the Company to complete this action by the contracted
due date of May 31, 2014, through agreement and outstanding promissory note for the balance.



Seasonal Aspects of the Business



There are no seasonal
aspects of the business that have a material effect on the financial condition or results of the operation.



Recent Accounting Policies



The recent material
accounting policies that may be the most critical to understanding of the financial results and conditions are discussed in Note
2 of the unaudited condensed financial statements.



ITEM 3. QUANTITATIVE AND QUALITATIVE
DISCLOSURES ABOUT MARKET RISK.



Information not required to be filed by
Smaller Reporting Companies.



ITEM 4. CONTROLS AND PROCEDURES.



Evaluation of Disclosure Controls and
Procedures.



Pursuant to Rule 13a-15(b)
under the Securities Exchange Act of 1934 ("Exchange Act"), the Company's management, under the supervision and with
the participation of the Chief Operating Officer, who is also the executive principal officer and Chief Financial Officer, has
evaluated the effectiveness of the Company's disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange
Act) as of March 31, 2014, the end of the period covered by this Quarterly Report on Form 10-Q.



Based upon that evaluation, the Chief Operating
Officer and Chief Financial Officer concluded that, as of March 31, 2014, the disclosure controls and procedures were not effective.
Disclosure controls and procedures means controls and other procedures that are designed to ensure that information required to
be disclosed by the Company in the reports it files or submits under the Exchange Act is recorded, processed, summarized and reported
within the time periods specified in the Securities and Exchange Commission's rules and forms. Disclosure controls and procedures
include, without limitation, controls and procedures designed to ensure that information required to be disclosed by the Company
in the reports that it files or submits under the Exchange Act is accumulated and communicated to management, including the principal
executive and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.



12







The Company's management has identified
material weaknesses in its internal control over financial reporting related to the following matters:



A lack of sufficient
segregation of duties. Specifically, this material weakness is such that the design over these areas relies primarily on defective
controls and could be strengthened by adding preventative controls to properly safeguard company assets.



A lack of sufficient
personnel in the accounting function due to the Company's limited resources with appropriate skills, training and experience to
perform certain tasks as it relates to financial reporting.



The Company's plan to remediate those material
weaknesses remaining is as follows:



Improve the effectiveness
of the accounting group by continuing to augment existing resources with additional consultants or employees to improve segregation
procedures and to assist in the analysis and recording of complex accounting transactions. The Company plans to mitigate the segregation
of duties issues by hiring additional personnel in the accounting department once it generates significantly more revenue, or raises
significant additional working capital.



Improve segregation procedures by strengthening
cross approval of various functions including quarterly internal audit procedures where appropriate.



Changes in Internal Control Over Financial
Reporting



There was no change
in the Company's internal control over financial reporting that was identified in connection with such evaluation that occurred
during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Company's
internal control over financial reporting.



PART II



ITEM 1. LEGAL PROCEEDINGS



There are no pending, threatened or actual
legal proceedings in which the Company or any subsidiary is a party.



ITEM 2. UNREGISTERED SALES OF EQUITY
SECURITIES AND USE OF PROCEEDS



All shares of common stock issued by the
Company have been issued pursuant to an exemption from registration under Section 4(2) of the Securities Act of 1933, as amended,
as transactions by an issuer not involving any public offering.



During the past two years, the Company
has issued the following common shares:



On December 20, 2012, the Company redeemed
an aggregate of 19,500,000 of the then 20,000,000 shares of outstanding stock at a redemption price of $0.0001 per share for an
aggregate redemption price of $1,950.



On December 21, 2012, IIM Global Corporation
(formerly Silverwood Acquisition Corporation) 1,000,000 shares were issued to the new officer of the company at $0.0001 representing
67% of the total outstanding 1,500,000 shares of common stock.



In June 30, 2013, the stockholders made
a capital contribution in the amount of totally $2,843 to pay operating expenses incurred by the Company.



In April 2013, the Company entered into
various stockholder subscription agreements with 5 private investors in order to provide working capital for the Company. The agreements
stipulate that the shares of common stock will not be issued to the investors until the execution of the reverse merger agreement
and subsequent Initial Public Offering. The Company raised $515,000 in cash from the stockholder subscription agreements for the
purchase of 1,910,000 shares of common stock.



On August 12, 2013, IIM Global acquired
Innovation in Motion Inc., a Florida corporation (“Innovation in Motion”), in a stock-for-stock transaction (the “Acquisition”).
The purpose of the Acquisition was to facilitate and prepare the Company for a registration statement and/or public offering of
securities.



13







The Acquisition was effected by the Company
through the exchange of each of the outstanding shares and interests of Innovation in Motion for 1.6 shares of common stock of
the Company. As a result, in the Acquisition, 97,970,562 shares and interests of common stock of Innovation in Motion were exchanged
for, and converted into, 156,752,899 shares of common stock of the Company.



ITEM 3. DEFAULTS UPON SENIOR SECURITIES



Not applicable.



ITEM 4. SUBMISSION OF MATTERS TO A VOTE
OF SECURITY HOLDERS



There were no matters submitted to a vote
of the security holders during the quarter covered by this report.



ITEM 5. OTHER INFORMATION



(a) Not applicable.

(b) Item 407(c)(3) of Regulation S-K:



During the quarter covered by this Report,
there have not been any material changes to the procedures by which security holders may recommend nominees to the Board of Directors.



ITEM 6. EXHIBITS



|(a)  | Exhibits                                                                                                                                                              
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                                       
|31.1 | Certification of Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act                                                          
|     |                                                                                                                                                                       
|31.2 | Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act                                                          
|     |                                                                                                                                                                       
|32.1 | Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002



SIGNATURES



Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.





|IIM GLOBAL CORPORATION |                            
|---------------------- | ---------------------------
|                       |                            
|Date: May 15, 2014     | By: /s/ David S. Jones     
|                       | President,                 
|                       | Chief Executive Officer and
|                       | Chief Financial Officer    









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