----

| Nevada                                                         | 86-0970023                           |
|----------------------------------------------------------------|--------------------------------------|
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |

----

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

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| 1.   | Bank term loan, prime rate plus 1.75%, currently 5%, P&I payments of $5,946 due monthly, and a balloon payment of $802,294 due June 28, 2018; and |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2.   | Bank term loan, prime rate plus 3.00%, currently 6.25%, P&I payments of $883 due monthly, and a balloon payment of $104,329 due October 15, 2018. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| Period                                    |  High                          |  Low                           |
|-------------------------------------------|-------------------------------------|-------------------------------------|
|                                      |                           |                           |
| January 1, 2013 through March 31, 2013    |  $    0.25 |  $    0.15 |
|                                      |                           |                           |
| April 1, 2013 through June 30, 2013       |  $    0.24 |  $    0.15 |
|                                      |                           |                           |
| July 1, 2013 through September 30, 2013   |  $    0.48 |  $    0.11 |
|                                      |                           |                           |
| October 1, 2013 through December 31, 2013 |  $    0.40 |  $    0.10 |
|                                      |                           |                           |
| January 1, 2014 through March 31, 2014    |  $    0.75 |  $    0.29 |
|                                      |                           |                           |
| April 1, 2014 through June 30, 2014       |  $    0.75 |  $    0.40 |
|                                      |                           |                           |
| July 1, 2014 through September 20, 2014   |  $    1.25 |  $    0.68 |
|                                      |                           |                           |
| October 1, 2014 through December 31, 2014 |  $    0.95 |  $    0.52 |
|                                      |                           |                           |
| January 1, 2015 through March 31, 2015    |  $    0.50 |  $    0.30 |
|                                      |                           |                           |
| April 1, 2015 through June 30, 2015       |  $    0.26 |  $    0.09 |

| July 1, 2015 through September 20, 2015   | $ 2.40                              | $ 1.00                              |
|-------------------------------------------|-------------------------------------|-------------------------------------|
|                                      |                                |                                |
| October 1, 2015 – December 31, 2015 | $  2.20                        | $ 0.62                              |
|                                      |                                |                                |
| January 1, 2016 through March 31, 2016    |  $    0.62 |  $    0.22 |
|                                      |                                |                                |
| April 1, 2016 through June 30, 2016       |  $    2.30 |  $    0.55 |

----

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|                                                      |  Page |
|-----------------------------------------------------------|------------|
| Reports of Independent Registered Public Accounting Firms | 12         |
|                                                      |       |
| Consolidated Balance Sheet                                | 13         |
|                                                      |       |
| Consolidated Statement of Operations                      | 14    |
|                                                      |       |
| Statement of Changes in Stockholders' Equity              | 15    |
|                                                      |       |
| Consolidated Statement of Cash Flows                      | 16    |
|                                                      |       |
| Notes to Consolidated Financial Statements                | 17    |

----

----

| GROW CONDOS, INC. and Subsidiary                              |
|---------------------------------------------------------------|
| CONSOLIDATED BALANCE SHEET                     |
| as of June 30, 2016 and June 30, 2015     |
|                                                                                                                                        |   |     |        |   |     |   |
|---------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|-------------|--------|----------|--------|
| ASSETS                                                                                                                                      |   |     |        |   |     |   |
|                                                                                                                                        |   | June 30, |        |   | June 30, |   |
|                                                                                                                                        |   | 2016     |        |   | 2015     |   |
| Current Assets                                                                                                                              |   |     |        |   |     |   |
|     Cash and cash equivalents                                                                                           |   | $        | 44,148      |   |     | $      | 42,747 |   |
|     Lease receivables                                                                                                   |   |     | 79          |   |     |   | 1,161 |   |
|     Prepaid expenses                                                                                                    |   |     | 20,896      |   |     |   | 5,450 |   |
|                                                                                                                                        |   |     |        |   |     |   |   |   |
|         Total Current Assets                                                                        |   |     | 65,123      |   |     |   | 49,358 |   |
|                                                                                                                                        |   |     |        |   |     |   |   |   |
| Property and Equipment, net                                                                                                                 |   |     | 1,523,244   |   |     |   | 1,257,368 |   |
| Deposits                                                                                                                                    |   |     | 5,381       |   |     |   | 8,618 |   |
| Debt Discount, summary                                                                                                                      |   |     | 104,983     |   |     |   | - |   |
|                                                                                                                                        |   |     |        |   |     |   |   |   |
|       Total Assets                                                                                            |   | $        | 1,698,731   |   |     | $      | 1,315,344 |   |
|                                                                                                                                        |   |     |        |   |     |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)                                                                                              |   |     |        |   |     |
|                                                                                                                                        |   |     |        |   |     |   |   |   |
| Current Liabilities                                                                                                                         |   |     |        |   |     |   |   |   |
|     Accounts payable, trade                                                                                             |   |     | 3,000       |   |     |   | 70,036 |   |
|     Accrued liabilities                                                                                                 |   |     | 353,788     |   |     |   | 112,058 |   |
|     Derivatives, net                                                                                                    |   |     | 792,445     |   |     |   | - |   |
|     Mortgages payable, current portion                                                                                  |   |     | 33,187      |   |     |   | 31,304 |   |
|                                                                                                                                        |   |     |        |   |     |   |   |   |
|         Total Current Liabilities                                                                   |   |     | 1,182,420   |   |     |   | 213,398 |   |
|                                                                                                                                        |   |     |        |   |     |   |   |   |
| Mortgages payable, less current portion                                                                                                     |   |     | 1,203,054   |   |     |   | 967,053 |   |
| Customer deposits                                                                                                                           |   |     | 4,900       |   |     |   | 4,900 |   |
| Deferred option revenue                                                                                                                     |   |     | 15,400      |   |     |   | 21,400 |   |
|                                                                                                                                        |   |     |        |   |     |   |   |   |
|         Total Liabilities                                                                           |   |     | 2,405,774   |   |     |   | 1,206,751 |   |
|                                                                                                                                        |   |     |        |   |     |   |   |   |
| Shareholder's Equity                                                                                                                        |   |     |        |   |     |   |   |   |
|     Preferred stock, $.001par value, 5,000,000 shares authorized none issued or outstanding                        |   |     | -           |   |     |   | - |   |
|     Common stock, $.001 par value, 100,000,000 shares authorized 28,284,924 and 2,084,925 shares issued and outstanding |   |     | 228,680     |   |     |   | 2,085 |   |
|     Additional paid-in capital                                                                                          |   |     | 12,001,259  |   |     |   | 11,547,035 |   |
|     Accumulated deficit                                                                                                 |   |     | (12,936,983 | )      |     |   | (11,440,527 | ) |
|                                                                                                                                        |   |     |        |   |     |   |   |   |
|         Total Shareholder's Equity                                                                  |   |     | (707,044    | )      |     |   | 108,593 |   |
|                                                                                                                                        |   |     |        |   |     |   |   |   |
|         Total Liabilities and Shockholder's Equity                                                  |   | $        | 1,698,731   |   |     | $      | 1,315,344 |   |
| The Accompanying Notes are an Integral Part of the Consolidated Financial Statements |
|--------------------------------------------------------------------------------------|

----

| GROW CONDOS, INC. AND SUBSIDIARY                     |
|------------------------------------------------------|
|  CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS |
|  For the Years Ended June 30, 2016 and 2015     |
|                                              |   |   |       |   |   |   |
|---------------------------------------------------|--------|--------|------------|--------|--------|--------|
|                                              |   | 2016   |       |   | 2015   |   |
|                                              |   |   |       |   |   |   |
|                                              |   |   |       |   |   |   |
| Rental revenues                                   |   | $      | 118,533    |   |   | $      | 54,998 |   |
| Total revenues                                    |   |   | 118,533    |   |   |   | 54,998 |   |
|                                              |   |   |       |   |   |   |   |   |
| Operating expenses                                |   |   | 1,041,370  |   |   |   | 256,979 |   |
|                                              |   |   |       |   |   |   |   |   |
| Gain/(Loss) from operations                       |   |   | (922,837   | )      |   |   | (201,981 | ) |
|                                              |   |   |       |   |   |   |   |   |
| Interest expense                                  |   |   | 69,907     |   |   |   | 49,357 |   |
| Derivative Liability Expense                      |   |   | 503,711    |   |   |   |   |   |
| Loss before provision for income taxes            |   |   | (1,496,455 | )      |   |   | (251,338 | ) |
| Provision for income taxes                        |   |   | -          |   |   |   | - |   |
| Net income/(loss)                                 |   | $      | (1,496,455 | )      |   | $      | (251,338 | ) |
|                                              |   |   |       |   |   |   |   |   |
| Net loss per common share:                        |   |   |       |   |   |   |   |   |
|    Basic and diluted               |   | $      | (0.06      | )      |   | $      | (0.13 | ) |
|                                              |   |   |       |   |   |   |   |   |
| Weighted average common shares; basic and diluted |   |   | 14,374,487 |   |   |   | 1,946,359 |   |
|                                              |   |   |       |   |   |   |   |   |
| The Accompanying Notes are an integral part of these Condensed Consolidated Financial Statements |
|--------------------------------------------------------------------------------------------------|

----

| GROW CONDOS, INC.                                 |
|--------------------------------------------------------------------------------------------------------------------|
| STATEMENT OF CHANGES IN STOCKHOLDER EQUITY             |
|   For the Years Ended June 30, 2016 and 2015                                                             |
|                                                           |   |   Shares |        |   |   Amount |   |    |   Additional Paid-In Capital |   |   |   Accumulated Deficit |    |   |   Total Shareholders’ Equity |        |
|----------------------------------------------------------------|--------|---------------|-------------|--------|---------------|--------|---------|-----------------------------------|--------|--------|----------------------------|---------|--------|-----------------------------------------|-------------|
|                                                           |   |          |        |   |          |   |    |                              |   |   |                       |    |   |                                    |        |
| For the Years Ended June 30, 2016 and 2015                     |   |          |        |   |          |   |    |                              |   |   |                       |    |   |                                    |        |
|                                                           |   |          |        |   |          |   |    |                              |   |   |                       |    |   |                                    |        |
| Balance at June 30, 2014                                       |   |          | 41,435,709  |   |          | $      | 41,436  |                              |   | $      | 11,422,282                 |    |   | $                                       | (11,189,189 | )  |   | $ | 274,529 |   |
|                                                           |   |          |        |   |          |   |    |                              |   |   |                       |    |   |                                    |        |   |   |   |   |   |
| Founding contributed capital and debt forgiveness              |   |          | -           |   |          |   |    |                              |   |   |                       |    |   |                                    |        |   |   |   | - |   |
|                                                           |   |          |        |   |          |   |    |                              |   |   |                       |    |   |                                    |        |   |   |   |   |   |
| Common Stock for cash                                          |   |          | -           |   |          |   |    |                              |   |   |                       |    |   |                                    |        |   |   |   | - |   |
|                                                           |   |          |        |   |          |   |    |                              |   |   |                       |    |   |                                    |        |   |   |   |   |   |
| Common Stock  for services                                |   |          | -           |   |          |   |    |                              |   |   |                       |    |   |                                    |        |   |   |   | - |   |
|                                                           |   |          |        |   |          |   |    |                              |   |   |                       |    |   |                                    |        |   |   |   |   |   |
| Warrants Exercised for Common Stock                            |   |          | 262,770     |   |          |   | 229     |                              |   |   | 85,173                     |    |   |                                    |        |   |   |   | 85,402 |   |
|                                                           |   |          |        |   |          |   |    |                              |   |   |                       |    |   |                                    |        |   |   |   |   |   |
|   Net loss for the period ended June 30, 2015        |   |          | -           |   |          |   |    |                              |   |   |                       |    |   |                                    | (251,338    | )  |   |   | (251,338 | ) |
|                                                           |   |          |        |   |          |   |    |                              |   |   |                       |    |   |                                    |        |   |   |   |   |   |
| Balance at June 30, 2015                                       |   |          | 41,698,479  |   |          | $      | 41,665  |                              |   | $      | 11,507,455                 |    |   | $                                       | (11,440,527 | )  |   | $ | 108,593 |   |
|                                                           |   |          |        |   |          |   |    |                              |   |   |                       |    |   |                                    |        |   |   |   |   |   |
| Balance at June 30, 2015                                       |   |          | 41,698,479  |   |          |   | 41,665  |                              |   |   | 11,507,455                 |    |   |                                    | (11,440,527 |   |   |   | 108,593 |   |
|                                                           |   |          |        |   |          |   |    |                              |   |   |                       |    |   |                                    |        |   |   |   |   |   |
| Founding contributed capital and debt forgiveness              |   |          | -           |   |          |   |    |                              |   |   |                       |    |   |                                    |        |   |   |   | - |   |
|                                                           |   |          |        |   |          |   |    |                              |   |   |                       |    |   |                                    |        |   |   |   |   |   |
| Common Stock for cash                                          |   |          | 500,000     |   |          |   | 199,490 |                              |   |   | 500                        |    |   |                                    |        |   |   |   | 199,990 |   |
|                                                           |   |          |        |   |          |   |    |                              |   |   |                       |    |   |                                    |        |   |   |   |   |   |
| Common Stock  for services                                |   |          | 5,005,000   |   |          |   | 5,005   |                              |   |   | 73,814                     |    |   |                                    |        |   |   |   | 78,819 |   |
|                                                           |   |          |        |   |          |   |    |                              |   |   |                       |    |   |                                    |        |   |   |   |   |   |
| Stock Based Compensation  Valuation -  Stock Options |   |          | -           |   |          |   |    |                              |   |   | 397,010                    |    |   |                                    |        |   |   |   | 397,010 |   |
|                                                           |   |          |        |   |          |   |    |                              |   |   |                       |    |   |                                    |        |   |   |   |   |   |
| Twenty (20) for One (1) Reverse Split                          |   |          | (43,413,555 | )      |          |   | (42,480 | )                            |   |   | 42,480                     |    |   |                                    |        |   |   |   | - |   |
|                                                           |   |          |        |   |          |   |    |                              |   |   |                       |    |   |                                    |        |   |   |   |   |   |
| Convert 5,000,000 Preferred to 25,000,000 Common               |   |          | 25,000,000  |   |          |   | 25,000  |                              |   |   | (20,000                    | )  |   |                                    |        |   |   |   | 5,000 |   |
|                                                           |   |          |        |   |          |   |    |                              |   |   |                       |    |   |                                    |        |   |   |   |   |   |
| Net loss for the period ended June 30, 2016                    |   |          | -           |   |          |   |    |                              |   |   |                       |    |   |                                    | (1,496,455  | )  |   |   | (1,496,455 | ) |
|                                                           |   |          |        |   |          |   |    |                              |   |   |                       |    |   |                                    |        |   |   |   |   |   |
| Balance at June 30, 2016                                       |   |          | 28,789,924  |   |          | $      | 228,680 |                              |   | $      | 12,001,259                 |    |   | $                                       | (12,936,983 | )  |   | $ | (707,044 | ) |
|                                                           |   |          |        |   |          |   |    |                              |   |   |                       |    |   |                                    |        |   |   |   |   |   |

----

| GROW CONDOS, INC. and Subsidary            |
|--------------------------------------------|
| CONSOLIDATED STATEMENT OF CASH FLOWS       |
| For the Years Ended June 30, 2016 and 2015 |
|                                                                            |   |                             |       |   |   |   |
|---------------------------------------------------------------------------------|--------|----------------------------------|------------|--------|--------|--------|
|                                                                            |   | For the Twelve Months Ended |       |
|                                                                            |   | 2016                             |       |   | 2015   |   |
| Cash flows from operating activities:                                           |   | (Umaudited)                      |       |   |   |   |
|     Net loss                                                |   | $                                | (1,496,455 | )      |   | $      | (251,338 | ) |
|                                                                            |   |                             |       |   |   |   |   |   |
| Adjustments to reconcile net loss to net cash provided by operating activities: |   |                             |       |   |   |   |   |   |
|     Depreciation and amortization                           |   |                             | 28,226     |   |   |   | 27,872 |   |
|     Stock issued for services                               |   |                             |       |   |   |   |   |   |
|     Allowance for doubtful accounts                         |   |                             |       |   |   |   |   |   |
| Changes in assets and liabilities:                                              |   |                             |       |   |   |   |   |   |
|     Deposits                                                |   |                             | 3,237      |   |   |   | (7,800 | ) |
|     Lease receivable                                        |   |                             | 1,082      |   |   |   | (211 | )  |
|     Prepaids                                                |   |                             | (15,446    | )      |   |   | (5,046 | ) |
|     Accounts payable, trade                                 |   |                             | (67,036    | )      |   |   | 34,975 |   |
|     Accrued expenses                                        |   |                             | 241,730    |   |   |   | (7,238 | ) |
|     Security deposit                                        |   |                             | -          |   |   |   | 1,300 |   |
|     Deferred options revenue                                |   |                             | (6,000     | )      |   |   | 17,500 |   |
|                                                                            |   |                             |       |   |   |   |   |   |
|                                                                            |   |                             |       |   |   |   |   |   |
|     Net cash used by operating activities                   |   |                             | (1,310,662 | )      |   |   | (189,986 | ) |
|                                                                            |   |                             |       |   |   |   |   |   |
| Cash flows from investing activities:                                           |   |                             |       |   |   |   |   |   |
|     Purchase of property and improvements                   |   |                             | (294,102   | )      |   |   | (83,390 | ) |
|                                                                            |   |                             |       |   |   |   |   |   |
|     Net cash used by investing activities                   |   |                             | (294,102   | )      |   |   | (83,390 | ) |
|                                                                            |   |                             |       |   |   |   |   |   |
| Cash flows from financing activities:                                           |   |                             |       |   |   |   |   |   |
|     Repayments of mortgage                                  |   |                             | (29,254    | )      |   |   | (29,420 | ) |
|     Proceeds of debt                                        |   |                             | 680,829    |   |   |   |   |   |
|     Proceeds from short-term debt                           |   |                             | 954,590    |   |   |   | 105,000 |   |
|     Proceeds from exercise of warrants                      |   |                             |       |   |   |   | 85,390 |   |
|                                                                            |   |                             |       |   |   |   |   |   |
|     Net cash provided by financing activities               |   |                             | 1,606,165  |   |   |   | 160,970 |   |
|                                                                            |   |                             |       |   |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents                            |   |                             | 1,401      |   |   |   | (112,406 | ) |
|                                                                            |   |                             |       |   |   |   |   |   |
| Cash and cash equivalents at beginning of period                                |   |                             | 42,747     |   |   |   | 155,153 |   |
|                                                                            |   |                             |       |   |   |   |   |   |
| Cash and cash equivalents at end of period                                      |   | $                                | 44,148     |   |   | $      | 42,747 |   |
|                                                                            |   |                             |       |   |   |   |   |   |
| Supplemental disclosure of cash flow information:                               |   |                             |       |   |   |   |   |   |
|                                                                            |   |                             |       |   |   |   |   |   |
| Cash paid during the period for:                                                |   |                             |       |   |   |   |   |   |
|     Interest                                                |   | $                                | 69,907     |   |   | $      | 49,357 |   |
|     Taxes                                                   |   | $                                | -          |   |   | $      | 7,551 |   |
|                                                                            |   |                             |       |   |   |   |   |   |
| The Accompanying Notes are an integral part of these Condensed Consolidated Financial Statements |
|--------------------------------------------------------------------------------------------------|

----

----

----

----

| · | persuasive evidence of an arrangement exists;                       |
|--------|--------------------------------------------------------------------------|
| · | use of the real property has taken place or services have been rendered; |
| · | the fee for the arrangement is fixed or determinable; and  |
|--------|-----------------------------------------------------------------|
| · | collectability is reasonably assured.                           |

----

|   | Level 1: | classification is applied to any asset or liability that has a readily available quoted market price from an active market where there is significant transparency in the executed/quoted price. |
|--------|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | Level 2: | classification is applied to assets and liabilities that have evaluated prices where the datainputs to these valuations are observable either directly or indirectly, but do not representquoted market prices from an active market. |
|--------|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | Level 3: | classification is applied to assets and liabilities when prices are not derived from existingmarket data and requires us to develop our own assumptions about how market participantswould price the asset or liability.  |
|--------|----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                   |                | Fair Value Measurements Using |
|------------------------|---------------------|----------------------------------------------|
|                   |                |                     |
|                   | Total Fair     | Quoted prices in                   | Significant other | Significant |
|                   | Value at       | active markets                          | observable inputs | Unobservable inputs |
| Description            |  June 30, 2016 | (Level 2)                                    | (Level 2) | (Level 3) |
|                   |                |                                         |   |           |
| Derivative liabilities | $461,162            | $ -                                     | $ 461,162 | $ - |

----

| Equity instruments (21,025,709 common shares of the Company) issued         |   |   | 10,302,597 |   |
|-----------------------------------------------------------------------------|--------|--------|------------|--------|
| Fair value of total consideration transferred                               |   | $      | 10,302,597 |   |
| Recognized amounts of identifiable assets acquired and liabilities assumed: |   |   |       |   |
| Cash                                                                        |   | $      | 76,774     |   |
| Property, plant, and equipment                                              |   |   | 350        |   |
| Deposits                                                                    |   |   | 818        |   |
| Accounts payable and accrued liabilities assumed                            |   |   | (41,710    | )      |
| Total identifiable net liabilities                                          |   |   | 36,232     |   |
| Goodwill                                                                    |   |   | 10,266,365 |   |
| Total purchase price allocated                                              |   | $      | 10,302,597 |   |

----

|                                                                                                        |   | June 30, 2016 |       |
|-------------------------------------------------------------------------------------------------------------|--------|---------------|------------|
|                                                                                                        |   |          |       |
| Net loss                                                                                                    |   | $             | (1,496.455 | ) |
|                                                                                                        |   |          |       |   |
| Weighted average number of common shares used in basic earnings per share                                   |   |          | 14,374,487 |   |
|                                                                                                        |   |          |       |   |
| Effect of dilutive securities:                                                                              |   |          |       |   |
|       Stock options                                                           |   |          | -          |   |
|       Stock warrants                                                          |   |          | -          |   |
|                                                                                                        |   |          |       |   |
| Weighted average number of common shares and dilutive potential common stock used in diluted loss per share |   |          | 14,374,487 |   |
|                                                                                                        |   |          |       |   |

----

| Buildings and improvements     |   | $      | 1,117181  |   |
|--------------------------------|--------|--------|-----------|--------|
| Land                           |   |   | 482,205   |   |
|                           |   |   | 1,599,386 |   |
| Less: accumulated depreciation |   |   | (76,142   | )      |
|                           |   | $      | 1,523,244 |   |

----

| Bank term loan, prime rate plus 1.75%, currently 5%, P&I payments of $5,946 due monthly, balloon payment of $802,294 due June 28, 2018, secured by property       |   | $      | 859,210       |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------------|--------|
|                                                                                                                                                                  |   |   |          |   |
|  Bank term loan, prime rate plus 1.75%, currently 5%, P&I payments of $5,946 due monthly, balloon payment of $802,294 due June 28, 2018, secured by property |   |        |  109,903 |   |
|                                                                                                                                                                  |   |   |          |   |
| Private loan, 5% interest, interest only payments of $1,335.65 due monthly, balloon payment of $267,129.00 due October 1, 2017.                                       |   |   | 267,129       |   |
|                                                                                                                                                                  |   |   |          |   |
| Less: current portion                                                                                                                                                 |   |   | (33,187       | )      |
|                                                                                                                                                                  |   | $      | 1,203,054     |   |
| 2017                                                                                            |   | $      | 33,187    |   |
|-------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|
| 2018                                                                                            |   |   | 1,169,867 |   |
|                                                                                            |   |   |      |   |
|                Total |   | $      | 1,203,054 |   |

----

| Current portion:                                                                       |   |   |    |
|----------------------------------------------------------------------------------------|--------|--------|---------|
|           Net operating loss carryforward |   | $      | 61,363  |   |
|                                                                                   |   |   |    |   |
|                                                                                   |   |   |    |   |
|           Less: valuation allowance       |   |   | -61,363 |   |
|                                                                                   |   |   |    |   |
| Deferred tax asset-current portion                                                     |   | $      | -       |   |

----

----

| As of June 30, 2016 there are no outstanding Warrants.  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|--------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|

----

|                                    |   |      |      |           |   | Weighted        |      |      |   |
|-----------------------------------------|--------|-----------|-----------|----------------|--------|-----------------|-----------|-----------|--------|
|                                    |   |      |      |           |   | Average         |      |      |   |
|                                    |   |      |      | Weighted       |   | Remaining       |      | Aggregate |   |
|                                    |   | Number of |      | Average        |   | Contractual     |      | Intrinsic |   |
|                                    |   | Options   |      | Exercise Price |   | Term (in years) |      | Value     |   |
|                                    |   |      |      |           |   |            |      |      |   |
| Options outstanding at January 25, 2016 |   |      | 4,000,000 |           |   |            | 0.40      |      |   |   |   |   |
|                                    |   |      |      |           |   |            |      |      |   |   |   |   |   |   |
|    Granted               |   |      |      |           |   |            | 2,000,000 |      |   |   | - |   |   |   |   |   |
|    Exercised             |   |      |      |           |   |            | 1,500,000 |      |   |   | - |   |   |   |   |   |
|    Forfeited             |   |      |      |           |   |            | -         |      |   |   | - |   |   |   |   |   |
|                                    |   |      |      |           |   |            |      |      |   |   |   |   |   |   |   |   |
| Options outstanding at June 30, 2016    |   |      |      |           |   |            | 500,000   |      |   | $ | 0.40 |   |   |   | 1 |   |   | $ | - |   |
|                                    |   |      |      |           |   |            |      |      |   |   |   |   |   |   |   |   |   |   |   |   |
| Options exercisable at June 30, 2016    |   |      |      |           |   |            | 500,000   |      |   | $ | 0.40 |   |   |   | 1 |   |   | $ | - |   |

----

----

----

| Name              | Positions Held               | Date of Election or Designation | Date of Termination or Resignation |
|-------------------|------------------------------|---------------------------------|------------------------------------|
| Wayne A. Zallen   | President, CEO and Director  | July 22, 2014                   | *                                  |
| Joann Z. Cleckner | Secretary, Treasurer and CFO | July 22, 2014                   | *                                  |
| Carl S. Sanko     | Director                     | July 22, 2014                   | *                                  |
| David Tobias      | Director                     | September 25, 2015              | *                                  |

----

----

| Name and Position               | Year              | Salary($) | All other Compensation($)(3)(4) | Total($) |
|---------------------------------|-------------------|-----------|---------------------------------|----------|
|                            | 2016              | $12,500   | 0                               | $12,500  |
| Wayne A. Zallen, CEO (1)        | 2015              | $30,000   | 0                               | $30,000  |
|                            | Transition Period | 0         | 0                               | 0        |
|                            | 2013              | 0         | 0                               | 0        |
|                            |              |      |                            |     |
|                            | 2016              | $7,500    | 0                               | $7,500   |
| Joann Z. Cleckner, CFO (1)      | 2015              | $9,000    | 0                               | $9,000   |
|                            | Transition Period | 0         | 0                               | 0        |
|                            | 2013              | 0         | 0                               | 0        |
|                            |              |      |                            |     |
|                            | 2016              | 0         | 0                               | 0        |
| Jeff W. Holmes, CEO (2) (3) (4) | 2015              | 0         | 0                               | 0        |
|                            | Transition Period | 78,722    | 188,786                         | 267,508  |
|                            | 2013              | 153,722   | 2,406                           | 156,128  |

----

| Title Of Class | Name and Address of Beneficial Owner                              | Amount and Nature of Beneficial Owner | Percent of Class (1) |
|----------------|-------------------------------------------------------------------|---------------------------------------|----------------------|
| Common Stock   | Wayne A. Zallen722 W. Dutton RoadEagle Point, OR  97524 | 23,918,450 Direct                     | 81.08%               |

| Title of Class | Name and Address of Beneficial Owner                                | Amount and Nature of Beneficial Owner | Percent of Class |
|----------------|---------------------------------------------------------------------|---------------------------------------|------------------|
| Common Stock   | Wayne A. Zallen2944 Delta Waters RoadMedford, OR  97504   | 23,918,450Direct                      | 81.08%           |
| Common Stock   | Joann Z. Cleckner722 W. Dutton RoadEagle Point, OR  97524 | 150,000 Direct                        | 0.52%            |
| Common Stock   | Carl S. Sanko18301 Ghost Town StTehachapi, CA  93561      | 289,400 Direct                        | 1.01%            |
| Common Stock   | Total Officers and Directors as a group (3 persons)                 | 1,248,297 Direct                      | 4.34%            |

----

| Fee Category       |   | Transition Period |   |   | 2015   |   |   | 2016   |   |
|--------------------|--------|-------------------|--------|--------|--------|--------|--------|--------|--------|
| Audit Fees         |   | $                 | 3,850  |   |   | $      | 78,923 |   |   | $ | 99,945 |   |
| Audit-related Fees |   |              | -      |   |   |   | -      |   |   |   | - |   |
| Tax Fees           |   |              | -      |   |   |   | -      |   |   | $ | 2,000 |   |
| All Other Fees     |   |              | -      |   |   |   | -      |   |   |   | - |   |
| Total Fees         |   | $                 | 59,900 |   |   | $      | 3,850  |   |   | $ | 119,945 |   |

----

| Exhibit Number | Description (1)                                         |
|----------------|---------------------------------------------------------|
| 3.1            | Articles of Incorporation (2)                           |
| 3.2            | By-laws  (2)                                  |
| 14             | Code of Conduct (2)                                     |
| 31.1           | 302 Certification of Wayne A. Zallen                    |
| 31.2           | 302 Certification of Joann Z. Cleckner                  |
| 32             | 906 Certification                                       |
| 99             | NASDAQ Rule 4200(a)(15)                                 |
| 101 INS        | XBRL Instance Document*                                 |
| 101 PRE        | XBRL Taxonomy Extension Presentation Linkbase Document* |
| 101 LAB        | XBRL Taxonomy Extension Label Linkbase Document*        |
| 101 DEF        | XBRL Taxonomy Extension Definition Linkbase Document*   |
| 101 CAL        | XBRL Taxonomy Extension Calculation Linkbase Document*  |
| 101 SCH        | XBRL Taxonomy Extension Schema Document*                |

----

----