UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549



FORM 10-Q



|x |  | QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934        
|- |  | -----------------------------------------------------------------------------------------
|  |  |                                                                                          
|  |  | For the quarterly period ended:    December 31, 2015                                     
|  |  |                                                                                          
|  |  | or                                                                                       
|  |  |                                                                                          
|o |  | 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 000-1273988



Date of Report
(date of earliest event reported):   February 23, 2016



FUTUREWORLD CORP.

(Exact name of registrant as specified
in its charter)



|DELAWARE                                       | 000-1273988              | 81-0562883                       
|---------------------------------------------- | ------------------------ | ---------------------------------
|(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.)
|                                               |                          |                                  



|                                                 |           
|------------------------------------------------ | ----------
|3637 4th Street North, Saint Petersburg, Florida | 33704     
|(Address of principal executive offices)         | (Zip Code)



Registrant's telephone number, including
area code:   (727) 474-1816

Securities registered pursuant to Section 12(b) of
the Act:



|Title of Each Class                                                                                                 |  | Name of Each Exchange on Which Registered
|------------------------------------------------------------------------------------------------------------------- |  | -----------------------------------------
|                                                                                                                    |  |                                          
|None                                                                                                                |  | None                                     
|                                                                                                                    |  |                                          
|Securities registered pursuant
        to section 12(g) of the Act:
        Common Stock, $0.0001 par
        value



|Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.                                                                                                                                                                                                                                  | oYes | xNo
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---- | ---
|                                                                                                                                                                                                                                                                                                                                                         |      |    
|Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.                                                                                                                                                                                                                             | xYes | oNo
|                                                                                                                                                                                                                                                                                                                                                         |      |    
|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 | oNo
|                                                                                                                                                                                                                                                                                                                                                         |      |    
|                                                                                                                                                                                                                                                                                                                                                         |      |    



|                                                                                                                                                                                                                                                                                                                                                                  | xYes               | oNo                   
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------ | ----------------------
|                                                                                                                                                                                                                                                                                                                                                                  |                    |                       
|Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§ 229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. | oYes               | xNo                   
|                                                                                                                                                                                                                                                                                                                                                                  |                    |                       
|Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer.                                                                                                                                                                                                                                    
|oLarge accelerated filer                                                                                                                                                                                                                                                                                                                                          | oAccelerated filer | oNon-accelerated filer
|                                                                                                                                                                                                                                                                                                                                                                 
|Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).                                                                                                                                                                                                                                                           | oYes               | xNo                   
|                                                                                                                                                                                                                                                                                                                                                                  |                    |                       



The aggregate market value of the voting
and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold,
or the average bid and asked price of such common equity, as of the last business day of the registrant’s most recently completed
second fiscal quarter:



|Voting Common Equity | Non-voting Common Equity
|-------------------- | ------------------------
|$800,000             | None                    



The number of shares outstanding of each
of the registrant’s classes of common stock, as of February 22, 2016:



|Common stock, par value $0.0001 per share | 2,807,089,397
|----------------------------------------- | -------------
|Other                                     | None         













This Form 10-Q is being filed to
disclose the fact that it was not reviewed by our independent registered public accounting firm



FutureWorld Corp.

Annual Report
on Form 10-Q

For the Second Quarter Ended December
31, 2015



INDEX



|           |                                                                                                                            |    |     
|---------- | -------------------------------------------------------------------------------------------------------------------------- | -- | ----
|PART I     | FINANCIAL INFORMATION                                                                                                      |    | PAGE
|           |                                                                                                                            |    |     
|Item 1     | Condensed Consolidated Financial Statements                                                                                |    |     
|           |                                                                                                                            |    |     
|           | Condensed Consolidated Balance Sheets as of December 31, 2015 (unaudited) and March 31, 2015 (unaudited)                   |    | 5   
|           |                                                                                                                            |    |     
|           | Condensed Consolidated Statements of Operations for the Three and Nine Months Ended December 31, 2015 and 2014 (unaudited) |    | 6   
|           |                                                                                                                            |    |     
|           | Condensed Consolidated Statements of Cash Flows for the Nine Months Ended December 31, 2015 and 2014 (unaudited)           |    | 7   
|           |                                                                                                                            |    |     
|           | Condensed Consolidated Notes to Financial Statements (unaudited)                                                           |    | 8   
|           |                                                                                                                            |    |     
|Item 2     | Management's Discussion and Analysis or Plan of Operation                                                                  |    | 17  
|           |                                                                                                                            |    |     
|Item 3     | Quantitative and Qualitative Disclosures About Market Risk                                                                 |    | 20  
|           |                                                                                                                            |    |     
|Item 4     | Controls and Procedures                                                                                                    |    | 21  
|           |                                                                                                                            |    |     
|           |                                                                                                                            |    |     
|           |                                                                                                                            |    |     
|           |                                                                                                                            |    |     
|PART II    | OTHER INFORMATION                                                                                                          |    |     
|           |                                                                                                                            |    |     
|Item 1     | Legal Proceedings                                                                                                          |    | 21  
|           |                                                                                                                            |    |     
|Item 1A    | Risk Factors                                                                                                               |    | 21  
|           |                                                                                                                            |    |     
|Item 2     | Unregistered Sales of Equity Securities and Use of Proceeds                                                                |    | 21  
|           |                                                                                                                            |    |     
|Item 3     | Defaults Upon Senior Securities                                                                                            |    | 21  
|           |                                                                                                                            |    |     
|Item 4     | Removed and Reserved                                                                                                       |    | 21  
|           |                                                                                                                            |    |     
|Item 5     | Other Information                                                                                                          |    | 22  
|           |                                                                                                                            |    |     
|Item 6     | Exhibits                                                                                                                   |    | 22  
|           |                                                                                                                            |    |     
|Signatures |                                                                                                                            | 22



















DOCUMENTS INCORPORATED BY REFERENCE

The following documents (or portions
thereof) are incorporated by reference into the Parts of this Form 10-Q noted:

NONE



Forward-Looking Statements



This Quarterly Report on Form 10-Q contains
forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934, including, without limitation, statements regarding our expectations, beliefs, intentions or future strategies that
are signified by the words “expects,” “anticipates,” “intends,” “believes,” “estimates”
or similar language, and among other things:  (i) events that may occur in the future, (ii) implementation of our business
model; development and marketing of our products and services and (iii) prospects for revenues and profitability.  All
forward-looking statements included in this document are based on information available to us on the date hereof.  We
caution investors that our business and financial performance and the matters described in these forward-looking statements are
subject to substantial risks and uncertainties.  Because of these risks and uncertainties, some of which may not be currently
ascertainable and many of which are beyond our control, actual results could differ materially from those projected in the forward-looking
statements. Deviations between actual future events and our estimates and assumptions could lead to results that are materially
different from those expressed in or implied by the forward looking statements. We do not intend to update these forward looking
statements to reflect actual future events.

























































































FUTUREWORLD CORP.

CONSOLIDATED BALANCE SHEETS

(unaudited)



|                                                                                                                         |   |              |  |   |             | 
|------------------------------------------------------------------------------------------------------------------------ | - | ------------ |  | - | ----------- | 
|                                                                                                                         |   | December 31, |  |   | March 31,   | 
|Assets                                                                                                                   |   | 2015         |  |   | 2015        | 
|Current assets                                                                                                           |   | (unaudited)  |  |   | (unaudited) | 
|                                                                                                                         |   |              |  |   |             | 
|Cash                                                                                                                     |   | (1,502)      |  |   | 3,715       | 
|Accounts receivable                                                                                                      |   | 126,436      |  |   | 382,782     | 
|Related party receivables                                                                                                |   | 136,799      |  |   |             | 
|Inventory                                                                                                                |   | 49,851       |  |   | 49,851      | 
|Note receivable                                                                                                          |   |              |  |   | 100         | 
|Total current assets                                                                                                     |   | 311,584      |  |   | 434,529     | 
|                                                                                                                         |   |              |  |   |             | 
|Property & equipment, net of accumulated - net                                                                           |   | 4,244        |  |   | 4,005       | 
|Intangible property, net of accumulated – net                                                                            |   | 1,973        |  |   | 1,698       | 
|Marketable Securities                                                                                                    |   | 34,850,000   |  |   | 34,850,000  | 
|Investment in Subsidiary                                                                                                 |   | 97,814       |  |   | 93,165      | 
|Security Deposits                                                                                                        |   | 4,668        |  |   | 2,205       | 
|Total Assets                                                                                                             | $ | 35,270,283   |  | $ | 35,385,474  | 
|                                                                                                                         |   |              |  |   |             | 
|Liabilities and Stockholders' Equity                                                                                     | $ |              |  | $ |             | 
|Current liabilities                                                                                                      |   |              |  |   |             | 
|Accounts payable                                                                                                         | $ | 22,397       |  | $ | 26,400      | 
|Accrued expenses                                                                                                         |   | 1,229,609    |  |   | 880,371     | 
|Notes Payable                                                                                                            |   | 231,646      |  |   | 457,204     | 
|Deferred Revenue                                                                                                         |   |              |  |   | 190,000     | 
|Loans and notes payable, related parties                                                                                 |   |              |  |   |             | 
|Total current liabilities                                                                                                |   | 1,483,652    |  |   | 1,553,975   | 
|Notes payable to shareholder – Related Parties                                                                           |   | 300,120      |  |   | 113,169     | 
|Total liabilities                                                                                                        |   | 1,689,875    |  |   | 1,667,144   | 
|                                                                                                                         |   |              |  |   |             | 
|Stockholders' Equity                                                                                                     |   |              |  |   |             | 
|Preferred stock, $.0001 par value, 100,000,000 shares authorized,
        10,000,000 and 0 shares issued and outstanding |   | 1,000        |  |   | 1,000       | 
|Common stock, $.0001 par value, 14,900,000,000 shares authorized,                                                        |   |              |  |   |             | 
|2,140,751,919 and731,525,768shares issued and outstanding, respectively                                                  |   | 214,316      |  |   | 73,155      | 
|Additional paid-in capital                                                                                               |   | 41,520,978   |  |   | 41,112,757  | 
|Total stockholders' equity                                                                                               |   |              |  |   |             | 
|Accumulated deficit                                                                                                      |   | (8,155,888)  |  |   | (7,468,578) | 
|Total Stockholders' Equity                                                                                               |   | 33,580,406   |  |   | 33,718,331  | 
|                                                                                                                         |   |              |  |   |             | 
|Total Liabilities and Stockholders' Equity                                                                               | $ | 35,270,281   |  | $ | 35,385,474  | 
|                                                                                                                         |   |              |  |   |             | 













The accompanying notes are an integral
part of these financial statements.

















|                                     
|-------------------------------------
|Consolidated Statements of Operations
|(unaudited)                          











|                                              |  | For the Three Months Ended |               | For the Nine Months Ended | 
|--------------------------------------------- |  | -------------------------- | ------------- | ------------------------- | 
|                                              |  | December 31,               |               | December 31,              | 
|                                              |  | 2015                       |               | 2014                      | 
|                                              |  |                            |               |                           | 
|Revenues                                      |  | $                          | 5,058         |                           | 
|Direct costs                                  |  |                            | 1,764         |                           | 
|                                              |  |                            |               |                           | 
|Gross Profit                                  |  |                            | 3,294         |                           | 
|                                              |  |                            |               |                           | 
|Operating expenses:                           |  |                            |               |                           | 
|Salaries and benefits                         |  |                            | 157,814       |                           | 
|Consulting                                    |  |                            | 5,000         |                           | 
|Professional fees                             |  |                            | 3,039         |                           | 
|General and administrative                    |  |                            | 16,621        |                           | 
|Amortization and depreciation                 |  |                            | 6,836         |                           | 
|Total operating expenses                      |  |                            | 186,016       |                           | 
|                                              |  |                            |               |                           | 
|Other income (expense):                       |  |                            |               |                           | 
|Interest expenses                             |  |                            | (23,563       | )                         | 
|Sale of assets, net                           |  |                            |               |                           | 
|Total other (expense)                         |  |                            | (23,563       | )                         | 
|                                              |  |                            |               |                           | 
|Loss from operations before income taxes      |  |                            | (209,579      | )                         | 
|                                              |  |                            |               |                           | 
|Provision for income taxes                    |  |                            |               |                           | 
|                                              |  |                            |               |                           | 
|Loss from operations before minority interest |  |                            | (209,579      | )                         | 
|                                              |  |                            |               |                           | 
|Minority Interest                             |  |                            |               |                           | 
|                                              |  |                            |               |                           | 
|Net loss                                      |  | $                          | (209,579      | )                         | 
|                                              |  |                            |               |                           | 
|                                              |  |                            |               |                           | 
|Earnings (loss) per share:                    |  |                            |               |                           | 
|Basic                                         |  | $                          | (0.00         | )                         | 
|Weighted average shares outstanding           |  |                            |               |                           | 
|Basic                                         |  |                            | 1,732,289,842 |                           | 





















The accompanying notes are an integral
part of these financial statements.



















|FUTUREWORLD CORP.                                | 
|------------------------------------------------ | 
|Consolidated Statements of Cash Flows            | 
|(unaudited)                                      | 
|                                                 | 
|                                                 | 
|                                                 | 
|                                                 | 
|Cash Flows from Operating Activities:            | 
|Net (loss) income                                | 
|Adjustment to reconcile Net Income to net        | 
|cash provided by operations:                     | 
|Depreciation and amortization                    | 
|Stock based compensation                         | 
|Amortization of debt discount                    | 
|Changes in assets and liabilities:               | 
|Accounts receivable                              | 
|Notes receivable                                 | 
|Inventory                                        | 
|Due from affiliate                               | 
|Related party  loans                             | 
|Prepaid and other                                | 
|Accounts payable                                 | 
|Accrued expenses                                 | 
|Net Cash (Used) Provided by Operating Activities | 
|                                                 | 
|Cash flows from Investing Activities:            | 
|Other                                            | 
|                                                 | 
|Net Cash (Used) Provided by investing Activities | 
|                                                 | 
|Cash Flows from Financing Activities:            | 
|Proceeds from issuance of note payable           | 
|Repayments of notes payable                      | 
|Proceeds from sale of assets                     | 
|Related party advances                           | 
|Net Cash Provided (Used) by Financing Activities | 
|                                                 | 
|Net increase/decrease in Cash                    | 
|                                                 | 
|Cash at beginning of period                      | 
|                                                 | 
|Cash at end of period                            | 
|                                                 | 
|Supplemental cash flow information:              | 
|Interest paid                                    | 
|Taxes paid                                       | 
|                                                 | 

The accompanying
notes are an integral part of these financial statements.

































FUTUREWORLD CORP.

(A Development Stage Enterprise)

Notes to Condensed Consolidated Financial
Statements

As of December 31, 2015

(Unaudited)





1. 	History of the Company and Nature of the Business







“We”, “us” and
“our” refer to FutureWorld Corp., a Delaware corporation.





On June 11, 2014, the Company changed its name to FutureWorld
Corp.



Nature of Business



The address of our executive offices is: 3637 4th Street
North, Saint Petersburg, FL 33704 and our telephone number at that address is 727-474-1816. The address of our web site is www.futureworldcorp.com.
The information at our web site is for general information and marketing purposes and is not part of this annual report for purposes
of liability for disclosures under the federal securities laws.



FutureWorld (FWDG), a Delaware corporation, is a leading
provider of advanced technologies and solutions to the global cannabis industry. FutureWorld, together with its subsidiaries, focuses
on the identification, acquisition, development, and commercialization of cannabis related products and services, such as industrial
Hemp. FutureWorld, through its subsidiaries, provides personal and professional THC and CBD test kits, pharmaceutical grade CBD
oil solutions, SafeVape vaporizers, smart sensor technology, communication network, surveillance security, data analysis for smart
cultivation and consultation for the industrial hemp and legal medicinal cannabis. Our wireless agricultural smart sensor networks
offer precision to the agriculture, irrigation systems, and greenhouses for the global cannabis and hemp industry. FutureWorld
and its subsidiaries do not grow, distribute or sell marijuana.



As the only Cannabis Technology Accelerator, FutureWorld
will incubate and fund leading technologies, products, and services for Cannabis industry (Industrial Hemp) for foreseeable future;
bringing value to its core and its shareholders.

FutureWorld Corp. is seeking to acquire minority or full
interest in currently operating companies and disruptive technologies in the Industrial Hemp/Medical and Recreational Cannabis
Industry globally; such as vaporizers, lab testing, tracking systems, security, CBD oil, testing kits, financial solutions, dispensaries
and other needed components. Our goal is to provide our acquired companies, current and future shareholders a clear strategy for
the growth of their companies and their investment in those companies.



We currently provide multiple products that supply the burgeoning
cannabis industry. The "picks and shovel" business model capitalizes of selling enterprises associated with the Industrial
Hemp and Medical Cannabis industries products that are essential in their success. Our products solve long standing problems in
cultivation, processing, and retail sales for industrial hemp and medical cannabis. The following divisions will continue to delve
even further into purchasing existing products or developing brand new products as the wholesale and retail space continues to
evolve. In addition, one primary focus is to manufacture, market, and sell products containing hemp derived CBD oil. We are invested
in the following portfolio companies as subsidiaries;



NutraCann Labs, Inc, - CB Scientific, Inc, - URVape, Inc,
- HempTech Corp - Bioceudical Sciences



NutraCann Labs Inc.

CBD Oil- CBD is one of at least 60 cannabinoids found
in hemp, and is non-psychoactive. The Cannabidiol “CBD” is a compound in cannabis that has significant medical effects,
but does not make people feel “high” and can actually counter the psychoactive effects of THC. The reduced psychotropic
of CBD-rich cannabis makes it an appealing treatment option for patients seeking anti-inflammatory, anti-pain, anti-anxiety, anti-psychotic,
and/or anti-spasm effects without disconcerting lethargy. Scientific and clinical studies underscore CBD’s potential as a
treatment for a wide range of conditions, including rheumatoid arthritis, diabetes, alcoholism, MS, chronic pain, schizophrenia,
PTSD, antibiotic-resistant infections, epilepsy, and other neurological disorders. CBD has demonstrated neuro-protective and neurogenic
effects, and its anti-cancer properties are currently being investigated at several academic research centers in the United States
and elsewhere.







The present usage for CBD
oil in the United States is estimated to be approximately 1,000-2,000 Kilograms a year and growing and with a yearly value of around
$200,000,000. Currently, the apparent current competitors are; CannaVest, Inc. and Medical Marijuana,
Inc., which own portions of each other’s companies, are the primary supplier of CBD oil in the United States. They supply
the product in bulk to affiliate distributors and sell it retail in plastic tubes that are refined up to three levels. Real Scientific
Hemp OilTM is their trademark name.

NutraCann Labs has sourced its own CBD oil from Europe.
We are also developing plans to fund an overseas hemp cultivation project to provide a consistent and reliable supply to the United
States and beyond. Currently, industrial hemp cultivation is legal in twenty countries around the world. NutraCann’s products
are sold under the brand name “cbdessence” on CBDESSENCE.COM.

NutraCann Labs will process the CBD oils thatwill be sold through our online presence for retailing industrial hemp oil-based Cannabidiol (CBD) nutritional supplements, wellness
and personal care products and vapable CBD oils. NutraCann Labs will market items such as CBD oil, CBD infused edibles & multiple
hemp related items and cross market our vaporizers from URVape.com. NutraCann Labs will be featuring scientific grade hemp oil
which is highly sought after around the world. We will sell already recognizable brands including our own brands and drive internet
sales through ads, videos, social media and Search Engine Optimization.

The global Nutraceutical market is projected to be
in excess of $200 billion by 2015 and the current US Nutraceutical and Dietary supplement market is valued at around $42 billion.
CBDESSENCE.com and URCBDOil.com will be at the forefront of this massive marketplace with significant opportunities. Cannabinoids
(non-psychoactive CBD) have been found to have antioxidant properties, unrelated to NMDA receptor antagonism. This new found property
makes cannabinoids useful in the treatment and prophylaxis of a wide variety of oxidation associated diseases, such as ischemic,
age-related, inflammatory and auto-immune diseases.

Cannabinoids are found to have particular application
as neuroprotectants, for example in limiting neurological damage following ischemic events, such as stroke and trauma, or in the
treatment of neurodegenerative diseases, such as Alzheimer's, Parkinson's and HIV dementia. URCBDOil.com should be live by July
1, 2014 UPDATE). CBDESSENCE.com and URCBDOil.com will assist FutureWorld to generate positive cash flow for both URVape and our
CBD oil and CBD infused products offered by NutraCann Labs.

CB Scientific, Inc.

CB Scientific, Inc. a wholly owned subsidiary based
in Denver Colorado has developed new technologies specifically for cannabis analytics. CB Scientific introduced the first ever
personal cannabinoid detection kits. These kits test all your products in-house and at your own convenience. These tests are quick,
easy, and effective. CB Scientific’s new PERSONALANALYTICS THC & CBD detection kit is the first simple, quick and accurate
consumer THC & CBD test which will give you’re an accurate reading of THC or CBD in any product you purchase, manufacture,
or grow While many medical and recreational products are sold with cannabinoid levels listed, these numbers are often not representative
of what is being sold.

URVape, Inc.

URVapeTM is our brand name vaporizer pen which
is sold with a charger and refill bottles. We market the product at URVape.com. It is our own trademarked vaporizer being marketed
and sold online and in retail shops. The product is cutting edge design and requires puffing on the pen to facilitate battery use.
The URVape vaporizing pen is sleek and lightweight. URVape will initially have oil vaporizers available and dry herb versions available
in the coming months.

URVape was started to contribute to the current revolution,
which has become an international phenomenon, known as the "Vaping" industry. URVape began test marketing OEM branded,
off-the-shelf oil vaporizers, whose design and utility was well received, and which promulgated our first vendor agreement in the
state of Colorado.

After studying the marketplace, with more than 466
vendors attempting to reach nicotine consumers, we recognized early on that there were unsupported claims and deficiencies in the
products and e-liquids being sold. Product deficiencies were noted in the devices being used in combination with e-liquids, which,
together could be producing harmful elements. Consequently, these elements are being inhaled as a result of heating the contents
of the e-liquids, thereby producing potentially harmful changes to the initial ingredients. As a result, URVape has dedicated itself
to providing products that are free of any substances which, when heated for vaping, could be harmful.

URVape has entered into an exclusive Non-disclosure/Non-compete
contract with one of the foremost international vaping products manufacturers. Through our in-house Product Development personnel,
and through the hiring of a consultant whose area of expertise is microbiology, specific to cannabis and vaping, we have developed
two primary device changes that are being patented. These changes are designed to produce safe devices, built with safe materials,
and to exact temperature specifications suited to a variety of e-liquids that we will bring to market.

We are also developing new methods of producing, packaging
and flavoring a variety of e-liquids with the intention to provide consumers with happy, healthy and potentially curative products.







URVape’s plans include the installation of its
own laboratory along with a "clean room" for production of its products. The goal is to become the market leader of safe
vaping materials. To that end, URVape has Trademarked "SafeVape" for use in describing the technologies utilized in bringing
both devices and e-liquids to the marketplace.

The E-cigarette, Cannabis and Herbal vaping industry
is an ever growing and evolving industry. Business models need to be constantly adjusted and configured based on all moving parts.
But we are fortunate to be part of this historical moment in time where consumers around the globe will finally have access to
natural plant derivatives to enhance their health and enjoyment without the inherent side effects of synthetic medicines. URVape
will be part of that historical moment creating technologies for the delivery of its specialized, researched products. With the
decriminalization and legalization of cannabis for medicinal and recreational use in many states and countries throughout the world
the adoption of electronic vaporizing by the world’s 1.2 Billion smokers - eCig or vaporizer market is the fastest market
within the tobacco (free) industry and estimated to be a multi-billion dollar industry within a few years.

HempTech Corp:

HempTech Corp has several products available specifically
geared to helping cultivators of industrial hemp and medical cannabis maximum yields while helping to control costs. CaNNaLyTiXTM
, SPIDerTM, SmartSenseTM ,Smart.NRGTM , and CaNNaTRAKTM.

CaNNaLyTiXTM “A picture is
worth a thousand words” and being able to visualize all the various aspects of a cultivation enterprise solves challenges
before they become problems. CaNNaLyTiXTM is a dashboard controller system that allows the various computer systems to be
integrated throughout a cultivator’s infrastructures. Using state-of –the-art API connecting software packages, CaNNaLyTiXTM
can allow all computer systems to be monitored with the ease of a smartphone app and the robust hardware of integrated servers
or cloud-based application.

CaNNaTRAKTM- the next generation
of barcode & RFID tracking systems for keeping pace with the extensive demands of seed to sale tracking of Hemp/Cannabis for
state compliance. We are currently developing “game changer” modifications that will make it the ultimate software
system in the industry. CannaTRAK’s Asset Tracking Management Software automates the major aspects of the Asset Life Cycle.
The Product suite is made up of modules, which are able to operate independently of one another, are able to be configured to work
together, or to be integrated with non-native applications. CaNNaTRAKTM software easily tracks assets using bar coding, radio
frequency (RFID), imaging, and wireless technologies. CaNNaTRAKTM software is designed under the client/server architecture,
is multi-user and menu-driven following industry-standard MS Windows protocols and graphical user interfaces. CaNNaTRAKTM
applications are compatible with MS Windows XP, Vista, Windows 7 & 8.1 operating systems and with SQL Server 2008 through 2014.

CaNNaTRAK’s mobile information applications
are compatible with Windows Mobile devices and are tightly integrated with; bar coding, RFID, GPS, imaging, biometrics and wireless
technologies. Due to the State law, legal governance, compliance and tax reasons, we believe CaNNaTRAKTM will be an invaluable
tool for legal compliance and profitability from growers to dispensers of the legal medicinal marijuana. Over the past decade,
22 (any change since November elections?)states have approved the use of medicinal marijuana. Medicinal marijuana has become an
alternative to traditional treatments for patients with clinical diseases such as cancer and HIV/AIDS. The medicinal marijuana
market is estimated to be valued in the billions of dollars initially and may provide hundreds of millions of dollars tax revenue
for the state’s tax coffers.

We believe compliance and governance will be a big
concern for the state offices overseeing the cannabis lifecycle and CaNNaTRAKTM will be an invaluable tool to comply and monitor
for the medicinal marijuana industry. Our competition presently consists of the MITS system being used in the state of Colorado,
the BioTrackTHC system being used in the state of Washington, and MJ Freeway. Certainly we will look to enter every burgeoning
market throughout the United States.

SPIDer (Secure Perimeter Intrusion Detection
Network) is a system to meet the needs of theft and malicious attacks. While the economy is seeing improvement, theft, site destruction,
and malicious activity are still happening at an alarming rate and within the legal Cannabis/Hemp industry surging forward we can
expect no change particularly because of its specific draw. The SPIDer systems consist of 3 levels of detection to identify intruders
and threats in areas that are restricted.

The first level utilizes an electronically charged
coaxial cable woven into your chain link fencing. Excessive fence movement will set off an alarm through your network notification
system that someone is attempting to enter your facility. This is a very cost effective means to secure your site to meet security
requirements for your company. The second level consists of a visual intrusion monitoring system. It is a wireless, battery operated,
and connected through the cellular network. It provides 24/7 monitoring and notification through the internet and email system.
Once an intruder is identified an alarm is sent to the security team with a picture that allows you to identify if this is an authorized
or unauthorized person.

The network system can quickly be deployed and moved
to provide security coverage as needed. The third level is a multi-level detection and verification system that uses both level
one and level two to rapidly identify a potential intruder and provide you information for a rapid decision. The combination of
the two systems provides the additional barriers for quick action. Sometimes seconds are critical in preventing serious damage
or theft at your site. The command center software provides intrusion notification to







your network center and to individuals via email.
For level two and three you receive a picture that enables you to make a more informed and quicker decision concerning your action.

The SPIDer solution addresses the potential threat
facing the entire Cannabis/Hemp industry. With this system you are able to supply your security team with information that enables
them to be proactive in addressing these costly activities. Compliance with state rules and regulations for the Cannabis/ Hemp
industry is going to be essential. Though there are many security companies on the market, few are adapting themselves to the Cannabis
industry.

SmartSense- offers wireless security
and smart sensor mesh network for precision agriculture, irrigation systems, and greenhouses for the hemp industry. Our Smart Agriculture
models allow monitoring multiple environmental parameters involving a wide range of applications with smart sensors such as Leaf
Wetness, Atmospheric Pressure, Solar Radiation, Air Temperature / Humidity, Soil Temperature / Moisture, Ultraviolet Radiation
etc. The smart sensor information will be collected and sent via the cloud to the central office for analysis and procedural modifications.
FutureWorld is not aware of any another competitor in the United States. FutureWorld, through HempTech plans on marketing the product
to large and medium sized grow facilities since they will have the greatest need.

SmartNergy- offers tools to analyze
every aspect of a cultivator’s energy usage. Being fully integrated with CaNNaLyTiXTM, one can visualize energy consumption
in real-time and track historical usage. The software’s predictive functionality also helps optimize energy use challenges
proactively. We believe a cultivator’s huge electric bills can be scaled back when the entire grow is looked at as a complete
and fully integrated operation.

CaNNaBoXTM- Much like a bank ATM,
the CaNNaBoXTM machine operates with the swipe of a card, which will verify identity, age and prescription information of
a medical marijuana patient before releasing measured packages of marijuana. The advantage is you will not have to be waited on
by an assistant if you don't require consultation and the store location is busy. The machine is capable of holding several hundred
items in multiple forms of marijuana. CaNNaBoXTM is a secure robotic device specifically designed for dispensing cannabis
products in secure prepackaged amounts, in complete accordance with state law requirements, in licensed dispensaries, and only
to legal buyers.

FutureWorld has teamed up with American Green to brand
the Zazzz Dispensary machine with the CaNNaBoXTM logo and distribute the product across the United States and possibly worldwide.
Presently the Zazzz machine presented by American Green, which is first to the market, MedBox Inc.’s machine, and a vending
machine product by Endexx Corp also distribute the product. The model for FutureWorld is to bring 1500 units to market within a
couple years in accordance with our JV goals alongside American Green and its Zazzz machine.

There will be a revenue sharing agreement with American
Green and FutureWorld for every placed CaNNaBoXTM machine via monthly leasing and transaction costs. We are currently putting
together the details of the JV with American Green and beginning the marketing and design phase of our product. Revenues are purely
a function of quantity at this point. A monthly leasing fee of approximately $150 dollars a month and a transaction cost somewhere
between $1.50 and $2.00 per. Competing brands are to look for a large upfront expenditures from dispensaries for the machines which
we believe will make their sales model harder to actual achieve sales nationwide.

CaNNaBoXTM will be marketed exclusively through
our new dispensary division, DispenseTek. DispenseTek was created to market and sell dispensary related products and services including
but not limited to CaNNaBoXTM. It is important to understand, CaNNaBoXTM robotic dispensaries are secure delivery and
control systems for use in licensed cannabis dispensaries and not “vending machines”. Their specific design benefits
public safety, governance, dispensaries, and consumers.

HempTech has also signed an agreement with Colorado
Flower Company to provide turnkey state-of-the-art technology for their grow facility which is being built on our land in Colorado.
The contract calls for $1.5M and the technology is leased at $190K per month for five years.

2.   Basis of Presentation, Business and
Summary of Significant Accounting Policies



Basis of Presentation



In the opinion of management, all adjustments consisting
of normal recurring adjustments necessary for a fair presentation of (a) the results of operations for the three and six months
ended December 31, 2015 and 2014: (b) the financial position at December 31, 2015 and March 31, 2015 and (c) cash flows for the
three and nine months ended December 31, 2015 and 2014, have been made. Management believes that these estimates are reasonable
and have been discussed with the Board of Directors; however, actual results could differ from those estimates.



The accompanying unaudited financial statements of the Company
have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial
information and in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not included
all of the information and footnotes required by accounting







principles generally accepted in the United States of America
for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered
necessary for a fair presentation have been included. For further information regarding the Company’s significant accounting
policies, refer to the audited consolidated financial statements and footnotes thereto included in the Company’s Annual Report
on from 10-K for the year ended March 31, 2015 filed with the Securities and Exchange Commission on August 12, 2015.



Our financial statements may not be comparable to companies
that comply with public company effective dates. Due to our election not to opt out of the extended transition period that allows
us to delay the adoption of new or revised accounting standards that have different effective dates for public and private companies
until those standards apply to private companies. All amounts referenced in these Financial Statements and this Report are in US
Dollars unless otherwise stated.



Nature of the Business, and History of the Company and
its Subsidiaries



The nature of the business and the history of the Company
and its subsidiaries are as follows:



Nature of the Business



FutureWorld Corp., a Delaware corporation, is a U.S. diversified
Hemp/Cannabis Company, listed on the Over the Counter exchange, which was originally formed to capitalize on the burgeoning markets
in renewable and alternative energy technologies, but has since changed direction and moved into the Hemp/Cannabis space. FutureWorld,
together with its subsidiaries, focuses on the identification, acquisition, development, and commercialization of Hemp/Cannabis
products, services and technologies globally.



FutureWorld is seeking to acquire minority or full interest
in currently operating companies and disruptive technologies in the Industrial Hemp/Medical and Recreational Cannabis Industry
globally; such as vaporizers, lab testing, tracking systems, security, CBD oil, testing kits, financial solutions, dispensaries
and other needed components. Our goal is to provide our acquired companies, current and future shareholders a clear strategy for
the growth of their companies and their investment in those companies.



2.  Summary of Significant Accounting Policies



Principles of Consolidation



The consolidated financial statements
include the accounts and operations of FutureWorld Corp., and its wholly owned subsidiaries, URVape, Inc., HempTech Corp., and
CB Scientific.



Basis of Accounting



The Company maintains its financial records and financial
statements on the accrual basis of accounting, in conformity with generally accepted accounting principles in the United States
of America. The accrual basis of accounting provides for matching of revenues and expenses in the period they were earned and incurred.



Cash and Cash Equivalents



For purposes of reporting cash flows, the Company considers
all cash accounts that are not subject to withdrawal restrictions or designated for assets acquisitions, and certificates of deposit
that have an original maturity of three months or less when purchased, to be cash equivalents. The Company believes it is not exposed
to any significant credit risk on cash and cash equivalents.



Fair Value of Financial Instruments



The following methods and assumptions were used by the Company
in estimating its fair value disclosures for financial instruments:

| |   |                                                                                                                                                                                                                                      
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | • | Cash and Cash Equivalents, Accounts Receivable, Prepaid Expenses, Accounts Payable,  and  Accrued Expenses :                                                                                                                         
| |   | The carrying amount reported in the balance sheets
        for these items approximates fair value because of the short maturity of these instruments.                                                                               
| | • | Loans and Notes Payable to Related Parties:                                                                                                                                                                                          
| |   | The carrying value of loans and notes payable to
        related parties approximates fair value as each of the notes payable carries an interest rate commensurate with commercial borrowing
        rates available to the Company.
| |   | As of December 31, 2015 and March 31, 2015, the fair values of the Company’s financial instruments approximate their historical carrying amount.                                                                                     









Accounts Receivable



Accounts receivable consist of
amounts due for the delivery of Product sales to customers. An allowance for doubtful accounts is considered to be established
for any amounts that may not be recoverable, which is based on an analysis of the Company’s customer credit worthiness, and
current economic trends. Based on management’s review of accounts receivable, no allowance for doubtful accounts was considered
necessary as of period end. Receivables are determined to be past due, based on payment terms of original invoices. The Company
does not typically charge interest on past due receivables. Balances on Current sales are due in 60 days from the date of
sale.

Inventory



Inventory consists of finished product,
URVape electronic vaporizing cigarettes valued at the lower of cost or market valuation under the first-in, first-out method of
costing, PersonalAnalytics testing kits that are also valued at the lower of cost or market valuation under the first-in, first-out
method of costing and CBD bulk oil that are also valued at the lower of cost or market valuation under the first-in, first-out
method of costing.



Property and Equipment



Property and equipment are recorded at historical cost.  Depreciation
is computed on the straight-line method over estimated useful lives of the respective assets, ranging from three to seven years.  The
carrying amount of all long-lived assets is evaluated periodically to determine if adjustment to the depreciation periods or the
unamortized balance is warranted.  Based upon the Company's most recent analysis, management believes that no impairment
of property and equipment exists at December 31, 2015 and March 31, 2015.



Intangible assets



Intangible assets are recorded at cost
and amortized over their useful lives. The Company's goodwill associated with its acquisitions is not amortized. Management reviews
goodwill for impairment at least on an annual basis and at other times when existing conditions raise substantial questions about
their recoverability.



Impairment of Long-Lived Assets



Periodically,
the Company assesses the recoverability of the Company’s intangible assets, consisting of theIntellectual
Property & licensing for CaNNaTRAK, SmartSense, CaNNaLyTiX, Test4 PersonalAnalyticsand
its trademark, and record an impairment loss to the extent that the carrying amounts of the assets exceed its fair value.  Based
upon management's most recent analysis, the Company believes that no impairment of the Company’s tangible or intangible assets
exist at December 31, 2015 and March 31, 2015.



Revenue Recognition



The
Company is principally in the business of providing solutions to the cannabis industry that incorporates ourCaNNaTRAK,
SmartSense, URVape, PersonalAnalytics and CaNNaLyTiXtechnologies. Contracts
include multiple revenue components, comprised of our product sale, software licensing, hardware platforms, installation, training
and maintenance.  In accordance with ASC 605-25 Multiple-Element Arrangements, revenue from licensing the software will
be recognized upon installation and acceptance of the software by customers. Revenue from sale of products (URVape & PersonalAnalytics)
will be recognized upon the delivery of the product to our customer. When a software sales arrangement includes rights to
customer support, the portion of the license fee allocated to such support is recognized ratably over the term of the arrangement,
normally one year.  Revenue from professional services arrangements will be recognized in the month in which services
are rendered over the term of the arrangement.

Revenue associated with software sales to distributors is recognized, net of discounts, when the Company has performed substantially
all its obligations under the arrangement.  Until such time as substantially all obligations under the arrangement are
met, software sales are recognized as deferred revenue.  Costs and expenses associated with deferred revenue are also
deferred.  When a software sales arrangements include a commitment to provide training and/or other services or materials,
the Company estimates and records the expected costs of these training and/or other services and/or materials.



Foreign currency translation



The Company’s functional currency
and its reporting currency is the United States Dollar.



Cost of Goods Sold



The Company recognizes the direct cost
of purchasing product for sale, including freight-in and packaging, as cost of goods sold in the accompanying income statement.









Stock Based Compensation



The Companies estimate the fair value of share-based payment
awards to employees and directors on the date of grant using an option-pricing model. For stock-based awards issued to employees
and directors, stock-based compensation is attributed to expense using the straight-line single option method, which is consistent
with how the prior-period pro-forma were provided. Stock-based compensation expense recognized in the Statements of Operations
for the three and nine months ended December 31, 2015 and 2014 included compensation expense for share-based payment awards granted
prior to, but not yet vested based on the grant date fair value estimated and compensation expense for the share-based payment
awards granted subsequent to January 1, 2014 based on the grant date fair value estimated.



The Company’s determination of fair value of share-based
payment awards to employees and directors on the date of grant using the Black-Scholes model, which is affected by the Company’s
stock price as well as assumptions regarding a number of highly complex and subjective variables. These variables include, but
are not limited to our expected stock price volatility over the term of the awards, and actual and projected employee stock option
exercise behaviors.



Income Taxes



The Company records federal and state income tax liability
at the federal and state rates after allowances. Deferred income taxes are provided on the liability method whereby deferred tax
assets are recognized for deductible temporary differences and operating loss and tax credit carry forwards, and deferred tax liabilities
are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets
and liabilities and their tax bases.



Deferred tax assets are reduced by a valuation allowance
when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be
realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.



Tax benefit from an uncertain tax position may be recognized
in the financial statements when it is more likely than not that the position will be sustained upon examination, including resolutions
of any related appeals or litigation processes, based on the technical merits. Income tax positions must meet a more-likely-than-not
recognition threshold at the effective date to be recognized and in subsequent periods.



The Company adopted a policy under which, if required to
be recognized in the future, they will classify interest related to the underpayment of income taxes as a component of interest
expense and will classify any related penalties in selling, engineering, general and administrating expenses in the statement of
operations.



Advertising Costs



Advertising costs are charged to operations as incurred.



Earnings (Loss) Per Share



Basic EPS is calculated by dividing earnings (loss) available
to common shareholders by the weighted average number of common shares outstanding during each period.  Diluted EPS is
similarly calculated, except that the denominator includes common shares that may be issued subject to existing rights with dilutive
potential, except when their inclusion would be anti-dilutive.



Based on an estimated current value of the Company’s
stock being equal to or less than the exercise price of the warrants, none of the shares assumed issued upon conversion of the
warrants, nor any of the stock assumed issued under the Company's Incentive Stock Plan are included in the computation of fully
diluted loss per share, since their inclusion would be anti-dilutive.



Impact of Recently Issued Accounting Pronouncements



In April 2014, the FASB issued ASU 2014-08, Presentation
of Financial Statements and Property, Plant, and Equipment. ASU No. 2014-08 defines a discontinued operation as disposal of components
of an entity that represents a strategic shift that has or will have a major effect on an entity’s operations. ASU No. 201408
also requires a reporting entity to present the assets and liabilities of a disposal group that includes a discontinued operation
separately in the asset and liability sections, respectively, of the statement of financial position for each comparative period.
ASU 2014-08 becomes effective for interim and annual periods beginning on or after December 15, 2014. Adoption of ASU 2014-08 is
not expected to have a significant impact on the Company’s consolidated financial statements.









In August 2014, the FASB issued ASU 2014-15, Presentation
of Financial Statements-Going Concern. This statement provides US GAAP guidance on management’s responsibility in evaluation
whether there is substantial doubt about a company’s ability to continue as a going concern and about related footnote disclosures.
For each reporting period, management will be required to evaluate whether there are conditions or events that raise substantial
doubt about a company’s ability to continue as a going concern within one year from the date the financial statements are
issued. The ASU is effective for annual periods ending after December 15, 2016 and interim periods thereafter.



In November 2014, the FASB issued ASU 2014-16-Derivatives
and Hedging: Determining Whether the Host contract in a Hybrid Financial Instrument issued in the Form of a Share is More Akin
to Debt or to Equity. Certain classes of shares include features that entitle the holders to preferences and rights (such as conversion
rights, redemption rights, voting powers and liquidation and dividend payment preferences) over the other shareholders. Shares
that include embedded derivative features are referred to as hybrid financial instruments, which must be separated from the host
contract and accounted for as a derivative if certain criteria are met. This ASU is effective for fiscal years and interim periods
within those fiscal years beginning after December 15, 2015



Other recent accounting pronouncements issued by the FASB,
the American Institute of Certified Public Accountants, and the 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.



3.  Going Concern



For the quarter ended December 31, 2015, the Company incurred
a net loss of $203,918 and a cumulative net loss since inception of $7,964,665.  As of December 31, 2015, the Company
had cash of $13,887 and working capital deficit of $332,317 with which to satisfy any future cash requirements.  These
conditions raise substantial doubt about the Company's ability to continue as a going concern.  The Company depends upon
capital derived from future financing activities such as loans from its officers and directors, subsequent offerings of its common
stock or debt financing in order to operate and grow the business either directly or through its subsidiary.  There can
be no assurance that the Company will be successful in raising such capital.  The key factors that are not in the Company's
control and that may have a direct bearing on operating results.  These factors include, but are not limited to, acceptance
of the Company’s business plan, the ability to raise capital in the future, the ability to expand its customer base, and
the ability to hire key employees to grow the business.  There may be other risks and circumstances that management may
be unable to predict.



4.  Property and Equipment



Property and equipment as of December 31, 2015 and March
31, 2015 consists of the following:



|                         |  | September,2015 |         |  | March,2015 |  
|------------------------ |  | -------------- | ------- |  | ---------- | -
|                         |  |                |         |  |            |  
|Computer equipment       |  | $              | 0-      |  |            | $
|Furniture and fixtures   |  |                | 5,606   |  |            |  
|                         |  |                | -       |  |            |  
|Accumulated depreciation |  |                | (1,362) |  |            |  
|Net                      |  | $              | 4,244   |  |            | $













5.   Intangibles



On May 2, 2014, the Company acquired the assets of
MedTest, Inc., including Product Technology for 5,000,000 shares of Common Stock valued at $100,000.  FutureWorld also
acquired certain Trademarks from HempTech Corp., URVape, Inc., and CB Scientific, Inc. for in April of 2014 valued at $825. The
useful lives of the Product Technology and Trademarks have been evaluated to have a useful life of 15 years and are being amortized
accordingly per the financial statements. For the three months ended December 31, 2015, the amortization expense for intangible
assets was $7,170 and $7,170, respectively.

| |  | December 31,2015 |  |  | March 31, 2015 | 
| |  | ---------------- |  |  | -------------- | 
| |  |                  |  |  |                | 



|                         |  | $ | 100,000 |  |  | $ | 100,000 | 
|------------------------ |  | - | ------- |  |  | - | ------- | 
|Trademarks               |  |   | 4,984   |  |  |   | 333     | 
|                         |  |   | -       |  |  |   | -       | 
|Accumulated Amortization |  |   | (7170)  |  |  |   | (7,170) | 
|Intangibles, Net         |  | $ | 97,814  |  |  | $ | 93,164  | 











6.     Stock Options and Awards



None



7.  Accrued Expenses



Accrued expenses at December 31, 2015 and March 31, 2015
were as follows:

|                                   |  | December 31,2015 |           |  | March 31, 2015 |  
|---------------------------------- |  | ---------------- | --------- |  | -------------- | -
|Accrued salaries and payroll taxes |  | $                | 1,027,199 |  |                | $
|                                   |  |                  |           |  |                |  
|Accrued interest                   |  |                  | 202,410   |  |                |  
|Accrued penalties                  |  |                  |           |  |                |  
|                                   |  | $                | 1,229,609 |  |                | $



8.   Related Parties Disclosures



Loan from Saeed (Sam) Talari



Mr. Talari has advanced funds to the Company at various times.
On April 1, 2010 the Company issued a promissory note with an initial balance of $306,319 bearing interest at 5%. This note allows
Mr. Talari to advance additional funds to the Company as needed. At December 31, 2015 and March 31, 2015, the balance due to Mr.
Talari on this Promissory Note is $150,126 and $299,118 respectively, and the accrued interest thereon at December 31, 2015 and
March 31, 2015 is $67,511 and $45,048 respectively.



9.Employment Agreements



Sam Talari



On January 1, 2012, the Company entered into a three-year
Employment Agreement with Mr. Talari, the Company's Acting Chief Executive Officer, and one of the Company's directors. The Agreement
is automatically extended for additional one-year periods without further action from the Company or the executive, unless notice
of termination is given by either party within 90 days of the end of any periods. The Agreement provides for (a) a base salary
of $8,500 per month, with a 5% increase per annum and (b) all group insurance plans and other benefit plans and programs made available
to the Company's management employees. On January 1, 2015, the Company increased Mr. Talari's base salary to $25,000 per month
based on a new three years employment agreement.











Kevin Defant

On April 21 2014, the Company entered into a three-year
Employment Agreement with Mr. Defant, the Company’s Acting Tech Director. The Agreement is automatically extended for additional
one-year periods without further action from the Company or the executive, unless notice of termination is given by either party
within 90 days of the end of any periods. The Agreement provides for (a) a base salary of $2,000 per month, with a 5% increase
per annum, and (b) all group insurance plans and other benefit plans and programs made available to the Company’s management
employees.

John Verghese

On January 1, 2015, the Company entered into a three-year
employment agreement with John Verghese as the CEO of HempTech Corp. The Agreement provides for (a) a base salary of $10,000 per
month, (b) two weeks' vacation within one year of the starting date,







and (c) all group insurance plans and other benefit
plans and programs made available to the Company's management employees. Additionally Mr. Verghese has been granted 10% option
of HempTech common stock at par value.

Terry Gardner

On January 1, 2015, the Company entered into a three-year
employment agreement with Terry Gardner as VP of Professional Services. The Agreement provides for (a) a base salary of $10,000
per month, (b) two weeks' vacation within one year of the starting date, and (c) all group insurance plans and other benefit plans
and programs made available to the Company's management employees. Additionally Mr. Gardner has been granted 5% option of HempTech
common stock at par value.

Karin Rohret

On January 2nd, 2010, the Company entered into an employment
agreement with Karin Rohret as part-time Controller. The Agreement provides for (a) a base salary of $1,101.67 per month, (b) a
signing bonus of $20,000 by the way of Company's common stock within 30 days of signing the agreement. Additionally Ms. Rohret
will be eligible to receive a grant of 600,000 shares of common stock at founder level with a par value of 0.001. Vesting of the
grant shall be at the rate of 200,000 shares on each anniversary from the signing of the agreement. The salary was adjusted to
$2,950 on October 1 2014 as the position required additional hours.

10. Office Space



During the Company's initial stage, it has limited need for
use of office space or equipment.  The Company operates out of office space shared by the principals at an allocated
cost of $ 1,440 per month.



11. Stockholders’ Equity



Preferred Stock: The Company has 17,900,000,000 shares
of $0.0001 par value stock Authorized. 10,000,000 shares have been issued or are outstanding as of December 31, 2015.

Common Stock: The Company has 4,900,000,000 shares of
$0.0001 par value stock Authorized. As of December 31, 2015, 1,363,628,371 shares were issued and outstanding.

11. Subsequent Events



None



Item 2.   Management’s discussion
and analysis of financial condition and results of operations



You should read the following discussion and analysis in
conjunction with the information set forth under Item 6, Selected Consolidated Financial Data, and our consolidated financial statements
and related notes included elsewhere in this Annual Report on Form 10-K. The statements in this discussion regarding our expectations
of our future performance, liquidity and capital resources, and other non-historical statements in this discussion are forward-looking
statements. These forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to, the
risks and uncertainties described under "Risk Factors" and elsewhere in this Annual Report on Form 10-K. Our actual results
may differ materially from those contained in or implied by any forward-looking statements. Our significant accounting policies
are more fully described in Note 1 to the financial statements. However, certain accounting policies are particularly important
to the portrayal of our financial position and results of operations and require the application of significant judgment by our
management; as a result they are subject to an inherent degree of uncertainty. In applying these policies, our management uses
their judgment to determine the appropriate assumptions to be used in the determination of certain estimates. Those estimates are
based on knowledge of our industry, historical operations, terms of existing contracts, and our observance of trends in the industry,
information provided by our customers and information available from other outside sources, as appropriate.



Overview



FutureWorld (Other OTC: FWDG), a Delaware corporation, is
a leading provider of advanced technologies and solutions to the global cannabis industry. FutureWorld, together with its subsidiaries,
focuses on the identification, acquisition, development, and commercialization of cannabis related products and services, such
as industrial Hemp. FutureWorld, through its subsidiaries, provides personal and professional THC and CBD test kits, pharmaceutical
grade CBD oil solutions, SafeVape vaporizers, smart sensor technology, communication network, surveillance security, data analysis
for smart cultivation and consultation for the industrial hemp







and legal medicinal cannabis. Our wireless agricultural smart
sensor networks offer precision to the agriculture, irrigation systems, and greenhouses for the global cannabis and hemp industry.
FutureWorld and its subsidiaries do not grow, distribute or sell marijuana.









Key Elements of Operating and Financial Performance



We monitor the key elements of our operating and financial
performance to help us evaluate growth trends, determine investment priorities, establish budgets, measure the effectiveness of
our sales efforts and assess operational efficiencies.



Revenue



Currently, we derived all of our revenue from sales of URVape
vaporizer pens, PersonalAnalytics test kits, and selling our CBD oil under “NutraCann”. In 2015, lease and product
revenue represented 100% of our total revenue.



Cost of Revenue and Gross Profit (Loss)



Product cost of revenue consists of third party product costs,
including raw materials, component parts and associated freight, and normal yield loss in the period in which we recognize the
related revenue. In addition, product cost of revenue may include compensation, benefits and stock-based compensation provided
to our personnel, and overhead and other direct costs, which are recognized in the period in which we recognize the related revenue.
Further, we recognize certain costs, including logistics costs, expenses for inventory obsolescence, warranty obligations, lower
of cost or market adjustments to inventory, and amortization of intangibles, in the period in which they are incurred or can be
reasonably estimated.



Service cost of revenue includes compensation and related
costs for our yearly maintenance service delivery, customer operations and customer support personnel, facilities and infrastructure
cost and depreciation. In accordance with our accounting policies, we recognize service cost of revenue in the period in which
it is incurred even though the associated service revenue may be required to be deferred as described under "-Critical Accounting
Policies and Estimates-Revenue Recognition."



Our gross profit (loss) varies from period to period based
on the volume, average selling prices, and mix of products and services recognized as revenue, as well as product and service costs,
expense for warranty obligations, and inventory write-downs. The timing of revenue recognition and related costs, which depends
primarily on customer acceptance, can fluctuate significantly from period to period and have a material impact on our gross profit
and gross margin results.





Operating Expenses



Operating expenses consist of research and development, sales
and marketing, and general and administrative expenses, as well as legal settlement expenses and amortization of acquired intangibles.
Personnel-related expense represents a significant component of our operating expenses.



Sales and Marketing



Sales and marketing expense consists primarily of; compensation,
benefits, sales commissions and stock-based compensation provided to our sales, marketing and business development personnel, as
well as facility costs and other related overhead; marketing programs, including expenses associated with industry events and trade
shows; and travel costs.



General and Administrative



General and administrative expense consists primarily of;
compensation, benefits and stock-based compensation provided to our executive, finance, legal, human resource and administrative
personnel, as well as facility costs and other related overhead; and

fees paid for professional services, including legal, tax
and accounting services.



RESULTS OF OPERATIONS



Revenues



Total revenue for three months ended December 31, 2015 and
2014 was $ 5,058 and $77,463, respectively, representing a decrease . Substantially all revenue from 2015 was derived from few
customers. The decrease in total revenue is attributable to our successful ongoing product development efforts and inventions such
as URVape and PersonalAnalytics test kits. We expect to substantially increase our total revenue by marketing HempTech related
products and services for the next several quarters.









Total revenue for nine months ended December 31, 2015 and
2014 was $65,503 and $77,772, respectively. Substantially all revenue from 2015 was derived from few customers. The decrease in
total revenue is attributable to our successful ongoing product development efforts and inventions such as URVape and PersonalAnalytics
test kits. We expect to substantially increase our total revenue by marketing HempTech related products and services for the next
several quarters.



Selling, General and Administrative Expenses.



Selling, general and administrative expenses for the three
months ended December 31, 2015 and 2014 were approximately $16,621 and $336,588 respectively. The decrease in selling, general
and administrative expenses in 2015 as compared 2014 was due primarily to the reduction in cost of additional human resources,
professional fees related to fees associated with additional debt financings. General and administrative expenses decreased since
we have focused on research and development



Selling, general and administrative expenses for the
nine months ended December 31, 2015 and 2014 were approximately $ 176,598 and $503,499, respectively. The decrease in selling,
general and administrative expenses in 2014 as compared 2013 was due primarily to curtailing cost while focusing on research and
development.

Net Loss from Operations. For the quarter ended December
31, 2015 and 2014, we incurred net losses of $209,579 and $447,670, respectively. Losses also include depreciation and amortization,
non-cash expenses, in the amount of $32,520 and $125,957 for the quarter ended December 31, 2015 and 2014, respectively. There
were no write downs in 2015.



Net Loss from Operations. For the nine months ended December
31, 2014 and 2013, we incurred net losses of $670,053 and $640,487, respectively. Losses also include depreciation and amortization,
non-cash expenses, in the amount of $121,096 and $145,840, respectively. There were no write downs in 2015.



Compensation and consulting expenses were $157,814 and $117,897
for the three months ended December 31, 2015 and 2014 respectively, Compensation and consulting expenses were $372,394 and $212,054
for the nine months ended December 31, 2015 and 2014 respectively. The increases are due to the increase in operations and officer
compensation.



LIQUIDITY AND CAPITAL RESOURCES



We had $13,887 in cash at December 31, 2015, and 285,787
respectively remaining on the lines of credit from Mr. Talari with which to satisfy our future cash requirements. Our management
believes that the credit lines will support only limited activities for the next twelve months. The Company depends upon capital
derived from future financing activities such as loans from its officers and directors, subsequent offerings of its common stock
or debt financing in order to operate and grow the business either directly or through its subsidiary. There can be no assurance
that the Company will be successful in raising such capital. The key factors that are not in the Company's control and that may
have a direct bearing on operating results. These factors include, but are not limited to, acceptance of the Company’s business
plan, the ability to raise capital in the future, the ability to expand its customer base, and the ability to hire key employees
to grow the business. There may be other risks and circumstances that management may be unable to predict. We had no other contractual
obligation or material commercial commitments for capital expenditures.



Our critical accounting policies include:



Revenue Recognition. We recognize revenue from licensing
our software upon the installation and acceptance of the software by customers in accordance with Statement of Position 97-2, Software
Revenue Recognition. When a software sales arrangement includes rights to customer support, the portion of the license fee allocated
to such support is recognized ratably over the term of the arrangement, normally one year. Revenue from professional services arrangements
will be recognized in the month in which services are rendered over the term of the arrangement. We also recognize revenue from
selling URVape vape pens and our THC and CBD testing kits calls, PersonalAnalytics when purchase orders received.



Long-Lived Assets - We depreciate property and equipment
and amortize intangible assets, including software development costs over the respective assets’ estimated useful life and
periodically review the remaining useful lives of our assets to ascertain that our estimate is still valid. If we determine a useful
life has materially changed, we either change the useful life or write the asset down or if we determine the asset has exhausted
its useful life, we write the asset off completely.



Stock Based Compensation - We account for stock based compensation
under the provisions of Statement of Financial Accounting Standards No. 123, (revised 2004) Share-Based Payments. Under the fair
value recognition provisions of SFAS 123R, we recognize stock-based compensation expense net of an estimated forfeiture rate and
therefore only recognize compensation cost for those shares expected to vest over the service period of the award. Calculating
stock-based compensation expense requires the input of subjective assumptions, including the expected term of the option grant,
stock price volatility, and the pre-vesting option forfeiture rate. We estimate the expected life of options granted based on historical
exercise patterns. We estimate stock price volatility based on historical implied volatility in our stock. In addition, we are
required to estimate the expected volatility rate and only recognize







expense for those shares expected to vest. We estimate the
forfeiture rate based on historical experience of our stock-based awards that are granted, exercised or cancelled.



Income Taxes - We record federal and state income tax liability
in accordance with Statement of Financial Accounting Standards No. 109 – Accounting for Income Taxes. Deferred income taxes
are provided on the liability method whereby deferred tax assets are recognized for deductible temporary differences and operating
loss and tax credit carry forwards, and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences
are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced
by a valuation allowance when, in our opinion, it is more likely than not that some portion or all of the deferred tax assets will
not be realized.



Recent Accounting Pronouncements



The Company reviews new accounting standards as issued. No
new standards had any material effect on these financial statements. The accounting pronouncements issued subsequent to the date
of these financial statements that were considered significant by management were evaluated for the potential effect on these consolidated
financial statements. Management does not believe any of the subsequent pronouncements will have a material effect on these consolidated
financial statements as presented and does not anticipate the need for any future restatement of these consolidated financial statements
because of the retro-active application of any accounting pronouncements issued subsequent to December 31, 2015 through the date
these financial statements were issued.



Off-Balance Sheet Arrangements



We do not participate in transactions that generate relationships
with unconsolidated entities or financial partnerships, such as special purpose entities or variable interest entities, which have
been established for the purpose of facilitating off-balance sheet arrangements or other limited purposes.



Management Consideration of Alternative Business Strategies



In order to continue to protect and increase shareholder
value management believes that it may, from time to time, consider alternative management strategies to create value for the company
or additional revenues. Strategies to be reviewed may include acquisitions; roll-ups; strategic alliances; joint ventures on large
projects; and/or mergers.



The Company is currently in the final stages of selling all
the assets of HempTech Corp to a publicly traded company. Management believes that acquisitions will be a catalyst for advancing
the Company's existing technology and products to attain greater market share. Additionally, we are seeking capital financing for
the purposes of furthering our plan of operations.

Item 3.     Quantitative and Qualitative Disclosures about Market Risk



We are a Smaller Reporting Company as defined by Rule 12b-2
of the Securities Exchange Act of 1934 and are not required to provide the information under this item.



Item 4.  Controls and Procedures



As of December 31, 2015 we carried out an evaluation of the
effectiveness of the design and operation of our disclosure controls and procedures pursuant to Exchange Act Rule 13a-15. This
evaluation was done under the supervision and with the participation of our management, including our Chief Executive Officer and
Chief Financial Officer. Based on this evaluation of our disclosure controls and procedures (as defined in the Exchange Act Rule
13a-15e), our Chief Executive Officer and Chief Financial Officer have concluded that as of December 31, 2015 such disclosure controls
and procedures were not effective.



|· | We do not have adequate personnel and other resources to assure that significant and complex transactions are timely analyzed and reviewed.                                                                                                                                                                                                                                                                                               
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|· | We have limited personnel and financial resources available to plan, develop, and implement disclosure and procedure controls and other procedures that are designed to ensure that information required to be disclosed in our periodic reports filed or submitted 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.
|· | Our limited financial resources restrict our employment adequate personnel needed and desirable to separate the various receiving, recording, reviewing and oversight functions for the exercise effective control over financial reporting.                                                                                                                                                                                              
|· | Our limited resources restrict our ability to ensure that information required to be disclosed in our periodic reports filed under the Exchange Act is accumulated and communicated to management to allow timely decisions regarding required disclosure.                                                                                                                                                                                









Our management is responsible
for establishing and maintaining adequate internal control over financial reporting for the company. Internal control over financial
reporting is a process to provide reasonable assurance regarding the reliability of our financial reporting for external purposes
in accordance with accounting principles generally accepted in the United States of America. Internal control over financial reporting
includes maintaining records that in reasonable detail accurately and fairly reflect the transactions and dispositions of our assets;
provide reasonable assurance that transactions are recorded as necessary for preparation of our financial statements; provide reasonable
assurance that receipts and expenditures of company assets are made in accordance with management authorization; and provide reasonable
assurance that unauthorized acquisition, use or disposition of company assets that could have a material effect on our financial
statements would be prevented or detected on a timely basis. Because of its inherent limitations, internal control over financial
reporting is not intended to provide absolute assurance that a misstatement of our financial statements would be prevented or detected.
Pursuant to Rule 13a-15d of the Exchange Act, management conducted an evaluation of the effectiveness of our internal control over
financial reporting based on the framework in Internal Control - Integrated Framework (1992) and Internal Control Over Financial
Reporting Guidance for Smaller Public Companies (2006), issued by the Committee of Sponsoring Organizations of the Treadway Commission.
Based on this evaluation, management concluded that our internal control over financial reporting was not effective as of December
31, 2015.



This quarterly report does not include an attestation report
of the company’s registered public accounting firm regarding internal control over financial reporting. Management’s
report was not subject to attestation by the company’s registered public accounting firm pursuant to temporary rules of the
Securities and Exchange Commission that permit the company to provide only management’s report in this quarterly report.



Changes in Controls and Procedures



There were no significant changes made in our internal controls
over financial reporting during the first quarter December 31, 2015 that have materially affected or are reasonably likely to materially
affect these controls. Thus, no corrective actions with regard to significant deficiencies or material weaknesses were necessary.



Limitations on the Effectiveness of Internal Control



Our management, including the President, does not expect
that our disclosure controls and procedures or our internal control over financial reporting will necessarily prevent all fraud
and material errors. An internal control system, no matter how well conceived and operated, can provide only reasonable, not absolute,
assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that
there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent
limitations on all internal control systems, no evaluation of controls can provide absolute assurance that all control issues and
instances of fraud, if any, have been detected. These inherent limitations include the realities that judgments in decision-making
can be faulty, and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented by
the individual acts of some persons, by collusion of two or more people, and/or by management override of the control. The design
of any system of internal control is also based in part upon certain assumptions about the likelihood of future events, and there
can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Over time,
controls may become inadequate because of changes in circumstances, and/or the degree of compliance with the policies and procedures
may deteriorate. Because of the inherent limitations in a cost-effective internal control system, financial reporting misstatements
due to error or fraud may occur and not be detected on a timely basis.





PART II - OTHER INFORMATION



|Item 1 | Legal Proceedings.
|------ | ------------------



None



(b) We did not terminate any legal proceedings during the
second quarter of our 2016 fiscal year.



|Item 1A | Risk Factors.
|------- | -------------



There have been no material changes to the risk factors previously
disclosed in our Fiscal year Report on Form 10-K and for the first quarter June 30, 2015 filed with the Securities and Exchange
Commission.



|Item 2 | Unregistered Sales of Equity Securities and Use of Proceeds.
|------ | ------------------------------------------------------------



None



|Item 3 | Defaults Upon Senior Securities.
|------ | --------------------------------









Not applicable.



|Item 4 | Removed and Reserved.
|------ | ---------------------



Not applicable





|Item 5 | Other Information.
|------ | ------------------



HempTech Corp is in the process of fund raising for $5,000,000
through a M&A advisory. It has completed in product lines and marketing heavily. We have spun off CB Scientific on February
2016.



|Item 6 | Exhibits.
|------ | ---------





31.A	Principal Executive Officer's Certification Pursuant
to Section 302 of the Sarbanes-Oxley Act of 2002

31.B	Principal Financial & Accounting Officer's Certification
Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32.A	Principal Executive Officer’s Certification
Pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

32.B	Principal Financial & Accounting Officer’s
Certification Pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002