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

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Ruble 12b-2 of the Exchange Act.

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

The number of shares of Common Stock, $0.001 par value, outstanding on August 22,December 12, 2016, was 21,478,18621,884,186 shares.

The interim financial statements included herein, presented in accordance with United States generally accepted accounting principles and stated in US dollars, have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading.

These statements reflect all adjustments, consisting of normal recurring adjustments, which in the opinion of management, are necessary for a fair presentation of the information contained therein. It is suggested that these interim financial statements be read in conjunction with the financial statements of the Company for the years ended December 31, 2015 and 2014 and notes thereto included in the Company’s 10-K annual report. The Company follows the same accounting policies in the preparation of interim reports.

The consolidated financial statements include the accounts of Bollente Companies, Inc. and its wholly owned subsidiaries. On May 16, 2010, the Company acquired 100% of the outstanding stock of Bollente, Inc.  On the date of acquisition, Bollente, Inc. was 2.78% owned and controlled 100% by Robertson J. Orr, a majority shareholder and officer and director of Bollente Companies, Inc. and the acquisition was accounted for by means of a pooling of the entities from the date of inception of Bollente Companies, Inc. on March 7, 2008 because the entities were under common control. On August 13, 2015, the Company formed a wholly owned subsidiary, Bollente International, Inc.  All significant inter-company transactions and balances have been eliminated.

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ significantly from those estimates.

For the purpose of the statements of cash flows, all highly liquid investments with an original maturity of three months or less are considered to be cash equivalents. The carrying value of these investments approximates fair value.

The Company records stock based compensation in accordance with the guidance in ASC Topic 505 and 718 which requires the Company to recognize expenses related to the fair value of its employee stock option awards.  This eliminates accounting for share-based compensation transactions using intrinsic value and requires instead that such transactions be accounted for using a fair-value-based method. The Company recognizes the cost of all share-based awards on a graded vesting basis over the vesting period of the award.

The Company accounts for equity instruments issued in exchange for the receipt of goods or services from other than employees in accordance with FASB ASC 718-10 and the conclusions reached by the FASB ASC 505-50. Costs are measured at the estimated fair market value of the consideration received or the estimated fair value of the equity instruments issued, whichever is more reliably measurable. The value of equity instruments issued for consideration other than employee services is determined on the earliest of a performance commitment or completion of performance by the provider of goods or services as defined by FASB ASC 505-50.

The Company follows ASC Topic 260 to account for the earnings per share. Basic earning per common share (“EPS”) calculations are determined by dividing net income by the weighted average number of shares of common stock outstanding during the year. Diluted earning per common share calculations are determined by dividing net income by the weighted average number of common shares and dilutive common share equivalents outstanding. During periods when common stock equivalents, if any, are anti-dilutive they are not considered in the computation.

Inventories are stated at the lower of cost (average cost) or market (net realizable value).

The Company records revenue when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed or determinable and collectability is probable.  The Company records revenue from the sale of product upon shipment or delivery of the products to the customer.  The Company also records the shipping income when the products are sent to the customer.

Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of December 31, 2014.2015. The respective carrying value of certain on-balance-sheet financial instruments approximated their fair values. These financial instruments include cash and accounts payable. Fair values were assumed to approximate carrying values for cash and payables because they are short term in nature and their carrying amounts approximate fair values or they are payable on demand.

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the recoverability of assets and the satisfaction of liabilities in the normal course of business. As a result, the Company incurred accumulated net losses for the sixnine months ended JuneSeptember 30, 2016 of ($19,649,101)20,451,903). In addition, the Company’s development activities since inception have been financially sustained through debt and equity financing.

The ability of the Company to continue as a going concern is dependent upon its ability to raise additional capital from the sale of common stock and, ultimately, the achievement of significant operating revenues. These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classification of liabilities that might result from this uncertainty.

Inventories consist of the following at:

Website consists of the following at:

Amortization expense for the sixnine months ended JuneSeptember 30, 2016 and 2015 was $9,766$17,149 and $9,766,$14,649, respectively.

Notes payable consist of the following at:

Convertible notes payable, net of debt discount consist of the following:

Interest expense for the sixnine months ended JuneSeptember 30, 2016 and 2015 was $32,332$224,819 and $8,268,$20,799, respectively.

During the three months ended September 30, 2016, we issued warrants to purchase 110,000 shares of the Company’s common stock at an exercise price of $1.50 per share to threefour accredited investors in connection with 12% secured convertible promissory note financing. The warrants are exercisable at any time until five (5) years after the closing date. On August 2, 2016, the Company reduced the warrant exercise price of the warrant holders’ warrants from $1.50 to $1.00 per share. The warrants were issued pursuant to the exemption from registration afforded by Section 4(2) of the Securities Act of 1933 as a transaction by an issuer not involving any public offering.

The Company has agreed to allow accredited investors the ability to receive a royalty on products sold in an effort to fund its distribution and marketing advances internationally by purchasing units.  Each unit represents 0.625% royalty interest in the Gross Margin of product sold by Bollente International, Inc., costing $25,000 per unit. As of JuneSeptember 30, 2016, twenty-sixtwenty-eight units have been sold totaling $675,000.$700,000.  This amount is included in additional paid in capital since there is no obligation to repay the funds.

The Company is authorized to issue 10,000,000 shares of it $0.001 par value preferred stock and 100,000,000 shares of its $0.001 par value common stock.

On June 29,August 2, 2016 the Company agreed to issue 110,000 shares to three lenders to agree to subordinate their debt. The shares were valued at $110,000.

On August 24, 2016, the Company issued 285,00035,000 shares of common stock for cash received of $285,000,$35,000.

On August 24, 2016, the Company issued 90,000 shares of common stock for services to two consultants totaling $90,000.

On August 26, 2016 the Company agreed to issue 50,000 shares to a lender to agree to subordinate his debt.  The shares were valued at $50,000.  

On August 29, 2016, the Company sold 20,000 shares of common stock to an investor for cash totaling $20,000 and are recorded to stock payable.  As of the date of this filing, the shares have not been issued.

On September 19, 2016, the Company issued 80,000 shares of common stock for cash received of $80,000, of which $140,000$75,000 of the funds were received as of March 31,June 30, 2016 and $5,000 was recorded as stock payable.

On June 29,September 19, 2016, the Company issued 30,00020,000 shares of common stock for services to one consultant totaling $20,000.

On September 27, 2016, the Company issued 25,000 shares of $30,000common stock for services to one consultant totaling $25,000.

F-9

BOLLENTE COMPANIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

NOTE 7 - STOCKHOLDERS’ EQUITY (CONTINUED)

On September 27, 2016, the Company issued 25,000 shares of common stock as part of a loan. The fair value of the shares was $25,000.

On September 27, 2016, the Company issued 21,000 shares of common stock owed to two employees of the Company as part of their employment agreement totaling $21,000.

As of September 30, 2016, the Company recorded a stock payable totaling $60,000 for 60,000 shares of common stock earned by the President of the Company as part of their employment agreement, of which $30,000 was expensed as of March 31, 2016 and recorded as stock payable.

For the sixnine months ended JuneSeptember 30, 2016, the Company expensed $339,828$406,911 as professional fees with a remaining prepaid stock compensation amount totaling $166,389$139,305 at JuneSeptember 30, 2016.

In January 2015, the Company executed a sublease agreement with Perigon Companies, LLC, a related party.  The lease term is one year at a rate of $4,000 per month with an option to continue on a month to month basis.  The Company paid a refundable security deposit of $1,500.

In January 2015, the Company executed a sublease agreement with Templar Asset Group, LLC, a related party.  The lease term is one year at a rate of $2,800 per month with an option to continue on a month to month basis.  The Company was not required to pay a security deposit.

Rent expense for the sixnine months ended JuneSeptember 30, 2016 and 2015 was $40,800$61,200 and $45,077, respectively.

6% Series A Convertible Preferred Securities Purchase Agreement

Subsequent to the period ended September 30, 2016, the Companywe sold 25,00033,800 shares of common stockour 6% Series A Convertible Preferred Stock (“Preferred Stock”) to an investor for cash totaling $25,000 and is recorded to stock payable.  Astwo accredited investors. Each share of the date of this filing, the shares have not been issued and are recorded to stock payable.

F-10

BOLLENTE COMPANIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

NOTE 10 - SUBSEQUENT EVENTS (CONTINUED)

Consulting Agreements

On October 5, 2016, the Company entered into a Consulting and Advisory Agreement where an individual who will provide business development and consulting services over a twelve month period. The Company agreed to issue 25,000 shares of 1933 ascommon stock for his services upon execution of the agreement.

On October 1, 2016, the Company entered into a transaction byConsulting and Advisory Agreement where an issuer not involving any public offering.

as well as other statements regarding our future operations, financial condition and prospects, and business strategies. These forward-looking statements are subject to certain risks and uncertainties that could cause our actual results to differ materially from those reflected in the forward-looking statements.  Factors that could cause or contribute to such differences include, but are not limited to, those discussed in this Quarterly Report on Form 10-Q, and in particular, the risks discussed under the heading “Risk Factors” in Part II, Item 1A and those discussed in other documents we file with the Securities and Exchange Commission. We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements.