UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q /A

~~Amendment No. 1~~

(MARK ONE)


þ	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~June~~September 30, 2015


o	TRANSITION REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _________ to _________

Commission File Number:~~333-169554~~0-55076

RAINBOW CORAL CORP.

(Exact name of registrant as specified in its charter)


~~Florida~~Nevada		27-3247562
(State or other jurisdiction of Incorporation or organization)		(I.R.S. Employer Identification Number)

871 Coronado Center Dr, Suite 200 Henderson, Nevada		89052
(Address of principal executive offices)		(Zip code)

Registrant’s telephone number, including area code:~~702-952-5000~~702-940-2345

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.

Yesþ Noo

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.

Yes þo No oþ

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


Large accelerated filer	o	Accelerated filer	o
Non-accelerated filer	o	Smaller reporting company	þ
(Do not check is smaller reporting company)

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

Yeso Noþ

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date. As of ~~August 14,~~November 3, 2015, ~~8,748,882~~10,248,782 shares of common stock are issued and outstanding.

~~EXPLANATORY NOTE~~

The purpose of this Amendment No. 1 to our Quarterly Report on Form 10-Q for the period ended June 30, 2015 (“Form 10-Q”) is to submit Exhibit 101 to the Form 10-Q in accordance with Rule 405 of Regulation S-T. Exhibit 101 consists of the Interactive Data Files relating to our Form 10-Q for the period ended June 30, 2015, filed with the Securities and Exchange Commission on August 19, 2015.

~~Additionally, we corrected three typographical errors as follows:~~

~~1) In~~~~Note 3. Summary of Significant Accounting Policies~~ ~~on page 9, under the caption “~~~~Cash and Cash Equivalents~~~~”, the value for cash and cash equivalents at March 31, 2015 has been corrected from “$5,780” to “$5,180”.~~

~~2) In~~~~Note 7. Stockholders’ Equity~~ ~~on page 13, in the first paragraph, the last sentence has been corrected from “500 million shares” to “480 million shares”.~~

~~3) In~~~~Note 9. Business Segments~~ ~~on page 13, in the first table under the caption “~~~~Results of Operations~~~~”. The line item labeled “GENERAL AND ADMINISTRATIVE EXPENSE” has been corrected to “OPERATING EXPENSES”~~

TABLE OF CONTENTS


PART I—FINANCIAL INFORMATION	4

Item 1. Financial Statements	4

Consolidated Balance Sheets (Unaudited)	4

Consolidated Statements of Operations (Unaudited)	5

Statement of ~~Changes in~~ Stockholders’ Deficit (Unaudited)	6

Consolidated Statements of Cash Flows (Unaudited)	7

Notes to the Unaudited Consolidated Financial Statements	8

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	1514

Item 3. Quantitative and Qualitative Disclosures about Market Risk	16

Item 4. Controls and Procedures	16

PART II— OTHER INFORMATION	17

Item 1. Legal Proceedings	17

Item 1A. Risk Factors	17

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	17

Item 3. Defaults upon Senior Securities	17

Item 4. Mine Safety Disclosures	17

Item 5. Other Information	17

Item 6. Exhibits	1817

- 2 -

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

Certain statements in this report contain or may contain forward-looking statements. These statements, identified by words such as “plan”, “anticipate”, “believe”, “estimate”, “should”, “expect” and similar expressions include our expectations and objectives regarding our future financial position, operating results and business strategy. These statements are subject to known and unknown risks, uncertainties and other factors, which may cause actual results, performance, or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward - looking statements. These forward-looking statements were based on various factors and were derived utilizing numerous assumptions and other factors that could cause our actual results to differ materially from those in the forward-looking statements. These factors include, but are not limited to, our ability to secure suitable financing to continue with our existing business or change our business and conclude a merger, acquisition or combination with a business prospect, economic, political and market conditions and fluctuations, government and industry regulation, interest rate risk, U.S. and global competition, and other factors. Most of these factors are difficult to predict accurately and are generally beyond our control. You should consider the areas of risk described in connection with any forward-looking statements that may be made herein. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this report. Readers should carefully review this report in its entirety, including but not limited to our financial statements and the notes thereto and the risks described in our Annual Report on Form 10-K for the fiscal year ended March 31, 2015. We advise you to carefully review the reports and documents we file from time to time with the Securities and Exchange Commission (the “SEC”), particularly our quarterly reports on Form 10-Q and our current reports on Form 8-K. Except for our ongoing obligations to disclose material information under the Federal securities laws, we undertake no obligation to release publicly any revisions to any forward-looking statements, to report events or to report the occurrence of unanticipated events.

OTHER PERTINENT INFORMATION

When used in this report, the terms, “we,” the “Company,” “our,” and “us” refers to Rainbow Coral Corp., a ~~Florida~~Nevada corporation.

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PART I — FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

RAINBOW CORAL CORP.

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)


	June 30, 2015			March 31, 2015			September 30, 2015			March 31, 2015
ASSETS

CURRENT ASSETS
Cash and cash equivalents	$	2,740		$	5,180		$	1,826		$	5,180
Prepaid expenses		1,220			1,095			—			1,095
Inventory		564			1,139			2,623			1,139
Total current assets		4,524			7,414			4,449			7,414

Fixed assets net of accumulated depreciation of $3,354 and $2,795, respectively		3,355			3,914
Fixed assets net of accumulated depreciation of $3,914 and $2,795, respectively								2,795			3,914
Security deposits								350			—
TOTAL ASSETS	$	7,879		$	11,328		$	7,594		$	11,328

LIABILITIES AND STOCKHOLDERS’ DEFICIT

CURRENT LIABILITIES
Accounts payable and accrued expenses	$	319,830		$	274,684		$	202,406		$	274,684
Related party payables		177,274			165,214
Current portion of convertible notes payable, net of discount of $48,852 and $0, respectively		6,395			—
Current portion of notes payable		13,921			13,734
Related party advances payable								189,104			165,214
Current portion of convertible notes payable, net of discount of $78,237 and $0, respectively.								10,936			—
Short-term notes payable								1,359			13,734
Current portion of long-term notes payable								13,003			—
Current portion of accrued interest payable		378			—			8,202			—
Total current liabilities		517,798			453,632			425,010			453,632

Convertible notes payable, net of discount of $226,888 and $237,643, respectively		40,960			164,238
Convertible notes payable, net of discount of $412,914 and $237,643, respectively								42,359			164,238
Notes payable		34,551			37,352			31,741			37,352
Accrued interest payable		11,647			14,127			10,384			14,127
TOTAL LIABILITIES		604,956			669,349			509,494			669,349

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS’ DEFICIT
Preferred stock, $0.001 par value; 20,000,000 shares authorized; No shares issued and outstanding at June 30, 2015 and March 31, 2015, respectively		—			—
Common stock, $0.001 par value; 480,000,000 shares authorized; 7,536,277 shares issued and outstanding at June 30, 2015 and March 31, 2015, respectively		7,536			342
Common Stock, $0.001 par value; 480,000,000 shares authorized; 9,912,332 shares and 342,107 shares issued and outstanding at September 30, 2015 and March 31, 2015, respectively								9,912			342
Preferred Stock, $0.001 stated value; 20,000,000 shares authorized; 1,000,000 and 0 shares issued and outstanding at September 30, 2015 and March 31, 2015, respectively								1,000			—
Additional paid-in capital		3,455,104			3,264,425			3,906,730			3,264,425
Accumulated deficit		(4,059,717	)		(3,922,788	)		(4,419,542	)		(3,922,788	)
Total stockholders’ deficit		(597,077	)		(658,021	)		(501,900	)		(658,021	)

TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT	$	7,879		$	11,328		$	7,594		$	11,328

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

- 4 -

RAINBOW CORAL CORP.

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)


	Three months ended June 30,						Six months ended September 30,						Three months ended September 30,
	2015			2014			2015			2014			2015			2014

REVENUE	$	27,683		$	35,147		$	56,347		$	71,321		$	28,664		$	36,174
COST OF GOODS SOLD		12,675			17,283			24,914			37,735			12,239			20,452

GROSS PROFIT		15,008			17,864			31,433			33,586			16,425			15,722

OPERATING EXPENSES
Expenses related to joint ventures and business development activities		10,000			40,000			15,000			60,000			5,000			20,000
General and administrative expenses		115,844			129,685			426,765			270,931			310,921			141,246
Total operating expenses		125,844			169,685			441,765			330,931			315,921			161,246

LOSS FROM OPERATIONS	$	(110,836	)	$	(151,821	)		(410,332	)		(297,345	)		(299,496	)		(145,524	)

OTHER INCOME (EXPENSE)
Interest expense		(26,093	)		(223,088	)		(86,422	)		(238,692	)		(60,329	)		(15,604	)
Total other income (expense)								(86,422	)		(238,692	)		(60,329	)		(15,604	)

NET LOSS	$	(136,929	)	$	(374,909	)	$	(496,754	)	$	(536,037	)	$	(359,825	)	$	(161,128	)

NET LOSS PER COMMON SHARE – Basic and diluted	$	(0.05	)	$	(1.46	)	$	(0.09	)	$	(1.96	)	$	(0.04	)	$	(0.56	)

WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING – Basic and diluted		2,683,948			256,925			5,635,834			272,889			8,633,830			288,680

On May 29, 2015, the Company effected a one-for-100 reverse stock split. All share and per share amounts have been restated to reflect the reverse split.

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

- 5 -

RAINBOW CORAL CORP.

STATEMENT OF ~~CHANGES IN~~ STOCKHOLDERS’ DEFICIT

(UNAUDITED)

Preferred Stock

Common Stock

Additional
Paid-In

Accumulated

Total

Shares

Amount

Shares

Amount

Capital

Deficit

Deficit

BALANCE, March 31, 2015

—

$
—

342,106

$
342

$
3,264,425

$
(3,922,788
)
$
(658,021
)

Shares issued for conversion of notes payable

—

—

7,193,344

7,194

136,673

—

143,867

Discount on issuance of convertible note payable

—

—

—

—

54,006

—

54,006

Share rounding

—

—

827

—

—

—

—

Net Loss

—

—

—

—

—

(136,929
)

(136,929
)

BALANCE, June 30, 2015

—

$
—

7,536,277

$
7,536

$
3,455,104

$
(4,059,717
)
$
(597,077
)


	Common Stock			Series E Preferred Stock			Additional Paid In		Accumulated			Total
	Shares	Amount		Shares	Amount		Capital		Deficit			Deficit

BALANCE, March 31, 2015	342,107	$	342	—	$	—	$	3,264,425	$	(3,922,788	)	$	(658,021	)

Shares issued for conversion of notes payable	9,565,544		9,566	—		—		181,745		—			191,311
Discount on issuance of convertible note payable	—		—	—		—		321,564		—			321,564
Preferred stock issued for control	—		—	1,000,000		1,000		139,000		—			140,000
Share rounding on reverse split	4,681		4	—		—		(4)		—			—
Net loss	—		—	—		—		—		(496,754	)		(496,754	)

BALANCE, September 30, 2015	9,912,332	$	9,912	1,000,000	$	1,000	$	3,906,730	$	(4,419,542	)	$	(501,900	)

On May 29, 2015, the Company effected a one-for-100 reverse stock split. All share and per share amounts have been restated to reflect the reverse split.

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

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RAINBOW CORAL CORP.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)


	Three months ended June 30,						Six months ended September 30,
	2015			2014			2015			2014

CASH FLOW FROM OPERATING ACTIVITIES:
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(136,929	)	$	(374,909	)	$	(496,754	)	$	(536,037	)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of discount on convertible note payable		15,909			216,176			68,056			226,359
Depreciation		559			1,260			1,119			2,520

Preferred stock issued for control								140,000			—
Changes in operating assets and liabilities:
Inventory		575			798			(1,484	)		1,298
Prepaid expenses		(125	)		491			1,095			(4,403	)
Security deposits								(350	)		—
Accounts payable and accrued liabilities		45,146			41,503			(72,278	)		91,642
Accrued interest payable		8,973			6,912			16,771			12,334
NET CASH USED IN OPERATING ACTIVITIES		(65,892	)		(107,769	)		(343,825	)		(206,287	)

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from advances		54,006			62,980			321,564			143,113
Proceeds from related party advance		12,060			—			23,890			11,004
Repayments of related party advances		—			(1,204	)
Proceeds from issuance of notes payable								—			4,660
Repayments of notes payable		(2,614	)		(140	)		(4,983	)		—
NET CASH PROVIDED BY FINANCING ACTIVITIES		63,452			61,636			340,471			158,777

NET DECREASE IN CASH		(2,440	)		(46,133	)
NET INCREASE (DECREASE) IN CASH								(3,354	)		(47,510	)

CASH, at the beginning of the period		5,180			65,373			5,180			65,373

CASH, at the end of the period	$	2,740		$	19,240		$	1,826		$	17,863

Supplemental Disclosures of Cash Flow Information:
Cash paid during the period for:
Interest	$	1,211		$	—		$	—		$	—
Taxes	$	—		$	—		$	—		$	—

Noncash investing and financing transaction:
Refinance advances into convertible note payable	$	54,006		$	212,433
Beneficial conversion discount on convertible note	$	54,006		$	212,433
Conversion of convertible notes payable and accrued interest to common stock	$	143,867		$	238,368
Refinance of advances into convertible notes payable							$	321,564		$	292,566
Beneficial conversion discount on convertible note payable							$	321,564		$	292,566
Conversion of convertible notes payable.							$	191,311		$	243,322

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

- 7 -

RAINBOW CORAL CORP.

NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

~~JUNE~~SEPTEMBER 30, 2015

Note 1. General Organization and Business

Rainbow Coral Corp. (the “Company”), a ~~Florida~~Nevada corporation, was incorporated on August 13, 2010. The Company’s year-end is March 31.

We were formed to build a coral farm facility to develop and propagate (or grow) live coral, independent of the oceans, as a future farm reserve against the decline of natural wild reefs. We intend to grow, harvest, and distribute as many varieties of hard and soft sizes as possible of captive-bred corals that are attractive, to as many consumers as possible who can maintain them in a healthy ecosystem aquarium. We believe that coral and other marine aquarium livestock should be supplied by farms or captive breeders, rather than removed from the natural reefs. The additional uses for coral as a source of potential leading edge medical discoveries are an attractive opportunity for the Company’s coral farming activity. We believe that the world of bioresearch is a natural continuation of our core coral propagation business. Accordingly, on October 23, 2011, we formed a subsidiary, Rainbow Biosciences, LLC to look into the opportunities within the bioscience market. Rainbow Biosciences, LLC will continue to research opportunities into the bioscience markets.

~~Joint Ventures~~

On ~~March 13, 2012,~~May 5, 2015, we reincorporated from Florida to Nevada. On May 29, 2015, each shareholder received one share in the ~~Company entered into a stock purchase agreement (“N3D Stock Purchase Agreement”) with Nano3D Biosciences, Inc. (“N3D”), a Texas corporation that has developed a unique concept~~Nevada company for each 100 shares they held in ~~three dimensional cell research tools. Under~~ the ~~terms~~Florida company. Fractional shares were rounded up, and each shareholder received at least five shares. The executive officers and directors of the ~~N3D Stock Purchase Agreement,~~Nevada company are unchanged from the ~~Company agreed to acquire 604 shares of common stock of N3D, representing approximately 5%~~executive officers and directors of the ~~outstanding shares on~~Florida company. All share and per share amounts have been retroactively restated to reflect the date of the agreement, for a price of $413.62 per share. The total purchase price of $249,826 was to be paid by making weekly payments of $5,000 until fully paid. Under the terms of the N3D Stock Purchase Agreement, we could discontinue payment of the purchase price at any time by providing written notice to N3D. The Company invested $60,000 in N3D resulting in the acquisition of 145 shares of N3D’s common stock.

The Company suspended payments to N3D in May 2012 because of their delay in reaching certain milestones in the commercialization process. The Company wrote off the investment in full due to the uncertainty about whether the carrying amount is recoverable. During the three months ended June 30, 2015, the Company paid and expensed $10,000 with N3D.

On February 1, 2013, the Company entered into a joint venture agreement with TheraKine Ltd. (“TheraKine”) in order to explore potential business opportunities to exploit TheraKine’s drug delivery technologies. TheraKine is the developer of a revolutionary, sustained-release drug delivery platform that could soon make local delivery of biologic agents and small molecules safer, more effective, and more convenient than ever before. During the three months ended June 30, 2015, the Company incurred no expenses related to this joint venture.reverse split.

Note 2. Going Concern

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. For the ~~three~~six months ended ~~June~~September 30, 2015, the Company had a net loss of ~~$136,929~~$496,754 and negative cash flow from operating activities of ~~$65,892.~~$343,825. As of ~~June~~September 30, 2015, the Company had negative working capital of ~~$513,274.~~$420,561. Management does not anticipate having positive cash flow from operations in the near future.

These factors raise a substantial doubt about the Company’s ability to continue as a going concern. The accompanying consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result from the possible inability of the Company to continue as a going concern.

The Company does not have the resources at this time to repay its credit and debt obligations, make any payments in the form of dividends to its shareholders or implement its business plan. Without additional capital, the Company will not be able to remain in business.

~~- 8 -~~

Management has plans to address the Company’s financial situation as follows:

In the near term, management plans to continue to focus on raising the funds necessary to implement the Company’s business plan. Management will continue to seek out debt financing to obtain the capital required to meet the Company’s financial obligations. There is no assurance, however, that lenders will continue to advance capital to the Company or that the new business operations will be profitable. The possibility of failure in obtaining additional funding and the potential inability to achieve profitability raise doubts about the Company’s ability to continue as a going concern.

In the long term, management believes that the Company’s projects and initiatives will be successful and will provide cash flow to the Company, which will be used to finance the Company’s future growth. However, there can be no assurances that the Company’s planned activities will be successful, or that the Company will ultimately attain profitability. The Company’s long-term viability depends on its ability to obtain adequate sources of debt or equity funding to meet current commitments and fund the continuation of its business operations, and the ability of the Company to achieve adequate profitability and cash flows from operations to sustain its operations.

- 8 -

Note 3. Summary of Significant Accounting Policies

Interim Financial Statements

The accompanying these unaudited financial statements have been prepared in accordance with accounting principles generally accepted accounting ~~(“GAAP”) principles~~ in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, the ~~Consolidated~~consolidated financial statements do not include all of the information and footnotes required by ~~generally accepted accounting principles~~GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included and such adjustments are of a normal recurring nature. These ~~Consolidated~~consolidated financial statements should be read in conjunction with the ~~Consolidated~~consolidated financial statements for the fiscal year ended March 31, 2015 and notes thereto and other pertinent information contained in our Form 10-K the Company has filed with the Securities and Exchange Commission (the “SEC”).

The results of operations for the ~~three-month~~six month period ended ~~June~~September 30, 2015 are not necessarily indicative of the results to be expected for the full fiscal year ending March 31, 2016.

Basis of Presentation

The consolidated financial statements and related disclosures have been prepared pursuant to the rules and regulations of the SEC. The financial statements have been prepared using the accrual basis of accounting in accordance with ~~accounting principles generally accepted in the United States of America (“GAAP”).~~GAAP.

Principles of Consolidation

The consolidated financial statements include the accounts and operations of Rainbow Coral Corp., and its wholly owned subsidiaries, Rainbow Biosciences, LLC and Father Fish Aquarium, Inc. (collectively referred to as the “Company”). All material intercompany accounts and transactions have been eliminated in consolidation.

Use of Estimates

The preparation of financial statements in conformity with ~~accounting principles generally accepted in the United States of America~~GAAP 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 from those estimates.

~~Cash and Cash Equivalents~~

For the purpose of the financial statements, cash equivalents include all highly liquid investments with maturity of three months or less. Cash and cash equivalents were $2,740 and $5,180 at June 30, 2015 and March 31, 2015, respectively.

~~- 9 -~~

~~Inventory~~

Inventory represents aquarium products and other pet supply items valued at the lower of cost or net realizable value determined using the weighted average cost method, and with market defined as the lower of replacement cost or realizable value. The cost of inventory includes all costs to purchase, costs of conversion and other costs incurred in bringing the inventory to its present location and condition. Inventory is reduced for the estimated losses due to obsolescence.

~~Fixed Assets~~

Fixed assets of the Company include vehicles and computer equipment and are stated at cost. Expenditures for fixed assets that substantially increase the useful lives of existing assets are capitalized at cost and depreciated. Routine expenditures for repairs and maintenance are expensed as incurred.

~~Depreciation is provided principally on the straight-line method over the estimated useful lives of three to five years for financial reporting purposes.~~

~~Impairment of Long-Lived Assets~~

Long-lived assets, including fixed assets and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the long-lived asset may not be recoverable. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. If it is determined that an impairment loss has occurred, the loss is measured as the amount by which the carrying amount of the long-lived asset exceeds its fair value. The Company determined that there was no impairment of long-lived assets during the three months ended June 30, 2015.

~~Revenue and Cost Recognition~~Related Parties

The Company recognizes revenue when persuasive evidence of an arrangement exists, product delivery has occurred or the services have been rendered, the price is fixed or determinable and collectability is reasonably assured. Revenue is generated from the sales of live coral and other related products in a retail setting. Revenue is recognized net of sales returns and allowances.

~~Costs of goods sold represents product costs associated with generating revenue. It includes all costs of purchase, costs of conversion and other costs of acquiring products that have been sold.~~

~~Income Taxes~~

~~The Company accounts for income taxes under~~follows ASC ~~740~~850,~~Income Taxes~~ Related Party Disclosures~~. Under the asset and liability method of ASC 740, deferred tax assets and liabilities are recognized~~, for the ~~future tax consequences attributable to differences between the financial statements carrying amounts~~identification of ~~existing assets~~related parties and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilitiesdisclosure of a change in tax rates is recognized in income in the period the enactment occurs. A valuation allowance is provided deferred tax assets if it is more likely than not that the Company will not realize tax assets through future operations. No deferred tax assets or liabilities were recognized as of June 30, 2015 or March 31, 2015.

~~Earnings (Loss) per Common Share~~

~~The Company computes basic and diluted earnings per common share amounts in accordance with ASC Topic 260,~~~~Earnings per Share~~. The basic earnings (loss) per common share are calculated by dividing the Company’s net income available to common shareholders by the weighted average number of common shares outstanding during the period. The diluted earnings (loss) per common share are calculated by dividing the Company’s net income (loss) available to common shareholders by the diluted weighted average number of shares outstanding during the period. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted as of the first of the year for any potentially dilutive debt or equity. There are no dilutive shares outstanding for any periods reported.

~~- 10 -~~

In periods in which a net loss has been incurred, all potentially dilutive common shares are considered anti-dilutive and thus are excluded from the calculation. The Company’s convertible debt is considered anti-dilutive due to the Company’s net loss for the years ended March 31, 2015 and 2014. As a result, the Company did not have any potentially dilutive common shares for those periods. For the year ended March 31, 2015 and 2014, potentially issuable shares as a result of conversions of convertible notes payable have been excluded from the calculation. At March 31, 2015, the Company had 26,679,469 potentially issuable shares upon the conversion of convertible notes payable and interest.

~~Financial Instruments~~

The Company’s balance sheet includes certain financial instruments. The carrying amounts of current assets and current liabilities approximate their fair value because of the relatively short period between the origination of these instruments and their expected realization.

~~Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 820~~~~Fair Value Measurements and Disclosures~~ (ASC 820) defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy that distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:


	~~Level 1 -~~	~~Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.~~

	~~Level 2 -~~	Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means.

	~~Level 3 -~~	~~Inputs that are both significant to the fair value measurement and unobservable.~~

Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of June 30, 2015. The respective carrying value of certain on-balance-sheet financial instruments approximated their fair values due to the short-term nature of these instruments. These financial instruments include accounts payable, and accrued expenses. The fair value of the Company’s notes payable is estimated based on current rates that would be available for debt of similar terms that is not significantly different from its stated value.

~~Subsequent events~~

The Company evaluated material events occurring between the end of the current period, June 30, 2015, and through the date when the consolidated financial statements were available to be issued for disclosure consideration.related party transactions.

Recently Issued Accounting Pronouncements

~~There were various other~~We have reviewed the FASB issued Accounting Standards Update (“ASU”) accounting ~~standards~~pronouncements and interpretations ~~issued recently, none of which are expected to a~~thereof that have effectiveness dates during the periods reported and in future periods. The Company has carefully considered the new pronouncements that alter previous generally accepted accounting principles and does not believe that any new or modified principles will have a material impact on the ~~Company’s consolidated~~corporation’s reported financial position or operations ~~or cash flows.~~

~~Note 4. Advances~~

~~During~~in the ~~three months ended June 30, 2015, Vista View Ventures, Inc. advanced $54,006~~near term. The applicability of any standard is subject to the ~~Company for working capital. These advances~~formal review of our financial management and certain standards are non-interest bearing and payable on demand. During the same period, the Company refinanced $54,006 of the advances into convertible notes payable with Vista View Ventures, Inc. As of June 30, 2015 and March 31, 2015, advances in the amount of $0 and $0, respectively, are included in current liabilities on the consolidated balance sheets.under consideration.

- 119 -

Note 5.4. Convertible Notes Payable

During the six months ended September 30, 2015, Vista View Ventures, Inc. (“Vista View”) advanced $321,564 to the Company for working capital. Vista View paid the advances to KMDA, and subsequently KMDA paid them to the Company on behalf of Vista View. These advances are typically memorialized into a convertible note payable on a quarterly basis as discussed below.

Convertible notes payable consist of the following as of ~~June~~September 30, 2015 and March 31, 2015:

June 30, 2015

March 31, 2015

Convertible note, dated June 30, 2014, bearing interest at 10% per annum, matures on June 30, 2016 and convertible into shares of common stock at $0.02 per share

55,247

62,980

Convertible note, dated September 30, 2014, bearing interest at 10% per annum, matures on September 30, 2016 and convertible into shares of common stock at $0.01 per share

80,133

80,133

Convertible note, dated December 31, 2014, bearing interest at 10% per annum, matures on December 31, 2016 and convertible into shares of common stock at $0.01 per share

94,074

94,074

Convertible note, dated December 31, 2014, bearing interest at 10% per annum, matures on December 31, 2016 and convertible into shares of common stock at $0.02 per share

—

125,059

Convertible note, dated March 31, 2015, bearing interest at 10% per annum, matures on March 31, 2017 and convertible into shares of common stock at $0.007 per share

39,635

39,635

Convertible note, dates June 30, 2015, bearing interest at 10% per annum, matures on June 30, 2017 and convertible into shares of common stock at $0.25 per share.

54,006

—

Total convertible notes payable

$
323,095

$
401,881

Less: current portion of convertible notes payable

(55,247
)

—

Less: discount on convertible notes payable

(226,888
)

(237,643
)
Convertible notes payable, net of discount

$
40,960

$
164,238


	September 30, 2015			March 31, 2015
Convertible note dated June 30, 2014, bearing interest at 10% per annum, maturing June 30, 2016 and convertible into shares of common stock at $0.02 per share		9,040			62,980
Convertible note dated September 30, 2014, bearing interest at 10% per annum, maturing September 30, 2016 and convertible into shares of common stock at $0.01 per share		80,133			80,133
Convertible note dated December 31, 2014, bearing interest at 10% per annum, maturing December 31, 2016 and convertible into shares of common stock at $0.01 per share		94,074			94,074
Convertible note dated December 31, 2014, bearing interest at 10% per annum, maturing December 31, 2016 and convertible into shares of common stock at $0.02 per share.		—			125,059
Convertible note dated March 31, 2015, bearing interest at 10% per annum, maturing March 31, 2017 and convertible into shares of common stock at $0.007 per share		39,635			39,635
Convertible note dated June 30, 2015, bearing interest at 10% per annum, maturing June 30, 2017 and convertible into shares of common stock at $0.25 per share.		54,006			—
Convertible note dated September 30, 2015, bearing interest at 10% per annum, maturing September 30, 2018, and convertible into shares of common stock at $0.25 per share.		267,558			—
Total convertible notes payable	$	544,446		$	401,881

Less: current portion of convertible notes payable		(89,173	)		—
Less: discount on convertible notes payable		(412,914	)		(237,643	)
Noncurrent convertible notes payable, net of discount	$	42,359		$	164,238

Current portion of convertible notes payable		89,173			—
Less: discount on current portion of convertible notes payable		(78,237	)		—
Current portion of convertible notes payable, net of discount	$	10,936		$	—

~~Advances Refinanced into~~ Convertible ~~Promissory Notes~~notes issued

During the ~~three~~six months ended ~~June~~September 30, 2015, the Company ~~has~~ signed ~~a convertible promissory note~~Convertible Promissory Notes totaling $321,564 with Vista View Ventures, Inc. that ~~refinanced~~memorialize non-interest bearing periodic advances into a convertible notes payable. The ~~convertible promissory note bears~~Convertible Promissory Notes bear interest at 10% per annum and isare payable along with accrued interest ~~on the maturity date.~~at maturity. The ~~convertible promissory note~~Convertible Promissory Note and unpaid accrued interest are convertible into common stock at the option of the holder. The holder of the notes may not convert the convertible promissory note into common stock if that conversion would result in the holder owning more than 4.99% of the Company’s outstanding common stock on the conversion date. The convertible note dated December 31, 2014 in the original principal amount of $125,059 is completely convertible at the option of the holder without a limitation on ownership.


Date Issued	Maturity Date	Interest Rate		Conversion Rate		Note Amount		Maturity Date	Interest Rate		Conversion Rate		Note Amount
June 30, 2015	June 30, 2017	10	%	$	0.25	$	54,006	June 30, 2017	10	%	$	0.25	$	54,006
September 30, 2015								September 30, 2018	10	%		0.25		267,558
Total						$	54,006						$	321,564

- 10 -

The Company evaluated the terms of the ~~new note~~notes in accordance with ASC Topic No. 815 -– 40,Derivatives and Hedging - Contracts in Entity’s Own Stock and determined that the underlying common stock is indexed to the Company’s common stock. ~~The Company~~We determined that the conversion features did not meet the definition of a liability and therefore did not bifurcate the conversion feature and account for it as a separate derivative liability. ~~The Company~~We evaluated the conversion ~~feature~~features for a beneficial conversion feature. The effective conversion price was compared to the market price on the date of the ~~note~~notes and was deemed to be less than the market value of underlying common stock at the inception of the note. Therefore, ~~the Company~~we recognized a discount for the beneficial conversion ~~feature~~features of ~~$54,006~~$321,564, in aggregate, on the date the notes were signed. We amortize the discounts for the notes dated June 30, ~~2015.~~2015 and September 30, 2015 at effective interest rate of 277.49% and 222.23%, respectively. The beneficial conversion feature was recorded as an increase toin additional paid-in capital and a discount to the convertible ~~note.~~notes payable. The discount to the convertible ~~note~~notes payable will be amortized to interest expense over the life of the ~~note.~~notes. During the six months ended September 30, 2015 and 2014, the Company amortized discounts on convertible notes payable of $68,056 and $226,359, respectively, to interest expense.

Conversions ~~into common stock~~to Common Stock

During ~~the three~~six months ended ~~June~~September 30, 2015, Essen Enterprises, Inc. (“Essen”), the ~~holders~~original payee of the ~~convertible note payable~~Convertible Note Payable dated December 31, 2014 elected to convert principal ~~of $125,059~~ and accrued interest in the amounts shown below into share of ~~$5,208~~common stock at a rate of $0.02 per share. No gain or loss was recognized on the conversions as they occurred within the terms of the agreement that provided for conversion.


Date	Amount Converted		Shares of Common Stock Issued
June 1, 2015	$	130,267	6,513,344
Total	$	130,267	6,513,344

As a result of this conversion, Essen became a significant shareholder of the Company.

Vista View Ventures Inc. periodically sells or assigns a portion of its interest in the outstanding principal and interest of the Convertible Note Payable dated June 30, 2014 to three unrelated entities in accordance with the existing terms of the note. During the six months ended September 30, 2015, Montego Blue Enterprises Corporation, THM Consulting Corp., and Jaxon Group Corp. received assignments of $16,540, $8,795 and $11,029, respectively. All of the debt assigned was converted into ~~6,513,344~~ shares of common ~~stock.~~stock and is included in the table below.

During ~~the three~~six months ended ~~June~~September 30, 2015, the holders of the ~~convertible note payable~~Convertible Note Payable dated June 30, 2014 elected to convert principal ~~of $7,733~~ and accrued interest in the amounts show below into share of ~~$5,867 into 680,000~~common stock at a rate of $0.02 per share. On the conversion date, the unamortized discount related to the principal amount converted was immediately amortized to interest expense. No gain or loss was recognized on the conversions as they occurred within the terms of the agreement that provided for conversion.


Date	Amount Converted		Shares of Common Stock Issued
June 5, 2015	$	13,600	680,000
July 8, 2015		1,400	70,000
July 16, 2015		7,520	376,000
July 22, 2015		3,220	161,000
July 23, 2015		995	49,750
July 24, 2015		4,920	246,000
August 3, 2015		2,200	110,000
August 11, 2015		3,860	193,000
August 18, 2015		2,040	102,000
August 26, 2015		4,280	214,000
September 11, 2015		5,560	278,000
September 24, 2015		4,000	200,000
September 29, 2015		7,449	372,450
Total	$	61,044	3,052,200

In connection with the one-for-100 reverse common stock split on May 29, 2015, the conversion rates of the outstanding convertible notes payable were not modified. As a result, in the event all potentially issuable shares were converted, the holders of the existing notes at September 30, 2015 would be issued 26,615,514 shares of common ~~stock.~~stock representing approximately 99% of the Company’s total shares outstanding on an if-converted basis. The holders of the notes are limited to holding no greater than 4.99% of the common stock at any time.

- 1211 -

Note 5. Long-term Notes Payable

On December 30, 2013, we entered into a promissory note for $50,000 with a third party bearing interest at 5% per annum. Under the terms of the note payable, the Company is required to pay the note payable beginning on January 1, 2015 and over a period of 4 years. At September 30, 2015 and March 31, 2015, we owed the noteholder $44,744 and $48,150, respectively.

During the year ended March 31, 2015, we entered into a promissory note for $5,000 with a third party bearing interest at 5% per annum. Under the terms of the note payable, we are required to repay the note in twenty-six equal monthly installments beginning in October 2014. At September 30, 2015 and March 31, 2015, we owed the noteholder $1,359 and $2,936, respectively.

Note 6. Related Party Transactions

During the ~~three~~six months ended ~~June~~September 30, 2015, Mr. Foxwell, the president of Father Fish, advanced ~~$12,060~~$23,890 to our subsidiary, Father Fish, for working capital. As of ~~June~~September 30, 2015 and March 31, 2015, related party advances payable to Mr. Foxwell totaled ~~$177,274~~$189,104 and $165,214, respectively. The advances bear no interest and are due on demand.

On July 22, 2015, we issued 1,000,000 shares of Series E Preferred stock to Essen Enterprises. See Note 7.

During the six months ended September 30, 2015 and 2014, we paid Kimberly Palmer consulting fees of $30,962 and $32,500, respectively, for her services as CEO.

Services Provided by KM Delaney & Assoc.

During the six months ended September 30, 2015 and 2014, KM Delaney & Assoc. (“KMDA”) has provided office space and certain administrative functions to us. The services provide include a furnished executive suite, use of office equipment and supplies, accounting and bookkeeping services, treasury and cash management services, financial reporting, and other support staffing requirements. As part of the services provided to the Company, KMDA receives the advances from the lender (See note 4.) and disburses those funds to us. During the six months ended September 30, 2015 and 2014, KMDA billed us $108,000 and $89,958, respectively, for those services. As of September 30, 2015 and March 31, 2015, we owed KMDA $361,589 and $266,335, respectively. These amounts are included in accounts payable and accrued liabilities on the balance sheet.

Note 7. Stockholders’ Equity

On May 29, 2015, the Company reincorporated from Florida to Nevada. The Company’s board of directors and majority shareholder consented to the reincorporation. Each of our shareholders on the record date received one share of the Nevada Company’s common stock for each 100 shares of common stock they own in the Florida company. The information contained herein gives retroactive effect to the stock split for all periods presented. Fractional shares were rounded up to the next whole share, and each shareholder received at least five shares. Following the reincorporation, the Company is authorized to issue ~~480~~500 million shares of common stock and 20 million shares of preferred stock, each with a par value of $0.001 per share.

At September 30, 2015, the Company had 26,615,514 potentially issuable common shares with exercise prices ranging from $0.007 per share to $0.25 per share. The exercise prices of the convertible debt were not modified as a result of the reincorporation and the stock split. See Note 5.

Preferred Stock

On July 22, 2015, we issued 1,000,000 shares of Series E Preferred stock to Essen Enterprises, Inc (“Essen”). The beneficial owner of Essen is Filipp Korolev. On that date, Essen owned 6,513,344 shares of our common stock, which constituted 63.55% of our outstanding common shares. The Series E Preferred stock is subordinate to our common stock and does not participated in dividends or equity distributions. The series E preferred stock has ⅔ voting control of the company. The shares were issued so that Essen could retain stable control of the Company, which could have been lost as a result of expected issuance of common stocks resulting from conversion of our convertible notes. These shares were valued at $140,000 which was the estimated market value of the Series E Preferred Stock on the date of the transaction. The market value was determined by estimating the market value of the controlling interest in a public company.

Conversion of shares

During ~~three~~six months ended ~~June~~September 30, 2015, the ~~Company issued 7,193,344~~holders of our convertible notes elected to convert principal and accrued interest of $191,311 into 9,565,544 shares of common ~~stock as a result of conversions of convertible notes payable.~~stock.

~~Note 8. Commitments~~- 12 -

The Company has an arrangement with a third party whereby the third party provides the Company with office space, legal services, accounting services, fundraising and management services. During the three months ending June 30, 2015, the Company incurred $34,881 of fees related to the third party. At June 30, 2015, The Company owed the third party $172,246, which is recorded in accounts payable and accrued expenses.

Note 9.8. Business Segments

The Company has two reportable operating segments: (1) aquarium and aquarium supplies and (2) medical technology. These reportable segments are managed separately due to differences in their products.

The only segment that generates revenue is aquarium and aquarium supplies. Management evaluates and monitors performance of this segment primarily through, among other measures, gross profit. The medical technology segment is in the development stage and not begun to generate revenue.

The results of operations and financial position of the two reportable operating segments and corporate were as follows:

Results of Operations:


	Year ended June 30,				Six months ended September 30,				Three months ended September 30,
	2015		2014		2015		2014		2015		2014

REVENUE
Aquarium and aquarium supplies	$	27,683	$	35,147	$	56,347	$	71,321	$	28,664	$	36,174
Medical technology		—		—		—		—		—		—
Corporate		—		—		—		—		—		—
	$	27,683	$	35,147	$	56,347	$	71,321	$	28,664	$	36,174

GROSS PROFIT
Aquarium and aquarium supplies	$	15,008	$	17,864	$	31,433	$	33,586	$	16,425	$	15,722
Medical technology		—		—		—		—		—		—
Corporate		—		—		—		—		—		—
	$	15,008		17,864	$	31,433	$	33,586	$	16,425	$	15,722

OPERATING EXPENSES
GENERAL AND ADMINISTRATIVE EXPENSE
Aquarium and aquarium supplies	$	20,963	$	27,778	$	47,573	$	59,474	$	26,610	$	31,696
Medical technology		10,000		40,000		15,000		60,000		5,000		20,000
Corporate		94,881		101,907		379,192		211,457		284,311		109,550
	$	125,844	$	169,685	$	441,765	$	330,931	$	315,921	$	161,246

~~- 13 -~~

Corporate operating expense includes general and administrative costs not allocated to operating segments.


	June 30, 2015		March 31, 2015		September 30, 2015		March 31, 2015

TOTAL ASSETS
Aquarium and aquarium supplies	$	7,035	$	6,800	$	6,666	$	6,800
Medical technology		—		—		—		—
Corporate		844		4,528		928		4,528
	$	7,879	$	11,328	$	7,594	$	11,328

Note ~~10.~~9. Subsequent Events

On ~~July 7,~~October 1, 2015, the ~~Company issued 3,855~~holders of the convertible promissory note dated June 30, 2014, converted $5,940 of principal and accrued interest into 297,000 shares of ~~its~~ common stock to satisfy the requirements of the reincorporation and reverse split which took place on May 29, 2015. The transaction required that fractional shares were rounded up to the next whole share and that each shareholder received at least five shares. stock.

On ~~July~~October 8, 2015, the holder of the convertible promissory ~~note issued~~noted dated June 30, 2014, ~~elected to convert~~converted $789 of principal and accrued interest ~~of $1,400~~ into ~~70,000~~39,450 shares of common ~~stock of the Company.~~

~~On July 16, 2015, the holder of the convertible promissory note issued June 30, 2014 elected to convert principal and accrued interest of $7,520 into 376,000 shares of common stock of the Company.~~

~~On July 22, 2015, the holder of the convertible promissory note issued June 30, 2014 elected to convert principal and accrued interest of $3,220 into 161,000 shares of common stock of the Company.~~

~~On July 23, 2015, the holder of the convertible promissory note issued June 30, 2014 elected to convert principal and accrued interest of $995 into 49,750 shares of common stock of the Company.~~

~~On July 24, 2015, the holder of the convertible promissory note issued June 30, 2014 elected to convert principal and accrued interest of $4,920 into 246,000 shares of common stock of the Company.~~

~~On August 3, 2015, the holder of the convertible promissory note issued June 30, 2014 elected to convert principal and accrued interest of $2,200 into 110,000 shares of common stock of the Company.~~

~~On August 11, 2015, the holder of the convertible promissory note issued June 30, 2014 elected to convert principal and accrued interest of $3,860 into 196,000 shares of common stock of the Company.~~stock.

- 1413 -

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

Overview

Rainbow Coral Corp. (the “Company”), a ~~Florida~~Nevada corporation, was incorporated on August 13, 2010. The Company’s year-end is March 31.

We were ~~was~~ formed to build a coral farm facility to develop and propagate (or grow) live coral, independent of the oceans, as a future farm reserve against the decline of natural wild reefs. We intend to grow, harvest, and distribute as many varieties of hard and soft sizes as possible of captive-bred corals that are attractive, to as many consumers as possible who can maintain them in a healthy ecosystem aquarium. We believe that coral and other marine aquarium livestock should be supplied by farms or captive breeders, rather than removed from the natural reefs. The additional uses for coral as a source of potential leading edge medical discoveries are an attractive opportunity for the Company’s coral farming activity. We believe that the world of bioresearch is a natural continuation of our core coral propagation business. Accordingly, on October 23, 2011, we formed a subsidiary, Rainbow Biosciences, LLC to look into the opportunities within the bioscience market. Rainbow Biosciences, LLC will continue to research opportunities into the bioscience markets.

On May 5, 2015, we reincorporated from Florida to Nevada. On May 29, 2015, each shareholder received one share in the Nevada company for each 100 shares they held in the Florida company. Fractional shares were rounded up, and each shareholder received at least five shares. The executive officers and directors of the Nevada company are unchanged from the executive officers and directors of the Florida company. All share and per share amounts have been retroactively restated to reflect the reverse split.

Critical Accounting Policies

We prepare our ~~consolidated~~Consolidated financial statements in conformity with GAAP, which requires management to make certain estimates and apply judgments. We base our estimates and judgments on historical experience, current trends, and other factors that management believes to be important at the time the condensed ~~consolidated~~Consolidated financial statements are prepared. On a regular basis, we review our accounting policies and how they are applied and disclosed in our condensed ~~consolidated~~Consolidated financial statements.

While we believe that the historical experience, current trends and other factors considered support the preparation of our condensed consolidated financial statements in conformity with GAAP, actual results could differ from our estimates and such differences could be material.

For a full description of our critical accounting policies, please refer to Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report for the year ended March 31, 2015 on Form 10-K.

Results of Operations

~~Three~~Six months ended ~~June~~September 30, 2015 compared to the ~~three~~six months ended ~~June~~September 30, 2014.

Revenue

Revenue decreased to ~~$27,683~~$56,347 for the ~~three~~six months ended ~~June~~September 30, 2015, compared to ~~$35,147~~$71,321 for the ~~three~~six months ended ~~June~~September 30, 2014 due to ~~reduced~~slower sales during the current period.

Cost of Goods Sold

Cost of goods sold decreased to ~~$12,675~~$24,914 for the ~~three~~six months ended ~~June~~September 30, 2015, compared to ~~$17,283~~$37,735 for the comparable period in 2014 due to ~~reduced~~slower sales during the current period.

Gross Profit

Gross profit decreased to ~~$15,008~~$31,433 for the ~~three~~six months ended ~~June~~September 30, 2015, compared to ~~$17,864~~$33,586 for the ~~three~~six months ended ~~June~~September 30, 2014. This was a result of athe decline in sales partially offset by the decline in cost of goods sold during the current period.

- 14 -

General and Administrative Expenses

We recognized general and administrative expenses in the amount of ~~$115,844~~$426,765 and ~~$129,685~~$270,931 for the ~~three~~six months ended ~~June~~September 30, 2015 and ~~ended~~ 2014, respectively. The ~~decrease~~increase was ~~due to a reduction in professional fees.~~driven by the issuance of Series E Preferred stock for services, which were valued at $140,000.

~~- 15 -~~

Interest Expense

Interest expense decreased from ~~$223,088~~$238,692 for the ~~three~~six months ended ~~June~~September 30, 2014 to ~~$26,093~~$86,422 for the ~~three~~six months ended ~~June~~September 30, 2015. Interest expense for the ~~three~~six months ended ~~June~~September 30, 2015 included amortization of discount on convertible notes payable in the amount of ~~$15,909,~~$68,056, compared to ~~$216,176~~$226,359 for the comparable period of 2014. The remaining amount is the result of the Company entering into interest-bearing convertible notes payable.

Net Loss

We incurred a net loss of ~~$136,929~~$496,754 for the ~~three~~six months ended ~~June~~September 30, 2015 as compared to ~~$374,909~~$536,037 for the comparable period of 2014. The decrease in the net loss was ~~driven~~drive by the decline in interest expense.

Three months ended September 30, 2015 compared to the three months ended September 30, 2014.

Revenue

Revenue decreased to $28,664 for the three months ended September 30, 2015, compared to $36,174 for the three months ended September 30, 2014 because a decline in sales at our retail fish store.

Cost of Goods Sold

Cost of goods sold decreased to $12,239 for the three months ended September 30, 2015, compared to $20,452 for the comparable period in 2014 due to a lower sales at our fish store.

Gross Profit

Gross profit increased to $16,425 for the three months ended September 30, 2015, compared to $15,722 for the three months ended September 30, 2014 as a result of lower sales at our retail fish store.

General and Administrative Expenses

We recognized general and administrative expenses in the amount of $310,921 and $141,246 for the three months ended September 30, 2015 and 2014, respectively. This is a primarily due to the issuance of Series E Preferred stock for services valued at $140,000 during the current quarter.

Interest Expense

Interest expense decreased from $15,604 for the three months ended September 30, 2014 to $60,329 for the three months ended September 30, 2015. Interest expense for the three months ended September 30, 2015 included amortization of discount on convertible notes payable in the amount of $52,147, compared to $10,183 for the comparable period of 2014. The remaining amount is the result of the Company entering into interest-bearing convertible notes payable.

Net Loss

We incurred a net loss of $359,825 for the three months ended September 30, 2015 as compared to $161,128 for the comparable period of 2014. The increase in the net loss was primarily the result of the issuance of Series E Preferred shares valued at $140,000, in return for services.

- 15 -

Liquidity and Capital Resources

At ~~June~~September 30, 2015, we had cash on hand of ~~$2,740.~~$1,826. The ~~Company had~~company has negative working capital of ~~$513,274~~$420,561 . Net cash used in operating activities for the ~~three~~six months ended ~~June~~September 30, 2015 was ~~$65,892.~~$343,825. Cash on hand is adequate to fund our operations for less than one month. We do not expect to achieve positive cash flow from operating activities in the near future. We will require additional cash in order to implement our business plan. There is no guarantee that we will be able to ~~obtain funds~~attain fund when we need them or that funds will be available on terms that are acceptable to the Company. We have no material commitments for capital expenditures as of ~~June~~September 30, 2015.

Additional Financing

Additional financing is required to continue operations. Although actively searching for available capital, the Company does not have any current arrangements for additional outside sources of financing and cannot provide any assurance that such financing will be available.

Off Balance Sheet Arrangements

We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

This item is not applicable to smaller reporting companies.

ITEM 4. CONTROLS AND PROCEDURES

Management’s Report on Internal Control over Financial Reporting

We carried out an evaluation, under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, of the effectiveness of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of ~~June~~September 30, 2015. Based upon that evaluation, our principal executive officer and principal financial officer concluded that, as of ~~June~~September 30, 2015, our disclosure controls and procedures were not effective to ensure that information required to be disclosed in reports filed by us under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the required time periods and is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

~~- 16 -~~


	1.	As of ~~June~~September 30, 2015, we did not maintain effective controls over the control environment. Specifically we have not developed and effectively communicated to our employees our accounting policies and procedures. This has resulted in inconsistent practices. Further, the Board of Directors does not currently have any independent members and no director qualifies as an audit committee financial expert as defined in Item 407(d)(5)(ii) of Regulation S-K. Since these entity level programs have a pervasive effect across the organization, management has determined that these circumstances constitute a material weakness.

	2.	As of ~~June~~September 30, 2015, we did not maintain effective controls over financial statement disclosure. Specifically, controls were not designed and in place to ensure that all disclosures required were originally addressed in our financial statements. Accordingly, management has determined that this control deficiency constitutes a material weakness.

Our management, including our principal executive officer and principal financial officer, who is the same person, does not expect that our disclosure controls and procedures or our internal controls will prevent all error or fraud. A 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. Due to the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected.

Change in Internal Controls Over Financial Reporting

There was no change in our internal controls over financial reporting that occurred during the period covered by this report, which has materially affected, or is reasonably likely to have a material effect, our internal controls over financial reporting.

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PART II — OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

We know of no material, active or pending legal proceedings against us, nor are we involved as a plaintiff in any material proceedings or pending litigation. There are no proceedings in which any of our directors, officers or affiliates, or any registered beneficial shareholder are an adverse party or has a material interest adverse to us.

ITEM 1A. RISK FACTORS

Not applicable to a smaller reporting company.

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

There were no sales of unregistered equity securities during the ~~three~~six months ended ~~June~~September 30, 2015.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

The Company has not defaulted upon senior securities.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable to the Company.

ITEM 5. OTHER INFORMATION

None.

~~- 17 -~~

ITEM 6. EXHIBITS


3.1	Articles of Incorporation (1)

3.2	Bylaws (1)

14	Code of Ethics (1)

21	Subsidiaries of the registrant (2)

31.1	Rule 13(a)-14(a)/15(d)-14(a) Certification of principal executive officer and principal financial and account officer. (2)

32.1	Section 1350 Certification of principal executive officer and principal financial accounting officer. (2)

101	XBRL data files of Financial Statement and Notes contained in this Quarterly Report on Form 10-Q. ~~(2) ,(3)~~(3),(4)

__________


(1)	Incorporated by reference to our Form S-1 filed with the Securities and Exchange Commission on September 23, 2010.

(2)	Filed or furnished herewith.

(3)	In accordance with Regulation S-T, the Interactive Data Files in Exhibit 101 to the Quarterly Report on Form 10-Q shall be deemed “furnished” and not “filed.”

(4)	To be submitted by amendment

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SIGNATURES

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


	Rainbow Coral Corp.


Date: ~~September 11,~~November 16, 2015	BY: /s/ Kimberly Palmer
	Kimberly Palmer
	President, Secretary, Treasurer, Principal Executive Officer, Principal Financial and Accounting Officer and Sole Director.

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	Preferred Stock			Common Stock			Additional Paid-In		Accumulated			Total
	Shares	Amount		Shares	Amount		Capital		Deficit			Deficit

BALANCE, March 31, 2015	—	$	—	342,106	$	342	$	3,264,425	$	(3,922,788	)	$	(658,021	)

Shares issued for conversion of notes payable	—		—	7,193,344		7,194		136,673		—			143,867
Discount on issuance of convertible note payable	—		—	—		—		54,006		—			54,006
Share rounding	—		—	827		—		—		—			—
Net Loss	—		—	—		—		—		(136,929	)		(136,929	)

BALANCE, June 30, 2015	—	$	—	7,536,277	$	7,536	$	3,455,104	$	(4,059,717	)	$	(597,077	)


	June 30, 2015			March 31, 2015
Convertible note, dated June 30, 2014, bearing interest at 10% per annum, matures on June 30, 2016 and convertible into shares of common stock at $0.02 per share		55,247			62,980
Convertible note, dated September 30, 2014, bearing interest at 10% per annum, matures on September 30, 2016 and convertible into shares of common stock at $0.01 per share		80,133			80,133
Convertible note, dated December 31, 2014, bearing interest at 10% per annum, matures on December 31, 2016 and convertible into shares of common stock at $0.01 per share		94,074			94,074
Convertible note, dated December 31, 2014, bearing interest at 10% per annum, matures on December 31, 2016 and convertible into shares of common stock at $0.02 per share		—			125,059
Convertible note, dated March 31, 2015, bearing interest at 10% per annum, matures on March 31, 2017 and convertible into shares of common stock at $0.007 per share		39,635			39,635
Convertible note, dates June 30, 2015, bearing interest at 10% per annum, matures on June 30, 2017 and convertible into shares of common stock at $0.25 per share.		54,006			—
Total convertible notes payable	$	323,095		$	401,881

Less: current portion of convertible notes payable		(55,247	)		—
Less: discount on convertible notes payable		(226,888	)		(237,643	)
Convertible notes payable, net of discount	$	40,960		$	164,238