UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM S-1

REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933

VNUE, INC.

Registration Statement under the Securities Act of 1933

Buckingham Exploration Inc.
(Exact name of registrant as specified in its charter)
(Exact name of registrant as specified in its charter)

NEVADANevada1000782998-054-3851
(State or other jurisdiction of incorporation
or organization)
(Primary Standard Industrial
Classification Code Number)   Number 
(I.R.S.IRS Employer
Identification Number)
Number

104 W. 29th Street, 11thFloor, New York, NY 10001

1978 Vine Street, Suite 502Telephone: 857-777-6190
Vancouver, British Columbia, Canada, V6K 4S1
(604) 737 0203
(Address including zip code, and telephone number including area code, of registrant’s principal executive offices)

CSC Services of Nevada,

Corporate Service Center, Inc.

5605 Riggins Court, Suite 200

Reno, Nevada 89502

Telephone: 866-411-2002
502 East John Street
Carson City, Nevada 89706
(775) 882 3072

(Name, address including zip code, and telephone number including area code, of agent for service)

with a copy to:

Matheau J. W. Stout, Esq.

400 E. Pratt Street, 8th Floor

Baltimore, Maryland 21202

Telephone: (410) 429-7076  Facsimile:  (888) 907-1740

with a copy to:Approximate date of proposed sale to the public:    as soon as practicable after the effective date of this Registration Statement.

Penny Green, Bacchus Corporate and Securities Law
Suite 1820 Cathedral Place, 925 West Georgia Street,
Vancouver, British Columbia V6C 3L2
Tel (604) 632 1700 Fax (604) 632 1730

Approximate Date of Commencement of Proposed Sale to the Public:As soon as practicable after this Prospectus is declared effective.

If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, please check the following box.þx

If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act Prospectusregistration statement number of the earlier effective registration statement for the same offering.¨o

If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering.¨o

If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering.¨o

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 Rule 12b-2 of the Exchange Act (Check one):

Large accelerated filer¨o        Accelerated filer¨o       Non-accelerated filer¨oSmaller reporting companyþ

CALCULATION OF REGISTRATION FEE

TITLE OF EACH
CLASS OF
SECURITIES
TO BE
REGISTERED
 AMOUNT
TO
BE
REGISTERED
  PROPOSED
MAXIMUM
OFFERING
PRICE PER
SHARE
  PROPOSED
MAXIMUM
AGGREGATE
OFFERING
PRICE(1)(2)
  AMOUNT OF
REGISTRATION
FEE (3)
 
Common Stock  50,000,000  $0.04 per share  $2,000,000  $201.40 
TOTAL  50,000,000  $0.04 per share  $2,000,000  $201.40 

(1)

Represents the number of shares of common stock of the Registrant that we will initially put (“Put Shares”) to Tarpon Bay Partners, LLC (“Tarpon”), pursuant to an equity purchase agreement (the “Equity Purchase Agreement”) between Tarpon and the Registrant, effective on June 15, 2015.  The registrant hereby amendsEquity Purchase Agreement permits the Registrant to “put” up to $5,000,000 in common stock to Tarpon.  In the event that the provisions of the Equity Purchase Agreement require the Company to issue more shares than are being registered in this Registration Statement on such date or dates as may be necessary to delay its effective date until the registrant shall file a further amendment which specifically states that this Registration Statement shall thereafter become effectiveregistration statement, for reasons other than those stated in accordance with Section 8(a)Rule 416 of the Securities Act, the Company will file a new registration statement to register those additional shares.

(2)

This offering price has been estimated solely for the purpose of computing the dollar value of the Purchase Shares and the registration fee of the Purchase Shares in accordance with Rule 457(c) of the Securities Act on the basis of the closing price of the common stock of the Company as reported on OTCMarkets on January 8, 2016.

(3)

Estimated solely for the purpose of calculating the registration fee in accordance with Rule 457 under the Securities Act.

THE REGISTRANT HEREBY AMENDS THIS REGISTRATION STATEMENT ON SUCH DATE OR DATES AS MAY BE NECESSARY TO DELAY ITS EFFECTIVE DATE UNTIL THE REGISTRANT SHALL FILE A FURTHER AMENDMENT WHICH SPECIFICALLY STATES THAT THIS REGISTRATION STATEMENT SHALL THEREAFTER BECOME EFFECTIVE IN ACCORDANCE WITH SECTION 8(a) OF THE SECURITIES ACT OF 1933 orOR UNTIL THE REGISTRATION STATEMENT SHALL BECOME EFFECTIVE ON SUCH DATE AS THE COMMISSION, ACTING PURSUANT TO SECTION 8(a), MAY DETERMINE.

The information in this prospectus is not complete and may be changed.  The selling stockholders may not sell these securities until the Registration Statement shall become effective on such dateregistration statement filed with the Securities and Exchange Commission is effective.  This prospectus is not an offer to sell these securities and is not soliciting an offer to buy these securities in any state or other jurisdiction where the offer or sale is not permitted.

SUBJECT TO COMPLETION, Dated January 22, 2016

PROSPECTUS

VNUE, INC.

50,000,000 SHARES
COMMON STOCK

This prospectus relates to the resale of up to 50,000,000 shares of our common stock, par value $0.0001 per share, by Tarpon Bay Partners, LLC (“Tarpon”), which are Put Shares that we will put to Tarpon pursuant to the Purchase Agreement.  Tarpon may also be referred to in this document as the Commission, acting pursuantSelling Security Holder.

The Purchase Agreement with Tarpon provides that Tarpon is committed to said Section 8(a),purchase up to $5 million of our common stock. We may determine.draw on the facility from time to time, as and when we determine appropriate in accordance with the terms and conditions of the Purchase Agreement.

i


Calculation of Registration Fee
 
  Proposed Proposed  
 Amount to be Maximum Maximum Amount of 
Title of Each Class Registered Offering Price Aggregate Registration 
of Securities to be (1) per Unit (2) Offering Price (2) Fee 
Registered  ($) ($) ($) 
Shares of Common Stock, par value $0.00015,200,000 0.865 4,498,000 176.77 
 
Shares of Common Stock, par value $0.0001 (underlying options)1,000,000 0.865 865,000 33.99 
    
Total    210.77 

(1)     

The selling security holders are offering all 5,200,000 issued common shares and 1,000,000 common shares underlying stock purchase options registered pursuant to this registration statement.

(2)     

This calculation is made solely for the purposes of determining the registration fee pursuant to the provisions of Rule 457(c) under the Securities Act of 1933, and is calculated on the basis of the average of the bid and asked price per share of Common Stock of Buckingham Exploration Inc. listed on the OTC Bulletin Board as of February 29, 2008, a date within five business days prior to the filing of this registration statement. The bid and asked prices were $0.75 and $0.97 respectively.

ii


PROSPECTUS

The Put Shares included in this prospectus represent a portion of the shares issuable to Tarpon under the Purchase Agreement.  

6,200,000 SHARES
COMMON STOCK

Tarpon is an “underwriter” within the meaning of the Securities Act in connection with the resale of our common stock under the Purchase Agreement.  No other underwriter or person has been engaged to facilitate the sale of shares of our common stock in this offering.  This offering will terminate 24 months after the registration statement to which this prospectus is made a part is declared effective by the SEC. Tarpon will pay us 90% of the lowest closing price of our common stock for the five trading days immediately following the clearing date associated with the applicable Put Notice.

We are registering 5,200,000 issuedwill not receive any proceeds from the sale of these shares of common sharesstock offered by Selling Security Holder.  However, we will receive proceeds from the sale of our Put Shares under the Purchase Agreement.  The proceeds will be used for general administrative expenses as well as for accounting and 1,000,000 common shares underlying options held by five selling security holders, including 3,000,000 issued common shares owned or controlled by Christopher Robin Relph,audit fees.

We will bear all costs associated with this registration.

FINRA approved a change of our director, President, CEO and CFO.

name from Tierra Grande Resources, Inc. to VNUE, Inc., effective July 20, 2015. Our common stock became eligible for trading on the OTC Bulletin Board on May 8, 2007. Our common stock is eligible for quotation on the OTC Bulletin Boardformerly traded under the symbol BUKX.OB“TGRI” and is now quoted on OTCMarkets under the symbol “VNUE..

All  The shares of theour common sharesstock registered hereunder are being offered for resalesale by six selling security holdersSelling Security Holder at prevailing market prices established on OTCMarkets during the OTC Bulletin Board atterm of this offering.  On January 8, 2016, the timeclosing price of sale or at any prices determined by the selling security holders.our common stock was $0.04 per share.  These prices will fluctuate based on the demand for theour common shares. The average of the bid and asked price per share of the common shares as listedstock.

INVESTING IN OUR SECURITIES INVOLVES A HIGH DEGREE OF RISK.  SEE RISK FACTORS IN THIS PROSPECTUS BEGINNING ON PAGE 10 FOR A DISCUSSION OF INFORMATION THAT SHOULD BE CONSIDERED IN CONNECTION WITH AN INVESTMENT IN OUR SECURITIES.

NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED OF THESE SECURITIES OR PASSED UPON THE ADEQUACY OR ACCURACY OF THIS PROSPECTUS.  ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

You should rely only on the OTC Bulletin Board was $0.865 as of March 7, 2008.

information contained in this prospectus.  We willhave not receive any proceedsauthorized anyone to provide you with different information from the resale ofthat contained in this prospectus.  Tarpon is offering to sell and seeking offers to buy shares of common stock by the selling security holders. We will incur all costs associated with this Prospectus.

An investment in our common stock involves risks. Investors should be able to afford the loss of their entire investment. See "Risk Factors"only in jurisdictions where offers and sales are permitted.  The information contained in this Prospectus.

Neitherprospectus is accurate only as of the U.S. Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or passed upon the adequacy or accuracydate of this Prospectus. Any representation toprospectus, regardless of the contrary is a criminal offense.

time of delivery of this prospectus or of any sale of our common stock.  This Prospectus shallprospectus does not constitute an offer to sell, or thea solicitation of an offer to buy nor shall the selling security holders, sell any of these securities in any state where suchcircumstances under which the offer or solicitation oris unlawful.  Neither the delivery of this prospectus nor any distribution of securities in accordance with this prospectus shall, under any circumstances, imply that there has been no change in our affairs since the date of this prospectus.

We will receive no proceeds from the sale would be unlawful before registration or qualification under such state'sof the shares of common stock sold by Tarpon.  However, we will receive proceeds from the sale of securities laws.pursuant to our exercise of the Put Right.

iii


 The Date of This Prospectus Is:January 22, 2016

VNUE, INC.

Table of Contents

Prospectus Summary PAGE
Summary5
Risk Factors9
Forward-Looking Statements14
Use of Proceeds12 15
Determination of Offering Price12 
Dilution12 
Selling Security Holders12 
Plan of Distribution16 15
Description of Securities to be Registered20 
Interest of Named Experts and Counsel21 
Description of Business21 18
Description of Property28 
Legal Proceedings38 22
Market Forfor Common Equity and Related Stockholder Matters38 23
Management’s Discussion and Analysis or ResultsPlan of Operations39 25
Changes Inin and Disagreements with Accountants on Accounting and Financial Disclosure43 29
Available Information30
Directors, Executive Officers, Promoters Andand Control Persons43 31
Executive Compensation46 
Security Ownership of Certain Beneficial Owners and Management47 32
Certain Relationships and Related Transactions49 33
Disclosure of Commission Position on Indemnification of Securities Act Liabilities49 
Audited Financial Statements for the Fiscal Years ended May 31, 2007 and 200650 
Unaudited Financial Statements for the Period Ended November 30, 200751 
Other Expenses of Issuance and Distribution52 
Indemnification of Officers and Directors52 
Recent Sales of Unregistered Securities58 
Financial Statement Schedules60 
Exhibits61 
Undertakings62 
Signatures64 F-2


iv


Prospectus Summary

This Prospectus contains forward-looking statements that involve risks

The following summary is not complete and uncertainties. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology including, "could" "may", "will", "should", "expect", "plan", "anticipate", "believe", "estimate", "predict", "potential" and the negative of these terms or other comparable terminology. These statements are only predictions. Actual events or results may differ materially.

While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested in this Prospectus.

Alldoes not contain all of the referencesinformation that may be important to you.  You should read the entire prospectus before making an investment decision to purchase our common shares.  All dollar amounts in this Prospectus are in USrefer to United States dollars unless otherwise noted.indicated.

Our Business

We were incorporatedThrough VNUE, Inc., our wholly owned subsidiary, we now carry on business as a Nevadalive entertainment music service company on April 4, 2006. We have been engaged inwhich brings bands and fans together by capturing professional quality audio and video recordings of live performances and delivers the acquisitionexperience of a venue to your home and exploration of mineral properties since our inception. We have two wholly owned subsidiaries, Hyde Park Uranium Inc., a Colorado corporation through which we have acquired mineral claims in Colorado, and Alpha Beta Uranium Inc., a Colorado corporation through which we have acquired additional mineral claims in Colorado. Our common stock became eligible for trading on the OTC Bulletin Board on May 8, 2007 under the ticker symbol“BUKX.OB”.

We have had no revenues since our inception. Our principal offices are located at 1978 Vine Street, Suite 502, Vancouver, British Columbia, Canada, V6K 4S1. Our telephone number is (604) 737 0203. Our fiscal year end is May 31.hand.

 

2By streamlining the processes of curation, clearing, capturing, distribution & monetization, VNUE manages and simplifies the complexities of the music ecosystem. 


VNUE captures content through its Front of House mobile application and provides world-wide distribution and monetization through a suite of mobile, web administration applications, allowing an artist to seamlessly deliver and sell their live performances directly to the fans who attend their shows. 

While VNUE is primarily being used in live music venues, we are also branching into many other entertainment experiences such as comedy, plays, musicals, university lectures, professional demonstrations and panel discussions, as well as action sports and much more.

We are a start up mineral exploration company.development stage company to date we have received minimal revenues from our operations.  VNUE, Inc., our wholly owned subsidiary, only recently commenced operations and we have primarily undertaken only organizational activities and software application development.  Our current mineral and land interests are as follows:

Name of PropertyLocationNature of InterestStatus
High Park Uranium Property  Teller County, Fremont County, Colorado, USA     29 unpatented mining claims subject to a net   24 additional claims have been staked. 
mineral returns royalty of 2% (with an option to  
purchase royalty for $1,000,000).  
Drilling permit has been granted and preliminary 
drilling of 37 holes completed on November 23, 2007. 
High Park Trails Property  Teller County, Colorado, USA Option to purchase surface and mineral  Drilling permit has been granted. 
estates over 265 acres subject to a net mineral 
returns royalty of 5% (with exploration rights during the option period).
Proteus Claims Fremont County, Park County, Saguache County,  100% of all interests in 419 unpatented lode uranium mining claims. Permit required for exploratory drilling.   
San Juan County, Colorado, USA

Our specific exploration plan for the mineral property, together with information regarding the location and accessibility, geology, age and structure of the mineral property, and general considerations related to uranium mineralization, is presented in this Prospectus under the heading “Description of Property”.

Our most advanced projects are at the exploration stage and there is no assurance that any of our mining claims contain a commercially viable ore body. We plan to undertake further exploration of our properties. We anticipate that we will require additional financing in order to pursue full exploration of these claims. We do notindependent auditors have sufficient financing to undertake full exploration of our mineral claims at present and there is no assurance that we will be able to obtain the necessary financing.

There is no assurance that a commercially viable mineral deposit exists on any of our mineral properties. Further exploration beyond the scope of our planned exploration activities will be required before a final evaluationraised substantial doubts as to the economic feasibility of mining of any of our properties is determined. There is no assurance that further exploration will result in a final evaluation that a commercially viable mineral deposit exists on any of our mineral properties.

We have no revenues, have achieved losses since inception, have been issuedability to continue as a going concern opinion by our auditors and rely uponwithout significant additional financing.  Accordingly, for the sale of our securities to fund operations. We will not generate revenues even if our exploration program indicates that a mineral deposit may exist on our mineral claims. Accordingly,foreseeable future, we will continue to be dependent on future additional financing in order to maintain our operations and continue with our explorationdevelopment activities.

3


We were incorporated under the laws of the State of Nevada effective April 4, 2006.  Our principal offices are located at 104 W. 29th Street, 11th Floor, New York, NY 10001.  Our telephone number is 857-777-6190.

5

ABOUT THIS OFFERING

This offering relates to the resale of up to an aggregate of $5,000,000 in put shares (“Put Shares”) that we may put to Tarpon pursuant to the Equity Purchase Agreement.  Assuming the resale of all 50,000,000 shares offered in this prospectus as Put Shares, this would constitute approximately 7.24% of our outstanding common stock.  It is likely that the number of shares offered in this registration statement is insufficient to allow us to receive the full amount of proceeds under the Equity Purchase Agreement.

At the closing price of our common stock as reported on OTCMarkets on January 8, 2016 of $0.04 per share, we will be able to receive up to $2,000,000 in gross proceeds, assuming the sale of the entire 50,000,000 Put Shares being registered hereunder pursuant to the Equity Purchase Agreement.  We would be required to register 75,000,000 additional shares to obtain the remaining balance of $3,000,000 under the Equity Purchase Agreement at the closing price of our common stock as reported on OTCMarkets on January 8, 2016 of $0.04 per share.

We currently do not have enough authorized but unissued shares of common stock to issue the additional 132,000,000 shares required to obtain the remaining balance of $4,000,000 under the Equity Purchase Agreement, and would evaluate a subsequent registration statement based upon the then current closing price and the total issued and outstanding at that time.

The amount of $5,000,000 was selected based on our potential use of funds over the effective time period to enable us to complete development of the VNUE Platform.  Our ability to receive the full amount is largely dependent on the daily dollar volume of stock traded during the effective period.  Based strictly on the current daily trading dollar volume up to January 2016, we believe it is unlikely that we will be able to receive the entire $5,000,000.  

On June 15, 2015, we entered into the Equity Purchase Agreement with Tarpon pursuant to which, we have the right, for a two year period, commencing on the date of the Equity Purchase Agreement (but not before the date which the SEC first declares effective this registration statement) (the “Commitment Period”), of which this prospectus forms a part, registering the resale of the Put Shares by Tarpon, to resell the Put Shares purchased by Tarpon under the Equity Purchase Agreement. As a condition for the execution of the Equity Purchase Agreement, we issued Tarpon a promissory note in the principal amount of $50,000, maturing on December 31, 2015, as a commitment fee.

In order to sell shares to Tarpon under the Equity Purchase Agreement, during the Commitment Period, the Company must deliver to Tarpon a written put notice on any trading day (the “Put Date”), setting forth the dollar amount to be invested by Tarpon (the “Put Notice”).  For each share of our common stock purchased under the Equity Purchase Agreement, Tarpon will pay 90 percent of the lowest closing bid price (“Closing Price”) of any trading day during the ten (10) trading days immediately following the date on which we have deposited an estimated amount of Put Shares to Tarpon’s brokerage account in the manner provided by the Equity Purchase Agreement (the “Valuation Period”).  We may, at our sole discretion, issue a Put Notice to Tarpon and Tarpon will then be irrevocably bound to acquire such shares.

The Equity Purchase Agreement provides that the number of Put Shares to be sold to Tarpon shall not exceed the number of shares that when aggregated together with all other shares of our common stock which Tarpon is deemed to beneficially own, would result in Tarpon owning more than 9.99% of our outstanding common stock.

In the event that during a Valuation Period for any Put Notice, the Closing Price on any trading day falls to a price equal to seventy-five percent (75%) of the average of the closing trading prices for the ten (10) trading days immediately preceding the date of the Company’s Put Notice (a “Low Bid Price”), then for each such trading day the parties shall have no right to sell and shall be under no obligation to purchase one-tenth of the Investment Amount specified in the Put Notice , and the Investment Amount shall accordingly be deemed reduced by such amount. In the event that during a Valuation Period the Closing Price falls below the Floor Price for any three (3) trading days, not necessarily consecutive, then the balance of each party’s rights and obligations to purchase and sell the investment amount under such Put Notice shall terminate on such second trading day (the “Termination Date”).  The put amount shall be adjusted to include only one-tenth (1/10) of the initial Investment Amount for each trading day during the Valuation Period prior to the Termination Date that the Bid Price equals or exceeds the Low Bid Price.  

If, during any Valuation Period, we (i) subdivide or combine our common stock; (ii) pay a dividend in shares of common stock or makes any other distribution of shares of common stock; (iii) issue any options or other rights to subscribe for or purchase shares of common stock and the price per share is less than closing price in effect immediately prior to such issuance; (iv) issue any securities convertible into shares of common stock and the consideration per share for which shares of common stock may at any time thereafter be issuable pursuant to the terms of such convertible securities shall be less that the closing price in effect immediately prior to such issuance; (v) issue shares of common stock otherwise than as provided in the foregoing subsections (i) through (iv) at a price per share less than the closing price in effect immediately prior to such issuance, or without consideration; or (vi) make a distribution of its assets or evidences of its indebtedness to the holders of common stock as a dividend in liquidation or by way of return of capital or other than as a dividend payable out of earnings or surplus legally available for dividends under applicable law (collectively, a “Valuation Event”), then a new Valuation Period shall begin on the trading day immediately after the occurrence of such Valuation Event and end on the fifth trading day thereafter.

6

We are relying on an exemption from the registration requirements of the Securities Act and/or Rule 506 of Regulation D promulgated thereunder.  The transaction does involve a private offering, Tarpon is an “accredited investor” and/or qualified institutional buyer and Tarpon has access to information about us and its investment.

Assuming the sale of the entire $5,000,000 in Put Shares being registered hereunder pursuant to the Equity Purchase Agreement, we will be able to receive $5,000,000 in gross proceeds.  Neither the Equity Purchase Agreement nor any rights or obligations of the parties under the Equity Purchase Agreement may be assigned by either party to any other person.

There are substantial risks to investors as a result of the issuance of shares of our common stock under the Equity Purchase Agreement.  These risks include dilution of stockholders, significant decline in our stock price and our inability to draw sufficient funds when needed.

Tarpon will periodically purchase our common stock under the Equity Purchase Agreement and will, in turn, sell such shares to investors in the market at the market price.  This may cause our stock price to decline, which will require us to issue increasing numbers of common shares to Tarpon to raise the same amount of funds, as our stock price declines.

7

The Offering

The 6,200,000 common shares we are registering represent approximately 14% of our issued and outstanding stock (assuming the 1,000,000 common shares underlying options being registered are issued).

Securities Offered:

Shares of common stock offered by Tarpon:

The 5 selling security holders are offering the following shares:

50,000,000 shares of common stock
Common stock to be outstanding after the offering:Up to 690,913,164 shares of common stock.
Use of proceeds:-5,200,000 issued common shares offered by the selling shareholders (including 3,000,000 common shares held by Christopher Robin Relph, our director, President, CEO and CFO); and
 -1,000,000 common shares underlying options. 

Initial Offering Price:                                                                                                  

The selling security holders may sell their shares at prevailing market prices on the OTC Bulletin Board or privately negotiated prices.

Minimum Number of Shares to be Sold in this Offering:

Securities Issued and to be Issued:

None

We have 43,432,250 common shares issued and outstanding as of February 29, 2008. However, if all 12,375,000 outstanding options and warrants granted as of February 29, 2008 were exercised, there would be 55,807,250 common shares outstanding. All of the common shares to be sold under this Prospectus will be sold by existing security holders. Our common stock is quoted on the OTC Bulletin Board under the symbol “BUKX.OB”. Trading of securities on the OTC Bulletin Board is often sporadic and investors may have difficulty buying and selling or obtaining market quotations, which may have a depressive effect on the market price for our common stock.

Use of Proceeds:                                                                            

We will not receive any proceeds from the resalesale of the shares of common stock offered by the selling security holders. WeSelling Security Holder.  However, we will receive the proceeds from any exercisesale of options forour common stock under the purchasePurchase Agreement.  See “Use of shares registeredProceeds.”

Risk factors:You should carefully read and consider the information set forth under the caption “Risk Factors” beginning on page 16 and all other information set forth in this Prospectus. We intend to use any such proceeds towards general and administrative expenses such as advertising and promotion costs, consulting fees, director’s fees, office expenses and rent.

prospectus before investing in our common stock.
OTCMarkets Symbol:VNUE

Past Transactions With Tarpon Bay Partners, LLC

We have not done any transactions with Tarpon Bay Partners, LLC or its affiliates.

Capital Requirements

Analysis of our business acquisition and operations cost indicate a requirement of US $5,000,000 or more.  Based on market response to our products, services, and technologies, it is management’s opinion that we will require additional funding.


8

Financial Summary InformationRisk Factors

All of the references to currency in this Prospectus are to US Dollars, unless otherwise noted. The following table sets forth selected financial information, which should be read in conjunction with the information set forth under "Management’s Discussion and Analysis" and our Financial Statements and related notes included elsewhere in this Prospectus.

Income Statement Data
 
 From April 4,     
 2006 (Date of For the six For the six From April 4, From April 4, 
 Inception) to months ended months ended 2006 (Date of 2006 (Date of 
 November 30, November 30, November 30, Inception) to May Inception) to May   
 2007 2007 2006 31, 2007 31, 2006 
 ($) ($) ($) ($) ($) 
 (unaudited) (unaudited) (unaudited) (audited) (audited) 
Revenue 
Expenses 4,158,941 2,489,503 283,650 1,669,438 6,416 
Net Loss (4,162,062) (2,491,697) (283,113) (1,670,365) (6,416) 
Loss per Common Share     Nil (0.07) (0.01) Nil Nil 
     
Balance Sheet Data     
 
  November 30, 2007 May 31, 2007 May 31, 2006 
  ($) ($) ($) 
  (unaudited) (audited) (audited)   
                 Working Capital   Surplus  334,245 428,559 6,134 
                 Total Assets 452,975 484,511 13,837   
                 Total Liabilities 41,431 55,952 7,703 
 
Risk Factors     

Please consider the following risk factors before deciding to invest in our common stock.

This offering and anyAn investment in our common stock involves a high degree of risk.  You should carefully consider the risks described below and all of the other information contained in this Prospectusprospectus before deciding whether to purchaseinvesting in our common stock.  If any of the following risks actuallyoccur, our business, operating results and financial condition could be seriously harmed.  The trading price of our common stock, when and if we trade at a later date, could decline due to any of these risks, and you may lose all or part of your investment.

RISKS RELATED TO OUR COMPANY

An investment in our common stock involves a high degree of risk.  You should carefully consider the following risk factors and the other information in this registration statement before investing in our common stock.  Our business and results of operations could be seriously harmed by any of the following risks.  The risks set out below are not the only risks we face.  Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or operating results.  If any of the following events occur, our business, financial condition and results of operations could be harmed. Thematerially adversely affected.  In such case, the value and trading price of our common stock could decline, and you may lose all or part of your investment in our common stock.

5


Risks Related to Our Operating Results and Business

1. There is substantial doubt as to whether we will continue operations. If we discontinue operations, you could lose your investment.

Changes in economic conditions, including continuing effects from the recent recession, could materially affect our business, financial condition and results of operations.

Because our customers are consumers, we, together with the rest of the music industry, depend upon consumer discretionary spending. The following factors raise substantial doubt regardingrecent recession, coupled with high unemployment rates, reduced home values, increases in home foreclosures, investment losses, personal bankruptcies and reduced access to credit and reduced consumer confidence, has impacted consumers’ ability and willingness to spend discretionary dollars. Economic conditions may remain volatile and may continue to repress consumer confidence and discretionary spending for the abilitynear term. 

Damage to our reputation or lack of acceptance of our brand in existing and new markets could negatively impact our business, financial condition and results of operations.

We believe we are building a strong reputation for the quality of our technology, and we must protect and grow the value of our brand to continue as a going concern: (i) the losses we incurred since our inception; (ii) our lack of operating revenues as at November 30, 2007; and (iii) our dependence on sale of equity securities and receipt of capital from outside sources to continue in operation. We anticipate that we will incur increased expenses without realizing enough revenues. We therefore expect to incur significant lossesbe successful in the foreseeable future. The financial statements do not include any adjustmentsAny incident that might result from the uncertainty abouterodes consumer affinity for our ability to continuebrand could significantly reduce its value and damage our business. If customers perceive or experience a reduction in quality, or in any way believe we are unablefailed to obtain additional financing from outside sourcesdeliver a consistently positive experience, our brand value could suffer and eventually produce enough revenues, weour business may be forced to sell our assets, curtail or cease our operations. If this happens, you could lose all or part of your investment.adversely affected.

2. Because we are in the preliminary stage of exploration on our mineral claims, we face a high risk of business failure and this could result in a total loss of your investment.

We are in the preliminary stage of exploration of our mineral claim, and thus have no way to evaluate the likelihood of whether we will be able to operate our business successfully. To date, we have been involved primarily in organizational activities acquiring interests in a mineral claim, preparing a plan of exploration and preliminary drilling. We have not earned any revenues and have not achieved profitability as of the date of this Prospectus. Potential investors should be aware of the difficulties normally encountered by new mineral exploration companies and the high rate of failure of such enterprises. The likelihood of success must be considered in light of the problems, expenses, difficulties, complications and delays encountered in connection with the exploration of the mineral properties that we plan to undertake. These potential problems include, but are not limited to, unanticipated problems relating to exploration and additional costs and expenses that may exceed current estimates . We have no history upon which to base any assumption as to the likelihood that our business will prove successful, and we can provide no assurance to investors that we will generate any operating revenues or ever achieve profitable operations. If we are unsuccessful in addressing these risks, our business will likely fail and you will lose your entire investment in this offering.

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3. If our costs of exploration are greater than anticipated, then we willmight not be able to completemarket our planned explorationproducts.

We expend significant resources in our marketing efforts, using a variety of media, including social media venues. We expect to continue to conduct brand awareness programs and guest initiatives to attract and retain customers. These initiatives may not be successful, resulting in expenses incurred without the benefit of higher revenues. Additionally, some of our competitors have greater financial resources, which enable them to purchase significantly more advertising than we are able to purchase. Should our competitors increase spending on advertising and promotions or our advertising funds decrease for any reason, or should our mineral claim without additional financing,advertising and promotions be less effective than our competitors, there could be a material adverse effect on our results of which there isoperations and financial condition.

Our business operations and future development could be significantly disrupted if we lose key members of our management team.

The success of our business continues to depend to a significant degree upon the continued contributions of our senior officers and key employees, both individually and as a group. Our future performance will be substantially dependent in particular on our ability to retain and motivate our Chief Executive Officer, and certain of our other senior executive officers. We currently do not have an employment agreement in place with our CEO or CFO. The loss of the services of our CEO, senior officers or other key employees could have a material adverse effect on our business and plans for future development. We have no assurancereason to believe that we would be ablewill lose the services of any of these individuals in the foreseeable future; however, we currently have no effective replacement for any of these individuals due to obtain. Thistheir experience, reputation in the industry and special role in our operations. We also do not maintain any key man life insurance policies for any of our employees.

Our insurance policies may not provide adequate levels of coverage against all claims, and fluctuating insurance requirements and costs could prevent us from achieving revenues.negatively impact our profitability.

We estimate that over the next 12 months (beginning March 2008) we will spend approximately $7,329,000 in carrying outbelieve our business plan.insurance coverage is customary for businesses of our size and type. However, there is no assurance that our actual costs will not exceed the budgeted costs. Factors that could cause actual costs to exceed budgeted costs include increased prices due to competition for personnel and supplies, unanticipated problems in completing the exploration program and delays experienced in completing the exploration program. Increases in exploration costs could result in us not being able to carry out our exploration program without additional financing. There is no assurance that we would be able to obtain additional financing in this event. This could prevent us from achieving revenues.

4. Becauseare types of the inherent dangers involved in mineral exploration, there is a risk thatlosses we may incur liabilitythat cannot be insured against or damages asthat we conductbelieve are not commercially reasonable to insure. These losses, if they occur, could have a material and adverse effect on our business which could cause us to liquidate our assets and go outresults of business.

The search for valuable minerals involves numerous hazards.operations. In addition, the coursecost of carrying out exploration of our mineral claim, we may become subject toworkers’ compensation insurance, general liability for such hazards, including pollution, cave-ins, lost circulations, stuck drill steel, adverse weather precluding drill site accessinsurance and other hazards against which we cannot insure or against which we may elect not to insure. . There are also physical risks to the exploration personnel working in poor climate conditions. We currently have no suchdirectors’ and officers’ liability insurance nor do we expect to get such insurance for the foreseeable future. If a hazard were to occur, the costs of rectifying the hazard may exceed our asset value and cause us to liquidate all of our assets, resulting in the loss of your entire investment in our common shares.

5. If we discover commercial reserves of precious metalsfluctuates based on our mineral property, wehistorical trends, market conditions and availability. Additionally, health insurance costs in general have risen significantly over the past few years and are expected to continue to increase. These increases, as well as recently-enacted federal legislation requiring employers to provide specified levels of health insurance to all employees, could have a negative impact on our profitability, and there can providebe no assurance that we will be able to successfully advanceoffset the mineral claims into commercial production. If we cannot commence commercial production, we may not be ableeffect of such increases with plan modifications and cost control measures, additional operating efficiencies or the pass-through of such increased costs to achieve revenues.our customers.

Our mineral properties do not contain any proven commercially viable bodies of ore. If our exploration programs are successful in establishing ore of commercial tonnage and grade on any of our mineral claims, we will require additional funds in order to advance the mineral claims into commercial production. In such an event, we may be unable to obtain any such funds, or to obtain such funds on terms that we consider economically feasible. If we don't raise enough money for production, we will have to delay production or go out of business.

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We may not be able to achieve any revenues,adequately protect our intellectual property, which, in turn, could harm the value of our brands and adversely affect our business.

Our ability to implement our business plan successfully depends in part on our ability to further build brand recognition using our trademarks, service marks and other proprietary intellectual property, including our names and logo and the unique appearance of our website and applications (“Apps”). We plan to register a number of our trademarks. We cannot assure you that our trademark applications will be approved. Third parties may also oppose our trademark applications, or otherwise challenge our use of the trademarks. In the event that our trademarks are successfully challenged, we could be forced to rebrand our goods and services, which could result in the loss of your investmentbrand recognition, and could require us to devote resources to advertising and marketing new brands.

If our efforts to register, maintain and protect our intellectual property are inadequate, or if any third party misappropriates, dilutes or infringes on our common stock.

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6. As we undertake explorationintellectual property, the value of our mineral claims, we willbrands may be subject to compliance with comprehensive government regulation that may increase the anticipated time and cost of our exploration program,harmed, which could increase our expenses.

We will be subject to the mining laws and regulations as contained in the United States as we carry out our exploration program. Exploration and exploitation activities are subject to all federal, state, and local laws, regulations and policies of the United States, including laws regulating the removal of natural resources from the ground and the discharge of materials into the environment. Exploration and exploitation activities are also subject to federal, provincial, and local laws and regulations which seek to maintain health and safety standards by regulating the design and use of drilling methods and equipment.

Various permits from government bodies are required for drilling operations to be conducted; no assurance can be given that such permits will be received. Environmental and other legal standards imposed by federal, provincial, or local authorities may be changed and any such changes may prevent us from conducting planned activities or increase our costs of doing so, which would have a material adverse effects on our business. Moreover, compliance with such laws may cause substantial delays or require capital outlays in excess of those anticipated, thus causing an adverse effect on us. Additionally,our business and might prevent our brands from achieving or maintaining market acceptance. We may also face the risk of claims that we mayhave infringed third parties’ intellectual property rights. If third parties claim that we infringe upon their intellectual property rights, our operating profits could be subjectadversely affected. Any claims of intellectual property infringement, even those without merit, could be expensive and time consuming to liability for pollutiondefend, require us to rebrand our services, if feasible, divert management’s attention and resources or other environmental damages which werequire us to enter into royalty or licensing agreements in order to obtain the right to use a third party’s intellectual property.

Any royalty or licensing agreements, if required, may not be able to or elect not to insure against due to prohibitive premium costs and other reasons.

While our planned exploration program budgets for regulatory compliance, there is a risk that our mineral exploration and mining activities may be adversely affected in varying degrees by changing governmental regulations relating to the mining industry. Any laws, regulations or policies of any government body or regulatory agency may be changed, applied or interpreted in a manner which will alter and negatively affect our ability to carry on our business.

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7. As we face intense competition in the mineral exploration and exploitation industry, we will have to compete with our competitors for financing and for qualified managerial, technical employees and geologists. Our inability to retain qualified people could cause us to cease operations.

Competition in the mining industry is intense, and we have limited financial and personnel resources with which to compete. Our competition includes large established mining companies with substantial capabilities and with greater financial and technical resources than we have. Numerous companies headquartered in the United States, Canada and elsewhere throughout the world compete for properties on a global basis. We are an insignificant participant in the mining industry due to our limited financial and personnel resources. As a result of this competition, we may have to compete for financing and be unable to acquire financing on terms we consider acceptable. We may be unable to attract the necessary investment capital to fully explore and if warranted, develop our properties and unable to acquire other desirable properties.

We may also have to compete with the other mining companies in the recruitment and retention of qualified managerial, technical employees, geologists and other personnel. If we are unable to successfully compete for qualified employees, our exploration programs may be slowed down or suspended, which may cause us to cease operations as a company.

8. We indemnify our director against liabilityavailable to us andon acceptable terms or at all. A successful claim of infringement against us could result in our stockholders, andbeing required to pay significant damages, enter into costly license or royalty agreements, or stop the costs of this indemnification could negatively affect our operating results.

Our Bylaws allow for the indemnification of officers and directors in regard to their carrying out the duties of their offices. The Bylaws also allow for reimbursementsale of certain legal defenses. As to indemnification for liabilities arising under the Securities Act for directors, officersproducts or persons controlling us, we have been informed that in the opinionservices, any of the SEC such indemnification is against public policy and unenforceable. Since our director and officer is aware that he may be indemnified for carrying out the duties of their offices, he may be less motivated to ensure that meet the standards required by law to properly carry out their duties, which could have a negative impact on our operating results. Also, if any directorprofits and harm our future prospects.

Information technology system failures or officer claimsbreaches of our network security could interrupt our operations and adversely affect our business.

We will rely on our computer systems and network infrastructure across our operations. Our operations depend upon our ability to protect our computer equipment and systems against us for indemnification, the costsdamage from physical theft, fire, power loss, telecommunications failure or other catastrophic events, as well as from internal and external security breaches, viruses, worms and other disruptive problems. Any damage or failure of our computer systems or network infrastructure that causes an interruption in our operations could have a negativematerial adverse effect on our operatingbusiness and subject us to litigation or actions by regulatory authorities. Although we employ both internal resources and external consultants to conduct auditing and testing for weaknesses in our systems, controls, firewalls and encryption and intend to maintain and upgrade our security technology and operational procedures to prevent such damage, breaches or other disruptive problems, there can be no assurance that these security measures will be successful.

Federal, state and local tax rules may adversely impact our results of operations and financial position.

We are subject to federal, state and local taxes in the U.S.. Although we believe our tax estimates are reasonable, if the Internal Revenue Service (“IRS”) or other taxing authority disagrees with the positions we have taken on our tax returns, we could face additional tax liability, including interest and penalties. If material, payment of such additional amounts upon final adjudication of any disputes could have a material impact on our results of operations and financial position. In addition, complying with new tax rules, laws or regulations could impact our financial condition, and increases to federal or state statutory tax rates and other changes in tax laws, rules or regulations may increase our effective tax rate. Any increase in our effective tax rate could have a material impact on our financial results.

Risks Associated

We may require additional capital to finance our operations in the future, but that capital may not be available when it is needed and could be dilutive to existing stockholders.

We may require additional capital for future operations.  We plan to finance anticipated ongoing expenses and capital requirements with funds generated from the following sources:

·  cash provided by operating activities;

·  available cash and cash investments; and

·  capital raised through debt and equity offerings.

Current conditions in the capital markets are such that traditional sources of capital may not be available to us when needed or may be available only on unfavorable terms.  Our Securitiesability to raise additional capital, if needed, will depend on conditions in the capital markets, economic conditions and a number of other factors, many of which are outside our control, and on our financial performance.  Accordingly, we cannot assure you that we will be able to successfully raise additional capital at all or on terms that are acceptable to us.  If we cannot raise additional capital when needed, it may have a material adverse effect on our liquidity, financial condition, results of operations and prospects.  Further, if we raise capital by issuing stock, the holdings of our existing stockholders will be diluted.

9. The

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If we raise capital by issuing debt securities, such debt securities would rank senior to our common stock upon our bankruptcy or liquidation.  In addition, we may raise capital by issuing equity securities that may be senior to our common stock for the purposes of dividend and liquidating distributions, which may adversely affect the market price of our common stock.  Finally, upon bankruptcy or liquidation, holders of our debt securities and trading volumeshares of preferred stock and lenders with respect to other borrowings will receive a distribution of our available assets prior to the holders of our common stock.  Additional equity offerings may dilute the holdings of our existing stockholders or reduce the market price of our common stock, hasor both.

Our business is dependent upon continued market acceptance by consumers.

We are substantially dependent on continued market acceptance of our products by customers, and such customers are dependent upon regulatory and legislative forces. We cannot predict the future growth rate and size of this market.

If we are able to expand our operations, we may be unable to successfully manage our future growth.

Since inception, we have been highlyplanning for the expansion of our brand. Any such growth could place increased strain on our management, operational, financial and other resources, and we will need to train, motivate, and manage employees, as well as attract management, sales, finance and accounting, international, technical, and other professionals.  In addition, we will need to expand the scope of our infrastructure and our physical resources.  Any failure to expand these areas and implement appropriate procedures and controls in an efficient manner and at a pace consistent with our business objectives could have a material adverse effect on our business and results of operations.

Any future litigation could have a material adverse impact on our results of operations, financial condition and liquidity. 

From time to time we may be subject to litigation, including potential stockholder derivative actions.  Risks associated with legal liability are difficult to assess and quantify, and their existence and magnitude can remain unknown for significant periods of time.  To date have obtained directors and officers liability (“D&O”) insurance to cover some of the risk exposure for our directors and officers.Such insurance generally pays the expenses (including amounts paid to plaintiffs, fines, and expenses including attorneys’ fees) of officers and directors who are the subject of a lawsuit as a result of their service to the Company.  There can be no assurance that we will be able to continue to maintain this insurance at reasonable rates or at all, or in amounts adequate to cover such expenses should such a lawsuit occur.  While neither Nevada law nor our Articles of Incorporation or bylaws require us to indemnify or advance expenses to our officers and directors involved in such a legal action, we expect that we would do so to the extent permitted by Nevada law.  Without D&O insurance, the amounts we would pay to indemnify our officers and directors should they be subject to legal action based on their service to the Company could have a material adverse effect on our financial condition, results of operations and liquidity.

Our prior operating results may not be indicative of our future results.

You should not consider prior operating results to be indicative of our future operating results. Our future operating results will depend upon many other factors, including:

- the level of product and price competition,

- our success in expanding our business network and managing our growth,

- the ability to hire qualified employees, and

- the timing of such hiring and our ability to control costs.

Requirements associated with being a reporting public company will require significant company resources and management attention.

We are subject to the reporting requirements of the Exchange Act and the other rules and regulations of the SEC relating to public companies.  We are working with independent legal, accounting and financial advisors to identify those areas in which changes should be made to our financial and management control systems to manage our growth and our obligations as an SEC reporting company.  These areas include corporate governance, internal control, internal audit, disclosure controls and procedures and financial reporting and accounting systems.  We have made, and will continue to make, changes in these and other areas, including our internal control over financial reporting.  However, we cannot assure you that these and other measures we may take will be sufficient to allow us to satisfy our obligations as an SEC reporting company on a timely basis.

In addition, compliance with reporting and other requirements applicable to SEC reporting companies will create additional costs for us, will require the time and attention of management and will require the hiring of additional personnel and legal, audit and other professionals.  We cannot predict or estimate the amount of the additional costs we may incur, the timing of such costs or the impact that our management’s attention to these matters will have on our business.

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Our management controls a large block of our common stock that will allow them to control us.

As of the date of this prospectus, members of our management team and one large affiliate shareholder together beneficially own approximately 58% of our outstanding common stock.  Our officers and directors together own approximately 45% of our voting power.  As a result, management will have the ability to control substantially all matters submitted to our stockholders for approval including:

a)           election of our board of directors;

b)           removal of any of our directors;

c)           amendment of our Articles of Incorporation or bylaws; and

d)           adoption of measures that could delay or prevent a change in control or impede a merger, takeover or other business combination involving us.

In addition, management’s stock ownership may discourage a potential acquirer from making a tender offer or otherwise attempting to obtain control of us, which in turn could reduce our stock price or prevent our stockholders from realizing a premium over our stock price.

Any additional investors will own a minority percentage of our common stock and will have minority voting rights.

Risks Related to the Common Stock

Our stock price is likely to be extremely volatile and our common stock is not listed on a stock exchange; as a result, stockholders may not be able to resell their shares at or above the price paid for them.

The market price of our common stock is likely to be extremely volatile and could be subject to significant fluctuations due to changes in sentiment in the market regarding our operations or business prospects, among other factors.  Further, our common stock currently quoted only on the OTCMarkets and not listed on any national exchange.  An active public market for our common stock does not currently exist, and even if it does someday exist, it may not be sustained.  Therefore, stockholders may not be able to sell their shares at or above the price they paid for them.

Among the factors that could affect our stock price are:

§industry trends and the business success of our customers;
§actual or anticipated fluctuations in our quarterly financial and operating results that vary from the expectations of our management or of securities analysts and investors;
§our failure to meet the expectations of the investment community and changes in investment community recommendations or estimates of our future operating results;
§announcements of strategic developments, acquisitions, dispositions, financings, product developments and other materials events by us or our competitors;
§regulatory and legislative developments concerning concerning our technology;
§litigation;
§general market conditions;
§other domestic and international macroeconomic factors unrelated to our performance; and
§additions or departures of key personnel.

Sales by our stockholders of a substantial number of shares of our common stock in the public market could adversely affect your abilitythe market price of our common stock.

A substantial portion of our total outstanding shares of common stock may be sold into the market at any time.  While most of these shares are held by our principal stockholders, who are also executive officers, and we believe that such holders have no current intention to sell a significant number of shares of our stock, if they were to decide to sell large amounts of stock over a short period of time (presuming such sales were permitted, given their affiliate status) such sales could cause the market price of our common stock to drop significantly, even if our business is doing well.

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Further, the market price of our common stock could decline as a result of the perception that such sales could occur.  These sales, or the possibility that these sales may occur, also might make it more difficult for us to sell equity securities in the future at a time and price that we deem appropriate

Our preferred stock may have rights senior to those of our common stock which could adversely affect holders of common stock.

Although no preferred stock has been issued, Nevada law, and our Articles of Incorporation give our Board of Directors the authority to issue additional series of preferred stock without a vote or action by our stockholders.  The Board also has the authority to determine the terms of preferred stock, including price, preferences and voting rights.  The rights granted to holders of preferred stock in the future may adversely affect the rights of holders of our common stock.  Any such authorized class of preferred stock may have a liquidation preference – a pre-set distribution in the event of a liquidation – that would reduce the amount available for distribution to holders of common stock or superior dividend rights that would reduce the amount of dividends that could be distributed to common stockholders.  In addition, an authorized class of preferred stock may have voting rights that are superior to the voting right of the holders of our common stock. Currently the Company has no issued or outstanding preferred stock.

We are an smaller reporting company and, as a result of the reduced disclosure and governance requirements applicable to such companies, our common stock may be less attractive to investors.

We are a smaller reporting company, (i.e. a company with less than $75 million of its voting equity held by affiliates), and we are eligible to take advantage of certain exemptions from various reporting requirements applicable to other public companies We have elected to adopt these reduced disclosure requirements.  We cannot predict if investors will find our common stock less attractive as a result of our taking advantage of these exemptions.  If some investors find our common stock less attractive as a result of our choices, there may be a less active trading market for our common stock and our stock price may be more volatile. There is currently no active market for our common stock.

We do not expect to pay any cash dividends in the foreseeable future.

We intend to retain our future earnings, if any, in order to reinvest in the development and growth of our business and, therefore, do not intend to pay dividends on our common stock for the foreseeable future.  Any future determination to pay dividends will be at the discretion of our board of directors and will depend on our financial condition, results of operations, capital requirements, and such other factors as our board of directors deems relevant.  Accordingly, you may need to sell your shares and the available price for the shares when sold.

Ourof our common stock is quotedto realize a return on the OTC Bulletin Board under the trading symbol “BUKX. OB”. The market for our stock is highly volatile. We cannot assureyour investment, and you that there will be a market in the future for our common stock. Trading of securities on the OTC Bulletin Board is often sporadic and investors may have difficulty buying and selling or obtaining market quotations, which may have a depressive effect on the market price for our common stock. You may not be able to sell your shares at your purchase price or at any price at all. Accordingly, you may have difficulty reselling any shares your purchase from the selling security holders.

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10. Because the SEC imposes additional sales practice requirements on brokers who deal in our shares which are penny stocks, some brokers may be unwilling to trade them. This means that you may have difficulty reselling your shares and this may causeabove the price you paid for them.

We can sell additional shares of thecommon stock without consulting stockholders and without offering shares to decline.existing stockholders, which would result in dilution of stockholders’ interests in VNUE, Inc. and could depress our stock price.

Our Articles of Incorporation authorize 750,000,000 shares of common stock, of which 640,913,164 are classified as penny stockscurrently outstanding, and are covered by Section 15(g)our Board of the Securities Exchange Act of 1934 which imposeDirectors is authorized to issue additional sales practice requirements on brokers-dealers who sell our securities in this offering or in the aftermarket. For sales of our securities, the broker-dealer must make a special suitability determination and receive from you a written agreement prior to making a sale for you. Because of the imposition of the foregoing additional sales practices, it is possible that brokers will not want to make a market in our shares. This could prevent you from reselling your shares and may cause the price of the shares to decline.

11. Our shareholders may face significant restrictions on the resale of our stock due to state “blue sky” laws.

Each state has its own securities laws, often called “blue sky” laws, which (1) limit sales of stock to a state’s residents unless the stock is registered in that state or qualifies for an exemption from registration and (2) govern the reporting requirements for broker-dealers and stock brokers doing business directly or indirectly in the state. Before a security is sold in a state, there must be a registration in place to cover the transaction, or it must be exempt from registration. Also, the broker must be registered in that state. We do not know whether our stock will be registered, or exempt, under the laws of any states. A determination regarding registration will be made by the broker-dealers, if any, who agree to serve as the market-makers for our stock. There may be significant state blue sky law restrictions on the ability of investors to sell, and on purchasers to buy, our stock. Investors should consider the resale market for our securities to be limited. Shareholders may be unable to resell their stock, or they may be unable to resell it without the significant expense of state registration or qualification.

12. We do not intend to pay dividends on any investment in the shares of our common stock and preferred stock.

We have never paid  Although our Board of Directors intends to utilize its reasonable business judgment to fulfill its fiduciary obligations to our then existing stockholders in connection with any cash dividends and currently do not intend to pay any dividends for the foreseeable future. To the extent that we require additional funding currently not provided for in our financing plan, our funding sources may prohibit the payment of a dividend. Because we do not intend to declare dividends, any gain on an investment in our company will need to come through an increase in the stock’s price. This may never happen and you may lose all of your investment in our stock.

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13. Thefuture issuance of our capital stock, the future issuance of additional shares upon exercise of warrants and options mayour common stock or preferred stock convertible into common stock would cause immediate, and potentially substantial, dilution to our existing shareholders.stockholders, which could also have a material effect on the market value of the shares.

The issuance of

Further, our shares upon exercise of warrants and options may result in dilution to the interests of other stockholders. As of February 29, 2008, there are 9,350,000 warrants and 3,025,000 options outstandingdo not have preemptive rights, which would result in an additional 12,375,000 common shares issued if all were exercised. This would increase our outstanding shares by approximately 28.5% and result in an immediate dilution to existing shareholders.

On November 23, 2007,means we filed a Form S-8 registration statement with the SEC to register the 2007 Non-Qualified Stock Plan and 2007 Non-Qualified Stock Option Plan to issue up to 2,000,000 common shares and options to purchase up to 2,000,000can sell shares of our common stock to other persons without offering purchasers in this offering the right to purchase their proportionate share of such offered shares.  Therefore, any additional sales of stock by us could dilute your ownership interest in our employees, executives and consultants. We have issued 25,000Company.

OUR STOCK IS A PENNY STOCK.  TRADING OF OUR STOCK MAY BE RESTRICTED BY THE SEC'S PENNY STOCK REGULATIONS AND FINRA'S SALES PRACTICE REQUIREMENTS, WHICH MAY LIMIT A STOCKHOLDER'S ABILITY TO BUY AND SELL OUR STOCK.

Our common stock purchase options under our 2007 Non-Qualified Stock Option Plan as of February 29, 2008. The issuance of shares upon exercise of these issued options may result in dilutionwill be subject to the interests"Penny Stock" Rules of other existing stockholders. Also, the future issuanceSecurities and Exchange Commission (the "SEC"), which will make transactions in our common stock cumbersome and may reduce the value of an investment in our common sharesstock.

We currently plan to have our common stock quoted on the OTCMarkets and options pursuant toBulletin Board of the stock plan and stock option plan will result in further dilution to the interests of existing shareholders.

14. Financial Industry Regulatory Authority (FINRA) sales practice requirements("FINRA"), which is generally considered to be a less efficient market than markets such as NASDAQ or the national exchanges, and which may also limit your ability to buycause difficulty in conducting trades and selldifficulty in obtaining future financing.  There is no assurance of when, if ever, our stock which could depresswill be listed on an exchange.  Further, our securities will be subject to the "penny stock rules" adopted pursuant to Section 15(g) of theSecurities Exchange Act of 1934 , as amended.  The penny stock rules apply generally to companies whose common stock trades at less than $5.00 per share, price.subject to certain limited exemptions.  Such rules require, among other things, that brokers who trade "penny stock" to persons other than "established customers" complete certain documentation, make suitability inquiries of investors and provide investors with certain information concerning trading in the security, including a risk disclosure document and quote information under certain circumstances.  Many brokers have decided not to trade "penny stock" because of the requirements of the "penny stock rules" and, as a result, the number of broker-dealers willing to act as market makers in such securities is limited.  In the event that we remain subject to the "penny stock rules" for any significant period, there may develop an adverse impact on the market, if any, for our securities.  Because our securities are subject to the "penny stock rules,” investors will find it more difficult to dispose of our securities.  Further, it is more difficult: (i) to obtain accurate quotations, (ii) to obtain coverage for significant news events because major wire services, such as the Dow Jones News Service, generally do not publish press releases about such companies, and (iii) to obtain needed capital.

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In addition to the "penny stock" rules promulgated by the SEC, FINRA has adopted rules that require that in recommending an investment to a customer, a broker-dealer must have reasonable grounds for believing that the investment is suitable for that customer.  Prior to recommending speculative low pricedlow-priced securities to their non-institutional customers, broker-dealers must make reasonable efforts to obtain information about the customer’scustomer's financial status, tax status, investment objectives and other information.  Under interpretations of these rules, FINRA believes that there is a high probability that speculative low priced securities will not be suitable for at least some customers.  FINRA requirements make it more difficult for broker-dealers to recommend that their customers buy our common stock, which may limit your ability to buy and sell our stock and have an adverse effect on the market for our shares. 

TARPON WILL PAY LESS THAN THE THEN-PREVAILING MARKET PRICE FOR OUR COMMON STOCK.

The common stock to be issued to Tarpon pursuant to the Equity Purchase Agreement will be purchased at a 90% discount to the lowest closing “best bid” price (the closing bid price as reported by Bloomberg LP) of the common stock for any single trading day during the ten consecutive trading days immediately following the date of our notice to Tarpon of our election to put shares depressingpursuant to the Equity Purchase Agreement.  Tarpon has a financial incentive to sell our sharecommon stock immediately upon receiving the shares to realize the profit equal to the difference between the discounted price and the market price.  If Tarpon sells the shares, the price of our common stock could decrease.  If our stock price decreases, Tarpon may have a further incentive to sell the shares of our common stock that it holds.  These sales may have a further impact on our stock price.

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Forward-Looking Statements

This prospectus contains forward-looking statements that involve risks and uncertainties, including statements regarding our capital needs, business plans and expectations.  Such forward-looking statements involve risks and uncertainties regarding the market price of feldspar and other valuable minerals, availability of funds, government regulations, operating costs, exploration costs, outcomes of exploration programs and other factors.  Forward-looking statements are made, without limitation, in relation to operating plans, property exploration and development, availability of funds, environmental reclamation, operating costs and permit acquisition.  Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking statements.  In some cases, you can identify forward-looking statements by terminology such as "may", "will", "should", "expect", "plan", "intend", "anticipate", "believe", "estimate", "predict", "potential" or "continue", the negative of such terms or other comparable terminology.  Actual events or results may differ materially.  In evaluating these statements, you should consider various factors, including the risks outlined in this prospectus.  These factors may cause our actual results to differ materially from any forward-looking statement.  While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding our business plans, our actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested herein.  We do not intend to update any of the forward-looking statements to conform these statements to actual results, except as required by applicable law, including the securities laws of the United States.

The safe harbor for forward-looking statements provided in thePrivate Securities Litigation Reform Act of 1995 does not apply to the offering made in this prospectus

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Use of Proceeds

We will not receive any proceeds from the resalesale of common stock offered by Tarpon.  However, we will receive proceeds from the sale of our common stock to Tarpon pursuant to the Equity Purchase Agreement.  The proceeds from our exercise of the common shares offered through this Prospectus byPut Right pursuant to the Equity Purchase Agreement will be used for general administrative expenses, legal expenses, as well as for accounting and audit fees.

SELLING SECURITY HOLDER

The following table details the name of each selling security holders. We will receivestockholder, the proceeds from any exercise of options for the purchasenumber of shares registered in this Prospectus. We intend to use any such proceeds towards generalowned by Tarpon Bay Partners, LLC (“Tarpon”) the sole selling stockholder, and administrative expenses, including advertising and promotion costs, courier and postage, currency exchange loss, consulting fees, director’s fees, bank charges, office expenses, rent, repairs and maintenance, telephone costs, meals and entertainment, utilities, travel costs, electronic filing fees and transfer agent fees.

Determination of Offering Price

The selling security holders will sell 6,200,000 common shares at prevailing market prices or privately negotiated prices. Thethe number of common shares that may be actually soldoffered by Tarpon Bay Partners, LLC is not a selling security holder will be determined by each selling security holder. The selling security holders are under no obligation to sell all or any portion of the common shares offered, nor are the selling security holders obligated to sell such shares immediately underbroker-dealer.  Tarpon is deemed an underwriter and therefore this Prospectus. A shareholderoffering is also considered an indirect primary offering.  Tarpon may sell common stock at any price depending on privately negotiated factors such as a shareholder's own cash requirements, or objective criteria of value such as the market value of our assets.

Dilution

All 5,200,000 issued commonup to 50,000,000 shares, to be sold by the selling security holderswhich are common shares that are currently issued and outstanding. Accordingly, they will not cause dilution to our existing shareholders.

The issuance of common sharesissuable upon the exercise of 1,000,000 options, however,our put right with Tarpon.  Tarpon will not assign its obligations under the equity line of credit.

Name 

Total number of

shares owned

prior to offering

  

Percentage of

shares owned

prior to offering

  

Number of

shares being

offered

  

Percentage of shares

owned after the

offering assuming all

of the shares are sold

in the offering(1)

               
Tarpon Bay Partners, LLC (2)  0   0   50,000,000  Less than 8%

(1)

The number assumes the Selling Security Holder sells all of its shares being offering pursuant to this prospectus.

(2)

Stephen Hicks possesses voting power and investment power over shares which may result in dilutionbe held by Tarpon.

Plan of Distribution

This prospectus relates to the interestsresale of other shareholders since the holders of the 1,000,000 options may ultimately exercise and sell the full amount upon the exercise. This amount would increase the amount50,000,000 Shares of our outstanding shares by approximately 2.3% and result in an immediately dilution to shareholders.

Selling Security Holders

The six selling security holders are offering shares of common stock, already issued. We have made the following shares issuances since our inception:

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13·


The shares issued to our transfer agent, Island Capital Management LLC dba Island Stock Transfer, were exempt from registration pursuant to Section 4(2) of the Securities Act. Our reliance upon the exemption under Section 4(2) of the Securities Act of 1933 was based on the fact that the issuance of these shares did not involve a “public offering.” The offering was not a "public offering" as defined in Section 4(2) due to the insubstantial number of persons involved in the deal, size of the offering, manner of the offering and number of securities offered. We did not undertake an offering in which we sold a high number of shares to a high number of investors. In addition, the investor had the necessary investment intent as required by Section 4(2) since they agreed to and received a share certificate bearing a legend stating that such shares are restricted pursuant to Rule 144 of the Securities Act. This restriction ensures that these shares would not be immediately redistributed into the market and therefore not be part of a "public offering." The investor negotiated the terms of the Purchase Agreement, neither Tarpon nor any affiliate of Tarpon acting on its behalf or pursuant to any understanding with it will execute any short sales during the term of this offering.

The Selling Security Holder may also sell the shares directly to market makers acting as principals and/or broker-dealers acting as agents for themselves or their customers.  Such broker-dealers may receive compensation in the form of discounts, concessions or commissions from the Selling Security Holder and/or the purchasers of shares for whom such broker-dealers may act as agents or to whom they sell as principal or both, which compensation as to a particular broker-dealer might be in excess of customary commissions.  Market makers and block purchasers purchasing the shares will do so for their own account and at their own risk.  It is possible that a Selling Security Holder will attempt to sell shares of Common Stock in block transactions directly with our executive officers. No general solicitation was used, no commissionto market makers or other remuneration was paid in connection with these transactions, and no underwriter participated. Based on an analysispurchasers at a price per share which may be below the then market price.  The Selling Security Holder cannot assure that all or any of the above factors,shares offered in this transaction was effectedprospectus will be issued to, or sold by, the Selling Security Holder.  In addition, the Selling Security Holder and any brokers, dealers or agents, upon effecting the sale of any of the shares offered in reliance on the exemption from registration provided in Section 4(2) ofthis prospectus are “underwriters” as that term is defined under the Securities Act for transactions not involvingor the Exchange Act, or the rules and regulations under such acts.  In such event, any public offering.

Allcommissions received by such broker-dealers or agents and any profit on the resale of the other issuances described above were exempt from registrationshares purchased by them may be deemed to be underwriting commissions or discounts under Regulation S of the Securities Act. Our reliance upon the exemption under Rule 903 of Regulation S of the Securities Act was based on the fact that

Discounts, concessions, commissions and similar selling expenses, if any, attributable to the sale of shares will be borne by a Selling Security Holder.  The Selling Security Holder may agree to indemnify any agent, dealer or broker-dealer that participates in transactions involving sales of the securities was completed in an "offshore transaction", as defined in Rule 902(h)shares if liabilities are imposed on that person under the Securities Act.

We are required to pay all fees and expenses incident to the registration of Regulation S. We did not engage in any directed selling efforts, as defined in Regulation S, in the United Statesshares of common stock.  Otherwise, all discounts, commissions or fees incurred in connection with the sale of the securities. Each investor was not a US person, as defined in Regulation S, and was not acquiring the securities for the account or benefit of a US person.

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The selling security holders may sell at prevailing market prices or privately negotiated prices. Of the above described issuances totaling 43,432,250 shares, this Prospectus includes registration of the following shares:

The following table provides as of February 29 2008 information regarding the beneficial ownership of our common stock held by each of the selling security holders, including:

     Percentage 
     Owned 
     upon 
 Shares  Maximum  Completion 
 Owned Prior  Number of Beneficial of 
 to this  Percent  Shares Ownership the Offering 
Name of Selling Offering (1) (3) Being After (3) 
   Shareholder (2) (%) Offered Offering (%) 
Cocotropolis Inc. (4) 2,000,000 4.6 1,000,000 1,000,000 2.3 
Richard Paul Pappas 1,010,750 2.3 1,000,000 10,750 (5) 
Christopher Robin Relph (6)16,083,000 (7) (4)   35.3 2,000,000 13,083,000 (8)  28.7 
Deon Venter 1,000,000 2.3 1,000,000 
Wingspan Foundation (9) 1,000,000 (10)  2.3 1,000,000 
Total   6,200,000   

(1)     

The number and percentage of shares beneficially owned is determined in accordance with the Rules of the Commission, and the information is not necessarily indicative of beneficial ownership for any other purpose. Under such rules, beneficial ownership

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(2)     

Includes any shares as to which the selling stockholder has sole or shared voting power or investment power and also any shares which the selling stockholder has the right to acquire within 60 days of the date of this Prospectus.

(3)     

The percentages are based on the 43,432,250 common shares outstanding as at February 29, 2008 plus shares issuable upon exercise of options by the applicable security holder.

(4)     

To our knowledge, Shelley Miller and Christopher Robin Relph, our director, President, CEO and CFO, have shared dispositive (the power to sell the securities) and voting control with regards to securities held by Cocotropolis Inc., a company controlled by Mr. Relph

(5)     

Less than 1%.

(6)     

Christopher Robin Relph is our director, President, CEO and CFO.

(7)     

Includes 12,083,000 issued common shares, 2,000,000 common shares underlying options exercisable at $0.10 per share until May 7, 2010, and 2,000,000 issued common shares owned by Cocotropolis Inc.

(8)     

Includes the remainder of all shares held by Christopher Robin Relph and Cocotropolis Inc. upon completion of the offering.

(9)     

To our knowledge, Anthony D. Lowes has sole dispositive and voting control with regards to securities held by Wingspan Foundation.

(10)     

Includes 1,000,000 common shares underlying options exercisable at $0.60 per share until August 27, 2009 or 30 days following the termination of the consulting agreement between us and Wingspan Foundation, whichever occurs earlier

The percentages are based on the 43,432,250 shares of common stock outstanding on February 29, 2008 and assumes all shares are soldpaid by the selling security holders.Selling Security Holder.

Other than as described above, none of the selling security holders or their beneficial owners has had a material relationship with us other than as a shareholder at any time within the past three years, or has ever been one of our officers or directors or an officer or director of our predecessors or affiliates.

None of the selling security holders are FINRA registered broker-dealers or affiliates of FINRA registered broker-dealers.

Plan of Distribution

We are registering the common shares on behalf of the selling security holders. The 6,200,000 common shares can be sold by the selling security holders at prevailing market prices or privately negotiated prices.

The selling security holders may sell some or all of their common shares in one or more transactions, including block transactions:

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The sales price to the public may be:

We are bearing all costs relating to the registration of the common shares. The selling security holders, however, will pay any commissions or other fees payable to brokers or dealers in connection with any sale of the common shares.

The selling security holders must comply with the requirements of the Securities Act and the Exchange Actsecurities offered hereby in the offerordinary course of business and sale of the common stock. In particular, during such times as the selling security holders may be deemed to be engaged in a distribution of certain securities, and therefore be considered to be an underwriter, they must comply with applicable laws and may, among other things:

Our common shares are quoted on the OTC Bulletin Board, under the trading symbol “BUKX.OB”. The market for our stock is highly volatile. We cannot assure you that there will be a market in the future for our common stock.

Trading in stocks quoted on the OTC Bulletin Board is often thin and characterized by wide fluctuations in trading prices, due to many factors that may have little to do with a company's operations or business prospects. The OTC Bulletin Board should not be confused with the NASDAQ market. OTC Bulletin Board companies are subject to far fewer restrictions and regulations than are companies traded on the NASDAQ market. Moreover, the OTC Bulletin Board is not a stock exchange, and trading of securities on the OTC Bulletin Board is often more sporadic than the trading of securities listed on a quotation system like the NASDAQ Small Cap or a stock exchange. In the absence of an active trading market: (a) investors may have difficulty buying and selling or obtaining market quotations; (b) market visibility for our common stock may be limited; and (c) a lack of visibility for our common stock may have a depressive effect on the market price for our common stock.

None of the selling security holders will engage in any electronic offer, sale or distribution of the shares. Further, neither we nor any of the selling security holders have any arrangements with a third party to host or access our Prospectus on the Internet.

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The selling security holders and any broker-dealers acting in connection with the sale of the shares hereunder may be deemed to be underwriters within the meaning of Section 2(11) of the Securities Act of 1933 (the “Securities Act”), and any commissions received by them and any profit realized by them on the resale of shares as principals may be deemed underwriting compensation under the Securities Act. Neither the selling security holders nor we can presently estimate the amount of such compensation. We know of no existing arrangements between the selling security holders and any other security holder, broker, dealer, underwriter, or agent relating to the sale or distribution of the shares. Because the selling security holders may be deemed to be “underwriters” within the meaning of Section 2(11) of the Securities Act, the selling security holders will be subject to the prospectus delivery requirements of the Securities Act. Each selling security holder has advised us that the stockholderit has not yet entered into any agreements, understandings or arrangements with any underwriters or broker-dealers regarding the sale of their shares of common stock, nor is there an underwriter or coordinating broker acting in connection with a proposed sale of shares of common stock by the shares.Selling Security Holder.  We will file a supplement to this prospectus if the Selling Security Holder enters into a material arrangement with a broker-dealer for sale of common stock being registered.  If the Selling Security Holder uses this prospectus for any sale of the shares of common stock, it will be subject to the prospectus delivery requirements of the Securities Act.

The anti-manipulation rules of Regulation M under the Exchange Act, may apply to sales of our common stock and activities of the Selling Security Holder.  The Selling Security Holder will act independently of us in making decisions with respect to the timing, manner and size of each sale.

Tarpon is an “underwriter” within the meaning of the Securities Act in connection with the sale of our common stock under the Equity Purchase Agreement.  For each share of common stock purchased under the Purchase Agreement, Tarpon will pay 90% of the lowest Bid Prices during the Valuation Period.

We will pay all expenses incident to the registration, offering and sale of the shares of our common stock to the public hereunder other than commissions, fees and discounts of underwriters, brokers, dealers and agents.  If any of these other expenses exists, we expect Tarpon to pay these expenses.  We have agreed to indemnify any underwriterTarpon and its controlling persons against specific civilcertain liabilities, including liabilities under the Securities Act.

Regulation M

During such time as  We estimate that the selling security holders mayexpenses of the offering to be engaged in a distributionborne by us will be approximately $33,000.  We will not receive any proceeds from the resale of any of the shares being registeredof our common stock by Tarpon.  We may, however, receive proceeds from the sale of our common stock under the Purchase Agreement.

Sales Pursuant to Rule 144

Any shares of common stock covered by this registration statement,prospectus which qualify for sale pursuant to Rule 144 under the selling security holders are requiredSecurities Act, as amended, may be sold under Rule 144 rather than pursuant to comply with Regulation M. In general, Regulation M precludes any selling security holder, any affiliated purchasers and any broker-dealer or other person who participates in a distribution from bidding for or purchasing, or attempting to induce any person to bid for or purchase, any security which is the subject of the distribution until the entire distribution is complete.this prospectus.

Regulation M defines a“distribution”as an offering

We have advised the Selling Security Holder that the anti-manipulation rules of securities that is distinguished from ordinary trading activities by the magnitude of the offering and the presence of special selling efforts and selling methods. Regulation M also defines a“distribution participant”as an underwriter, prospective underwriter, broker, dealer, or other person who has agreed to participate or who is participating in a distribution.

Regulation M under the Securities Exchange Act may apply to sales of 1934shares in the market and to the activities of the Selling Security Holder and their affiliates.  Regulation M under the Exchange Act prohibits, with certain exceptions, participants in a distribution from bidding for, or purchasing for an account in which the participant has a beneficial interest, any of the securities that are the subject of the distribution. Accordingly, the selling stockholder is not permitted to cover short sales by purchasing shares while the distribution it taking place.  Regulation M also governs bids and purchases made in order to stabilize the price of a security in connection with a distribution of the security.  We have informed the selling security holders that the anti-manipulation provisionsIn addition, we will make copies of Regulation M may applythis prospectus available to the salesSelling Security Holder for the purpose of their shares offered by this Prospectus, and we have also advisedsatisfying the selling security holdersprospectus delivery requirements of the requirementsSecurities Act.

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State Securities Laws

Under the securities laws of some states, the shares may be sold in such states only through registered or licensed brokers or dealers.  In addition, in some states the shares may not be sold unless the shares have been registered or qualified for deliverysale in the state or an exemption from registration or qualification is available and is complied with.

Expenses of this ProspectusRegistration

We are bearing all costs relating to the registration of the common stock.  These expenses are estimated to be $33,000, including, but not limited to, legal, accounting, printing and mailing fees.  The selling stockholders, however, will pay any commissions or other fees payable to brokers or dealers in connection with any salessale of the common stock offered by this Prospectus.stock.

In regards to short sells, the selling security holders cannot cover their short sales with

MARKET FOR OUR COMMON STOCK

Our shares from this offering. In addition, if such short sale is deemed to be a stabilizing activity, then the selling security holders will not be permitted to engage in a short sale of our common stock. All of these limitations may affect the marketability of the shares.

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Penny Stock Rules

The SEC has also adopted rules that regulate broker-dealer practices in connection with transactions in penny stocks. Penny stocks are generally equity securities with a price of less than $5.00 (other than securities registered on certain national securities exchanges or quotedtraded on the OTC Bulletin Board system, provided that current price and volume information with respect to transactions in such securities is providedoperated by the exchange or system).

The penny stock rules require a broker-dealer, prior to a transaction in a penny stock not otherwise exempt from those rules, deliver a standardized risk disclosure document prepared byFinancial Industry Regulatory Authority under the SEC, which:

The broker-dealer also must provide, prior to effecting any transaction in a penny stock, the customer:

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In addition, the penny stock rules require that prior to a transaction in a penny stock not otherwise exempt from those rules; the broker-dealer must make a special written determination that the penny stocksymbol “VNUE”.  There is a suitable investment for the purchaser and receive the purchaser's written acknowledgment of the receipt of a risk disclosure statement, a written agreement to transactions involving penny stocks, and a signed and dated copy of a written suitability statement. These disclosure requirements will have the effect of reducing the trading activity in the secondarylimited public market for our common shares.  

Our common stock because it will be subject to these penny stock rules. Therefore, stockholders may have difficulty selling those securities.

Descriptionbecame eligible for quotation on the OTCMarkets on May 9, 2007.  As of Securities to be Registered

WeJanuary 8, 2016, only a minimal amount of shares are authorized to issue 80,000,000trading OTCMarkets and the market price for our common shares and 20,000,000 preferred shares, each with a par value of $0.0001.is $0.04 per share.

Common Stock

As of February 29 2008, we had 43,432,250 common shares, warrants to purchase 9,350,000 common shares and options to purchase 3,025,000 common shares outstanding. Holders of the common stock have no preemptive rights to purchase additional shares of common stock or other subscription rights. The common stock carries no conversion rights and is not subject to redemption or to any sinking fund provisions. All shares of common stock are entitled to share equally in dividends from sources legally available, therefore, when, as and if declared by the Board of Directors, and upon our liquidation or dissolution, whether voluntary or involuntary, to share equally in our assets available for distribution to stockholders.

The Board of Directors is authorized to issue additional shares of common stock not to exceed the amount authorized by our Articles of Incorporation, on such terms and conditions and for such consideration as the Board may deem appropriate without further stockholder action.

Voting Rights

Each holder of common stock is entitled to one vote per share on all matters on which such stockholders are entitled to vote. Since the shares of common stock do not have cumulative voting rights, the holders of more than 50% of the shares voting for the election of directors can elect all the directors if they choose to do so and, in such event, the holders of the remaining shares will not be able to elect any person to the Board of Directors.

Dividend Policy

Holders of

We have never declared or paid any cash dividends on our common stock are entitled to dividends if declared by the Board of Directors out of funds legally available therefore.stock.  We do not anticipate the declaration or payment of any dividends in the foreseeable future. Wecurrently intend to retain future earnings, if any, to finance the development and expansion of our business.  Future dividend policy will be subjectAs a result, we do not anticipate paying any cash dividends in the foreseeable future.

Share Purchase Warrants

We have not issued and do not have outstanding any warrants to purchase shares of our common stock.

Options

We have not issued and do not have outstanding any options to purchase shares of our common stock.

Convertible Securities

The Company has the discretionfollowing convertible notes payable issued and outstanding:

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  September 30,
2015
  December 31,
2014
 
         
On August 14, 2014 and August 20, 2014 the Company issued three convertible notes to three note holders in the principal amount of $5,000, $10,000 and $10,000 with interest at 10% per annum. Note Conversion Price is determined as follows: (a) if the Note is converted upon the Next Equity Financing, an amount equal to 80% of the price paid per share paid by the investors in the Next Equity Financing; (b) if the Note is converted in the event of a Corporate Transaction, a price per share derived by dividing a "pre-money" valuation of $8,000,000 by the number of shares outstanding immediately prior to the time of such conversion, on a fully diluted basis; or (c) if the Note is converted as part of a Maturity Conversion, a price per unit derived by dividing a "pre-money" valuation of $8,000,000 by the total number of units (restricted and non-restricted) outstanding immediately prior to the time of such conversion, on a fully diluted basis. The note is due and payable on demand at any time after the earlier of (i) 36 months following the note issuance or (ii) the consummation of a corporate transaction if not previously converted. $25,000  $25,000 
         
On August 31, 2014, the Company issued a convertible note to the CFO bearing 0% interest in the amount of $15,000. The Note Conversion Price is determined as follows: (a) if the Note is converted upon the Next Equity Financing, an amount equal to 80% of the price paid per share paid by the investors in the Next Equity Financing; (b) if the Note is converted in the event of a Corporate Transaction, a price per share derived by dividing a "pre-money" valuation of $8,000,000 by the number of shares outstanding immediately prior to the time of such conversion, on a fully diluted basis; or (c) if the Note is converted as part of a Maturity Conversion, a price per unit derived by dividing a "pre-money" valuation of $8,000,000 by the total number of units (restricted and non-restricted) outstanding immediately prior to the time of such conversion, on a fully diluted basis. The note is due and payable on demand at any time after the earlier of (i) 36 months following the note issuance or (ii) the consummation of a corporate transaction if not previously converted. The Company repaid $13,500 of the note during the nine months ended September 30, 2015.  1,500   15,000 
         
Two convertible notes with a director bearing 0% interest were issued on August 31, 2014 in the amounts of $35,000 and $21,000, respectively.Note Conversion Price is determined as follows: (a) if the Note is converted upon the Next Equity Financing, an amount equal to 80% of the price paid per share paid by the investors in the Next Equity Financing; (b) if the Note is converted in the event of a Corporate Transaction, a price per share derived by dividing a "pre-money" valuation of $8,000,000 by the number of shares outstanding immediately prior to the time of such conversion, on a fully diluted basis; or (c) if the Note is converted as part of a Maturity Conversion, a price per unit derived by dividing a "pre-money" valuation of $8,000,000 by the total number of units (restricted and non-restricted) outstanding immediately prior to the time of such conversion, on a fully diluted basis. The note is due and payable on demand at any time after the earlier of (i) 36 months following the note issuance or (ii) the consummation of a corporate transaction if not previously converted.  The Company repaid $27,500 of the note during the nine months ended September 30, 2015.  28,500   56,000 
         
Face amount  55,000   96,000 
         
Discount representing the derivative liability on conversion features  (55,000)  (96,000)
         
Accumulated amortization of discount of convertible notes payable (*)  22,889   21,643 
         
Remaining discount  (32,111)  (74,357)
         
Convertible notes payable, net $22,889  $21,643 

(*) The discount is being amortized using the effective interest rate method over the life of the Board of Directors and will be contingent upon future earnings, if any, our financial condition, capital requirements, general business conditions and other factors. Therefore, there can be no assurance that any dividends of any kind will ever be paid.debt instruments.

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Preferred Stock

We are authorized to issue up to 20,000,000 shares of $0.0001 par value preferred stock. We have no shares of preferred stock outstanding. Under our Articles of Incorporation, the Board of Directors has the power, without further action by the holders of the common stock, to determine the relative rights, preferences, privileges and restrictions of the preferred stock, and to issue the preferred stock in one or more series as determined by the Board of Directors. The designation of rights, preferences, privileges and restrictions could include preferences as to liquidation, redemption and conversion rights, voting rights, dividends or other preferences, any of which may be dilutive of the interest of the holders of the common stock or the preferred stock of any other series.

InterestInterests of Named Experts and Counsel

No expert or counsel named

The legality of the shares offered under this registration statement is being passed upon by Matheau J. W. Stout, Esq.  The financial statements included in this Prospectus as having prepared or certified any part of this Prospectus or having given an opinion upon the validity of the securities being registered or upon other legal matters in connection withprospectus and the registration or offering ofstatement has been audited by Li and Company, P.C. to the common stock was employed on a contingency basis or had, or is to receive,extent and for the periods set forth in connection withtheir report appearing elsewhere herein and in the offering, a substantial interest, directly or indirectly, in us or any of our subsidiaries. Nor was any such person connected with us or any of our subsidiaries as a promoter, managing or principal underwriter, voting trustee, director, officer or employee. The validity of the common stock offered in this Prospectus will be passed upon for us by of the law firm Bacchus Corporateregistration statement, and Securities Law. As at February 29, 2008 a principal of the law firm Bacchus Corporate and Securities Law owns 200,000 issued shares of our common stock.

Experts

Our audited financial statements as of May 31, 2007 are included in this Prospectus in reliance upon Manning Elliott LLP, Independent Registered Public Accounting Firm,such report given upon the authority of said firm as experts in auditing and accounting.

Description of Business

Overview

WeOverview

Following the Merger on May 29, 2015, we now carry on business as a live entertainment music service company which brings bands and fans together by capturing professional quality audio and video recordings of live performances and delivers the experience of a venue to your home and hand.

By streamlining the processes of curation, clearing, capturing, distribution & monetization, VNUE manages and simplifies the complexities of the music ecosystem. 

VNUE captures content through its Front of House mobile application and provides world-wide distribution and monetization through a suite of mobile, web administration applications, allowing an artist to seamlessly deliver and sell their live performances directly to the fans who attend their shows. 

While VNUE is primarily being used in live music venues, we are an exploration stage company. Our planalso branching into many other entertainment experiences such as comedy, plays, musicals, university lectures, professional demonstrations and panel discussions, as well as action sports and much more.

Business Model Prior to the Merger

The Company was incorporated in the State of operation forNevada on April 4, 2006. Prior to the next twelve months beginning March 2008 is to carry outMerger, we were engaged in the acquisition and exploration of mineral properties since our inception. Under that prior business model, the Company did not generate any revenues and acquire other selective early stage propertiesincurred losses since inception.

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Effective April 10, 2013, the Company changed its name from Buckingham Exploration Inc. to Tierra Grande Resources Inc. On August 9, 2010, the Company incorporated 0887717 B.C. Ltd., a wholly-owned subsidiary in British Columbia, Canada. On February 28, 2013, the US or Canada. We intend to primarily exploreCompany acquired a 100% interest in Tierra Grande Resources, S.A.C. (“Tierra”), a company incorporated in Peru, in consideration for uranium, but if we discover that any of our mineral properties hold potential for other minerals that our management determines are worth exploring further, then we will explore for those other minerals.$10.

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We anticipate that we will require additional financing in order to pursue full exploration of our existing mineral properties and acquire other mineral properties. We do not have sufficient financing to undertake full exploration of our mineral claims at present and there is no assurance that we will be able to obtain the necessary financing. Further exploration beyond the scope of our planned exploration activities will be required before a final evaluation asPrior to the economicMerger, the Company’s strategy had been to identify, acquire and legal feasibilityadvance assets that present near term cash-flow with the emphasis on creating early cash flow to enable the Company to consider other projects.

In July 2013, prior management entered into a Letter of mining of mineral properties is determined.

Development of Business

Since our inceptionIntent to acquire the Buldibuyo Gold Project in April 2006 we have been involved in organizational activities and purchased several mineral properties. We have built a management team, developed our business plan, incorporated one subsidiary and conducted preliminary drilling in some mineral claims.

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High Park Uranium Property and High Park Trails Property (together the “High Park Claims”)

On June 6, 2007, through our wholly owned subsidiary Hyde Park Uranium Inc., we completed the purchase of 29 unpatented mining claims known as the High Park Uranium Property located in Teller County, Colorado from Pikes Peak Resources, Inc. The purchase was completedcompany incorporated pursuant to the purchase and sale agreement between us and Pikes Peak Resources dated May 9, 2007.

The purchase pricelaws of the property was $1,000,000 which was settled by wayState of $500,000 in cashWashington (“VNUE Washington”), and 5,000,000TGRI Merger Corp., a Nevada corporation and a wholly-owned subsidiary of the Company (“Merger Sub”).

On April 30, 2015, the Company filed an 8-K announcing the extension of the deadline to close on the Merger Agreement until May 30, 2015.

On May 29, 2015, Vnue, Inc. (formerly Tierra Grande Resources Inc.) (“TGRI”) closed the Agreement and Plan of Merger (the “Merger Agreement”), initially entered into on April 13, 2015 with Vnue Washington and all of the stockholders of Vnue Washington.

Upon closing of the Merger Agreement a total of 507,629,872 shares of ourTGRI common stock. Pikes Peak Resources will also receive a net returns royaltystock were issued as follows: (i) all shares of 2%Vnue Washington stock of any class or series issued and outstanding immediately prior to the closing of the proceedsMerger Agreement were automatically converted into and exchanged for an aggregate of minerals mined477,815,488 fully paid and sold fromnon-assessable shares of TGRI common stock; and (ii) an aggregate of 29,814,384 shares of TGRI common stock were issued to Matheau J. W. Stout, Esq. as payment for services performed prior to and in connection with the claims on the High Park Uranium Property. We have an optionMerger. The number of TGRI common shares issued to purchase the royalty for $1,000,000 as adjusted for inflation. We have agreed to reimburse $3,700 to Pikes Peak ResourcesVnue Washington's stockholders for the costsacquisition of locating the claims. We have also agreed to buy backall shares of Vnue Washington represented approximately 79.0% of the issued and outstanding common stock from Pikes Peak Resources at prevailing market prices up to $150,000 for any taxes payable by Pikes Peak Resources asimmediately after the closing of the Merger Agreement. The board of directors and the members of the management of TGRI resigned and the board of directors and the member of the management of Vnue Washington became the board of directors and the member of the management of the combined entities upon closing of the Merger Agreement.

As a result of the transaction. We have subsequently stakedcontrolling financial interest of the former stockholders of Vnue Washington, for financial statement reporting purposes, the merger between TGRI and Vnue Washington was treated as a further 25 claims adjoining those purchased. We also paidreverse acquisition, with Vnue Washington deemed the accounting acquirer and TGRI deemed the accounting acquiree under the acquisition method of accounting in accordance with Section 805-10-55 of the FASB Accounting Standards Codification. The reverse acquisition is deemed a finder’s feecapital transaction in substance whereas the assets and liabilities of 1,000,000Vnue Washington (the accounting acquirer) are carried forward to TGRI (the legal acquirer and the reporting entity) at their carrying value before the combinationand the equity structure (the number and type of equity interests issued) of Vnue Washingtonis being retroactively restated using the exchange ratio established in the Merger Agreement to reflect the number of shares of ourTGRI issued to effectuate the acquisition.  The number of common stock to an unrelated party subsequentshares issued and outstanding and the amount recognized as issued equity interests in the consolidated financial statements is determined by adding the number of common shares deemed issued and the issued equity interests of Vnue Washingtonimmediately prior to the closing of this transaction.

On January 22, 2008 Hyde Park Uranium executed a quitclaim deed and royalty agreement (the “HP Royalty Agreement”) with Pikes Peak Energy LLC. The Royalty Agreement relatesbusiness combination to the 29 unpatented mining claimsunredeemed shares and thefair value of TGRI determined in Teller County, Colorado purchased by us on June 6, 2007.accordance with the guidance in ASC Section 805-40-55 applicable to business combinations, i.e. the equity structure (the number and type of equity interests issued) in the consolidated financial statements immediately post the combination reflects the equity structure of TGRI, including the equity interests the legal parent issued to effect the combination.

The HP Royalty Agreement forms a part

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A copy of the purchase and sale agreement for unpatented lode mining claims between us and Pikes Peak Resources.Merger Agreement was attached as Exhibit 10.1 to the Company’s 8-K filed on April 14, 2015. The HP Royalty Agreement replaces the previous quitclaim deed and royalty agreement between Hyde Park Uranium and Pikes Peak Resources dated October 30, 2007. The previous agreement was replaced in order to correctly identify Pikes Peak Energy LLC as signatory and assignordescription of the High Park Property, and to correct several clerical errors.

Pursuant to the HP RoyaltyMerger Agreement Hyde Park Uranium must pay to Pikes Peak Energy LLC a perpetual production royalty of two percent of any net returns earnedherein is qualified by Hyde Park Uranium from the sale of minerals derived from the High Park Uranium Property.

In the event Hyde Park Uranium intends to abandon the claims or any portion thereof, it must first notify Pikes Peak Energy, whereupon Pikes Peak Energy will have the option for sixty days to acquire the claims at no cost.

Hyde Park Uranium will additionally be required to pay maintenance fees of approximately $175 per claim per year.

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On July 27, 2007 we entered into an exploration agreement with an option to purchase with Edwin S. Broussard III and Alice M. Broussard in relation to a property known as the High Park Trails Ranch in Teller County, Colorado (the “High Park Trails Property”). The High Park Trails Property adjoins our High Park Uranium Property in Teller County, Colorado. Pursuant to the terms of the agreement, we must make an option payment of $100,000 to acquire the surface and mineral estates over 265 acres (paid on July 27, 2007), with a further payment of $2,900,000 at the end of a twelve month period to exercise the non-exclusive option to purchase the High Park Trails Property. During the option period we have full access to the High Park Trails Property to conduct an exploration and drill program to ascertain whether we wish to exercise the option to purchase the property.

If we choose to exercise the option to purchase the High Park Trails Property, Mr. and Mrs. Broussard will reserve the right to occupy and use the surfacetext of the property provided such use does not interfereagreement attached thereto and the terms thereof are incorporated herein by reference.

Plan of Operations

The History of VNUE

VNUE was founded in August of 2013 with our exploration rights. We must also pay Mr.the vision of creating a collective network of connected venues that empower and Mrs. Broussardassist bands, artist, and entertainers to monetize their performance (audio & video) in the venue using mobile technologies. VNUE has developed its business and technology in tandem to enter into deals with venues, artists and labels across the United States using this initial launch strategy. The collective venue network effect, whereby each deal makes the offer more compelling to other potential customers, has been a production royaltykey driver of approximately 5%VNUE’s growth to date. The initial focus of the net returns generated by our explorationbusiness in early 2014 as a YouTube certified company, to create a Multi-Channel Network (MCN) specifically focused on live streaming and monetization of content through the High Park Trails Property.google display network..

Proteus Claims

On January 22, 2008 our company and our wholly owned Colorado subsidiary, Alpha Beta Uranium Inc.,July 23, 2014, the Company entered into an assignment and assumptionAsset purchase agreement with Proteus Mining LimitedLively, LLC (the “Agreement”), whereby the Company acquired certain assets of Lively, LLC for a consideration of (i) payment of $150,000 and Pikes Peak Energy LLC whereby Alpha Beta Uranium acquired 441 unpatented lode mining(ii) Preferred shares with a fair market value of $250,000 at the time of the issuance. Assets purchased included: a) software, inventions, customers, customer lists, development, documents and records, designs, claims, located near Cañintellectual property rights, distribution rights and merchandising rights; b) all copyright, patents, trademarks, trade names, logos or service marks and other intangible property and rights.

Since the Lively assets acquisition, VNUE has grown its platform, expanded into enabled venues and enhanced its platform offering to approve the monetization model and further evangelize the creation of the collective network of connected venues that empower artist to create content and monetize it.

Markets and Opportunity

There are over 400,000+ Indie bands performing in the US domestic market alone, and while a handful of them will get produced under a label even less will be big enough to attempt to utilize today’s current methods to capture and deliver live performance audio from a given show. Currently artist, bands and performers are missing a simple capture and immediately sell tool kit to deliver high quality audio and video to their fans for each of their live shows.

VNUE’s goal first and foremost is to empower artists - not only in serving their fans, but generating a monetary footprint which can foster the continued creation of their art which moves millions all over the world.

VNUE strategically aligns an economically viable in-house digital solution across during a golden era of live music. By creating a platform and connected network that is extremely complex and resource-intensive. Through a suite of applications and dashboard centered at the heart of the software platform, a connected network of partners, labels, publishers, right management, artist, bands and venues and a range of advanced 3rd party distributors, VNUE allows distribution of content to all types of digital and social focused sites as well as within its own sandbox, with a range of revenue models and centralized reporting that the artists, labels and publishers get to keep. By using the VNUE platform, artists can create, market and distribute their shows while creating new revenue streams. Fans are able to connect with their favorite performers in a new way, discover new performances and listen to and watch their live performances on City, Colorado, USA (the “Proteus Claims”)their mobile devices, computer, gaming consoles, OTT services and connected TVs.

Serving multiple customers on one platform enables VNUE to cost-effectively invest significant amounts in innovation to drive continuous product iterations that succeed the prior use case.

Monetization and Business Model

In today’s social media world, fans want to be able to immediately share with their friends the fact they were at the show and how great this unique individual show was that they just attended. Fans do not want to wait for a post-tour, live show CD to be produced from some other show on the tour months or years after the fact, they want it now. VNUE is the solution.

Artist, Industry executives, Labels, Music publishers and Venues will access VNUE’s solution as a service, through which they are able to benefit from a range of different revenue models to optimize the value of their live and on-demand content across a majority of digital ecosystems. The Company’s primary revenue model is to take a share of the revenue from sales of concerts, performances both audio and video or audio separately. In addition the revenue stream can also include an advertising or sponsorship component that was integrated into tours. This revenue share aligns business outcomes for all parties and means that costs are primarily baked into the software and delivery agent. Typical revenue shares are expected to range from 15-60 percent and vary based on the level of service allocated to each Artist, Label, Music publisher, venue and the scale of the business opportunity. Secondary revenue streams include fees for storage, usage, licensing and software upgrades (design or social ad distribution). The 419 unpatented lode mining claims include 360 claimsVNUE’s revenue share is reported as net revenue (i.e. gross transaction revenues minus any revenue share due to third parties).

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As a software-focused business, VNUE can take advantage of a single technology platform to continuously acquire users at low marginal cost leveraging artist promotion, in Fremont County, 4 claimsvenue marketing and mobile notifications. Further automation and self-service tools are intended to allow VNUE to provide more advanced services to the industry and artist without adding significantly to the cost base or headcount.

VNUE delivers a technology suite to accompany the publishers that allows them to source, pull a wide swath of reports down to granular in Park County, 42 claimsvenue streams and conversions. VNUE looks to commercialize the in Saguache County,venue sales components that is currently missing and 13 claims in San Juan County. The assignmentexpand these efforts globally and assumption agreement replacesembed live and on-demand content from the option agreement between our companyVNUE Audience network efficiently and Proteus Mining dated August 27, 2007 (the “Previous Agreement”cost-effectively. These features, such as its real time audio sweating tools, are designed to significantly reduce the manual effort required to display music content and, therefore, increase the efficiency of content distribution and the revenue yield per performance sold.

License Agreement with Universal Music Corp.

On November 2, 2015, the Company entered into a License Agreement with Universal Music Corp. (“Universal”).

The License Agreement is effective September 8, 2015, and has a term of Two (2) Years from the Effective Date. Under the Previousterms of the License Agreement, we held an optionUniversal is granting to acquire 939 mining claims by making paymentsVNUE a non-exclusive, non-transferable, non-sublicensable license to create and distribute content using certain Universal compositions, more specified in the Grant of $7,425,000Right’s section of the License Agreement.

The Company will then market and issuing 2,000,000sell this content via the VNUE Service at certain agreed upon price points more specifically described in the Business Model and Price Points Section of the License Agreement, and the Company shall pay Universal royalties for each sale of the content as specified in the Royalty Rates section of the License Agreement.

In accordance with the Minimum Guarantee provision of the License Agreement, the Company was required to pay Universal a minimum first year fee of Fifty Thousand Dollars ($50,000), which is due within 10 days of execution and a second year minimum fee of Fifty Thousand Dollars ($50,000), which is due upon the commencement of the second year of the Term. The Company paid the minimum first year fee of Fifty Thousand Dollars ($50,000) to Universal on November 10, 2015.

Now that the Company has paid the minimum first year fee to Universal, the Company’s plan is to continue raising capital through the sales of its common shares. stock in order to complete the development of its VNUE Service. Once development of the VNUE Service is complete, the Company plans to concentrate on the marketing and sales of content created under the Licensing Agreement with Universal, as well as identifying strategic opportunities with other music industry leaders.

Employees

As of January 20, 2008,22, 2016, we had made partial payments totaling $1,575,000 in respect of the option.

Following completion of due diligence on the claims, we decided nothave 3 full-time employees. The remuneration paid to acquire several blocks of claims. Accordingly, on January 22, 2008 our companyofficers and our subsidiary Alpha Beta Uranium entered into the assignment and assumption agreement with Proteus Mining and Pikes Peak Energy, whereby Alpha Beta Uranium acquired 419 of the Proteus Claims, in consideration of one final installment of $15,000 and the payment of 3,000,000 restricted shares of our common stock to Proteus Mining. Alpha Beta Uranium is now entitled to have title transferred into its name, and has commenced procedures to transfer title. We have issued 3,000,000 shares of our common stock toward the acquisition of the Proteus claims.

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Pursuant to the assignment and assumption agreement, Alpha Beta Uranium is also required to pay up to $2,000,000 to Proteus Mining on the successful outlining of mineral reserve milestones on the purchased claims, according to Canadian National Instrument 43-101 (Standards of Disclosure for Mineral Projects) definitions, asdirectors will be more completely described elsewhere in the following table:

Uranium Mineral Resource orUranium Mineral Reserve Milestone(1)Payment(2)
2 million pounds of Uranium Inferred Mineral Resource $500,000 
3 million pounds of Uranium Indicated Mineral Resource  Additional $500,000 (for an aggregate of $1,000,000)
4 million pounds of Uranium Measured Mineral ResourceAdditional $500,000 (for an aggregate of $1,500,000) 
5 million pounds or more of Uranium Probable Mineral ReserveAdditional $500,000 (for an aggregate of $2,000,000)

As required by the assignmentregistration statement. Our employees are not party to any collective bargaining agreement and assumption agreement, Alpha Beta Uranium concurrently entered into a quitclaim deed and royalty agreementwe have never experienced an organized work stoppage. We believe our relations with Pikes Peak Energy dated as of January 21, 2008 (the “AB Royalty Agreement”). Pursuant to the AB Royalty Agreement, Alpha Beta Uranium must pay to Pikes Peak Energy a perpetual production royalty of two percent of any net returns earned by Alpha Beta Uranium from the sale of minerals derived from the Proteus Claims.our employees are good.

In the event Alpha Beta Uranium intends to abandon the claims or any portion thereof before January 21, 2013, it must first notify Pikes Peak Energy, whereupon Pikes Peak Energy will have the option for sixty days to acquire the claims at no cost. Alpha Beta Uranium will additionally be required to pay maintenance fees of approximately $175 per claim per year.

Taking into consideration all of the claims already owned, staked and currently being staked by us, including the High Park Claim and the Proteus Claims, we hold approximately 472 claims in total, with each claim covering a land surface area of approximately 20 acres.

Competition

We are a new mineral resource exploration company. We compete with other mineral resource exploration companies for financing and forexpect to double the acquisition of new mineral properties. Many of the mineral resource exploration companies with whom we compete have greater financial and technical resources than those available to us. Accordingly, these competitors may be able to spend greater amounts on acquisitions of mineral properties of merit, on exploration of their mineral properties and on development of their mineral properties. In addition, they may be able to afford more geological expertise in the targeting and exploration of mineral properties. This competition could result in competitors having mineral properties of greater quality and interest to prospective investors who may finance additional exploration and development. This competition could adversely impact on our ability to achieve the financing necessary for us to conduct further exploration of our mineral properties.

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We will also compete with other mineral exploration companies for financing from a limited number of investors that are prepared to make investments in mineral exploration companies. The presence of competing mineral exploration companies may impact on our ability to raise additional capital in order to fund our exploration programs if investors are ofemployees over the view that investments in competitors are more attractive based on the merit of the mineral properties under investigation and the price of the investment offered to investors.

next 12 month period. We will also compete with other mineral companies for available resources, including, but not limited to, professional geologists, camp staff, helicopter or float planes, mineral exploration supplies and drill rigs.

Legislation and Government Regulation

United States

Any operations at the High Park Claims or the Proteus Claims will be subject to various federal and state laws and regulations in the United States which govern prospecting, development, mining, production, exports, taxes, labor standards, occupational health, waste disposal, protection of the environment, mine safety, hazardous substances and other matters. We will be required to obtain those licenses, permits or other authorizations currently required to conduct exploration and other programs. There are no current orders or directions relating to us or the High Park Claims with respect to the foregoing laws and regulations. If we escalate our operations at these claims, it is reasonable to expect that compliance with various regulations will increase our costs. Such compliance may include feasibility studies on the surface impact of our proposed operations, costs associated with minimizing surface impact, water treatment and protection, reclamation activities, including rehabilitation of vari ous sites, on-going efforts at alleviating the mining impact on wildlife and permits or bonds as may be required to ensure our compliance with applicable regulations. It is possible that the costs and delays associated with such compliance could become so prohibitive that we may decide to not proceed with exploration, development, or mining operations on any of our mineral properties. We are not presently aware of any specific material environmental constraints affecting our properties that would preclude the economic development or operation of property in the United States.

U.S. Federal Environmental Laws

The U.S. Forest Service requires that mining operations on lands subject to its regulation obtain an approved plan of operations subject to environmental impact evaluation under theNational Environmental Policy Act. Any significant modifications to the plan of operations may require the completion of an environmental assessment or Environmental Impact Statement prior to approval. Mining companies must post a bond or other surety to guarantee the cost of post-mining reclamation. These requirements could add significant additional cost and delays to any mining project undertaken by us.

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Under the U.S.Resource Conservation and Recovery Act, mining companies may incur costs for generating, transporting, treating, storing, or disposing of hazardous waste, as well as for closure and post-closure maintenance once they have completed mining activities on a property. Any future mining operations at the High Park Claims or the Proteus Claims may produce air emissions, including fugitive dust and other air pollutants, from stationary equipment, storage facilities, and the use of mobile sources such as trucks and heavy construction equipment which are subject to review, monitoring and/or control requirements under the Federal Clean Air Act and state air quality laws. Permitting rules may impose limitations on our production levels or create additional capital expenditures for pollution control in order to comply with the rules.

The U.S.Comprehensive Environmental Response Compensation and Liability Act of 1980, as amended ("CERCLA"), imposes strict joint and several liability on parties associated with releases or threats of releases of hazardous substances. Those liable groups include, among others, the current owners and operators of facilities which release hazardous substances into the environment and past owners and operators of properties who owned such properties at the time the disposal of the hazardous substances occurred. This liability could include the cost of removal or remediation of the release and damages for injury to the surrounding property. We cannot predict the potential for future CERCLA liability with respect to the High Park Claims or the Proteus Claims or surrounding areas.

Colorado Laws

At the state level, mining operations in Colorado are also regulated by the Colorado Division of Reclamation Mining & Safety. We will be required to hold Colorado mining and reclamation permits that will mandate concurrent and post-mining reclamation of minesdo and will require the posting of reclamation bonds sufficientcontinue to guarantee the cost of mine reclamation. Other Colorado regulations govern operating and design standards for the construction and operation of any source of air contamination and landfill operations.

Research and Development Expenditures

As of February 29, 2008, we have not spent any amounts on research and development activities sinceoutsource our inception. Our planned expenditures on our exploration programs are summarized above under the section of this Prospectus entitled “Description of Property”.

Employees

As of February 29, 2008, we have no part time or full time employees. Our director, President, CEO and CFO, Christopher Robin Relph, works part time as an independent contractor and works in the areas of business development and management. He currently contributes approximately 35 hours per weekwork to us. We currently engagethird party independent contractors in the areas of accounting, geological, legal, consulting, marketing, management, accounting, bookkeeping and other services.as needed.

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Subsidiaries

As of February 29, 2008, we have two wholly owned subsidiaries, Hyde Park Uranium Inc., a Colorado corporation through which we have acquired mineral claims in Colorado, and Alpha Beta Uranium Inc., a Colorado corporation through which we have acquired additional mineral claims in Colorado.

Intellectual Property

We have not filed for any protection of our trademark for our company. We own copyright in the contents of our website, www.buckinghamexploration.com.

Reports to Security Holders

Upon effectiveness of this Prospectus, we will be

We are subject to the reporting and other requirements of the Exchange Act and we intend to furnish our shareholders annual reports containing financial statements audited by our independent auditorsregistered public accounting firm and to make available quarterly reports containing unaudited financial statements for each of the first three quarters of each year. We file Quarterly Reports on Form 10-Q, Annual Reports on Form 10-K and Current Reports on Form 8-K with the Securities and Exchange Commission in order to meet our timely and continuous disclosure requirements. We may also file additional documents with the Commission if they become necessary in the course of our company’s operations.

The public may read and copy any materials that we file with the SEC at the SEC's Public Reference Room at 100 F Street, NE, Washington, D.C. 20549. The public may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. The SEC maintains an Internet site that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC. The address of that site is www.sec.gov.

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Description of Property

Our principal executive offices are provided to us at no cost by our President and CEO, and arecorporate office is located at Suite 502, 1978 Vine104 W. 29th Street, Vancouver, British Columbia., V6K 4S1.11th Floor, New York, NY 10001. Our telephone number is (604) 737 0203. We857-777-6190. The office space is shared with other companies and entrepreneurs and we pay $250$1,300 per month for the use of an additional facility for storage and meetings locatedthe space. We started to use the shared office in Burnaby, British Columbia. We also pay $900 per monthmid August, 2015 on a month-to-month basis with 30 day advance notice to maintain our office located at Suite 418- 831 Royal Gorge Blvd, Cañon City, Colorado 81212, from where we oversee our exploration activities.

High Park Uranium Property and High Park Trails Property (togethervacate the “High Park Claims”)

Location

The High Park Claims consists of 53 unpatented lode mining claims which include 42 claims in Teller County and 11 claims Freemont County, all located near Cañon City, Colorado, USA. We also have an option to purchase surface and mineral estates over 265 acres (the High Park Trails Property) subject to a net mineral returns royalty of 5% (with exploration rights during the option period). The High Park Trails Property adjoins our High Park Uranium Property in Teller County, Colorado. The area is located approximately 30 miles northwest of Canon City, Colorado. Each of the three sections is approximately 1 square mile in area.

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The project area is covered predominantly with sediments, gravel and cobble size material. Vegetation in the area consists of sage brush, assorted cacti, bristle cone pine trees and buffalo grass. The existing claims are accessible by a well maintained county road which crosses the North East ¼ of Section 25. Topography in the area consists of rolling hills to the north, south and west. To the east the claims go into rough canyon country and extend to elevations approximately 1,500 to 2,000 feet above the desert floor.

Figures 1 and 2: Location of the High Park Claims in Teller and Freemont Counties, Colorado.


FIGURE 2 (High Park and High Park Trails Claims—Teller and Freemont Counties)premise.

 

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Ownership Interest

On June 6, 2007 through our wholly owned subsidiary, Hyde Park Uranium Inc., we completed the purchase of 29 unpatented mining claims located in Teller County, Colorado (known as the High Park Uranium Property) from Pikes Peak Resources, Inc. pursuant to the purchase and sale agreement dated May 9, 2007.

On July 23, 2007 we entered into an exploration agreement with an option to purchase with Edwin S. Broussard III and Alice M. Broussard in relation to the High Park Trails Property in Teller County, Colorado. Pursuant to the terms of the agreement, we paid $100,000 on July 27, 2007 and also must make further payment of $2,900,000 at the end of a twelve month period to exercise the non-exclusive option to acquire the surface and mineral estates over 265 acres. During the option period we have full access to the property to conduct exploration and drill programs to ascertain whether we wish to exercise the option to purchase the property.

History of Operations

Prior to our acquisition of the High Park Claims, they were explored by Cyprus Mining Corporation and a total of 354 holes were drilled in the project area. Of these, 339 holes are located on section 25 of the property where uranium ore reserves have been partially delineated. Mineral trends are open ended and identified in at least five horizons within the project area related to braided stream channel deposits in the Tallahassee Creek Conglomerate. Fifteen holes were drilled in the North West corner of section 31, of which two holes contained U3O8ore grade intercepts at open pit depths. No holes have been drilled on section 30.

The initial project also included leased property in section 25, and state section 36, which is held by the Cotter Corporation. U3O8 ore reserves also exist on both of these properties and a test pit was opened on section 36 for pre-mining evaluation and test. The High Park Claims were to be mined and blended with ore from the Hansen Mine during milling operations. With the decline of the uranium industry in the early 1980’s, all projects were curtailed, and many properties, including the High Park Claims were relinquished and turned back to the original land holders. Since that time the claims have been maintained, and a comprehensive study of the area and date completed.

Present Condition of the Property and Current State of Exploration

In the 1970’s a small ore body was drilled on Section 25. The drilling contained approximately 354 holes. Mineral trends are open ended and identified in at least five horizons within the project area related to braided stream deposits in the Tallahassee Creek conglomerate.

In April 2006, we hired a geologist, Richard E. Schneider, to prepare a report evaluating the High Park Claims. Thereafter, we planned a two stage exploration program, of which we have completed the first step of the first phase and intend to carry out the remaining steps of the first phase and the second phase.

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On November 23, 2007 we completed a drill program on our High Park uranium property in Teller County, Colorado. The drilling at High Park seeks to extend the known mineralization of the High Park property by focusing on twinning holes previously reported by Cyprus Mining Corporation, and step out drilling of the adjacent High Park Trails Ranch recently optioned by us. Our completed drill program includes 37 holes with a collective depth of 6,651 feet. Samples have now been sent for assay and the data gathered will be computerized and evaluated. Computer modeling of the results will allow us to better understand the structure of the deposit and to generate new reserve calculations.

Our plan of exploration for the High Park Claims is as follows: 
Description   CompletionDescription of Exploration Work Required Estimated Costs ($)
of Phase of Exploration   or Anticipated Completion  Date   
First Phase November  23, 2007 Completed preliminary drilling of 37 new holes to confirm prior exploration results and delineate ore body. N/A 
March 2008 Conduct ground scintillation survey to identify new drilling targets. 65,000 
April 2008 Sample volcanic intrusive. 75,000 
August 2008  Undertake a scoping study to assess feasibility of putting the High Park Claims into production. 100,000 
April 2008 As part of this process we plan to develop a relationship with the Cotter Corporation to ensure that there is a nearby processing facility for the uranium ore.   10,000 
June 2008 Re-drill two small areas of resources to verify past reserve calculations, commence permitting for bulk sampling.  100,000 
Total Costs of the First Phase350,000
Second Phase August 2008Conduct comprehensive drill program based on first phase results.  200,000 
October 2008   Stake out 25-30 new claims. 100,000 
January 2009Conduct survey and drilling evaluation of newly staked claims  250,000 
Total Costs of the Second Phase550,000

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Geology

The project area is part of the Tallahassee Creek Conglomerate of Oligocene age. Outcrops of the Oligocene Wall Mountain Tuff also occur throughout parts the unexplored areas. The Echo Park Formation of Eocene age also outcrops within the property on fairly steep slopes and in gullies.

Mineralization

The minerals occurring in the project area are autunite, uraninite, gummite and uranophane. To the east side of the property is a volcanic intrusive that has come up through the granites and rhyolites. It is estimated to be approximately 1,800 feet by 2,500 feet in area and Tertiary in age. Depth could go to several thousands of feet. The intrusive is radioactive. Mineralized trends are identified in at least five horizons within the project area. These are related to multiple braided stream channel deposits in the Tallahassee Creek Conglomerate, and possibly the Echo Park Formation. These channels cut into the underlying granites and rhyolites. The channel system is identified as having weathered medium to large granite boulders, volcanic tuff and smaller sand and gravels. The streams are further identified as containing small to large pieces of petrified palm wood and carbonized wood. The channels can range in width from several hundred feet to over a mile. The channels are Eocene in age and classified as being 35,000,000 years old.

Proteus Claims

Location

The Proteus Claims consist of 419 unpatented lode uranium mining claims, which include: 364 claims in Fremont County, 42 claims in Saguache County, 13 claims in San Juan County; all located near Cañon City, Colorado, USA. The claims are collectively known as the “Proteus Claims”. The claims are accessible by paved roads and tracks giving easy accessibility. Canon City is approximately an hour’s drive southwest of Colorado Springs and is home to the Cotter Corporation uranium mill. This mill suspended operation in 2001 and is currently in the process of refurbishment.

The Proteus Claims are grouped into six separate properties located near Cañon City, Colorado, USA. Each property consists of a varying number of uranium claims with each claim covering a land surface area of 20 acres. The claims are easily accessible by a number of paved roads and tracks. Cañon City is approximately an hour’s drive southwest of Colorado Springs and is home to the Cotter Corporation uranium mill. That mill suspended operation in 2001 and is currently in the process of refurbishment. Virtually all of the claims have been previously owned, drilledPatents, Trademarks, Franchises, Royalty Agreements or worked on by one of the major uranium companies that operated in the area during the last uranium boom that took place in the late 70s and early 80s. Those companies included Union Carbide, Cypress Mining, Urania, Westinghouse and Cotter Corporation. We have opened a field office in Cañon City staffed by a project manager and has engaged the services of several experienced consultants in the areas of geology, geop hysics, surveying and staking.

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Figures 3, 4, 5. 6: Location of the Proteus Claims in Freemont, Saguache, and San Juan Counties, Colorado.


FIGURE 4. (Proteus Claims—Freemont County (See “Barbara”, “Elk”, “Alpha, Beta Gamma”, and “Bob”))
Labor Contracts

 


FIGURE 5 (Proteus Claims—Saguache County) (See “Winner” )



FIGURE 6 (Proteus Claims—San Juan County)

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Ownership Interest

On January 22, 2008 our wholly owned Colorado subsidiary, Alpha Beta Uranium, acquired 419 unpatented lode mining claims located near Cañon City, Colorado, according to the assignment and assumption agreement with Proteus Mining Limited and Pikes Peak Energy LLC. Alpha Beta Uranium acquired 419 of the Proteus Claims, in consideration of one final installment of $15,000 and the payment of 3,000,000 restricted shares of our common stock to Proteus Mining. The assignment and assumption agreement replaces the option agreement between our company and Proteus Mining dated August 27, 2007 (the “Previous Agreement”). Under the Previous Agreement, we held an option to acquire 939 mining claims by making payments of $7,425,000 and issuing 2,000,000 common shares. As of January 20, 2008, we had made partial payments totaling $1,575,000 in respect of the option.

Alpha Beta Uranium is now entitled to have title transferred into its name, and has commenced procedures to transfer title. As of February 14, 2008, we have paid $1,575,000 in cash and 3,000,000 shares of our common stock toward the acquisition of the Proteus claims. Pursuant to the assignment and assumption agreement, Alpha Beta Uranium is also required to pay up to $2,000,000 to Proteus Mining on the successful outlining of mineral reserve milestones on the purchased claims, according to Canadian National Instrument 43-101 (Standards of Disclosure for Mineral Projects) definitions.

History of Operations

Most of the Proteus Claims are located within close proximity (50 mile radius) of the Cotter uranium mill located in Cañon City. This mill suspended operation in 2001 and is currently in the process of refurbishment. It is anticipated that the mill will be opening again in early 2010. Virtually all of the claims have been previously owned, drilled or worked on by one of the major uranium companies that operated in the area during the last uranium boom that took place in the late 1970s and early 1980s. These companies include: Union Carbide, Cypress Mining, Urania, Westinghouse and Cotter Corporation.

Geology

The Proteus Claims focuses primarily on roll front uranium deposits hosted in Oligocene Tallahassee Creek Conglomerate, the Eocene Echo Park Formation and Wall Mountain Pass Formations. These formations represent fluvial and/or or alluvial deposits, laid down in palaeochannels. The palaeochannel sediments were deposited on older Precambrian granites. This area is in the same geological setting as the nearby Hansen ore-body.

Present Condition of the Property and Current State of Exploration

We have opened a field office in Cañno current plans for any registrations such as patents, trademarks, copyrights, franchises, concessions, royalty agreements or labor contracts. We will assess the need for any copyright, trademark or patent applications on City staffed by a project manageran ongoing basis.

Research and Development

We have engagednot spent any amounts on research and development activities to date and we do not anticipate that we will incur any expenses on research and development over the servicesnext 12 months.  Our planned expenditures on our operations are summarized under the section of several experienced consultants inthis registration statement entitled “Management’s Discussion and Analysis of Financial Position and Results of Operations”.

Subsidiaries

The Company consolidates the areas of geology, geophysics, surveying and staking.following subsidiaries and/or entities:

All of the claims have been previously owned, drilled or worked on by one of the major uranium companies that operated in the area during the last uranium boom that took place in the late 70s and early 80s. Those companies included Union Carbide, Cypress Mining, Urania, Westinghouse and Cotter Corporation.

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Our intended planName of operation of Proteus Claims is as described below: 
Description  CompletionDescription of Exploration Work Required Estimated Costs 
of Phase of Exploration consolidated
subsidiary or Anticipated Completion Date 
entity
 ($) 
First Phase March 2008 Fly an airborne geophysical survey to define limits to potentially mineralized palaeo-channels and locate surface uranium anomalies. 20,000 
April 2008 carry out early stage geophysics, mapping, sampling and drill programs on certainState or other jurisdiction of the claims to bring them to a level of knowledge 80,000 

incorporation or organization
 where they can be joint-ventured

Date of incorporation or sufficient funding raised to complete feasibility studies   

July 2008 Carry out a 3 phase drill program on the Alpha, Beta, Gamma and Elk uranium claims (which form part
formation

(date of the Proteus Claims), where 

650,000 
acquisition/disposition,
if
applicable)

 previous exploration work has shown the presence of significant uranium mineralization. This property is in the same geological setting as the nearby Hansen Attributable interest 
   ore-body which is reported to contain 30 million pounds of U3O8 at 0.02grade  
Vnue Inc. (formerly TGRI)Total CostsThe State of the First PhaseNevada750,000 
Second Phase April 4, 2006
(May 29, 2015)
October 2008identify and stake other claims that were previously owned and partially developed by the major uranium companies in the 1970s 100,000 100%
 November 2008Continue to seek out old reports and drill data to 50,000 enhance the value
Vnue Inc. (Vnue Washington)The State of the existing portfolio of claims WashingtonOctober 16, 2014100%
 
Vnue LLCThe State of WashingtonAugust 1, 2013
(December 20083, 2014)
staking further 600 claims 500,000 100%
 January 2009Conduct survey and drilling evaluation
Vnue Technology Inc.The State of newly staked claims Washington250,000 October 16, 201490%
 Total Costs of the Second Phase 900,000 

As a result of the large number of claims comprising the Proteus Claims, we intend to carry out early stage geophysics, mapping and sampling, and drill programs on certain of the claims. Once sufficient knowledge of the claims is compiled, we intend to enter into joint-ventures or to seek funding in order to complete feasibility studies.

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In addition to the specific plan of operations for the individual claims, we also intend over the next 12 months, to continue to identify and stake other claims that were previously owned and partially developed by the major uranium companies in the 1970s. To date, a further 600 claims have been identified in the region of the Proteus Claims and we anticipate that staking will commence by the end of the fall. This will cost approximately $500,000 in staking costs and fees payable to the State of Colorado and Bureau of land Management (BLM).

Our overall planned exploration expenditures for the next twelve months (beginning March 2008) on our mineral properties, together with amounts we expect to spend on administrative costs are summarized as follows:

Description of Expense Amount 
Payments towards acquisitionVnue Media  Inc.The State of the High Park Trails Property Washington$2,900,000 
Exploration of the High Park Uranium Property and High Park Trails Property October 16, 2014$550,000 
Payment towards acquisition of the Proteus Claims $3,000,000 
Proteus Claims Maintenance fees 89$165,000 
Exploration of the Proteus Claims $800,000 
Acquisition of further mineral claims $1,000,000 
Professional Fees $60,000 
General and Administrative Expenses (*) $1,000,000 
TOTAL$9,475,000

Glossary of Technical Terms

Term

Alluvial

Definition

Pertaining to sediments deposited in the floodplain of a river, stream or running water source. Alluvial deposits results from irregular water sources, such as fast-moving flood waters and may follow less regular or chaotic patters than fluvial deposits.


Autunite

A secondary mineral resulting from the oxidation of uranium bearing rocks, such as uraninite. It has a fluorescent yellow-green translucent appearance.


Braided stream or braided stream channels.

A network of small channels separated by small and often temporary islands called braid bars. Braided streams are common wherever a drastic reduction in water flow causes the rapid deposition of the stream's sediment load. Braided channels are also typical of river deltas and areas of high erosion.


Eocene Extrusive

A geologic period that extends between 55 and 34 million years ago. A body of igneous rock that has crystallized from a molten magma above the surface.


Fluvial

Pertaining to sediments deposited by a river, stream or running water. Fluvial deposits tend to follow regular, organized patterns, especially in comparison withalluvialdeposits, because of the relatively steady transport provided by rivers.

Geochemical survey                

A sampling program focusing on trace elements that are commonly found associated with mineral deposits. Common trace elements for gold are mercury, arsenic, and antimony.


Geologic mapping

Geophysical Granite

Geophysical survey

The process of mapping geologic formations, associated rock characteristics and structural features.

The study of the earth by quantitative physical methods. A commonly occurring variety of intrusive igneous rock.

The systematic measurement of electrical, gravity, seismic, magnetic, or other properties as a tool to help identify rock type(s), faults, structures and minerals.

Ground Scintillation

A method of uranium prospecting that employs a scintillation counter, a specialized instrument for detecting the presence of radioactive minerals.


Gummite

A yellow amorphous mineral composed of uranium minerals, oxides, silicates, hydrates and hydrous oxides of uranium, derived from the alteration of uraninite. It is named for its gum-like consistency.


Intrusive                                     

A body of igneous rock that has crystallized from a molten magma below the surface.


Igneous

Oligocene

A body of rock that has crystallized from a molten magma.

A geologic period that extends between 34 million to 23 million years ago.

Outcrop

Paleochannel

A segment of bedrock exposed to the atmosphere.

The remnant of a stream channel cut in older rock and filled by the sediments of younger overlying rock.

Pitchblende

Precambrian

Common form of uraninite, a uranium rich mineral.

The period spanning from the formation ofEarthsome 4500 million years ago to the evolution of the first complex multicellular organisms, including the first animals, some 542 million years ago.

Rhyolite

An igneous, volcanic (extrusive) rock of silicon rich composition bearing a resemblance to granite.

Roll Front

A type of uranium deposition in sandstone bed layers, which cuts across layers in sharply curving forms, commonly C-shaped or S- shaped. Roll Front deposits in Colorado are typically of highly variable geometry, with their longest dimension in plain view parallel to the axes of buried sandstone layers representing former stream channels, and surrounded by a wide halo of reduced or altered rock (rock which has undergone chemical and/or mineralogical changes under geologic processes).

Sediment

Any particulate matter that can be transported by fluid flow and which eventually is deposited as a layer of solid particles on the bed or bottom of a body of water or other liquid.

Tertiary

A geological period that extends approximately 65 million to 1.8 million years ago.

%

 

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Geochemical survey

The consolidated financial statements include the accounts of the subsidiaries/entities as of reporting periods end date and for the reporting periods then ended from their respective dates of incorporation/formation, acquisition or disposition.

A sampling program focusing on trace elements that are commonly found associated with mineral deposits. Common trace elements for gold are mercury, arsenic, and antimony.

Geologic mapping

Geophysical Granite

Geophysical survey

The process of mapping geologic formations, associated rock characteristics and structural features.

The study of the earth by quantitative physical methods. A commonly occurring variety of intrusive igneous rock.

The systematic measurement of electrical, gravity, seismic, magnetic, or other properties as a tool to help identify rock type(s), faults, structures and minerals.

Ground Scintillation

A method of uranium prospecting that employs a scintillation counter, a specialized instrument for detecting the presence of radioactive minerals.

Gummite

A yellow amorphous mineral composed of uranium minerals, oxides, silicates, hydrates and hydrous oxides of uranium, derived from the alteration of uraninite. It is named for its gum-like consistency.

Intrusive

A body of igneous rock that has crystallized from a molten magma below the surface.

Igneous

Oligocene

A body of rock that has crystallized from a molten magma.

A geologic period that extends between 34 million to 23 million years ago.

Outcrop

Paleochannel

A segment of bedrock exposed to the atmosphere.

The remnant of a stream channel cut in older rock and filled by the sediments of younger overlying rock.

Pitchblende

Precambrian

Common form of uraninite, a uranium rich mineral.

The period spanning from the formation ofEarthsome 4500 million years ago to the evolution of the first complex multicellular organisms, including the first animals, some 542 million years ago.

Rhyolite

An igneous, volcanic (extrusive) rock of silicon rich composition bearing a resemblance to granite.

Roll Front

A type of uranium deposition in sandstone bed layers, which cuts across layers in sharply curving forms, commonly C-shaped or S- shaped. Roll Front deposits in Colorado are typically of highly variable geometry, with their longest dimension in plain view parallel to the axes of buried sandstone layers representing former stream channels, and surrounded by a wide halo of reduced or altered rock (rock which has undergone chemical and/or mineralogical changes under geologic processes).

Sediment

Any particulate matter that can be transported by fluid flow and which eventually is deposited as a layer of solid particles on the bed or bottom of a body of water or other liquid.

Tertiary

A geological period that extends approximately 65 million to 1.8 million years ago.

 

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U3O8

A uranium feedstock ore that contains dirt and other rocks. It is for all subsequent uranium processing and applications.

Uraninite

A uranium-rich mineral composed of primarily of uranium dioxide but which also contains uranium trioxide and oxides of lead, thorium and rare earths. It is commonly referred to as pitchblende.

Uranophane

A secondary mineral resulting from the oxidation of uranium bearing rocks, such as uraninite. It is an alteration of gummite, and has a yellow translucent appearance.

Wall Mountain Tuff

A type of rock formed from volcanic ash ejected from vents during a volcanic eruption and forming on mountain walls.


Legal ProceedingsAll inter-company balances and transactions have been eliminated.

Offices

We do not currently own any real estate of any kind.  Our executive offices are not awarelocated at 104 W. 29th Street, 11th Floor, New York, NY 10001.

Legal Proceedings

From time to time, we may be involved in litigation relating to claims arising out of our operations in the normal course of business.  Other than described herein, neither the Company, nor its officers or directors are involved in, or the subject of, any pending or threatened legal proceedings or governmental actions the outcome of which, involve usin management’s opinion, would be material to our financial condition or anyresults of our properties or subsidiaries.operations. 

On December 11, 2015, Hughes Media Law Group, Inc. filed a lawsuit against VNUE, Inc. in the Superior Court of King County, Washington, under case number15-2-30108-0. HMLG claims damages of $130,552.78 for unpaid legal fees HMLG alleges are owed pursuant to an April 4, 2014 agreement withVNUE Washington , for legal work performed by HMLG forVNUE Washington prior to the Merger. The Complaint sets forth no legal basis for a lawsuit against VNUE, Inc. (Nevada) and does not, in fact, sueVNUE Washington , HMLG’s former client. The Company believes that VNUE, Inc. (Nevada) is not the proper party for this lawsuit, and reserves all available defenses and counterclaims. Under Washington Superior Court rules, VNUE, Inc. (Nevada) if service of process takes place outside of Washington, a defendant has Sixty (60) days from the date on which it was served the Complaint, to file a response setting forth its defenses. The Company plans to defend the lawsuit and is consulting with Washington litigation counsel in preparation for filing a response.

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Market for Common Equity and Related Stockholder Matters

Market Information

Our common stock

There is not traded on any exchange. Our common stock is quoted on OTC Bulletin Board, under the trading symbol “BUKX.OB”. Thea limited public market for our stockcommon shares.  Our common shares are quoted on the OTCMarkets under the symbol “VNUE”.  Trading in stocks quoted on the OTCMarkets is highly volatile.often thin and is characterized by wide fluctuations in trading prices due to many factors that may be unrelated to a company’s operations or business prospects.  We cannot assure you that there will be a market in the future for our common stock. The OTC Bulletin Board

OTCMarkets securities are not listed andor traded on the floor of an organized national or regional stock exchange.  Instead, OTC Bulletin BoardOTCMarkets securities transactions are conducted through a telephone and computer network connecting dealers in stocks. OTC Bulletin Board stocksOTCMarkets issuers are traditionally smaller companies that do not meet the financial and other listing requirements of a regional or national stock exchange.

The following table shows

Our common stock became eligible for quotation on the highOTCMarkets on November 18, 2013.  As of January 8, 2016, only a minimal amount of shares have traded on OTCMarkets and low prices ofthe market price for our common shares on the OTC Bulletin Board for three quarters since our common stock began to trade on OTC Bulletin Board on May 8, 2007. During May 2007, the highest priceis $0.040 per share.

Stockholders of our common stock on the OTC Bulletin Board was $0.70 per share and the lowest price was $0.30 per share. The following quotations reflect inter-dealer prices, without retail mark-up, mark-down or commission and may not necessarily represent actual transactions:Our Common Shares

Period High Low 
December 1, 2007 – February 29, 2008 1.05 0.85 
September 1 – November 30, 2007 1.30 0.82 
June 1 – August 31, 2007 1.00 0.46 

Holders

As of February 29, 2008January 8, 2016, there were 106approximately 194 holders of record of our common stock.

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DividendsRule 144 Shares

A person who has beneficially owned restricted shares of our common stock for at least six months is entitled to sell their securitiesprovided that (i) such person is not deemed to have been one of our affiliates at the time of, or at any time during the three months preceding the sale and (ii) we are subject to the Exchange Act periodic reporting requirements for at least three months before the sale.

Persons who have beneficially owned restricted shares of our common stock for at least six months but who are our affiliates at the time of, or at any time during the three months preceding the sale, are subject to additional restrictions.  Such person is entitled to sell within any three-month period only a number of securities that does not exceed the greater of either of the following:

·

1% of the total number of securities of the same class then outstanding, which will equal 6,409,131 shares as of the date of this prospectus; or

·

the average weekly trading volume of such securities during the four calendar weeks preceding the filing of a notice on Form 144 with respect to the sale;

Provided , in each case that we are subject to the Exchange Act periodic reporting requirements for at least three months before the sale.

Such sales must also comply with the manner of sale and notice provisions of Rule 144.

As of the date of this prospectus none of our shares are eligible for resale pursuant to Rule 144.

Stock Option Grants

To date, we have not paidgranted any stock options.

Registration Rights

As part of the Equity Purchase Agreement entered into with Tarpon, on June 15, 2015, the Company and Tarpon entered into a Registration Rights Agreement (the "Registration Agreement"). Under the terms of the Registration Agreement the Company agreed to file a registration statement with the Securities and Exchange Commission with respect to the Shares within 120 days of June 15, 2015. The Company is obligated to keep such registration statement effective until (i) three months after the last closing of a sale of Shares under the Purchase Agreement, (ii) the date when Tarpon may sell all the Shares under Rule 144 without volume limitations, or (iii) the date Tarpon no longer owns any of the Shares.

We have not granted registration rights to any other persons other than Tarpon at this time.

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Dividends

There are no restrictions in our articles of incorporation or bylaws that prevent us from declaring dividends.  The Nevada Revised Statutes, however, do prohibit us from declaring dividends where, after giving effect to the distribution of the dividend:

1.

We would not be able to pay our debts as they become due in the usual course of business; or

2.

Our total assets would be less than the sum of our total liabilities plus the amount that would be needed to satisfy the rights of shareholders who have preferential rights superior to those receiving the distribution.

We have not declared any dividends, on our common shares and we do not expectplan to declare or pay any dividends on our common shares in the foreseeable future. Payment

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

Cautionary Statement Regarding Forward-Looking Information

The statements in this registration statement that are not reported financial results or other historical information are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 , as amended. These statements appear in a number of different places in this report and can be identified by words such as “estimates”, “projects”, “expects”, “intends”, “believes”, “plans”, or their negatives or other comparable words. Also look for discussions of strategy that involve risks and uncertainties. Forward-looking statements include, among others, statements regarding our business plans and availability of financing for our business.

You are cautioned that any such forward-looking statements are not guarantees and may involve risks and uncertainties. Our actual results may differ materially from those in the forward-looking statements due to risks facing us or due to actual facts differing from the assumptions underlying our estimates. Some of these risks and assumptions include those set forth in reports and other documents we have filed with or furnished to the United States Securities and Exchange Commission (“SEC”). We advise you that these cautionary remarks expressly qualify in their entirety all forward-looking statements attributable to us or persons acting on our behalf. Unless required by law, we do not assume any obligation to update forward-looking statements based on unanticipated events or changed expectations. However, you should carefully review the reports and other documents we file from time to time with the SEC.

Presentation of Information

As used in this quarterly report, the terms "we", "us", "our" and the “Company” mean VNUE, Inc. and its subsidiaries, unless the context requires otherwise.

All dollar amounts in this quarterly report refer to US dollars unless otherwise indicated.

Overview

Following the Merger on May 29, 2015, we now carry on business as a live entertainment music service company which brings bands and fans together by capturing professional quality audio and video recordings of live performances and delivers the experience of a venue to your home and hand.

By streamlining the processes of curation, clearing, capturing, distribution & monetization, VNUE manages and simplifies the complexities of the music ecosystem. 

VNUE captures content through its Front of House mobile application and provides world-wide distribution and monetization through a suite of mobile, web administration applications, allowing an artist to seamlessly deliver and sell their live performances directly to the fans who attend their shows. 

While VNUE is primarily being used in live music venues, we are also branching into many other entertainment experiences such as comedy, plays, musicals, university lectures, professional demonstrations and panel discussions, as well as action sports and much more.

Business Model Prior to the Merger

The Company was incorporated in the State of Nevada on April 4, 2006. Prior to the Merger, we were engaged in the acquisition and exploration of mineral properties since our inception. Under that prior business model, the Company did not generate any revenues and incurred losses since inception.

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Effective April 10, 2013, the Company changed its name from Buckingham Exploration Inc. to Tierra Grande Resources Inc. On August 9, 2010, the Company incorporated 0887717 B.C. Ltd., a wholly-owned subsidiary in British Columbia, Canada. On February 28, 2013, the Company acquired a 100% interest in Tierra Grande Resources, S.A.C. (“Tierra”), a company incorporated in Peru, in consideration for $10.

Prior to the Merger, the Company’s strategy had been to identify, acquire and advance assets that present near term cash-flow with the emphasis on creating early cash flow to enable the Company to consider other projects.

In July 2013, prior management entered into a Letter of Intent to acquire the Buldibuyo Gold Project in Peru, South America. The Company subsequently entered into an updated Letter of Intent to acquire the project in May 2014. It was the Company’s intention to acquire 100% of the gold project, which had produced high grade ore in the past, and had engaged in some due diligence to qualify expectations and timelines. However, despite the execution of the Letter of Intent and numerous attempts to accommodate the vendors, the vendors failed to deliver essential information to us required to conduct a thorough technical and legal due diligence on the project and associated holding companies and, accordingly, we terminated negotiations to acquire the project in July 2014.

The Merger on May 29, 2015 with VNUE, Inc.

As reported in the Form 8-K dated April 14, 2015, Tierra Grande Resources Inc. (the “Company”) entered into an Agreement and Plan of Merger (the “Merger Agreement”), on April 13, 2015 with VNUE, Inc., a company incorporated pursuant to the laws of the State of Washington (“VNUE”), and TGRI Merger Corp., a Nevada corporation and a wholly-owned subsidiary of the Company (“Merger Sub”).

On April 30, 2015, the Company filed an 8-K announcing the extension of the deadline to close on the Merger Agreement until May 30, 2015.

On May 29, 2015, Vnue, Inc. (formerly Tierra Grande Resources Inc.) (“TGRI”) closed the Agreement and Plan of Merger (the “Merger Agreement”), initially entered into on April 13, 2015 with Vnue Washington and all of the stockholders of Vnue Washington.

Upon closing of the Merger Agreement a total of 507,629,872 shares of TGRI common stock were issued as follows: (i) all shares of Vnue Washington stock of any dividends will dependclass or series issued and outstanding immediately prior to the closing of the Merger Agreement were automatically converted into and exchanged for an aggregate of 477,815,488 fully paid and non-assessable shares of TGRI common stock; and (ii) an aggregate of 29,814,384 shares of TGRI common stock were issued to Matheau J. W. Stout, Esq. as payment for services performed prior to and in connection with the Merger. The number of TGRI common shares issued to Vnue Washington's stockholders for the acquisition of all shares of Vnue Washington represented approximately 79.0% of the issued and outstanding common stock immediately after the closing of the Merger Agreement. The board of directors and the members of the management of TGRI resigned and the board of directors and the member of the management of Vnue Washington became the board of directors and the member of the management of the combined entities upon future earnings, if any, ourclosing of the Merger Agreement.

As a result of the controlling financial condition,interest of the former stockholders of Vnue Washington, for financial statement reporting purposes, the merger between TGRI and Vnue Washington was treated as a reverse acquisition, with Vnue Washington deemed the accounting acquirer and TGRI deemed the accounting acquiree under the acquisition method of accounting in accordance with Section 805-10-55 of the FASB Accounting Standards Codification. The reverse acquisition is deemed a capital transaction in substance whereas the assets and liabilities of Vnue Washington (the accounting acquirer) are carried forward to TGRI (the legal acquirer and the reporting entity) at their carrying value before the combinationand the equity structure (the number and type of equity interests issued) of Vnue Washingtonis being retroactively restated using the exchange ratio established in the Merger Agreement to reflect the number of shares of TGRI issued to effectuate the acquisition.  The number of common shares issued and outstanding and the amount recognized as issued equity interests in the consolidated financial statements is determined by adding the number of common shares deemed issued and the issued equity interests of Vnue Washingtonimmediately prior to the business combination to the unredeemed shares and thefair value of TGRI determined in accordance with the guidance in ASC Section 805-40-55 applicable to business combinations, i.e. the equity structure (the number and type of equity interests issued) in the consolidated financial statements immediately post the combination reflects the equity structure of TGRI, including the equity interests the legal parent issued to effect the combination ..

A copy of the Merger Agreement was attached as Exhibit 10.1 to the Company’s 8-K filed on April 14, 2015. The description of the Merger Agreement herein is qualified by the terms of the full text of the agreement attached thereto and the terms thereof are incorporated herein by reference.

Plan of Operations

The History of VNUE

VNUE was founded in August of 2013 with the vision of creating a collective network of connected venues that empower and assist bands, artist, and entertainers to monetize their performance (audio & video) in the venue using mobile technologies. VNUE has developed its business and technology in tandem to enter into deals with venues, artists and labels across the United States using this initial launch strategy. The collective venue network effect, whereby each deal makes the offer more compelling to other potential customers, has been a key driver of VNUE’s growth to date. The initial focus of the business in early 2014 as a YouTube certified company, to create a Multi-Channel Network (MCN) specifically focused on live streaming and monetization of content through the google display network..

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On July 23, 2014, the Company entered into an Asset purchase agreement with Lively, LLC (the “Agreement”), whereby the Company acquired certain assets of Lively, LLC for a consideration of (i) payment of $150,000 and (ii) Preferred shares with a fair market value of $250,000 at the time of the issuance. Assets purchased included: a) software, inventions, customers, customer lists, development, documents and records, designs, claims, intellectual property rights, distribution rights and merchandising rights; b) all copyright, patents, trademarks, trade names, logos or service marks and other factorsintangible property and rights.

Since the Lively assets acquisition, VNUE has grown its platform, expanded into enabled venues and enhanced its platform offering to approve the monetization model and further evangelize the creation of the collective network of connected venues that empower artist to create content and monetize it.

Markets and Opportunity

There are over 400,000+ Indie bands performing in the US domestic market alone, and while a handful of them will get produced under a label even less will be big enough to attempt to utilize today’s current methods to capture and deliver live performance audio from a given show. Currently artist, bands and performers are missing a simple capture and immediately sell tool kit to deliver high quality audio and video to their fans for each of their live shows.

VNUE’s goal first and foremost is to empower artists - not only in serving their fans, but generating a monetary footprint which can foster the continued creation of their art which moves millions all over the world.

VNUE strategically aligns an economically viable in-house digital solution across during a golden era of live music. By creating a platform and connected network that is extremely complex and resource-intensive. Through a suite of applications and dashboard centered at the heart of the software platform, a connected network of partners, labels, publishers, right management, artist, bands and venues and a range of advanced 3rd party distributors, VNUE allows distribution of content to all types of digital and social focused sites as deemed relevant by our Boardwell as within its own sandbox, with a range of Directors.revenue models and centralized reporting that the artists, labels and publishers get to keep. By using the VNUE platform, artists can create, market and distribute their shows while creating new revenue streams. Fans are able to connect with their favorite performers in a new way, discover new performances and listen to and watch their live performances on their mobile devices, computer, gaming consoles, OTT services and connected TVs.

Equity Compensation Plans

Serving multiple customers on one platform enables VNUE to cost-effectively invest significant amounts in innovation to drive continuous product iterations that succeed the prior use case.

Monetization and Business Model

In today’s social media world, fans want to be able to immediately share with their friends the fact they were at the show and how great this unique individual show was that they just attended. Fans do not want to wait for a post-tour, live show CD to be produced from some other show on the tour months or years after the fact, they want it now. VNUE is the solution.

Artist, Industry executives, Labels, Music publishers and Venues will access VNUE’s solution as a service, through which they are able to benefit from a range of different revenue models to optimize the value of their live and on-demand content across a majority of digital ecosystems. The Company’s primary revenue model is to take a share of the revenue from sales of concerts, performances both audio and video or audio separately. In addition the revenue stream can also include an advertising or sponsorship component that was integrated into tours. This revenue share aligns business outcomes for all parties and means that costs are primarily baked into the software and delivery agent. Typical revenue shares are expected to range from 15-60 percent and vary based on the level of service allocated to each Artist, Label, Music publisher, venue and the scale of the business opportunity. Secondary revenue streams include fees for storage, usage, licensing and software upgrades (design or social ad distribution). VNUE’s revenue share is reported as net revenue (i.e. gross transaction revenues minus any revenue share due to third parties).

As a software-focused business, VNUE can take advantage of a single technology platform to continuously acquire users at low marginal cost leveraging artist promotion, in venue marketing and mobile notifications. Further automation and self-service tools are intended to allow VNUE to provide more advanced services to the industry and artist without adding significantly to the cost base or headcount.

VNUE delivers a technology suite to accompany the publishers that allows them to source, pull a wide swath of reports down to granular in venue streams and conversions. VNUE looks to commercialize the in venue sales components that is currently missing and expand these efforts globally and embed live and on-demand content from the VNUE Audience network efficiently and cost-effectively. These features, such as its real time audio sweating tools, are designed to significantly reduce the manual effort required to display music content and, therefore, increase the efficiency of content distribution and the revenue yield per performance sold.

26

License Agreement with Universal Music Corp.

On November 2, 2015, the Company entered into a License Agreement with Universal Music Corp. (“Universal”).

The License Agreement is effective September 8, 2015, and has a term of Two (2) Years from the Effective Date. Under the terms of the endLicense Agreement, Universal is granting to VNUE a non-exclusive, non-transferable, non-sublicensable license to create and distribute content using certain Universal compositions, more specified in the Grant of Right’s section of the most recent fiscal year on May 31, 2007 we did not have any equity compensation plans. On November 23, 2007, we filed a Form S-8 registration statementLicense Agreement.

The Company will then market and sell this content via the VNUE Service at certain agreed upon price points more specifically described in the Business Model and Price Points Section of the License Agreement, and the Company shall pay Universal royalties for each sale of the content as specified in the Royalty Rates section of the License Agreement.

In accordance with the SECMinimum Guarantee provision of the License Agreement, the Company was required to registerpay Universal a minimum first year fee of Fifty Thousand Dollars ($50,000), which is due within 10 days of execution and a second year minimum fee of Fifty Thousand Dollars ($50,000), which is due upon the 2007 Non-Qualified Stock Plan and 2007 Non-Qualified Stock Option Plancommencement of the second year of the Term. The Company paid the minimum first year fee of Fifty Thousand Dollars ($50,000) to issue upUniversal on November 10, 2015.

Now that the Company has paid the minimum first year fee to 2,000,000 common shares and optionsUniversal, the Company’s plan is to purchase up to 2,000,000 sharescontinue raising capital through the sales of ourits common stock in order to our employees, executivescomplete the development of its VNUE Service. Once development of the VNUE Service is complete, the Company plans to concentrate on the marketing and consultants. Assales of February 29, 2008 we issued 25,000 stock purchase optionscontent created under our 2007 Non-Qualified Stock Option Plan.the Licensing Agreement with Universal, as well as identifying strategic opportunities with other music industry leaders.

Equity Compensation Plan Information    
 
 As of February 29, 2008 

 Number of Common Shares to be Issued Upon
   Exercise of Outstanding Options, Warrants and Rights    
 Number of Common Shares to be Issued Upon
Exercise of Outstanding Options, Warrants and Rights ($)   
Number of CommonShares Remaining Available for Future
Issuance Under Equity Compensation Plans  
Equity compensation plans not approved by shareholders 25,000 3,975,000 
Equity compensation plans approved by shareholders
Total 25,000 3,975,000 

Management’s Discussion and Analysis or Plan

Results of OperationOperations

The following discussion and analysis of our results of operations and financial condition for the nine months ended September 30, 2015 should be read in conjunction with our unaudited interim consolidated financial statements includingand related notes included in this report, as well as our consolidated financial statements of Vnue Washington for the year ended December 31, 2014 and notes thereto appearing elsewherecontained in this Prospectus. The discussionsVnue Inc.’s Current Report amendment No. 1 to Form 8-K as filed with the SEC. 

Nine months Ended September 30, 2015 Compared to Nine months Ended September 30, 2014

Cost of results, causes and trends should not be construedSales

Our cost of sales for the Nine-Months Ended September 30, 2015 amounted to imply any conclusion that these results or trends will necessarily continue into$265,880 compared to $55,950 for the future.Nine-Months Ended September 30, 2014.

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Forward Looking Statements

This Prospectus contains certain forward-looking statements. All statements other than statements of historical fact are “forward-looking statements”Acquisition-Related Costs

Our acquisition-related costs for purposes of these provisions, including any projections of earnings, revenues, or other financial items; any statementsthe Nine-Months Ended September 30, 2015 amounted to $819,105 compared to $0 for the Nine-Months Ended September 30 2014 in connection with the closing of the plans, strategies,Merger on May 29, 2015.

Salary and objectivescompensation

Our salary and compensation for the Nine-Months Ended September 30, 2015 amounted to $155,126 compared to $0 for the Nine-Months Ended September 30, 2014. The increase in salary and compensation to last year is primarily due to the fact that the Company started to hiring employees near the end of managementJune 2015 to commence operations.

Professional Fees

Our professional fee expenses for future operation; any statements concerning proposed new products,the Nine-Months Ended September 30, 2015 amounted to $244,742 compared to $71,017 for the Nine-Months Ended September 30, 2014. The increase in professional fees relative to last year is primarily due to fees for legal fees incurred byVNUE Washington prior to the Merger, and other legal, accounting and auditing services, or developments; any statements regarding future economic conditions or performance; statementsassociated with the Merger.

General and Administrative Expenses

Our general and administrative expenses for the Nine-Months Ended September 30, 2015 amounted to $181,878 compared to $24,930 for the Nine-Months Ended September 30, 2014. The increase in general and administrative expenses relative to last year is due primarily to expenses associated with the Merger.

Other (Income) Expenses, Net

We recorded net other expenses for the Nine-Months Ended September 30, 2015 of belief;$93,876 compared to $147,533 for the Nine-Months Ended September 30, 2014. The change in net other expenses was primarily due to the change in fair value of derivative liability, financing costs of $50,000 and any statementthe settlement of assumptions underlying anyclaims valued at $96,876.

Net Lossfrom operations

As a result of the foregoing. Such forward-looking statements are subjectforegoing cost of sales, acquisition-related costs, professional fees, general and administrative expenses, and other income, and as we have not yet generated significant revenues since our inception, our net loss for the Nine-Months Ended September 30, 2015 was $1,760,124, compared to inherent risksour net loss for the Nine-Months Ended September 30, 2014 of $299,310.

27

Year Ended December 31, 2014 Compared to Year Ended December 31, 2013

Cost of Sales

Our cost of sales for the Year Ended December 31, 2014 amounted to $97,735 compared to $0 for the Year Ended December 31, 2013.

Acquisition-Related Costs

Our acquisition-related costs for the Year Ended December 31, 2014 amounted to $0 compared to $0 for the Year Ended December 31, 2013.

Salary and uncertaintiescompensation

Our salary and actual results could differ materially compensation for the Year Ended December 31, 2014 amounted to $0 compared to $0 for the Year Ended December 31, 2013.

Professional Fees

Our professional fee expenses for the Year Ended December 31, 2014 amounted to $114,435 compared to $0 for the Year Ended December 31, 2013.

General and Administrative Expenses

Our general and administrative expenses for the Year Ended December 31, 2014 amounted to $32,584 compared to $0 for the Year Ended December 31, 2013.

Other (Income) Expense, Net

We recorded other income for the Year Ended December 31, 2014 of $141,391 compared to $0 for the Year Ended December 31, 2013. The change in net other income was primarily due to change in fair value of derivative liabilities and a debt discount.

Net Lossfrom those anticipated byoperations

As a result of the forward-looking statements.foregoing cost of sales, acquisition-related costs, professional fees, general and administrative expenses, and other income, and as we have not yet generated significant revenues since our inception, our net loss for the Year Ended December 31, 2014 was $385,924, compared to our net loss for the Year Ended December 31, 2013 of $0.

LiquidityResults of Operations

The following discussion and Capital Resourcesanalysis of our results of operations and financial condition for the nine months ended September 30, 2015 should be read in conjunction with our unaudited interim consolidated financial statements and related notes included in this report, as well as our consolidated financial statements of Vnue Washington for the year ended December 31, 2014 and notes thereto contained in Vnue Inc.’s Current Report amendment No. 1 to Form 8-K as filed with the SEC. 

Nine months Ended September 30, 2015 Compared to Nine months Ended September 30, 2014

Cost of Sales

Our cost of sales for the Nine-Months Ended September 30, 2015 amounted to $265,880 compared to $55,950 for the Nine-Months Ended September 30, 2014.

Acquisition-Related Costs

Our acquisition-related costs for the Nine-Months Ended September 30, 2015 amounted to $819,105 compared to $0 for the Nine-Months Ended September 30 2014 in connection with the closing of the Merger on May 29, 2015.

Salary and compensation

Our salary and compensation for the Nine-Months Ended September 30, 2015 amounted to $155,126 compared to $0 for the Nine-Months Ended September 30, 2014. The increase in salary and compensation to last year is primarily due to the fact that the Company started to hiring employees near the end of June 2015 to commence operations.

Professional Fees

Our professional fee expenses for the Nine-Months Ended September 30, 2015 amounted to $244,742 compared to $71,017 for the Nine-Months Ended September 30, 2014. The increase in professional fees relative to last year is primarily due to fees for legal fees incurred byVNUE Washington prior to the Merger, and other legal, accounting and auditing services, associated with the Merger.

General and Administrative Expenses

Our general and administrative expenses for the Nine-Months Ended September 30, 2015 amounted to $181,878 compared to $24,930 for the Nine-Months Ended September 30, 2014. The increase in general and administrative expenses relative to last year is due primarily to expenses associated with the Merger.

Other (Income) Expenses, Net

We recorded net other expenses for the Nine-Months Ended September 30, 2015 of $93,876 compared to $147,533 for the Nine-Months Ended September 30, 2014. The change in net other expenses was primarily due to the change in fair value of derivative liability, financing costs of $50,000 and the settlement of claims valued at $96,876.

Net Lossfrom operations

As a result of November 30, 2007, we had cashthe foregoing cost of $110,083 in our bank accountssales, acquisition-related costs, professional fees, general and a working capital surplus of $334,245. Our net loss per share was $0.07 for the six months ended November 30, 2007 compared to $0.01 for the same period in 2006.

Our net loss of $4,162,062 from April 4, 2006 (date of inception) to November 30, 2007 was mostly funded by a combination of private placementsadministrative expenses, and loans. From April 4, 2006 (date of inception) to November 30, 2007, we raised net proceeds of $3,449,425 in cash from the issuance of common stock, the majority of which $2,317,500 was raised in the six month period ended November 30, 2007. On February 19, 2007, we issued a promissory note in exchange for proceeds of $23,362 in the form of an unsecured loan, bearing interest at 1% per month with no repayment terms. During the period ended November 30, 2007, the noteother income, and accrued interest were repaid.

Since April 4, 2006 (date of inception) to February 29, 2008, we raised gross proceeds of $3,656,925 in cash from the sale of our securities.

Date of issuance   Type of security issued Number of securities issued Price per security   Total funds received ($) 
May 2006 Common Shares   22,000,000 0.0001 2,200 
July 2006 Common Shares   527,250 0.10 52,725 
August 2006 Common Shares   2,000,000 For acquisition of mining claims    
September 2006 Common Shares   120,000 For services 
 Common Shares  20,000 0.10 2,000 
 Common Shares  6,000,000 For acquisition of mining claims   
May 2007 Common Shares  200,000 For services 
 Units (1) 4,300,000 0.25 1,075,000 
 Units (1) 215,000 Commission for private placements
of 4,300,000 units  
August 2007Units (2)3,500,000 0.50 1,750,000 
September 2007  Units (3) 650,000 0.50 325,000 
October 2007 Units (4) 700,000 0.50 350,000 
November 2007 Units (5) 200,000 0.50 100,000 
January 2008 Common Shares  3,000,000 For acquisition of mining claims   
Total Common Shares
Outstanding 
 43,432,250   
Total Warrants Outstanding  9,350,000   
(contained in units)      
Total Options Outstanding  3,025,000   

(1)     

On May 7, 2007 we issued Christopher Robin Relph, our director, President, CEO and CFO, options to purchase up to 2,000,000 common shares at $0.10 per share until May 7, 2010 for his management services.

(2)     

On May 16, 2007 we issued 4,300,000 units to various non US investors at $0.25 per unit for cash proceeds of $1,075,000. Each unit consists of one common share and one non-transferable warrant to purchase one common share. The warrants will be exercisable at $0.30 per share from May 16, 2007 to May 15, 2008 or at $0.35 per share from May 16, 2008 to May 15, 2009. We issued 215,000 shares of common stock to Aran Asset Management SA as commission for the non-brokered private placement of 4,300,000 units.

(3)     

On August 10, 2007, we issued 3,500,000 units to various non-US investors at $0.50 per unit for net cash proceeds of $1,575,000. Each unit consists of one common share and one non-transferable warrant to purchase one common share at an exercise price of $1.00 per share. Each warrant will expire on the earlier of August 10, 2009, or after five business days after our common stock trades at least once on the OTC Bulletin Board at a price equal to or above $1.25 per share for seven consecutive trading days. We paid $175,000 to Aran Asset Management SA as commission.

(4)     

On September 18, 2007, we sold a private placement of 650,000 units at $0.50 per unit for cash proceeds of $325,000. Each unit consists of one common share, and one non- transferable warrant to purchase one additional common share at an exercise price of $1.00 per share. Each warrant will expire on the earlier of September 15, 2009 or after five business days after our common stock trades at least once on the OTC Bulletin Board at a price equal to or above $1.25 per share for seven consecutive trading days.

(5)     

In October 2007, we sold private placements of 700,000 units at $0.50 per unit for cash proceeds of $350,000. Each unit consists of one common share and one non- transferable warrant to purchase one additional common share at $1.00 per common share within the earlier of two years from the date it was issued, or after five business days after the our common shares trade at least once on the OTC Bulletin Board at a share price equal to or above $1.25 per common share for seven consecutive trading days.

(6)     

On November 6, 2007, we sold a private placement of 200,000 units at $0.50 per unit for cash proceeds of $100,000. Each unit consists of one common share and one non- transferable warrant to purchase one additional common share at $1.00 per common share within the earlier of November 2, 2009, or after five business days after our common shares trade at least once on the OTC Bulletin Board at a share price equal to or above $1.25 per common share for seven consecutive trading days.



We used net cash of $1,060,616 in operating activities compared to $53,908 for the six months ended November 30, 2006. And we used net cash of $1,560,263 in investing activities for the six months ended November 30, 2007 compared to no cash used in investing activities for the same period in 2006. We received net cash of $2,274,688 from financing activities for the six month period ended November 30, 2007 compared to $42,375 for the same period in 2006.

We expect that our total expenses will increase over the next year as we increase our business operations and seek additional mineral interests. We have not been able to reach the break-even pointyet generated significant revenues since our inception, and have had to rely on outside capital resources. We do not anticipate making any revenuesour net loss for the next year.

We estimate that over the next 12 months (beginning March 2008) we will spend approximately $9,475,000 in carrying outNine-Months Ended September 30, 2015 was $1,760,124, compared to our business plan, the details of which are outlined in more detail in the section entitled “Description of Property” above.

Of the $9,475,000 that we neednet loss for the next 12 months, we had $110,083 in cash asNine-Months Ended September 30, 2014 of November 30, 2007. In order$299,310.

27

Year Ended December 31, 2014 Compared to fully carry out our business plan, we need additional financingYear Ended December 31, 2013

Cost of approximately $9,364,917Sales

Our cost of sales for the next 12 months. In orderYear Ended December 31, 2014 amounted to improve our liquidity, we intend$97,735 compared to pursue additional equity financing from private placement sales of our equity securities or shareholders’ loans. We intend to negotiate with our management and consultants to pay parts of salaries and fees with stock and stock options instead of cash. We do not presently have sufficient financing to undertake our planned exploration program on our mineral properties. Issuances of additional shares will result in dilution to our existing shareholders.

We currently do not have any arrangements in place$0 for the completion of any further private placement financingsYear Ended December 31, 2013.

Acquisition-Related Costs

Our acquisition-related costs for the Year Ended December 31, 2014 amounted to $0 compared to $0 for the Year Ended December 31, 2013.

Salary and there is no assurance that we will be successful in completing any further private placement financings.compensation

If we are unableOur salary and compensation for the Year Ended December 31, 2014 amounted to achieve$0 compared to $0 for the necessary additional financing, then we planYear Ended December 31, 2013.

Professional Fees

Our professional fee expenses for the Year Ended December 31, 2014 amounted to reduce$114,435 compared to $0 for the amounts that we spend on our exploration activitiesYear Ended December 31, 2013.

General and Administrative Expenses

Our general and administrative expenses for the Year Ended December 31, 2014 amounted to $32,584 compared to $0 for the Year Ended December 31, 2013.

Other (Income) Expense, Net

We recorded other income for the Year Ended December 31, 2014 of $141,391 compared to $0 for the Year Ended December 31, 2013. The change in ordernet other income was primarily due to be withinchange in fair value of derivative liabilities and a debt discount.

Net Lossfrom operations

As a result of the amountforegoing cost of capital resources that are availablesales, acquisition-related costs, professional fees, general and administrative expenses, and other income, and as we have not yet generated significant revenues since our inception, our net loss for the Year Ended December 31, 2014 was $385,924, compared to us. Specifically, we anticipate that we would defer any drilling programs pending our obtaining additional financing.net loss for the Year Ended December 31, 2013 of $0.

Results of Operations

Lack of Revenues

We have earned no revenuesThe following discussion and have sustained operational losses since our inception on April 4, 2006 to November 30, 2007. As of November 30, 2007, we had an accumulated deficit of $4,162,062. We anticipate that we will not earn any revenues during the current fiscal year or in the foreseeable future, as we are presently engaged in the explorationanalysis of our mineral properties. We may not generate significant revenues even ifresults of operations and financial condition for the nine months ended September 30, 2015 should be read in conjunction with our exploration program indicates that mineral deposits may exist on our mineral claims. We anticipate that we will incur substantial losses over the next two years.

41


At this time, our ability to generate any revenues continues to be uncertain. The auditor's report on our auditedunaudited interim consolidated financial statements and related notes included in this report, as well as our consolidated financial statements of Vnue Washington for the year ended December 31, 2014 and notes thereto contained in Vnue Inc.’s Current Report amendment No. 1 to Form 8-K as filed with the SEC. 

Nine months Ended September 30, 2015 Compared to Nine months Ended September 30, 2014

Cost of Sales

Our cost of sales for the Nine-Months Ended September 30, 2015 amounted to $265,880 compared to $55,950 for the Nine-Months Ended September 30, 2014.

Acquisition-Related Costs

Our acquisition-related costs for the Nine-Months Ended September 30, 2015 amounted to $819,105 compared to $0 for the Nine-Months Ended September 30 2014 in connection with the closing of the Merger on May 31, 200729, 2015.

Salary and 2006 contains an additional explanatory paragraph which identifies issuescompensation

Our salary and compensation for the Nine-Months Ended September 30, 2015 amounted to $155,126 compared to $0 for the Nine-Months Ended September 30, 2014. The increase in salary and compensation to last year is primarily due to the fact that raise substantial doubt about our abilitythe Company started to continue as a going concern. hiring employees near the end of June 2015 to commence operations.

Professional Fees

Our financial statements do not include any adjustment that might result fromprofessional fee expenses for the outcome of this uncertainty.Nine-Months Ended September 30, 2015 amounted to $244,742 compared to $71,017 for the Nine-Months Ended September 30, 2014. The increase in professional fees relative to last year is primarily due to fees for legal fees incurred byVNUE Washington prior to the Merger, and other legal, accounting and auditing services, associated with the Merger.

Expenses

From April 4, 2006 (date of inception) to November 30, 2007, our total expenses were $4,158,941. The major components of our expenses since inception consist of: $2,820,125 for impairment of mineral property costs;General and Administrative Expenses

Our general and administrative expenses of $786,313; mineral property costs of $336,044; professional fees of $208,495, and $7,964 in amortization. From April 4, 2006 (date of inception)for the Nine-Months Ended September 30, 2015 amounted to May 31, 2007, our total expenses were $1,669,438.$181,878 compared to $24,930 for the Nine-Months Ended September 30, 2014. The major components of our expenses since inception to May 31, 2007 consist of $1,345,125 for impairment of mineral property costs; general and administrative expenses of $228,400; professional fees of $93,521, and $2,392 in other mineral property costs. From April 4, 2006 (date of inception) to May 31, 2006, our total expenses were $6,416, because we started our operations only for less than two months. The major components of our expenses since inception to May 31, 2006 consist of $1,608increase in general and administrative expenses and $4,808 in professio nal fees.relative to last year is due primarily to expenses associated with the Merger.

Our total expenses increased $492,983 to $535,650 for the three months ended November 30, 2007 from $42,667 for the three months ended November 30, 2006. Our total expenses increased $2,205,853 to $2,489,503 for the six months ended November 30, 2007 from $283,650 for the six months ended November 30, 2006. The increase in total expenses was mainly due to our increased business activities and in particular our acquisition of additional mineral interests and related engagement of additional consultants. Since it has not been determined whether there are proven or probably reserves on our properties, we recognized impairment losses of mineral property acquisition costs. Our impairment of mineral property costs increased $1,275,000 to $1,475,000 for the six months ended November 30, 2007 from $200,000 for the six months ended November 30, 2006.

Our totalOther (Income) Expenses, Net

We recorded net other expenses for the year ended May 31, 2007 were $1,663,022 including $1,345,125 for impairmentNine-Months Ended September 30, 2015 of mineral property costs; $226,792 in general and administrative expenses; $88,713 in professional fees; and $2,392 in mineral property costs.

Due$93,876 compared to our acquisition of mineral interests, our mineral property costs correspondently increased $274,692 to $274,692$147,533 for the three months ended NovemberNine-Months Ended September 30, 2007 from $0 for the three months ended November 30, 2006 and increased $331,260 to $333,652 for the six months ended November 30, 2007 from $2,392 for the six months ended November 30, 2006.

Our professional fees consisted primarily of legal, accounting and auditing fees. Our professional fees increased $21,596 from $22,642 for the three months ended November 30, 2006 to $44,238 for the three months ended November 30, 2007. Our professional fees increased $66,907 from $48,067 for the six months ended November 30, 2006 to $114,974 for the six months ended November 30, 2007.2014. The increasechange in our professional fees was due to additional legal and auditing services provided.

Ournet other administrative expenses consist of amortization, consulting fees, foreign exchange loss, mineral property costs, transfer agent and filing fees, office supplies, travel expenses, rent, communication expenses (cellular, internet, fax and telephone), bank changes, advertising and promotion costs, office maintenance, courier and postage costs, and office equipment.

42


Our other administrative costs increased $196,695 from $20,025 for the three months ended November 30, 2006 to $216,720 for the three months ended November 30, 2007. Our other administrative costs increased $532,686 from $33,191 for the six months ended November 30, 2006 to $565,877 for the six months ended November 30, 2007. The increase in other administrative costs was mainly due to our increased day to day operation activities.

Net Loss

For the year ended May 31, 2007 we incurred net loss of $1,663,949. For the three months ended November 30, 2007 we incurred net loss of $537,817 compared to $42,443 for the same period in 2006. For the six month ended November 30, 2007 we incurred net loss of $2,491,697 compared to $283,113 for the same period in 2006. From April 4, 2006 (date of inception) to May 31, 2007, we incurred an aggregate net loss of $1,670,365. For the period from inception on April 4, 2006 until May 31, 2006, we incurred net loss of $6,416.

For the period from inception on April 4, 2006 until November 30, 2007, we incurred net loss of $4,162,062. The net loss was primarily due to the impairmentchange in fair value of mineral propertyderivative liability, financing costs of $50,000 and mineral propertythe settlement of claims valued at $96,876.

Net Lossfrom operations

As a result of the foregoing cost of sales, acquisition-related costs, professional fees, general and administrative expenses, and other income, and as we have not yet generated significant revenues since our inception, our net loss for the Nine-Months Ended September 30, 2015 was $1,760,124, compared to our net loss for the Nine-Months Ended September 30, 2014 of $299,310.

27

Year Ended December 31, 2014 Compared to Year Ended December 31, 2013

Cost of Sales

Our cost of sales for the Year Ended December 31, 2014 amounted to $97,735 compared to $0 for the Year Ended December 31, 2013.

Acquisition-Related Costs

Our acquisition-related costs for the Year Ended December 31, 2014 amounted to $0 compared to $0 for the Year Ended December 31, 2013.

Salary and compensation

Our salary and compensation for the Year Ended December 31, 2014 amounted to $0 compared to $0 for the Year Ended December 31, 2013.

Professional Fees

Our professional fee expenses for the Year Ended December 31, 2014 amounted to $114,435 compared to $0 for the Year Ended December 31, 2013.

General and Administrative Expenses

Our general and administrative expenses for the Year Ended December 31, 2014 amounted to $32,584 compared to $0 for the Year Ended December 31, 2013.

Other (Income) Expense, Net

We recorded other income for the Year Ended December 31, 2014 of $141,391 compared to $0 for the Year Ended December 31, 2013. The change in net other income was primarily due to change in fair value of derivative liabilities and a debt discount.

Net Lossfrom operations

As a result of the foregoing cost of sales, acquisition-related costs, professional fees, general and administrative expenses, and other income, and as we have not yet generated significant revenues since our inception, our net loss for the Year Ended December 31, 2014 was $385,924, compared to our net loss for the Year Ended December 31, 2013 of $0.

Liquidity and Capital Resources

Since our inception, we have funded our operations primarily through private offerings of our equity securities.

As of September 30, 2015, we had cash and cash equivalents of $35,009.

We had negative cash flow from operating activities of $583,337 for the Nine-Months Ended September 30, 2015, compared with negative cash flow from operating activities of $93,340 for the Nine-Months Ended September 30, 2014. The increase in negative cash flow for operating activities is due to costs associated with a new company that has not yet earned any revenues. the Merger, and reflects Company’s expanded operations under the VNUE business model, which resulted in significant payments to service providers and employees.

We expect to continue to incur losses over the next two years.

Inflation

The amounts presented in the financial statements do not providehad negative cash flow from investing activities of $52,037 for the effectNine-Months Ended September 30, 2015 due to an advance to a related party. We had negative cash flow from investing activities of inflation on our operations or financial position.$35,000 for the Nine-Months Ended September 30, 2014 due to the acquisition of intangible assets.

We had positive cash flow from financing activities of $670,337 for the Nine-Months Ended September 30, 2015 as compared to $128,340 for the Nine-Months Ended September 30, 2014. The net operating losses shown would be greater than reported ifcash flow from financing activities for the effectsNine-Months Ended September 30, 2015 was primarily due to $726,320 in proceeds from the issuance of inflation were reflected eithercommon shares. This $726,320 is offset by charging operations with amounts that represent replacement costs or by using other inflation adjustments.$14,983 in repayments to a stockholder and $41,000 in repayments of convertible notes payable during the same period. The cash flow from financing activities for the Nine-Months Ended September 30, 2014 was due to $42,340 in advances from a stockholder and $86,000 in proceeds from convertible notes payable.

Off-Balance Sheet Arrangements

We have no significant 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 isare material to stockholders.

Going Concern

Our consolidated financial statements for the period ended September 30, 2015 have been prepared on a going concern basis and Note 3 to the financial statements identifies issues that raise substantial doubt about our ability to continue as a going concern. Our consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

28

We have not generated significant revenues, have achieved losses since our inception, and rely upon the sale of our common stock and loans from related and other parties to fund our operations. We do not anticipate generating any revenues in the foreseeable future, and if we are unable to raise equity or secure alternative financing, we may not be able to pursue our plans and our business may fail.

Application of Critical Accounting Policies and Estimates

Our management’s discussion and analysis of our financial condition and results of operations is based on our financial statements, which we have prepared in accordance with U.S. generally accepted accounting principles issued by the FASB. The preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported expenses during the reporting periods. Actual results may differ from these estimates under different assumptions or conditions.

While our significant accounting policies are more fully described in the notes to our financial statements appearing elsewhere in this prospectus, we believe that the accounting policies discussed below are critical to our financial results and to the understanding of our past and future performance, as these policies relate to the more significant areas involving management’s estimates and assumptions. We consider an accounting estimate to be critical if: (1) it requires us to make assumptions because information was not available at the time or it included matters that were highly uncertain at the time we were making our estimate; and (2) changes in the estimate could have a material impact on our financial condition or results of operations.

Selected Financial Data

Not applicable.

Item 3.Quantitative and Qualitative Disclosures of Market Risk

Not applicable.

Item 4. Controls and Procedures

We carried out an evaluation required by the Securities Exchange Act of 1934 (the “1934 Act”), under the supervision and with the participation of our principal executive officer and principal financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rule 13a-15(e) of the 1934 Act, as of the end of the period covered by this report. Based on this evaluation, our principal executive officer and principal financial officer concluded that our disclosure controls and procedures were ineffective to provide reasonable assurance that information required to be disclosed by us in the reports that we file or submit under the 1934 Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and to provide reasonable assurance that such information 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.

During the most recent fiscal quarter, there has not occurred any change in our internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

Our disclosure controls and procedures are designed to provide reasonable assurance of achieving their objectives as specified above. Management does not expect, however, that our disclosure controls and procedures will prevent or detect all error and fraud. Any control system, no matter how well designed and operated, is based upon certain assumptions and can provide only reasonable, not absolute, assurance that its objectives will be met. Further, no evaluation of controls can provide absolute assurance that misstatements due to error or fraud will not occur or that all control issues and instances of fraud, if any, within the Company have been detected.

Changes In and Disagreements with Accountants

Effective November 9, 2015, the Company engaged the firm of Li and Company, PC as the Independent Registered Public Accountant to Audit the Company’s financial statements for the remainder of the fiscal year ending December 31, 2015.

The decision to change accountants was approved by the Company’s Board of Directors based upon Li and Company’s prior engagement for the preparation of the financial statements contained in the Company’s 8-K/A dated November 4, 2015, which had been in progress since the reverse merger which closed on AccountingMay 29, 2015.

The engagement, effective November 9, 2015, of Li and Financial DisclosureCompany, PC as the new Independent Registered Public Accountant for the Company necessarily resulted in the termination or dismissal of the principal accountant which audited the Company’s financial statements prior to the reverse merger which closed on May 29, 2015, MALONEBAILEY, LLP.

Since inception, we

In accordance with the terms of the reverse merger, the Company’s fiscal year-end changed to December 31, 2015. During the Company’s two most recent fiscal years ended May 31, 2014 and May 31, 2013, and the subsequent interim period, there were no disagreements between the Company and MALONEBAILEY, LLP concerning any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedure which disagreements, if not resolved to MALONEBAILEY, LLP’s satisfaction would have hadcaused them to make a reference to the subject matter of the disagreements in connection with their reports; there were no changesreportable events as described in or disagreements with our accountants. Our auditedItem 304(a)(1)(v) of Regulation S-K.

29

MALONEBAILEY, LLP’s report dated September 12, 2014 on the Company’s financial statements for the fiscal year ended May 31, 20072014 did not contain any adverse opinion or disclaimer of opinion, nor was the report qualified or modified as to uncertainty, audit scope or accounting principles.

The Company provided MALONEBAILEY, LLP with a copy of the foregoing disclosures and requested from MALONEBAILEY, LLP a letter addressed to the Commission stating whether MALONEBAILEY, LLP agrees with the statements made by the Company in response to Item 304(a) of Regulation S-K and, if not, stating the respects in which it does not agree. MALONEBAILEY, LLP’s letter was attached as an exhibit to the Company’s 8-K Current Report dated November 9, 2015 as Exhibit 10.01.

We have been includedhad no disagreements with our accountants.

Available Information

We have filed with the Securities and Exchange Commission a registration statement on Form S-1.  For further information about us and the shares of common stock to be sold in this Prospectus in reliance upon Manning Elliott LLP, Independent Registeredthe offering, please refer to the registration statement and the exhibits and schedules thereto.  The registration statement and exhibits may be inspected, without charge, and copies may be obtained at prescribed rates, at the SEC's Public Accounting Firm, as experts in accountingReference Room at 100 F Street, N.E., Washington, D.C. 20549.  The public may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330.  The registration statement and auditing.other information filed with the SEC are also available at the web site maintained by the SEC at http://www.sec.gov.

30

Directors, Executive Officers, Promoters and Control Persons

Directors

All directors of our company hold office until the next annual meeting of the security holders or until their successors have been elected and Officers

According toqualified.  The officers of our bylaws, the authorized numbercompany are appointed by our board of directors of the corporation shall be not less than one and no more than fifteenhold office until their death, resignation or removal from office.  Our directors and shall be set by resolution of the Board of Directors.executive officers, their ages, positions held, and duration as such, are as follows:

43


Our current director and officer is: Name 
Age Position
NameMr. Matthew CaronaAge Position31CEO, President, Secretary & Director
Christopher Robin Relph Mr. Collin Howard59 Director, President, Chief Executive Officer, Chief Financial Officer 46Treasurer, Secretary, Principal Accounting Officer CFO & Director

The directors will serve as directors until our next annual shareholder meeting or until a successor is elected who accepts the position. Officers hold their positions at the will of the Board of Directors. There are no arrangements, agreements or understandings between non-management shareholders and management under which non-management shareholders may directly or indirectly participate in or influence the management of our affairs.

Christopher Robin Relph, Director,Matthew Carona, 31, CEO, President, CEO and CFODirector

Mr. Relph was our founder and has been our President, CEO, CFO and sole director since April 4, 2006. From May 2002 to April 2006, Mr. Relph's principal occupation was acting as the President of Garuda Capital Corp., a company in the businesses of mining and chocolate manufacturing, quoted under the symbol GRUA on the Pink Sheets. Also for the past five years, Mr. Relph has been the managing director of Buckingham Securities Ltd., an investment company in London, UK. As a former member of various international stock exchanges and the London Life Market, Mr. Relph has considerable experience in public companies affairs, fund raising and deal structuring. Mr. Relph is a director of Garuda Capital Corp., a public company. Mr. Relph is also Chairman of the Rigpa Foundation, a charitable trust.

Management and Consulting Agreements

We entered into a management agreement with Christopher Robin Relph on May 7, 2007 with effect from March 1, 2007 regarding Mr. Relph’s service as President, CEO and CFO. Pursuant to this agreement, Mr. Relph receives remuneration at the rate of $10,000 per month commencing March 1, 2007, payable at the beginning of each month, or accruing as a debt owing by us to Mr. Relph. In addition, Mr. Relph also received options to purchase 2,000,000 shares of our common stock at $0.10 per share until May 7, 2010. The compensation payable to Mr. Relph pursuant to the May 7, 2007 management agreement is reflected in the summary compensation table below.

Prior to his appointment as Chief Executive Officer and Director of the above mentioned agreement, we entered intoCompany, Matthew P. Carona was the co-founder and Chief Executive Officer of VNUE Inc. Matthew brings more than 8 years of experience in the ever-evolving landscape of digital music, media and global distribution. Prior to Co-founding VNUE, Matthew served as Chief Strategy Officer at Qello, the world's leading on-demand streaming service for full-length HD concert films and music, where he began in 2010. In 2008, Matthew’s immersion in digital media and product development came when he joined Billboard Magazine, the world’s most influential music media brand reaching key executives and tastemakers in and around the music business through its Magazine, Websites, Trade events and televised award shows, as their Event Sales Manager, Business Development of Mobile Products and Licensing. Prior to that, Matthew worked at Show Media , an interactive digital network, content production and outdoor advertising media company. Prior to Show Media he began his career at University Sports Publications in 2005 and then went on to start his first company, World Trade Publications in 2006.

Matthew has forged partnerships with wide variety of technology, music and digital media companies, including Apple, Amazon, AT&T, Motorola, Samsung, Sony, Google and more. Matthew received his B.A in Business Management from Western New England University in 2005.

Collin Howard, 46, CFO and Director

As an operations-savvy executive with more than 15 years in banking, Collin’s experience has resulted in the successful development of financial planning and analysis, business intelligence, integrated business partnerships and decision support from the ground up. Collin Howard joined VNUE, Inc. in 2014 as the Chief Financial Officer. Collin is focused on driving investment strategy and next generation partnerships on a management agreement dated April 5, 2006 with Mr. Relph regarding his servicesmultitude of financial matters including raising capital, acquisition, accounting, financial modeling and analysis. Prior to joining VNUE, Collin served as oura Vice President CEO and CFO. Pursuant to this agreement, Mr. Relph received remuneration at the rateToronto-Dominion Bank. Prior to his position with TD, Collin served as a Branch Manager at SunTrust Bank in 2006. He also served as a Business Development Officer for M&T Bank beginning in 2005. Before entering banking, Collin’s fascination with information technology and wireless services began when he joined TESSCO Technologies in 2000 as Credit Manager. Collin earned a Bachelor’s of $500 per month commencing April 5, 2006, payable at the beginningScience Degree in Business Management from University of each month.Phoenix in 2006.

44


On August 27, 2007, we entered into a consulting agreement with Wingspan Foundation, pursuant to which Wingspan has agreed to provide us with certain operational, management, financial, and public relations consulting services. The services will be performed at our satellite office in Cañon City, Colorado. Pursuant to the consulting agreement, we will pay to Wingspan a monthly fee of $10,000. In addition to the monthly fee, we granted to Wingspan 1,000,000 options to purchase our common shares at a purchase price of $0.60 per share. The options will expire after August 27, 2009, or 30 days following the termination of the agreement, whichever is earlier. The term of the agreement is from June 1, 2007, until May 31, 2008, and is renewable for a period of one year if we provide written notice to Wingspan by April 30, 2008. The agreement may be terminated by either party upon 30 days written notice to the other.

On September 14, 2007 we entered into a consulting agreement with Max Klemm for operational and management services. Pursuant to the agreement, we are required to pay $2,500 per month, commencing September 17, 2007 and terminating on September 18, 2008 unless terminated by either party by providing one month advance notice. The agreement with Mr. Klemm is automatically renewable for a further period of six months. We also issued options to purchase 25,000 common shares exercisable at $1.00 per share to Mr. Klemm pursuant to our 2007 Non-Qualified Stock Option Plan.

Significant Employees

As of February 29, 2008, we have no part time or full time employees. Our director, President, CEO and CFO, Christopher Robin Relph, works part time as an independent contractor and works in the areas of business development and management. He currently contributes approximately 35 hours per week to us. We currently engage independent contractors in the areas of accounting, geological, legal, consulting, marketing, management, accounting, bookkeeping and other services.

Family Relationships

There are no family relationships among our officers or directors.

Legal Proceedings

No officer, directors or persons nominated for such positions.

No Legal Proceedings

No officer, director, or person nominated for these positions, and no promoter or significant employee of our corporation has been involved in legal proceedings that would be material to an evaluation of our management.

No director, executive officer, promoter or control person has been involvedthe last ten years in any of the following events during the past five years:following:

45


31

Audit Committee

The functions of the Audit Committee are currently carried out by our Board of Directors. Our Board of Directors has determined that we do not have an audit committee financial expert on our Board of Directors carrying out the duties of the Audit Committee. Our Board of Directors has determined that the cost of hiring a financial expert to act as a director and to be a member of the Audit Committee or otherwise perform Audit Committee functions outweighs the benefits of having a financial expert on the Audit Committee.

Code of Ethics

We have presently not adopted a code of ethics due to the fact that we are in the early stage of our operations. We intend to adopt a code of ethics within the next year.

Executive Compensation

The following Summary Compensation Table sets forth the total annual compensation paid or accrued by us to or for the account of the Chief Executive Officers who held this position during fiscal 2006 and 2007 and each other executive officer whose total cash compensation exceeds $100,000:

Summary Compensation Table

The table below summarizes all compensation awarded to, earned by, or paid to our Principal Executive Officer, our most highly compensated executive officers other than our PEO who occupied such position at the end of our latest fiscal year and up to two additional executive officers who would have been included in the table below except for Directors and Officersthe fact that they were not executive officers at the end of our latest fiscal year, by us, or by any third party where the purpose of a transaction was to furnish compensation, for all services rendered in all capacities to us for the latest fiscal year ended _______________________.____________________. 

  Annual Compensation                  Long Term Compensation   
 
     Awards Payout(s)   
          
       Nonqualified   
       deferred   
     Nonequity compensation    
    Option incentive plan earnings All Other  
Name and Principal Position Year Salary  Bonus$ Stock Awards $Awards($) compensation($)   Compensation $Total$ 
 Fiscal 2007 34,500 (2)  1,740,000 (3)  1,774,500
          
Christopher Robin Relph (1)           
         
 Fiscal 2006 (2)1,000 1,000 

(1)     SUMMARY COMPENSATION TABLE
Name and
Principal
Position

Christopher Robin Relph is our director, President, Chief Executive Officer

YearSalary
($)
Bonus
($)
Stock
Awards
($)(1)
Option
Awards
($)(1)
Non-Equity
Incentive Plan
Compensation ($)
Change in
Pension Value
and Chief Financial Officer.

Nonqualified
Deferred
Compensation
Earnings ($)
All Other
Compensation ($)
Total
($)
 
(2)     Matthew CaronaCEO, President, Secretary, and a director

Represents management fees paid to Mr. Relph as CEO during Fiscal 2007, at a rate of a) $500 per month from June 1, 2006 to February 28, 2007, and b) $10,000 per month from March 1, 2007 until May 31, 2007 pursuant to a management agreement dated May 7, 2007 (and as further described below). As at May 31, 2007, we are indebted to the Mr. Relph for $10,172 (2006 - $6,089), representing cash proceeds for our financing operations. This amount is unsecured, non-interest bearing, and has no repayment terms.

2013
 2014
(3)     Collin Howard  ,CFO, Treasurer and a director

Represents the aggregate intrinsic value (the difference between the fair market value and the option exercise price) as of February 29, 2008 of 2,000,000 options to purchase shares of our common stock, exercisable at $0.10 per share until May 7, 2010. This option award forms part of Mr. Relph’s management remuneration.

2013
 
(4) 

For the period from Inception (April 4, 2006) to May 31, 2006.

2014
 

46


Our director did not receive any compensation for his service as a director during the period from inception (April 4, 2006) to November 30, 2007.

Stock Option Grants in Last Fiscal Year

Options were granted in the last fiscal year to our executive officer as listed in the below table.

Outstanding Equity Awards at Fiscal Year End
 
OPTION AWARDS
 
 Number of Number of Equity Incentive Option Option 
 Common Common Shares Plan Awards: Exercise Expiration Date 
 Shares Underlying Number of Price  
 Underlying Unexercised Securities ($)  
 Unexercised Options Underlying   
 Options (#) Unexercised   
 (#) Unexercisable Unearned Options   
 Name Exercisable  (#)   
Christopher Robin Relph  2,000,000          0 0.10 May 7, 2010 
      
Compensation of Directors    

Our sole director did not receive any compensation for his service as a director during the period from inception (April 4, 2006) to November 30, 2007.

Pension, Retirement or Similar Benefit Plans

There are no arrangements or plans in which we provide pension, retirement or similar benefits for directors or executive officers. We have no material bonus or profit sharing plans pursuantnot granted any stock options to which cash or non-cash compensation is or may be paid to our directors orthe executive officers except that stock options may be granted at the discretion of the Board of Directors or a committee thereof.since our inception.

Compensation Committee

We currently do not have a compensation committee of the Board of Directors. The Board of Directors as a whole determines executive compensation.Consulting Agreements

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

The following table setstables set forth the ownership, as of February 29, 2008,the date of this Prospectus, of our common stock by our director, and by our executive officer and director as a group, and by each person known by us to us who isbe the beneficial owner of more than 5% of any classour outstanding common stock, our directors, and our executive officers and directors as a group.  To the best of our securities. As of February 29, 2008, there were 43,432,250 common shares issued and outstanding. Allknowledge, the persons named have sole voting and investment power with respect to thesuch shares, except as otherwise noted.  There are not any pending or anticipated arrangements that may cause a change in control.

The numberinformation presented below regarding beneficial ownership of our voting securities has been presented in accordance with the rules of the Securities and Exchange Commission and is not necessarily indicative of ownership for any other purpose.  Under these rules, a person is deemed to be a "beneficial owner" of a security if that person has or shares described below includes sharesthe power to vote or direct the voting of the security or the power to dispose or direct the disposition of the security.  A person is deemed to own beneficially any security as to which the beneficial owner describedsuch person has the right to acquire sole or shared voting or investment power within 60 days through the conversion or exercise of any convertible security, warrant, option or other right.  More than one person may be deemed to be a beneficial owner of the same securities.  The percentage of beneficial ownership by any person as of a particular date is calculated by dividing the number of this Prospectus.

47


Title of ClassName and Address of Beneficial Owner Amount and Nature of  BeneficialOwnership Percent of Class(1)  
Common Christopher Robin Relph (2)   
 15 Nebuck House 16,083,000  (3)   35.3% 
 Olde Towne at Sandyport   
 West Bay Street, Nassau, Bahamas   
 All Officers and Directors as a Group 16,083,000 35.3% 
 Mark Orsmond (4)   
 993 Hampshire Rd 5,200,000 11.9%   
 North Vancouver  
 British Columbia V7R 1V2   
 Proteus Mining Limited (5)   
 2 New Square, Lincoln’s Inn 3,000,000 6.9% 
 

London, WC2A 3RZ 

  

1.Based on 43,432,250 issued and outstanding shares of common stock as of February 29, 2008.
2.     

Christopher Robin Relph is our director, President, CEO and CFO.

3.     

Includes 12,083,000 common shares, options to purchase 2,000,000 shares of common stock at $0.10 per share until May 7, 2010, and 2,000,000 common shares held by Cocotropolis Inc., a company over whose securities Mr. Relph shares dispositive and voting control with Shelley Miller.

4.Includes 1,000,000 common shares held by Mark Orsmond and 4,200,000 common shares held by Pikes Peak Resources Inc. To our knowledge, Mr. Orsmond has sole dispositive and voting control with regards to securities held by Pikes Peak Resources Inc.
5.To our knowledge, George Oswald has sole dispositive and voting control with regards to securities held by Proteus Mining Limited.

Changes In Control

There are currently no arrangementsshares beneficially owned by such person, which would result in a change in controlincludes the number of us.

Director Independence

Our securities are quoted onshares as to which such person has the OTC Bulletin Board which does not have any director independence requirements.

Robin Relph is our sole director and officer and as such does not meet anyright to acquire voting or investment power within 60 days, by the sum of the definitionsnumber of shares outstanding as of such date plus the number of shares as to which such person has the right to acquire voting or investment power within 60 days.  Consequently, the denominator used for independent directors. Oncecalculating such percentage may be different for each beneficial owner.  Except as otherwise indicated below, we engage further directorsbelieve that the beneficial owners of our common stock listed below have sole voting and officers, we will develop a definitioninvestment power with respect to the shares shown.  The mailing address for all persons is at 104 W. 29th Street, 11th Floor, New York, NY 10001�� 

Shareholders # of Shares  Percentage 
Matthew Carona, CEO  245,576,531   38%
Collin Howard, CFO  45,559,177   7%
All directors and executive officers as a group  291,135,708   45%
Christopher Mann  81,858,860   13%

32

This table is based upon information derived from our stock records.  The shareholder named in this table has sole or shared voting and investment power with respect to the shares indicated as beneficially owned.  Applicable percentages are based upon 640,913,164 shares of independence and scrutinize our Boardcommon stock outstanding as of Directors with regard to this definition.January 8, 2016. 

48


Certain Relationships and Related Transactions

During

The Corporation may indemnify and advance litigation expenses to its directors, officers, employees and agents to the year ended May 31, 2007, we incurred $34,500 (2006 - $1,000) for management services providedextent permitted by Christopher Robin Relph, our director, President, CEOlaw, the Articles or these Bylaws, and CFO. Duringshall indemnify and advance litigation expenses to its directors, officers, employees and agents to the six months ended November 30, 2007, we incurred $60,000 for management services providedextent required by Christopher Robin Relph. On May 7, 2007, we granted 2,000,000 stocklaw, the Articles or these Bylaws.  The Corporation’s obligations of indemnification, if any, shall be conditioned on the Corporation receiving prompt notice of the claim and the opportunity to settle and defend the claim.  The Corporation may, to the extent permitted by law, purchase options to Christopher Robin Relph.

As at May 31, 2007, we are indebted to Christopher Robin Relph for $10,172 (2006 - $6,089), representing cash proceeds and expenses paidmaintain insurance on behalf of us. During the six months ended November 30, 2007, we advanced Christopher Robin Relph $5,778, representingan individual who is or was a deposit on travel expenses paid. These amounts are unsecured, non-interest bearing, and have no repayment terms.

During the nine month period ended February 28, 2007, we received a $46,525 unsecured loan from Cocotropolis Inc., of which Christopher Robin Relph is a director, bearing interest at 1% per month. We repaid $21,533 as at February 29, 2007, and as of November 30, 2007 the balance of $25,842 was paid. We paid total interest expenses of $137.

Other than as described above, we have not entered into any transactions with our officers, directors, persons nominated for these positions, beneficial owners of 5%officer, employee or more of our common stock, or family members of these persons wherein the amount involved in the transaction or a series of similar transactions exceeded the lesser of $120,000 or 1%agent of the total assets for the last two fiscal year.Corporation. 

Disclosure of Commission Position onof Indemnification offor Securities Act Liabilities

Under our Articles of Incorporation

Our officers and bylaws, we may indemnify an officer or director who is made a party to any proceeding, including a law suit, because of his position, if he acted in good faith and in a manner he reasonably believed to be in our best interest. We may advance expenses incurred in defending a proceeding. To the extent that the officer or director is successful on the merits in a proceedingdirectors are indemnified as to which he is to be indemnified, we must indemnify him against all expenses incurred, including attorney's fees. With respect to a derivative action, indemnity may be made only for expenses actually and reasonably incurred in defending the proceeding, and if the officer or director is judged liable, only by a court order. The indemnification is intended to be to the fullest extent permittedprovided by the lawsNevada Revised Statutes and our Bylaws.  We have been advised that in the opinion of the State of Nevada.

RegardingSecurities and Exchange Commission indemnification for liabilities arising under the Securities Act which may be permitted to directors or officers under Nevada law, we are informed that, in the opinion of the SEC, indemnification is against public policy as expressed in the Securities Act, and is, therefore, unenforceable.  In the event that a claim for indemnification against such liabilities is asserted by one of our directors, officer, or controlling person in connection with the securities being registered, we will, unless in the opinion of our legal counsel the matter has been settled by controlling precedent, submit the question of whether such indemnification is against public policy to court of appropriate jurisdiction.  We will then be governed by the court's decision. 

33

Vnue, Inc.

December 31, 2014

Index to the Consolidated Financial Statements

Our fiscal year end is May 31. We will provide audited financial statements to our stockholders on an annual basis. Our consolidated audited financial statements for the fiscal years ended May 31, 2007 and 2006 and unaudited consolidated financial statements for the period ended November 30, 2007 follow beginning at 50.

49


Buckingham Exploration Inc.ContentsPage(s)
  
(An Exploration Stage Company) 
May 31, 2007 and 2006 
Index 
Report of Independent Registered Public Accounting FirmF-1 F-2
Consolidated Balance Sheets F-2 
Consolidated Statements of Operationsbalance sheet at December 31, 2014 F-3
Consolidated Statementsstatement of Cash Flowsoperations for the year ended December 31, 2014 F-4
Consolidated Statementstatement of Stockholders’ Equitychanges in members' capital and stockholders’ equity (deficit) for the period from August 1, 2013 (formation) through December 31, 2014 F-5
Consolidated statement of cash flows for the year ended December 31, 2014F-6
Notes to the Financial Statements consolidated financial statementsF-6 -18F-7

F-1 

50


REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


ReportThe Board of Independent Registered Public Accounting FirmDirectors and Stockholders

To the Directors and Stockholders
Buckingham Exploration Inc.
(An Exploration Stage Company)
Vnue, Inc.

We have audited the accompanying consolidated balance sheetssheet of Buckingham ExplorationVnue, Inc. (An Exploration Stage Company)(“Vnue Washington” or the “Company”) as of MayDecember 31, 2007 and 2006,2014 and the related consolidated statements of operations, changes in stockholders’ equity, and cash flows and stockholders' equity for the year ended May 31, 2007, for the period from April 4, 2006 (Date of Inception) to May 31, 2006, and accumulated from April 4, 2006 (Date of Inception) to May 31, 2007.then ended. These financial statements are the responsibility of the Company'sCompany’s management. Our responsibility is to express an opinion on these financial statements based on our audits.audit.

We conducted our auditsaudit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the auditsaudit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provideaudit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Buckingham Exploration Inc. (An Exploration Stage Company)the Company as of MayDecember 31, 2007 and 2006,2014 and the results of its operations and its cash flows for the year then ended, May 31, 2007, for the period from April 4, 2006 (Date of Inception) to May 31, 2006, and accumulated from April 4, 2006 (Date of Inception) to May 31, 2007 in conformity with accounting principles generally accepted in the United States.States of America.

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 13 to the financial statements, the Company has not generated any revenueshad an accumulated deficit at December 31, 2014, a net loss and has incurred annet cash used in operating loss since inception.activities for the reporting period then ended. These factors raise substantial doubt about the Company’s ability to continue as a going concern. Management’s plans in regardregards to these matters are also discusseddescribed in Note 1.3. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

/s/ MANNING ELLIOTT LLP

CHARTERED ACCOUNTANTS

Vancouver, Canada
August 22, 2007/s/Li and Company, PC
Li and Company, PC

F-1


Skillman, New Jersey

November 4, 2015

F-2

Buckingham Exploration Inc.   
(An Exploration Stage Company)   
Consolidated Balance Sheets   
(Expressed in US dollars)   
 
 May 31, 2007 May 31, 2006  
 
ASSETS   
Current Assets   
             Cash 456,274 13,837 
             Other receivables 22,112 
             Prepaid expenses 6,125 
Total Assets 484,511 13,837 
LIABILITIES AND STOCKHOLDERS’ EQUITY   
Current Liabilities   
             Accounts payable 12,462 
             Accrued liabilities 6,456 1,114 
             Due to related parties (Note 5) 13,672 6,589 
             Note payable (Note 4) 23,362 
Total Liabilities 55,952 7,703 
Commitments and Contingencies (Notes 1 and 10)   
Stockholders’ Equity   
Preferred Stock, 20,000,000 shares authorized, $0.0001 par value, NIL issued and outstanding   
Common Stock, 80,000,000 shares authorized, $0.0001 par value 35,382,250 and 22,000,000 shares issued and outstanding   
Additional Paid-in Capital 2,095,386 
Common Stock Subscribed (Note 6) 10,350 
Deficit Accumulated During the Exploration Stage (1,670,365) (6,416) 
Total Stockholders’ Equity 428,559 6,134 
Total Liabilities and Stockholders’ Equity 484,511 13,837 

 

(The accompanying notes are an integral part of these financial statements)


VNUE Inc.

F-2


Buckingham Exploration Inc.
(An Exploration Stage Company)
Consolidated Statements of Operations
(Expressed in US dollars)Balance Sheet

  For the 
  period Accumulated   
  from April 4, from April 4, 
 Year Ended 2006 (Date of 2006 (Date of  
    May 31, Inception) to Inception) to 
 2007 May 31, 2006 May 31, 2007
 $  
Revenue 
Expenses    
             General and administrative(1) 226,792 1,608 228,400 
             Impairment of mineral property costs (Note 4) 1,345,125 1,345,125 
             Mineral property costs 2,392 2,392 
             Professional fees 88,713 4,808 93,521 
Total Expenses 1,663,022 6,416 1,669,438 
Other (Income) Expenses    
             Interest income (560) (560) 
             Interest expense 1,487 1,487 
Net Loss (1,663,949) (6,416) (1,670,365) 
Net Loss Per Share – Basic and Diluted (0.06) 
Weighted Average Shares Outstanding 27,186,000 8,351,000  
(1)Stock based compensation included as follows:    
     General and administrative expenses 134,999 134,999 

(TheDecember 31, 2014

  December 31,
2014
 
    
Assets   
Current Assets   
Cash $46 
     
Total current assets  46 
     
Other Assets    
Intangible assets  354,000 
Accumulated amortization  (5,900)
     
Intangible assets , net  348,100 
     
Total assets $348,146 
     
Liabilities and Stockholders' Deficit    
Current Liabilities    
Accounts payable $105,943 
     
Total current liabilities  105,943 
     
Long-Term Liabilities    
Advances from stockholders  86,736 
Convertible notes payable, net  21,643 
Derivative liabilities  215,748 
     
Total long-term liabilities  324,127 
     
Total liabilities  430,070 
     
Stockholders' Deficit    
Preferred stock no par value: 3,000,000 shares authorized;
133,334 shares issued and outstanding
  204,000 
Common stock no par value: 12,000,000 shares authorized;
7,998,001 shares issued and outstanding
  100,000 
Additional paid-in capital  (334,543)
Accumulated deficit  (51,381)
     
Total Stockholders' Deficit  (81,924)
     
Total Liabilities and Stockholders' Deficit $348,146 

See accompanying notes are an integral partto the consolidated financial statements.

F-3

VNUE Inc.

Consolidated Statement of these financial statements)Operations

F-3


Buckingham Exploration Inc.    
(An Exploration Stage Company)    
Consolidated Statements of Cash Flows    
(Expressed in US dollars)    
 
 May 31, For the period Accumulated 
  2007 from April 4, from April 4, 
  2006 (Date of 2006 (Date of 
  Inception) to Inception) to 
  May 31, 2006 May 31, 2007 
 $  
Operating Activities    
Net loss (1,663,949) (6,416) (1,670,365) 
Adjustments to reconcile net loss to net cash used in    
operating activities    
           Impairment of mineral property costs 1,345,125 1,345,125 
           Stock based compensation 134,999 134,999 
           Common shares issued for services 32,000 32,000 
Changes in operating assets and liabilities    
           Accounts payable and accrued liabilities 17,804 1,114 18,918 
           Other receivables (22,112) (22,112) 
           Prepaid expenses (6,125) (6,125) 
           Due to related parties 1,589 1,589 
Net Cash Used in Operating Activities (162,258) (3,713) (165,971) 
Investing Activities    
Acquisition of mineral properties (545,125) (545,125) 
Net Cash Used in Investing Activities (545,125) (545,125) 
Financing Activities    
           Advance from a related party 7,083 5,000 12,083 
           Note payable 23,362 23,362 
           Proceeds from common stock subscriptions 10,350 10,350 
           Proceeds from the issuance of common stock 1,119,375 2,200 1,121,575 
Net Cash Provided by Financing Activities 1,149,820 17,550 1,167,370 
Increase In Cash 442,437 13,837 456,274 
Cash - Beginning of Year 13,837 – – 
Cash – End of Year 456,274 13,837 456,274 
Non-Cash Investing and Financing Activities:    
           Common stock issued for mineral property acquisitions800,000  
           Common stock issued for mineral property acquisition finders fee 100,000  
Supplemental Disclosures    
           Interest paid 1,487  
           Income tax paid  
 
(The accompanying notes are an integral part of these financial statements)

  For the Year 
  Ended 
  December 31,
2014
 
     
Sales $221 
     
Cost of sales  97,735 
     
Gross margin  (97,514)
     
Operating expenses    
Professional fees  114,435 
General and administrative  32,584 
     
Total operating expenses  147,019 
     
Loss from Operations  (244,533)
     
Other (income) expenses    
Change in fair value of derivative liabilities  (33,204)
Debt discount  174,595 
     
Other (income) expenses, net  141,391 
     
Loss before income tax provision  (385,924)
     
Income tax provision  - 
     
Net loss $(385,924)

F-4


Buckingham Exploration Inc.       
(An Exploration Stage Company)       
Consolidated Statement of Stockholders’ Equity      
For the Period from April 4, 2006 (Date of Inception) to May 31, 2007    
(Expressed in US dollars)       
 
     Deficit  
     Accumulated During   
   Common      Additional  the  
   Stock Paid-Up Exploration  
 Shares AmountSubscribedCapital Stage    Total       
 $  $  
Balance – April 4, 2006 (Date of Inception) 
May 8, 2006 – issuance of commons hares for cash proceeds at $0.0001 per share 20,000,000 2,000 2,000 
May 20, 2006 – issuance of common shares for cash proceeds at $0.0001 per share 1,000,000 100  100 
May 26, 2006 – issuance of common shares for cash proceeds at $0.0001 per share 1,000,000 100 100 
May 31, 2006 – common shares subscribed at $0.10 per share 10,350 10,350 
Net loss for the period (6,416) (6,416) 
Balance – May 31, 2006 22,000,000 2,200 10,350 (6,416) 6,134 
July 1, 2006 – issuance of common shares for cash proceeds at $0.10 per share 527,250 53 (10,350) 52,672 42,375 
August 8, 2006 – issuance of common shares for acquisition of mineral property at $0.10 per share 2,000,000 200 199,800 200,000 
September 28, 2006 – issuance of common shares for transfer agent expenses at $0.10 per share 120,000 12 11,988 12,000 
May 7, 2006 – issuance of common shares for proceeds cash at $0.10 per share 20,000 1,998 2,000 
May 7, 2007 – issuance of common shares for legal fees at $0.10 per share    200,000            20         -19,980                                        20,000
May 7, 2007 – issuance of common shares for acquisition of mineral property at $0.10 per share      5,000,000 500 499,500 500,000 
May 11, 2007 – issuance of common shares for mineral property finders fee at $0.10 per share 1,000,000 100 99,900 100,000 
May 16, 2007 – issuance of common shares for cash proceeds at $0.25 per share 4,300,000 430 1,074,570 1,075,000 
May 16, 2007 – issuance of common shares for finders fee at $0.25 per share 215,000 21 53,729 53,750 
Stock-based compensation 134,999 134,999 
Share issuance expenses (53,750) (53,750) 
Net loss for the year (1,663,949)  (1,663,949) 
Balance – May 31, 2007 35,382,250 3,538 2,095,386 (1,670,365) 428,559 
 

(TheSee accompanying notes are an integral partto the consolidated financial statements.

F-4

VNUE Inc.

Consolidated Statement of theseChanges in Members' Capital and Stockholders' Equity (Deficit)

For the period from August 1, 2013 (formation) through December 31, 2014

  Preferred Stock no par
value
  Common Stock no par
value
             
  Number of
Shares
  Amount  Number of
Shares
  Amount  Members'
Capital
  Additional
Paid-in
Capital
  Accumulated
Deficit
  Total
Stockholders'
Equity (Deficit)
 
                         
Balance, August 1, 2013 (formation)  -  $-   -  $-  $-  $-  $-  $- 
                                 
Net loss for the period from August 1, 2013 through December 31, 2013                          -   - 
                                 
Balance, December 31, 2013  -   -   -   -   -   -   -   - 
                                 
Members' contributions                  100,000           100,000 
                                 
Founder shares issued      -   7,808,001   -       -   -   - 
                                 
Issuance of common shares for LLC membership transfer          190,000   100,000   (100,000)          - 
                                 
Issuance of Preferred stock  133,334   204,000                       204,000 
                                 
Net loss for the period from January 1, 2014                                
through December 2, 2014                          (334,543)  (334,543)
                                 
Reclassification of accumulated deficit                                
as of December 2, 2014 to                                
additional paid-in capital                      (334,543)  334,543   - 
                                 
Net loss for the period from December 3, 2014 through December 31, 2014                          (51,381)  (51,381)
                                 
Balance, December 31, 2014  133,334  $204,000   7,998,001  $100,000  $-  $(334,543) $(51,381) $(81,924)

See accompanying notes to the consolidated financial statements)statements.


Buckingham Exploration Inc.
(An Exploration Stage Company)
Notes to the Consolidated Financial Statements
Period Ended May 31, 2007
(Expressed in US dollars)

1. Nature of Operations and Continuance of Business
F-5

Buckingham ExplorationVNUE Inc. (the “Company”

Consolidated Statement of Cash Flows

  For the Year 
  Ended 
  December 31,
2014
 
     
Cash Flows from Operating Activities    
Net loss $(385,924)
Adjustments to reconcile net loss to net cash used in operating activities:    
Amortization  5,900 
Change in fair value of derivative liabilities  (33,204)
Debt discount  174,595 
Changes in operating assets and liabilities:    
Accounts payable  105,943 
     
Net Cash Used in Operating Activities  (132,690)
     
Cash Flows from Investing Activities    
Acquisition of intangible assets  (150,000)
     
Net cash used in Investing Activities  (150,000)
     
Cash Flows from Financing Activities    
Advances from (repayment to) stockholders  86,736 
Sale of convertible notes payable  96,000 
Proceeds from sale of membership interest  100,000 
     
Net Cash Provided by Financing Activities  282,736 
     
Net Change in Cash  46 
     
Cash - beginning of the reporting period  - 
     
Cash - end of the reporting period $46 
     
Supplemental disclosure of cash flow information:    
     
Interest paid $- 
     
Income tax paid $- 

See accompanying notes to the consolidated financial statements.

F-6

Vnue, Inc.

December 31, 2014 and 2013

Notes to Consolidated Financial Statements

Note 1 - Organization and Operations

Vnue, LLC

Vnue LLC ("Vnue LLC" or “Predecessor”) is a limited liability company organized under the laws of the State of Delaware on August 1, 2013 which began operations in January 2014. On December 3, 2014, Vnue LLC filed a certificate of merger and merged into VNUE Washington with VNUE Washington as the surviving corporation. VNUE LLC offers a technology driven solution for Artist, Venues and Festivals to automate the capturing, publishing and monetization of the content.

Vnue, Inc.

VNUE, Inc. ("VNUE Washington", or the "Company") was incorporated inon October 16, 2014 under the laws of the State of Nevada on April 4, 2006. Washington for the sole purpose of acquiring all of the membership interests of the Predecessor.

On December 3, 2014, the Company issued an aggregate of 7,998,001 shares of the newly formed corporation’s common stock to the members of the Predecessor for all of their membership interests in the Predecessor. No value was given to the common stock issued by the newly formed corporation. The acquisition process utilizes the capital structure of VNUE Washington and the assets and liabilities of the Predecessor, which are recorded at historical cost.

The Company is an Exploration Stage Company, as definedapplied paragraph 505-10-S99-3 of the FASB Accounting Standards Codification (formerly Topic 4B of the Staff Accounting Bulletins (“SAB”) (“SAB Topic 4B”) issued by Statementthe United States Securities and Exchange Commission (the “SEC”), by reclassifying the Predecessor’s accumulated deficit of Financial Accounting Standard (“SFAS”) No.7 “Accounting and Reporting for Development Stage Enterprises”. $334,543 at December 3, 2014 to additional paid-in capital.

The Company’s principal business is the acquisition and exploration of mineral resources. The Company has not presently determined whether its properties contain mineral reserves that are economically recoverable.

Theseaccompanying financial statements have been prepared as if the Company had its corporate capital structure as of the date of the incorporation of the Predecessor.

Vnue Technology Inc.

Vnue Technology Inc. ("Vnue Tech") was incorporated under the laws of the State of Washington on October 16, 2014, with VNUE Washington owning 90% of the shares and 10% owned by one of VNUE Washington's directors. Vnue Tech is currently inactive.

Vnue Media Inc.

Vnue Media Inc. ("Vnue Media") was incorporated under the laws of the State of Washington on October 16, 2014, with VNUE Washington owning 89% of the shares and 11% owned by one of VNUE Washington's directors. Vnue Media is currently inactive.

Note 2 - Significant and Critical Accounting Policies and Practices

The Management of the Company is responsible for the selection and use of appropriate accounting policies and the appropriateness of accounting policies and their application. Critical accounting policies and practices are those that are both most important to the portrayal of the Company’s financial condition and results and require management’s most difficult, subjective, or complex judgments, often as a result of the need to make estimates about the effects of matters that are inherently uncertain. The Company’s significant and critical accounting policies and practices are disclosed below as required by generally accepted accounting principles.

Basis of Presentation

The Company’s financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

Use of Estimates and Assumptions and Critical Accounting Estimates and Assumptions

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 revenues and expenses during the reporting period.

F-7

Critical accounting estimates are estimates for which (a) the nature of the estimate is material due to the levels of subjectivity and judgment necessary to account for highly uncertain matters or the susceptibility of such matters to change and (b) the impact of the estimate on financial condition or operating performance is material. The Company’s critical accounting estimates and assumptions affecting the financial statements were:

(i)Assumption as a going concern : Management assumes that the Company will continue as a going concern, which contemplates continuity of operations, realization of assets, and liquidation of liabilities in the normal course of business ;
(ii)Fair value of long-lived assets: Fair value is generally determined using the asset’s expected future discounted cash flows or market value, if readily determinable. If long-lived assets are determined to be recoverable, but the newly determined remaining estimated useful lives are shorter than originally estimated, the net book values of the long-lived assets are depreciated over the newly determined remaining estimated useful lives. The Company considers the following to be some examples of important indicators that may trigger an impairment review: (i) significant under-performance or losses of assets relative to expected historical or projected future operating results; (ii) significant changes in the manner or use of assets or in the Company’s overall strategy with respect to the manner or use of the acquired assets or changes in the Company’s overall business strategy; (iii) significant negative industry or economic trends; (iv) increased competitive pressures; (v) a significant decline in the Company’s stock price for a sustained period of time; and (vi) regulatory changes. The Company evaluates acquired assets for potential impairment indicators at least annually and more frequently upon the occurrence of such events .
(iii)Valuation allowance for deferred tax assets : Management assumes that the realization of the Company’s net deferred tax assets resulting from its net operating loss (“NOL”) carry–forwards for Federal income tax purposes that may be offset against future taxable income was considered more likely than not and accordingly, the potential tax benefits of the net loss carry-forwards are recorded as a deferred tax benefit. Management made this assumption based on its ability to raise additional funds to support its daily operations by way of a public or private offering, among other factors.
(iv)Estimates and assumptions used in valuation of derivative liabilities and equity instruments: Management estimates expected term of share options and similar instruments, expected volatility of the Company’s common shares and the method used to estimate it, expected annual rate of quarterly dividends, and risk free rate(s) to value derivative liabilities, share options and similar instruments.

These significant accounting estimates or assumptions bear the risk of change due to the fact that there are uncertainties attached to these estimates or assumptions, and certain estimates or assumptions are difficult to measure or value.

Management bases its estimates on historical experience and on various assumptions that are believed to be reasonable in relation to the financial statements taken as a whole under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources.

Management regularly evaluates the key factors and assumptions used to develop the estimates utilizing currently available information, changes in facts and circumstances, historical experience and reasonable assumptions. After such evaluations, if deemed appropriate, those estimates are adjusted accordingly.

Actual results could differ from those estimates.

Principles of Consolidation

The Company applies the guidance of Topic 810“Consolidation” of the FASB Accounting Standards Codification ("ASC") to determine whether and how to consolidate another entity. Pursuant to ASC Paragraph 810-10-15-10 all majority-owned subsidiaries—all entities in which a parent has a controlling financial interest—shall be consolidated except (1) when control does not rest with the parent, the majority owner; (2) if the parent is a broker-dealer within the scope of Topic 940 and control is likely to be temporary; (3) consolidation by an investment company within the scope of Topic 946 of a non-investment-company investee. Pursuant to ASC Paragraph 810-10-15-8 the usual condition for a controlling financial interest is ownership of a majority voting interest, and, therefore, as a general rule ownership by one reporting entity, directly or indirectly, of more than 50 percent of the outstanding voting shares of another entity is a condition pointing toward consolidation. The power to control may also exist with a lesser percentage of ownership, for example, by contract, lease, agreement with other stockholders, or by court decree. The Company consolidates all less-than-majority-owned subsidiaries, if any, in which the parent’s power to control exists.

The Company consolidates the following subsidiaries and/or entities:

Name of consolidated subsidiary or
entity
State or other jurisdiction of
incorporation or organization
Date of incorporation or formation
(date of acquisition/disposition, if 
applicable)
Attributable interest
Vnue Inc.The State of WashingtonOctober 16, 2014100%
Vnue LLCThe State of WashingtonAugust 1, 2013
(December 3, 2014)
100%
Vnue Technology Inc.The State of WashingtonOctober 16, 201490%
Vnue Media  Inc.The State of WashingtonOctober 16, 201489%

F-8

The consolidated financial statements include the accounts of the subsidiaries/entities as of reporting periods end date and for the reporting periods then ended from their respective dates of incorporation/formation, acquisition and disposition.

All inter-company balances and transactions have been eliminated.

Fair Value of Financial Instruments

The Company follows paragraph 825-10-50-10 of the FASB Accounting Standards Codification for disclosures about fair value of its financial instruments and paragraph 820-10-35-37 of the FASB Accounting Standards Codification (“Paragraph 820-10-35-37”) to measure the fair value of its financial instruments. Paragraph 820-10-35-37 establishes a framework for measuring fair value in generally accepted accounting principles (GAAP), and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, Paragraph 820-10-35-37 establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three (3) broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs.

Financial assets are considered Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable.

The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument.

The carrying amounts of the Company’s financial assets and liabilities, such as cash and accounts payable approximate their fair value because of the short maturity of this instrument.

The Company’s convertible notes payable approximate the fair value of such instruments based upon management’s best estimate of interest rates that would be available to the Company for similar financial arrangements at December 31, 2014.

The Company’s Level 3 financial liabilities consist of the derivative financial instruments for which there is no current market for these securities such that the determination of fair value requires significant judgment or estimation.  The Company valued the automatic conditional conversion, re-pricing/down-round, change of control; default and follow-on offering provisions using a Monte Carlo model, with the assistance of a valuation specialist, for which management understands the methodologies. These models incorporate transaction details such as Company stock price, contractual terms, maturity, risk free rates, as well as assumptions about future financings, volatility, and holder behavior as of the date of issuance and each balance sheet date.

Transactions involving related parties cannot be presumed to be carried out on an arm's-length basis, as the requisite conditions of competitive, free-market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm's-length transactions unless such representations can be substantiated.

Fair Value of Financial Assets and Liabilities Measured on a Recurring Basis

Level 3 Financial Liabilities – Derivative Financial Instruments

The Company uses Level 3 of the fair value hierarchy to measure the fair value of the derivative liabilities and revalues its derivative liability at the end of every reporting period and recognizes gains or losses in the Statements of Operations that are attributable to the change in the fair value of the derivative liability.

Carrying Value, Recoverability and Impairment of Long-Lived Assets

The Company has adopted Section 360-10-35 of the FASB Accounting Standards Codification for its long-lived assets. Pursuant to ASC Paragraph 360-10-35-17 an impairment loss shall be recognized only if the carrying amount of a long-lived asset (asset group) is not recoverable and exceeds its fair value. The carrying amount of a long-lived asset (asset group) 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 (asset group). That assessment shall be based on the carrying amount of the asset (asset group) at the date it is tested for recoverability. An impairment loss shall be measured as the amount by which the carrying amount of a long-lived asset (asset group) exceeds its fair value. Pursuant to ASC Paragraph 360-10-35-20 if an impairment loss is recognized, the adjusted carrying amount of a long-lived asset shall be its new cost basis. For a depreciable long-lived asset, the new cost basis shall be depreciated (amortized) over the remaining useful life of that asset. Restoration of a previously recognized impairment loss is prohibited.

F-9

Pursuant to ASC Paragraph 360-10-35-21 the Company’s long-lived asset (asset group) is tested for recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. The Company considers the following to be some examples of such events or changes in circumstances that may trigger an impairment review: (a) significant decrease in the market price of a long-lived asset (asset group); (b) A significant adverse change in the extent or manner in which a long-lived asset (asset group) is being used or in its physical condition; (c) A significant adverse change in legal factors or in the business climate that could affect the value of a long-lived asset (asset group), including an adverse action or assessment by a regulator; (d) An accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of a long-lived asset (asset group); (e) A current-period operating or cash flow loss combined with a history of operating or cash flow losses or a projection or forecast that demonstrates continuing losses associated with the use of a long-lived asset (asset group); and (f) A current expectation that, more likely than not, a long-lived asset (asset group) will be sold or otherwise disposed of significantly before the end of its previously estimated useful life. The Company tests its long-lived assets for potential impairment indicators at least annually and more frequently upon the occurrence of such events.

Pursuant to ASC Paragraphs 360-10-45-4 and 360-10-45-5 an impairment loss recognized for a long-lived asset (asset group) to be held and used shall be included in income from continuing operations before income taxes in the income statement of a business entity. If a subtotal such as income from operations is presented, it shall include the amount of that loss. A gain or loss recognized on the sale of a long-lived asset (disposal group) that is not a component of an entity shall be included in income from continuing operations before income taxes in the income statement of a business entity. If a subtotal such as income from operations is presented, it shall include the amounts of those gains or losses.

Cash Equivalents

The Company considers all highly liquid investments with maturities of three months or less at the time of purchase to be cash equivalents.

Intangible Assets Other Than Goodwill

The Company has adopted Subtopic 350-30 of the FASB Accounting Standards Codification for intangible assets other than goodwill. Under the requirements, the Company amortizes the acquisition costs of intangible assets other than goodwill on a straight-line basis over or their estimated useful lives, the terms of the exclusive licenses and/or agreements, or the terms of legal lives of the respective assets as follows:

Estimated Useful
Life (Years)
Intangible assets15

Upon becoming fully amortized, the related cost and accumulated amortization are removed from the accounts.

Discount on Debt

The Company allocates the proceeds received from convertible debt instruments between the liability component and equity component, and records the conversion feature as a liability in accordance with subtopic 470-20 of the FASB Accounting Standards Codification (“Subtopic 470-20”). The conversion feature and certain other features that are considered embedded derivative instruments, such as a conversion reset provision, a penalty provision and redemption option, have been recorded at their fair value as its fair value can be separated from the convertible note and its conversion is independent of the underlying note value. The conversion liability is marked to market each reporting period with the resulting gains or losses shown in the Statement of Operations. The Company has also recorded the resulting discount on debt related to the conversion feature and is amortizing the discount using the effective interest rate method over the life of the debt instruments.

Derivative Liability

The Company evaluates its convertible debt, options, warrants or other contracts, if any, to determine if those contracts or embedded components of those contracts qualify as derivatives to be separately accounted for in accordance with paragraph 815-10-05-4 and Section 815-40-25 of the FASB Accounting Standards Codification. The result of this accounting treatment is that the fair value of the embedded derivative is marked-to-market each balance sheet date and recorded as either an asset or a liability. In the event that the fair value is recorded as a liability, the change in fair value is recorded in the consolidated statement of operations as other income or expense. Upon conversion, exercise or cancellation of a derivative instrument, the instrument is marked to fair value at the date of conversion, exercise or cancellation and then that the related fair value is reclassified to equity.

F-10

In circumstances where the embedded conversion option in a convertible instrument is required to be bifurcated and there are also other embedded derivative instruments in the convertible instrument that are required to be bifurcated, the bifurcated derivative instruments are accounted for as a single, compound derivative instrument.

The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is re-assessed at the end of each reporting period. Equity instruments that are initially classified as equity that become subject to reclassification are reclassified to liability at the fair value of the instrument on the reclassification date. Derivative instrument liabilities will be classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative instrument is expected within 12 months of the balance sheet date.

The Company adopted Section 815-40-15 of the FASB Accounting Standards Codification (“Section 815-40-15”) to determine whether an instrument (or an embedded feature) is indexed to the Company’s own stock.  Section 815-40-15 provides that an entity should use a two-step approach to evaluate whether an equity-linked financial instrument (or embedded feature) is indexed to its own stock, including evaluating the instrument’s contingent exercise and settlement provisions.

The Company marks to market the fair value of the remaining embedded derivative conversion features at each balance sheet date and records the change in the fair value of the remaining embedded derivative conversion features as other income or expense in the consolidated statements of operations.

The Company utilizes the Monte Carlo model that values the liability of the derivative conversion features based on a probability weighted discounted cash flow model with the assistance of a third party valuation firm. Black-Scholes model does not consider all of the terms of the instrument which may not be appropriate in many situations given complex features and terms of conversion option (e.g., combined embedded derivatives). The Monte Carlo model is based on future projections of the various potential outcomes. The features that were analyzed and incorporated into the model included the conversion features. The Monte Carlo model analyzed the underlying economic factors that influenced which of these events would occur, when they were likely to occur, and the specific terms that would be in effect at the time (i.e. stock price, exercise price, volatility, etc.). Projections were then made on the underlying factors which led to potential scenarios. Probabilities were assigned to each scenario based on management projections. This led to a cash flow projection and a probability associated with that cash flow. A discounted weighted average cash flow over the various scenarios was completed to determine the value of the conversion features.

Related Parties

The Company follows subtopic 850-10 of the FASB Accounting Standards Codification for the identification of related parties and disclosure of related party transactions.

Pursuant to Section 850-10-20 the related parties include a. affiliates of the Company (“Affiliate” means, with respect to any specified Person, any other Person that, directly or indirectly through one or more intermediaries, controls, is controlled by or is under common control with such Person, as such terms are used in and construed under Rule 405 under the Securities Act); b. entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section 825–10–15, to be accounted for by the equity method by the investing entity; c. trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management; d. principal owners of the Company; e. management of the Company; f. other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and g. other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests.

The financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of consolidated or combined financial statements is not required in those statements. The disclosures shall include: a. the nature of the relationship(s) involved; b. a description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; c. the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and d. amounts due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement.

F-11

Commitment and Contingencies

The Company follows subtopic 450-20 of the FASB Accounting Standards Codification to report accounting for contingencies. Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or un-asserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or un-asserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein.

If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s financial statements. If the assessment indicates that a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed.

Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed.

Non-Controlling Interest

The Company follows paragraph 810-10-65-1 of the FASB Accounting Standards Codification to report the non-controlling interest in its majority-owned subsidiaries and controlled entities in the consolidated balance sheets within the equity section, separately from the Company’s stockholders’ equity. Non-controlling interest represents the non-controlling interest holders’ proportionate share of the equity of the Company’s majority-owned subsidiaries and controlled entities. Non-controlling interest is adjusted for the non-controlling interest holders’ proportionate share of the earnings or losses and other comprehensive income (loss) and the non-controlling interest continues to be attributed its share of losses even if that attribution results in a deficit non-controlling interest balance.

Revenue Recognition

The Company follows paragraph 605-10-S99-1 of the FASB Accounting Standards Codification for revenue recognition. The Company recognizes revenue when it is realized or realizable and earned. The Company considers revenue realized or realizable and earned when all of the following criteria are met: (i) persuasive evidence of an arrangement exists, (ii) the product has been shipped or the services have been rendered to the customer, (iii) the sales price is fixed or determinable, and (iv) collectability is reasonably assured.

Equity Instruments Issued to Parties Other Than Employees for Acquiring Goods or Services

The Company accounts for equity instruments issued to parties other than employees for acquiring goods or services under the guidance of Sub-topic 505-50 of the FASB Accounting Standards Codification (“Sub-topic 505-50”).

Pursuant to ASC paragraph 505-50-25-7, if fully vested, non-forfeitable equity instruments are issued at the date the grantor and grantee enter into an agreement for goods or services (no specific performance is required by the grantee to retain those equity instruments), then, because of the elimination of any obligation on the part of the counterparty to earn the equity instruments, a measurement date has been reached. A grantor shall recognize the equity instruments when they are issued (in most cases, when the agreement is entered into). Whether the corresponding cost is an immediate expense or a prepaid asset (or whether the debit should be characterized as contra-equity under the requirements of paragraph 505-50-45-1) depends on the specific facts and circumstances. Pursuant to ASC paragraph 505-50-45-1, a grantor may conclude that an asset (other than a note or a receivable) has been received in return for fully vested, non-forfeitable equity instruments that are issued at the date the grantor and grantee enter into an agreement for goods or services (and no specific performance is required by the grantee in order to retain those equity instruments). Such an asset shall not be displayed as contra-equity by the grantor of the equity instruments. The transferability (or lack thereof) of the equity instruments shall not affect the balance sheet display of the asset. This guidance is limited to transactions in which equity instruments are transferred to other than employees in exchange for goods or services.

Pursuant to Paragraphs 505-50-25-8 and 505-50-25-9, an entity may grant fully vested, non-forfeitable equity instruments that are exercisable by the grantee only after a specified period of time if the terms of the agreement provide for earlier exercisability if the grantee achieves specified performance conditions. Any measured cost of the transaction shall be recognized in the same period(s) and in the same manner as if the entity had paid cash for the goods or services or used cash rebates as a sales discount instead of paying with, or using, the equity instruments. A recognized asset, expense, or sales discount shall not be reversed if a stock option that the counterparty has the right to exercise expires unexercised.

F-12

Pursuant to ASC Paragraphs 505-50-30-2 and 505-50-30-11 share-based payment transactions with nonemployees shall be measured at the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable. The issuer shall measure the fair value of the equity instruments in these transactions using the stock price and other measurement assumptions as of the earlier of the following dates, referred to as the measurement date: (a) The date at which a commitment for performance by the counterparty to earn the equity instruments is reached (a performance commitment); or (b) The date at which the counterparty's performance is complete. If the Company’s common shares are traded in one of the national exchanges the grant-date share price of the Company’s common stock will be used to measure the fair value of the common shares issued, however, if the Company’s common shares are thinly traded the use of share prices established in the Company’s most recent private placement memorandum (“PPM”), or weekly or monthly price observations would generally be more appropriate than the use of daily price observations as such shares could be artificially inflated due to a larger spread between the bid and asked quotes and lack of consistent trading in the market.

Pursuant to ASC Paragraph 718-10-55-21 if an observable market price is not available for a share option or similar instrument with the same or similar terms and conditions, an entity shall estimate the fair value of that instrument using a valuation technique or model that meets the requirements in paragraph 718-10-55-11 and takes into account, at a minimum, all of the following factors:

a.The exercise price of the option.

b.The expected term of the option, taking into account both the contractual term of the option and the effects of employees’ expected exercise and post-vesting employment termination behavior: Pursuant to Paragraph 718-10-50-2(f)(2)(i) of the FASB Accounting Standards Codification the expected term of share options and similar instruments represents the period of time the options and similar instruments are expected to be outstanding taking into consideration of the contractual term of the instruments and holder’s expected exercise behavior into the fair value (or calculated value) of the instruments.  The Company uses historical data to estimate holder’s expected exercise behavior.  If the Company is a newly formed corporation or shares of the Company are thinly traded the contractual term of the share options and similar instruments is used as the expected term of share options and similar instruments as the Company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate expected term.

c.The current price of the underlying share.

d.The expected volatility of the price of the underlying share for the expected term of the option.  Pursuant to ASC Paragraph 718-10-55-25 a newly publicly traded entity might base expectations about future volatility on the average volatilities of similar entities for an appropriate period following their going public. A nonpublic entity might base its expected volatility on the average volatilities of otherwise similar public entities. For purposes of identifying otherwise similar entities, an entity would likely consider characteristics such as industry, stage of life cycle, size, and financial leverage. Because of the effects of diversification that are present in an industry sector index, the volatility of an index should not be substituted for the average of volatilities of otherwise similar entities in a fair value measurement.  Pursuant to paragraph 718-10-S99-1 if shares of a company are thinly traded the use of weekly or monthly price observations would generally be more appropriate than the use of daily price observations as the volatility calculation using daily observations for such shares could be artificially inflated due to a larger spread between the bid and asked quotes and lack of consistent trading in the market.  The Company uses the average historical volatility of the comparable companies over the expected term of the share options or similar instruments as its expected volatility.

e.The expected dividends on the underlying share for the expected term of the option.  The expected dividend yield is based on the Company’s current dividend yield as the best estimate of projected dividend yield for periods within the expected term of the share options and similar instruments.

f.The risk-free interest rate(s) for the expected term of the option. Pursuant to ASC 718-10-55-28 a U.S. entity issuing an option on its own shares must use as the risk-free interest rates the implied yields currently available from the U.S. Treasury zero-coupon yield curve over the contractual term of the option if the entity is using a lattice model incorporating the option’s contractual term. If the entity is using a closed-form model, the risk-free interest rate is the implied yield currently available on U.S. Treasury zero-coupon issues with a remaining term equal to the expected term used as the assumption in the model.

F-13

Pursuant to ASC paragraph 505-50-S99-1, if the Company receives a right to receive future services in exchange for unvested, forfeitable equity instruments, those equity instruments are treated as unissued for accounting purposes until the future services are received (that is, the instruments are not considered issued until they vest). Consequently, there would be no recognition at the measurement date and no entry should be recorded.

Deferred Tax Assets and Income Tax Provision

The Company accounts for income taxes under Section 740-10-30 of the FASB Accounting Standards Codification. Deferred income tax assets and liabilities are determined based upon differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent management concludes it is more likely than not that the assets will not be realized. 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 liabilities of a change in tax rates is recognized in the statements of operations in the period that includes the enactment date.

The Company adopted section 740-10-25 of the FASB Accounting Standards Codification (“Section 740-10-25”). Section 740-10-25 addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under Section 740-10-25, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent (50%) likelihood of being realized upon ultimate settlement. Section 740-10-25 also provides guidance on de-recognition, classification, interest and penalties on income taxes, accounting in interim periods and requires increased disclosures.

The estimated future tax effects of temporary differences between the tax basis of assets and liabilities are reported in the accompanying balance sheets, as well as tax credit carry-backs and carry-forwards. The Company periodically reviews the recoverability of deferred tax assets recorded on its balance sheets and provides valuation allowances as management deems necessary.

Management makes judgments as to the interpretation of the tax laws that might be challenged upon an audit and cause changes to previous estimates of tax liability. In addition, the Company operates within multiple taxing jurisdictions and is subject to audit in these jurisdictions. In management’s opinion, adequate provisions for income taxes have been made for all years. If actual taxable income by tax jurisdiction varies from estimates, additional allowances or reversals of reserves may be necessary.

Tax years that remain subject to examination by major tax jurisdictions

The Company discloses tax years that remain subject to examination by major tax jurisdictions pursuant to the ASC Paragraph 740-10-50-15.

Cash Flows Reporting

The Company adopted paragraph 230-10-45-24 of the FASB Accounting Standards Codification for cash flows reporting, classifies cash receipts and payments according to whether they stem from operating, investing, or financing activities and provides definitions of each category, and uses the indirect or reconciliation method (“Indirect method”) as defined by paragraph 230-10-45-25 of the FASB Accounting Standards Codification to report net cash flow from operating activities by adjusting net income to reconcile it to net cash flow from operating activities by removing the effects of (a) all deferrals of past operating cash receipts and payments and all accruals of expected future operating cash receipts and payments and (b) all items that are included in net income that do not affect operating cash receipts and payments.

Subsequent Events

The Company follows the guidance in Section 855-10-50 of the FASB Accounting Standards Codification for the disclosure of subsequent events. The Company will evaluate subsequent events through the date when the financial statements were issued. Pursuant to ASU 2010-09 of the FASB Accounting Standards Codification, the Company as an SEC filer considers its financial statements issued when they are widely distributed to users, such as through filing them on EDGAR.

Recently Issued Accounting Pronouncements

In May 2014, the FASB issued the FASB Accounting Standards Update No. 2014-09 “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”)

F-14

This guidance amends the existing FASB Accounting Standards Codification, creating a new Topic 606, Revenue from Contracts with Customer. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.

To achieve that core principle, an entity should apply the following steps:

1.Identify the contract(s) with the customer
2.Identify the performance obligations in the contract
3.Determine the transaction price
4.Allocate the transaction price to the performance obligations in the contract
5.Recognize revenue when (or as) the entity satisfies a performance obligations

The ASU also provides guidance on disclosures that should be provided to enable financial statement users to understand the nature, amount, timing, and uncertainty of revenue recognition and cash flows arising from contracts with customers.  Qualitative and quantitative information is required about the following:

1.Contracts with customers  – including revenue and impairments recognized, disaggregation of revenue, and information about contract balances and performance obligations (including the transaction price allocated to the remaining performance obligations)
2.Significant judgments and changes in judgments  – determining the timing of satisfaction of performance obligations (over time or at a point in time), and determining the transaction price and amounts allocated to performance obligations
3.Assets recognized from the costs to obtain or fulfill a contract.

ASU 2014-09 is effective for periods beginning after December 15, 2016, including interim reporting periods within that reporting period for all public entities.  Early application is not permitted.

In June 2014, the FASB issued the FASB Accounting Standards Update No. 2014-12 “Compensation—Stock Compensation (Topic 718) :Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period” (“ASU 2014-12”).

The amendments clarify the proper method of accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period.  The Update requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. The performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered.

The amendments in this Update are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted.

In August 2014, the FASB issued the FASB Accounting Standards Update No. 2014-15“Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”).

In connection with preparing financial statements for each annual and interim reporting period, an entity’s management should evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern basis, which implieswithin one year after the date that thefinancial statements are issued (or within one year after the date that thefinancial statements are available to be issued when applicable). Management’s evaluation should be based on relevant conditions and events that are known and reasonably knowable at the date that thefinancial statements are issued (or at the date that thefinancial statements are available to be issued when applicable). Substantial doubt about an entity’s ability to continue as a going concern exists when relevant conditions and events, considered in the aggregate, indicate that it is probable that the entity will be unable to meet its obligations as they become due within one year after the date that the financial statements are issued (or available to be issued). The termprobable is used consistently with its use in Topic 450, Contingencies.

When management identifies conditions or events that raise substantial doubt about an entity’s ability to continue as a going concern, management should consider whether its plans that are intended to mitigate those relevant conditions or events will alleviate the substantial doubt. The mitigating effect of management’s plans should be considered only to the extent that (1) it is probable that the plans will be effectively implemented and, if so, (2) it is probable that the plans will mitigate the conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern.

F-15

If conditions or events raise substantial doubt about an entity’s ability to continue as a going concern, but the substantial doubt is alleviated as a result of consideration of management’s plans, the entity should disclose information that enables users of the financial statements to understand all of the following (or refer to similar information disclosed elsewhere in the footnotes):

a.         Principal conditions or events that raised substantial doubt about the entity’s ability to continue as a going concern (before consideration of management’s plans)

b.         Management’s evaluation of the significance of those conditions or events in relation to the entity’s ability to meet its obligations

c.         Management’s plans that alleviated substantial doubt about the entity’s ability to continue as a going concern.

If conditions or events raise substantial doubt about an entity’s ability to continue as a going concern, and substantial doubt is not alleviated after consideration of management’s plans, an entity should include a statement in the footnotes indicating that there issubstantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued (or available to be issued). Additionally, the entity should disclose information that enables users of the financial statements to understand all of the following:

a.         Principal conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern

b.         Management’s evaluation of the significance of those conditions or events in relation to the entity’s ability to meet its obligations

c.         Management’s plans that are intended to mitigate the conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern.

The amendments in this Update are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted.

In February 2015, the FASB issued the FASB Accounting Standards Update No. 2015-02 “ Consolidation (Topic 810) -Amendments to the Consolidation Analysis” (“ASU 2015-02”)  to improve certain areas of consolidation guidance for reporting organizations (i.e., public, private, and not-for-profit) that are required to evaluate whether to consolidate certain legal entities such as limited partnerships, limited liability corporations, and securitization structures (e.g., collateralized debt/loan obligations).   All legal entities are subject to reevaluation under the revised consolidation model. Specifically, the amendments:

·Eliminating the presumption that a general partner should consolidate a limited partnership.
·Eliminating the indefinite deferral of FASB Statement No. 167, thereby reducing the number of Variable Interest Entity (VIE) consolidation models from four to two (including the limited partnership consolidation model).
·Clarifying when fees paid to a decision maker should be a factor to include in the consolidation of VIEs. Note: a VIE is a legal entity in which consolidation is not based on a majority of voting rights.
·Amending the guidance for assessing how related party relationships affect VIE consolidation analysis.
·Excluding certain money market funds from the consolidation guidance.

The amendments in this Update are effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period.

In April 2015, the FASB issued the FASB Accounting Standards Update No. 2015-03 “Interest—Imputation of Interest (Subtopic 835-30) :Simplifying the Presentation of Debt Issuance Costs” (“ASU 2015-03”).

To simplify presentation of debt issuance costs, the amendments in this Update require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this Update.

For public business entities, the amendments in this Update are effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years.

In August 2015, the FASB issued the FASB Accounting Standards Update No. 2015-14 “Revenue from Contracts with Customers (Topic 606) :Deferral of the Effective Date” (“ASU 2015-14”).

The amendments in this Update defer the effective date of Update 2014-09 for all entities by one year. Public business entities, certain not-for-profit entities, and certain employee benefit plans should apply the guidance in Update 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period.

Management does not believe that any recently issued, but not yet effective accounting pronouncements, when adopted, will have a material effect on the accompanying financial statements.

F-16

Note 3 - Going Concern

The Company has elected to adopt early application of Accounting Standards Update No. 2014-15, “Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”) ..

The financial statements have been prepared assuming that the Company will continue to realize itsas a going concern, which contemplates continuity of operations, realization of assets, and discharge itsliquidation of liabilities in the normal course of business.

As reflected in the financial statements, the Company had an accumulated deficit at December 31, 2014, a net loss and net cash used in operating activities for the year then ended. These factors raise substantial doubt about the Company’s ability to continue as a going concern.

Currently, management is attempting to increase revenues and improve gross margins by a revised sales strategy. The Company has never generated revenues since inceptionis redirecting its sales focus from direct sales to domestic and has never paid any dividendsinternational channel sales, where the Company is primarily selling through a channel of Distributors, Value Added Resellers, Strategic Partners and is unlikely to pay dividends or generate earningsOriginal Equipment Manufacturers. While the Company believes in the immediate or foreseeable future.viability of its strategy to increase revenues and in its ability to raise additional funds, there can be no assurances to that effect. The continuationability of the Company to continue as a going concern is dependent upon the continued financial support from its shareholders, the ability of the Company to obtain necessary equity financing to continue operations, and the attainment of profitable operations. As at May 31, 2007, the Company has an accumulated loss of $1,670,365. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern. Thesecontinually increase its customer base and realize increased revenues from recently signed contracts.

The financial statements do not include any adjustments related to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should th ethe Company be unable to continue as a going concern.

Note 4 – Intangible Assets

Entry into an Asset Purchase Agreement

On July 23, 2014, the Company entered into an Asset purchase agreement with Lively, LLC (the “Agreement”), whereby the Company acquired certain assets of Lively, LLC for consideration of (i) payment of $150,000 and (ii) Preferred shares with a fair market value of $250,000 at the time of the issuance. Assets purchased included: a) software, inventions, customers, customer lists, development, documents and records, designs, claims, intellectual property rights, distribution rights and merchandising rights; b) all copyright, patents, trademarks, trade names, logos or service marks and other intangible property and rights.

The Company issued 133,334 preferred shares to Lively LLC to satisfy the consideration (ii) for the acquisition of the intangible assets which were valued at $1.53 per share, the most recent PPM price per common share from the subsequent sale of common stock as the preferred shares are convertible to common shares on a 1 to 1 basis and the business has not changed between July 2014, the date of acquisition of the assets and April 2015, the date of the equity financing. The Company recorded the intangible assets of $354,000 including (i) $150,000 in cash and (ii) $204,000 in preferred shares.

Accounting Treatment of the Transaction

The Company acquired certain assets, a lesser component of an entity. In evaluating whether an acquisition of a lesser component of an entity constitutes a business the Company considered the following facts and circumstances: (1) Whether the nature of the revenue-producing activity of the component will remain generally the same as before the transaction; or (2) Whether any of the following attributes remain with the component after the transaction: (i) Physical facilities, (ii) Employee base, (iii) Market distribution system, (iv) Sales force, (v) Customer base, (vi) Operating rights, (vii) Production techniques, or (viii) Trade names. The Company determined that this transaction is a straight asset acquisition and not a business acquisition as there is no sufficient continuity of the acquired entity’s operations after the transaction.

Impairment Testing and Amortization Expense

(i)Impairment Testing

The Company acquired the intangible assets in July 2014 and is in the process of developing the technology for its commercial operations and the management of the Company determined that there was no impairment of such assets at December 31, 2014.

(ii) Amortization Expense

Amortization expense was $5,900 for the reporting period ended December 31, 2014.

F-17

Note 5 – Related Party Transactions

Related parties

Related parties with whom the Company had transactions are:

Related PartiesRelationshipRelated Party TransactionsBusiness Purpose of
transactions
Management and significant stockholder
Matthew CaronaPresident, CEO and significant shareholder(i) Advances(i) Working capital
Collin HowardCFO(i) Note payable(i) Working capital
Chris MannDirector(i) Notes payable(i) Working capital
Lou MannDirectorNoneN/A

Advances from Stockholder

From time to time, stockholder of the Company advances funds to the Company for working capital purpose. Those advances are unsecured, non-interest bearing and due on demand.

Note 6 – Convertible Notes Payable

Convertible notes payable consisted of the following:

  December 31,
2014
 
     
On August 14, 2014 and August 20, 2014 the Company issued three convertible notes to three note holders in the principal amount of $5,000, $10,000 and $10,000 with interest at 10% per annum. Note Conversion Price is determined as follows: (a) if the Note is converted upon the Next Equity Financing, an amount equal to 80% of the price paid per share paid by the investors in the Next Equity Financing; (b) if the Note is converted in the event of a Corporate Transaction, a price per share derived by dividing a "pre- money" valuation of $8,000,000 by the number of shares outstanding immediately prior to the time of such conversion, on a fully diluted basis; or (c) if the Note is converted as part of a Maturity Conversion, a price per unit derived by dividing a "pre-money" valuation of $8,000,000 by the total number of units (restricted and non-restricted) outstanding immediately prior to the time of such conversion, on a fully diluted basis. The note is due and payable on demand at any time after the earlier of (i) 36 months following the note issuance or (ii) the consummation of a corporate transaction if not previously converted. $25,000 
     
On August 31, 2014, the Company issued a convertible note to the CFO bearing 0% interest in the amount of $15,000. The Note Conversion Price is determined as follows: (a) if the Note is converted upon the Next Equity Financing, an amount equal to 80% of the price paid per share paid by the investors in the Next Equity Financing; (b) if the Note is converted in the event of a Corporate Transaction, a price per share derived by dividing a "pre-money" valuation of $8,000,000 by the number of shares outstanding immediately prior to the time of such conversion, on a fully diluted basis; or (c) if the Note is converted as part of a Maturity Conversion, a price per unit derived by dividing a "pre-money" valuation of $8,000,000 by the total number of units (restricted and non-restricted) outstanding immediately prior to the time of such conversion, on a fully diluted basis. The note is due and payable on demand at any time after the earlier of (i) 36 months following the note issuance or (ii) the consummation of a corporate transaction if not previously converted.  15,000 
     
Two convertible notes with a director bearing 0% interest were issued on August 31, 2914 in the amounts of $35,000 and $21,000. Note Conversion Price is determined as follows: (a) if the Note is converted upon the Next Equity Financing, an amount equal to 80% of the price paid per share paid by the investors in the Next Equity Financing; (b) if the Note is converted in the event of a Corporate Transaction, a price per share derived by dividing a "pre- money" valuation of $8,000,000 by the number of shares outstanding immediately prior to the time of such conversion, on a fully diluted basis; or (c) if the Note is converted as part of a Maturity Conversion, a price per unit derived by dividing a "pre-money" valuation of $8,000,000 by the total number of units (restricted and non-restricted) outstanding immediately prior to the time of such conversion, on a fully diluted basis. The note is due and payable on demand at any time after the earlier of (i) 36 months following the note issuance or (ii) the consummation of a corporate transaction if not previously converted.  56,000 
     
Face amount  96,000 
     
Discount representing the derivative liability on conversion features  (96,000)
     
Accumulated amortization of discount of convertible notes payable (*)  21,643 
     
Remaining discount  (74,357)
     
Convertible notes payable, net $21,643 

(*) The discount is being amortized using the effective interest rate method over the life of the debt instruments.

F-18

Note 7 – Derivative Instruments and the Fair Value of Financial Instruments

In August of 2014, the Company entered into Securities Purchase Agreements (the “Securities Purchase Agreements”) with certain investors (the “Holders”) for an aggregate of $96,000 in Convertible Promissory Notes (the "Notes" or “Securities”). The Securities included 6 convertible debt instruments with variable conversion prices with reset provisions. The Notes convert at a certain percentage of future financing and/or pre-money valuations on a full dilution basis; therefore the Company has an indeterminate number of shares required to settle the notes and this qualifies the convertible debt instruments as derivative instrument at the date of issuance.

Under the Security Purchase Agreements, the holders of the Convertible Promissory Notes have the following terms and conditions:

1. If not previously converted, all outstanding principal and accrued interest under a given Note will be due and payable on demand by the Holder at any time after the earlier of (i) 36 months following issuance of such Note (the "Maturity Date") or (ii) the consummation of a Corporate Transaction (sale of substantially all of the Company's assets or stock; an IPO by the Company; merger of the Company; or a liquidation/dissolution).

2. The Notes accrue interest at a rate of 0% to 10% per annum compounded annually.

3. The Note is convertible as follows: (a) If the Note is converted upon the Next Equity Financing, shares of the same class of stock issued to investors in the Next Equity Financing; (b) if the Note is converted in the event of a Corporate Transaction, shares of common stock of the Company; or (c) if the Note is converted as part of a Maturity Conversion, units of Class A limited liability company membership interest ("Class A Units").

4. The Note Conversion Price is determined as follows: (a) if the Note is converted upon the Next Equity Financing, an amount equal to 80% of the price paid per share paid by the investors in the Next Equity Financing; (b) if the Note is converted in the event of a Corporate Transaction, a price per share derived by dividing a "pre- money" valuation of $8,000,000 by the number of shares outstanding immediately prior to the time of such conversion, on a fully diluted basis; or (c) if the Note is converted as part of a Maturity Conversion, a price per unit derived by dividing a "pre-money" valuation of $8,000,000 by the total number of units (restricted and non-restricted) outstanding immediately prior to the time of such conversion, on a fully diluted basis.

5. If the Next Equity Financing or a Corporate Transaction has not occurred on or before the Maturity Date, and the Note has not been repaid in full, the outstanding balance will, at the Holder's election, be (a) due and payable in full or (b) converted into Conversion Security.

Valuation of Derivative Financial Instruments

(1)Valuation Methodology

The Company has utilized a third party valuation consultant to assist the Company to fair value the derivative financial instruments. The company uses Monte Carlo models that value the derivative liability within the notes. The technique applied generates a large number of possible (but random) price paths for the underlying (or underlyings) via simulation, and then calculates the associated payment value (cash or stock) of the derivative features. The price of the underlying common stock is modeled such that it follows a geometric Brownian motion with constant drift, and constant volatility. The stock price is determined by a random sampling from a normal distribution. Since the underlying random process is the same, for enough price paths, the value of derivative is derived from path dependent scenarios and outcomes.

F-19

The features in the Notes that were analyzed and incorporated into the model included theconversion feature with theadjustable conversion price andredemption provisions (at the option of the Holder). Based on these features, there are two primary events that can occur: the Holder converts the note or the Holder redeems the note.

The model simulates the underlying economic factors that influenced which of these events would occur, when they were likely to occur, and the specific terms that would be in effect at the time (i.e. stock price, conversion price, etc.). Probabilities were assigned to each variable such as redemption likelihood, and timing and pricing of reset events over the remaining term of the note based on management projections. This led to a cash flow simulation over the life of the note. A discounted cash flow for each simulation was completed, and it was compared to the discounted cash flow of the note without the embedded features, thus determining a value for the derivative liability for that simulation. For each valuation, 10,000 simulations were run and the results were averaged to determine the derivative liability as of the date of each valuation.

(2)Valuation Assumptions

The convertible notes were valued at issuance (potentially convertible if a financing event occurred in the period) and also at the quarterly periods with the following assumptions:

- The stock price was based on the Private Placement dated January 1, 2015 which raised $686,320 at$1.53 per VNUE Common S tock share price with 9,491,961 issued / outstanding and using the TGRI capitalization of 477,664,519 issued / outstanding with a Common Stock share price of$0.0304 .

- The stock projection s are based on the comparable company annual volatilities for each date. These volatilities were in the104–122% range:

  1 year    1 year 
         
8/14/14  104%  9/30/14  109%
           
8/20/14  109% 12/31/14  119%
           
8/31/14  109% 3/31/15  122%

- The stock price projection was modeled such that it follows a geometric Brownian motion with constant drift and an constant volatility, starting with the$0.03 market stock price at each valuation date;

- An event of default would not occur during the remaining term of the note;

- Conversion of the notes to stock would occur only at maturity if the Note was in the money and a reset event had occurred - either theNext Financing orCorporate Transaction ;

- Redemption would haveno derivative value since no penalty or interest rate adjustment exist in these Notes;

- Discount rates were based on risk free rates in effect based on the remaining term and date of each valuation and instrument.

- The Note is convertible as follows: (a) if the Note is converted upon theNext Equity Financing , shares of the same class of stock issued to investors in the Next Equity Financing; (b) if the Note is converted in the event of aCorporate Transaction , shares of common stock; or (c) if the Note is converted as part of aMaturity Conversion .

- The Note Conversion Price is based on the following: (a) if the Note is converted upon the Next Equity Financing, an amount equal to80% of the price paid per share paid by the investors in the Next Equity Financing ; (b) if the Note is converted in the event of a Corporate Transaction, aprice per share derived by dividing a "pre- money" valuation of $8,000,000 by the number of shares outstanding prior to such conversion, on a fully diluted basis; or (c) if the Note is converted as part of a Maturity Conversion, aprice per unit derived by dividing a "pre-money" valuation of $8,000,000 by the total number of units/shares (restricted and non-restricted) outstanding prior to such conversion, on a fully diluted basis.

F-20

- If the Next Equity Financing or a Corporate Transaction has not occurred on or before the Maturity Date, and the Note has not been repaid in full, the outstanding balance will, at the Holder's election, be (a) due and payable in full or (b) converted into Conversion Security.

- The Note assumptions for the Next Financing or Corporate Transaction (i.e. IPO) and cash requirements if no IPO are

-

  08/14/14  09/30/14  12/31/14  03/31/15 
                 
Next Equity Financing                
Minimum expected to raise  1,000,000   1,000,000   1,000,000   686,320 
Maximum expected to raise  5,000,000   5,000,000   5,000,000   686,320 
Target date of raise  12/31/14   12/31/14   12/31/14   03/31/15 
                 
Corporate Transaction/IPO                
Probability of IPO  50%  60%  70%  80%
Compensation Shares issued at IPO  10%  10%  10%  10%
Target date of IPO  03/31/15   03/31/15   03/31/15   06/30/15 
                 
Cash if No IPO                
Cash needed if no IPO  2,000,000   2,000,000   2,000,000   2,000,000 

As of December 31, 2014, the estimated fair value of derivative liabilities on convertible notes was $215,748.

The following table summarizes the change of fair value of the derivative debt liabilities.

Balance at January 1, 2014 $- 
To record derivative liabilities as debt discount  (248,952)
Change in fair value of derivative liabilities  33,204 
Settlement of derivative liability due to conversion of related notes  (-) 
Balance at December 31, 2014 $(215,748)

Note 9 – Stockholders’ Equity (Deficit)

Shares Authorized

Upon formation the total number of shares of all classes of stock which the Company is authorized to issue is Fifteen Million (15,000,000) shares of which Three Million (3,000,000) shares shall be Preferred Stock, no par value, and Twelve Million (12,000,000) shares shall be Common Stock, no par value.

Preferred Stock

In July 2014, VNUE Washington issued 133,334 shares of preferred stock for the acquisition of certain assets from Lively, LLC. The preferred shares were valued at $1.53 per share or $204,000. This was based on the price of the January 2015 private placement, as the preferred shares are convertible to common shares on a 1 to 1 basis and there were no significant changes in the business between the date of assets acquisition and the date of private placement.

F-21

Common Stock

Upon formation, 7,808,001 shares of VNUE Washington common stock were issued in exchange for the membership units of VNUE, LLC.

Transfer of Vnue LLC Membership as Common Stock

During the year ended December 31, 2014, a stockholder of the Company contributed $100,000 for the acquisition of a 2% membership interest of VNUE, LLC, which was converted to 190,000 shares of common stock upon formation of VNUE Washington in August 2014. The contribution has been recorded as common stock.

Note 10 – Deferred Tax Assets and Income Tax Provision

Deferred Tax Assets

At December 31, 2014, the Company had net operating loss (“NOL”) carry–forward for Federal income tax purposes of $40,658, net of 50% meals and entertainment exclusion, change in fair value of derivative liability and derivative expense that may be offset against future taxable income through 2034. A tax benefit has not been reported with respect to these net operating loss carry-forwards as the Company believes that the realization of the Company’s net deferred tax asset of approximately $13,824 is not considered more likely than not and accordingly, the deferred tax asset has been offset by a full valuation allowance.

Deferred tax assets consist primarily of the tax effect of NOL carry-forwards. The Company has provided a full valuation allowance on the deferred tax assets because of the uncertainty regarding its realizeability.  The valuation allowance increased approximately $13,824 for the year ended December 31, 2014.

Components of deferred tax assets are as follows:

  December 31,
2014
 
Net deferred tax assets – non-current:    
     
Expected income tax benefit from NOL carry-forwards $13,824 
     
Less valuation allowance  (13,824)
     
Deferred tax assets, net of valuation allowance $- 

Income Tax Provision in the Statements of Operations

A reconciliation of the federal statutory income tax rate and the effective income tax rate as a percentage of income before income tax provision is as follows:

For the period
from October 16,
2014 (inception)
through 
 December 31,
2014
Federal statutory income tax rate34.0%
Change in valuation allowance on net operating loss carry-forwards(34.0)
Effective income tax rate0.0%

F-22

Tax years that remain subject to examination by major tax jurisdictions

The Company's corporation income tax return is subject to audit under the statute of limitations by the Internal Revenue Service for a period of three (3) years from the date it is filed. The Company has not filed its corporation income tax return for the period from October 16, 2014 (inception) through December 31, 2014, which remains subject to examination upon filing.

Pro Forma Deferred Tax Assets and Income Tax Provision (Unaudited)

The unaudited pro forma income tax provision, deferred tax assets, and the valuation allowance of deferred tax assets, if any, included in the consolidated financial statements and income tax provision note reflect the income tax provision which would have been recorded as if the LLC had always been a C corporation upon its incorporation.

Deferred Tax Assets

At December 31, 2014, the Company would have had net operating loss (“NOL”) carry–forward for Federal income tax purposes of $243,847, net of 50% meals and entertainment exclusion, change in fair value of derivative liability and derivative expense, that may be offset against future taxable income through 2034 and the Company’s net deferred tax assets and valuation allowance would have been approximately $82,908; and its valuation allowance would have increased approximately $82,908 for the year then ended.

Components of the Company's deferred tax assets would have been as follows:

  December 31,
2014
 
Net deferred tax assets – non-current:    
     
Expected income tax benefit from NOL carry-forwards $82,908 
     
Less valuation allowance  (82,908)
     
Deferred tax assets, net of valuation allowance $- 

Income Tax Provision in the Statements of Operations

A reconciliation of the federal statutory income tax rate and the effective income tax rate as a percentage of income before income tax provision would have been as follows:

For the year
ended
 December 31,
2014
Federal statutory income tax rate34.0%
Change in valuation allowance on net operating loss carry-forwards(34.0)
Effective income tax rate0.0%

Note 11 – Subsequent Events

The Company has evaluated all events that occurred after the balance sheet date through the date when the financial statements were issued to determine if they must be reported. The Management of the Company determined that there were certain reportable subsequent event(s) to be disclosed as follows:

Sale of Common Shares for Cash

The Company sold 448,575 common shares at $1.53 per share to seven investors for $686,320 in cash during the period from January 2015 to May 2015.

F-23

Closing of Agreement and Plan of Merger

On May 29, 2015, Vnue, Inc. (formerly Tierra Grande Resources Inc. (the “TGRI”) closed the Agreement and Plan of Merger (the “Merger Agreement”), initially entered into on April 13, 2015 with VNUE Washington and all of the stockholders of VNUE Washington.

Upon closing of the Merger Agreement a total of 507,629,872 shares of TGRI common stock were issued as follows: (i) all shares of Vnue Washington stock of any class or series issued and outstanding immediately prior to the closing of the Merger Agreement were automatically converted into and exchanged for an aggregate of 477,815,488 fully paid and non-assessable shares of TGRI common stock; and (ii) an aggregate of 29,814,384 shares of TGRI common stock were issued to Matheau J. W. Stout, Esq. as payment for services performed prior to and in connection with the Merger. The number of TGRI common shares issued to Vnue Washington's stockholders for the acquisition of all shares of Vnue Washington represented approximately 79.0% of the issued and outstanding common stock immediately after the closing of the Merger Agreement. The board of directors and the members of the management of TGRI resigned and the board of directors and the member of the management of Vnue Washington became the board of directors and the member of the management of the combined entities upon closing of the Merger Agreement.

As a result of the controlling financial interest of the former stockholders of Vnue Washington, for financial statement reporting purposes, the merger between TGRI and Vnue Washington was treated as a reverse acquisition, with Vnue Washington deemed the accounting acquirer and TGRI deemed the accounting acquiree under the acquisition method of accounting in accordance with Section 805-10-55 of the FASB Accounting Standards Codification. The reverse acquisition is deemed a capital transaction in substance whereas the assets and liabilities of Vnue Washington (the accounting acquirer) are carried forward to TGRI (the legal acquirer and the reporting entity) at their carrying value before the combination and the equity structure (the number and type of equity interests issued) of Vnue Washington is being retroactively restated using the exchange ratio established in the Merger Agreement to reflect the number of shares of TGRI issued to effectuate the acquisition.  The number of common shares issued and outstanding and the amount recognized as issued equity interests in the consolidated financial statements is determined by adding the number of common shares deemed issued and the issued equity interests of Vnue Washington immediately prior to the business combination to the unredeemed shares and thefair value of TGRI determined in accordance with the guidance in ASC Section 805-40-55 applicable to business combinations, i.e. the equity structure (the number and type of equity interests issued) in the consolidated financial statements immediately post the combination reflects the equity structure of TGRI, including the equity interests the legal parent issued to effect the combination.

Acquisition-Related Costs

Pursuant to FASB ASC Paragraph 805-10-25-23 acquisition-related costs are costs the acquirer incurs to effect a business combination. Those costs include finder’s fees; advisory, legal, accounting, valuation, and other professional or consulting fees; general administrative costs, including the costs of maintaining an internal acquisitions department; and costs of registering and issuing debt and equity securities. The acquirer shall account for acquisition related costs as expenses in the periods in which the costs are incurred and the services are received, with one exception. The costs to issue debt or equity securities shall be recognized in accordance with other applicable GAAP.

F-24

Vnue, Inc.

September 30, 2015 and 2014

Index to the Consolidated Financial Statements

ContentsPage(s)
Consolidated balance sheets at September 30, 2015 (Unaudited) and December 31,  2014F-2
Consolidated statements of operations for the nine and three months ended September 30, 2015 and 2014 (Unaudited)F-3
Consolidated statement of changes in members’ capital and stockholders’ equity (deficit) for the nine months ended September 30, 2015 (Unaudited)F-4
Consolidated statements of cash flows for the nine  months ended September 30, 2015 and 2014 (Unaudited)F-5
Notes to the consolidated financial statements (Unaudited)F-6

F-1

VNUE Inc.

Consolidated Balance Sheets

  September 30,
2015
  December 31,
2014
 
  (Unaudited)    
       
Assets        
Current Assets        
Cash $35,009  $46 
Prepaid expenses  103,028   - 
         
Total current assets  138,037   46 
         
Intangible Assets        
Intangible assets  354,000   354,000 
Accumulated amortization  (23,600)  (5,900)
         
Intangible assets , net  330,400   348,100 
         
Total assets $468,437  $348,146 
         
Liabilities and Stockholders' Equity (Deficit)        
Current Liabilities        
Accounts payable $175,673  $105,943 
Accrued expense  30,303   - 
Note payable  50,000   - 
         
Total current liabilities  255,976   105,943 
         
Long-Term Liabilities        
Advances from stockholders  71,753   86,736 
Convertible notes payable, net  22,889   21,643 
Derivative liabilities  103,002   215,748 
         
Total long-term liabilities  197,644   324,127 
         
Total liabilities  453,620   430,070 
         
Commitment and contingencies        
         
Stockholders' Equity (Deficit)        
Preferred stock par value $0.0001: 20,000,000 shares authorized; 0 and 7,425,370 shares issued and outstanding, respectively  -   743 
Common stock par value $0.0001: 750,000,000 shares authorized; 628,860,630 and 445,408,977 shares issued and outstanding, respectively  62,886   44,541 
Additional paid-in capital  1,763,436   (75,827)
         
Accumulated deficit  (1,811,505)  (51,381)
         
Total Stockholders' Equity (Deficit)  14,817   (81,924)
         
Total Liabilities and Stockholders' Equity (Deficit) $468,437  $348,146 

See accompanying notes to the consolidated financial statements.

F-2

VNUE Inc.

Consolidated Statements of Operations

  For the Nine
Months
  For the Three
Months
  For the Nine
Months
  For the Three
Months
 
  Ended  Ended  Ended  Ended 
  September 30,
2015
  September 30,
2015
  September 30,
2014
  September 30,
2014
 
  (Unaudited)  (Unaudited)  (Unaudited)  (Unaudited) 
             
Revenue $483  $247  $120  $120 
                 
Cost of revenue  265,880   87,490   55,950   36,720 
                 
Gross margin  (265,397)  (87,243)  (55,830)  (36,600)
                 
Operating expenses                
Acquisition-related costs  819,105   -   -   - 
Salary and compensation  155,126   155,126   -   - 
Professional fees  244,742   106,762   71,017   58,423 
General and administrative  181,878   139,664   24,930   155 
                 
Total operating expenses  1,400,851   401,552   95,947   58,578 
                 
Loss from Operations  (1,666,248)  (488,795)  (151,777)  (95,178)
                 
Other (income) expenses                
Change in fair value of derivative liability  (112,746)  6,551   (13,314)  (13,314)
Financing cost  50,000   -   -   - 
Debt discount  42,246   1,250   160,847   160,847 
Interest expense  18,217   16,031   -   - 
Settlement of claims  96,159   96,159   -   - 
                 
Other (income) expenses, net  93,876   119,991   147,533   147,533 
                 
Loss before income tax provision  (1,760,124)  (608,786)  (299,310)  (242,711)
                 
Income tax provision  -   -   -   - 
                 
Net loss $(1,760,124) $(608,786) $(299,310) $(242,711)
                 
Earnings per share                
- Basic and Diluted $(0.00) $(0.00) $(0.00) $(0.00)
                 
Weighted average common shares outstanding                
- Basic and Diluted  534,654,168   636,076,883   445,408,977   445,408,977 

See accompanying notes to the consolidated financial statements.

F-3

VNUE Inc.

Consolidated Statement of Changes in Members' Capital and Stockholders' Equity (Deficit)

For the nine months ended September 30, 2015

(Unaudited)

  

Preferred Stock par value

$0.0001

  

Common Stock par value

$0.0001

             
  Number of
Shares
  Amount  Number of
Shares
  Amount  

Members'

Capital

  

Additional

Paid-in

Capital

  

Accumulated

Deficit

  

Total Members'

and

Stockholders'

Equity

(Deficit)

 
                         
Balance, December 31, 2013  -  $-   -  $-  $-  $-  $-  $- 
                                 
Members' contributions                  100,000           100,000 
                                 
Founders' shares issued          434,827,877   43,483       (43,483)  -   - 
                                 
Shares issued for membership transfer          10,581,100   1,058   (100,000)  98,942       - 
                                 
Issuance of preferred shares for the acquisition of intangible assets on July 23, 2014  7,425,370   743               203,257       204,000 
                                 
Net loss for the period from January 1, 2014 through December 2, 2014                          (334,543)  (334,543)
                                 
Reclassification of accumulated deficit as of December 2, 2014 to additional paid-in capital                      (334,543)  334,543   - 
                                 
Net loss for the period from December 3, 2014 through December 31, 2014                          (51,381)  (51,381)
                                 
Balance, December 31, 2014  7,425,370   743   445,408,977   44,541   -   (75,827)  (51,381)  (81,924)
                                 
Common shares issued for cash during quarter ended March 31, 2015          4,003,832   400       109,600       110,000 
                                 
Common shares issued for cash during the period from  April 1, 2015 thru May 28, 2015          20,977,309   2,098       574,222       576,320 
                                 
Common shares issued for conversion of preferred shares on May 29, 2015  (7,425,370)  (743)  7,425,370   743               - 
                                 
Reverse acquisition adjustment on May 29, 2015          126,866,348   12,687       (12,523)      164 
                                 
Shares issued for acquisition-related costs on May 29, 2015          29,814,384   2,981       816,124       819,105 
                                 
Issuance of fully vested, nonforfeitable common shares for future services on June 29, 2015          5,000,000   500       136,870       137,370 
                                 
Common shares issued per settlement agreement reached on July 23, 2015          3,500,000   350       95,809       96,159 
                                 
Common shares issued for service performed on July 27, 2015          2,500,000   250       68,435       68,685 
                                 
Return of common shares in exchange for advances on August 26, 2015          (21,885,591)  (2,189)      (49,848)      (52,037)
                                 
Common shares for consulting services earned  for the month of August 2015          791,667   79       21,671       21,750 
                                 
Common shares issued to employees upon signing of employment agreement on September 9, 2015          1,000,000   100       27,374       27,474 
                                 
Common shares issued for cash on September 29, 2015          2,666,667   267       39,733       40,000 
                                 
Common shares for consulting services earned for the month of September 2015          791,667   79       11,796       11,875 
                                 
Net loss                          (1,760,124)  (1,760,124)
                                 
Balance, September 30, 2015  -  $-   628,860,630  $62,886  $-  $1,763,436  $(1,811,505) $14,817 

See accompanying notes to the consolidated financial statements.

F-4

VNUE Inc.

Consolidated Statements of Cash Flows

  For the Nine
Months
  For the Nine
Months
 
  Ended  Ended 
  September 30,
2015
  September 30,
2014
 
  (Unaudited)  (Unaudited) 
       
Cash Flows from Operating Activities        
         
Net loss $(1,760,124) $(299,310)
Adjustments to reconcile net loss to net cash used in operating activities:        
Amortization  17,700   - 
Change in fair value of derivative liabilities  (112,746)  (13,314)
Note issued for financing cost  50,000   - 
Debt discount  42,246   160,847 
Shares issued for acquisition-related costs  819,105   - 
Common shares issued for employee services  27,474   - 
Common shares issued for third party services  198,469   - 
Changes in operating assets and liabilities:        
Prepaid expense  34,342   - 
Accounts payable  69,894   58,437 
Accrued expense  30,303   - 
         
Net Cash Used in Operating Activities  (583,337)  (93,340)
         
Cash Flows from Investing Activities        
Advances to related party  (52,037)  - 
Acquisition of intangible assets  -   (35,000)
         
Net cash used in Investing Activities  (52,037)  (35,000)
         
Cash Flows from Financing Activities        
Advances from (repayment to) stockholder  (14,983)  42,340 
Proceeds from (repayment of) convertible notes payable  (41,000)  86,000 
Proceeds from issuance of common shares  726,320   - 
         
Net Cash Provided by Financing Activities  670,337   128,340 
         
Net Change in Cash  34,963   - 
         
Cash - beginning of the reporting period  46   - 
         
Cash - end of the reporting period $35,009  $- 
         
Supplemental disclosure of cash flow information:        
         
Interest paid $-  $- 
         
Income tax paid $-  $- 
         
Non-cash Financing and Investing Activities        
         
Fully vested, nonforfeitable shares issued to 3rd party for future services $137,370  $- 
         
Return of common shares for the forgiveness of advances from related party $52,037  $- 

See accompanying notes to the consolidated financial statements.

F-5

Vnue, Inc.

September 30, 2015 and 2014

Notes to Consolidated Financial Statements

(Unaudited)

Note 1 - Organization and Operations

Vnue, Inc. (formerly Tierra Grande Resources, Inc.)

Vnue, Inc. (formerly Tierra Grande Resources, Inc.) ("VNUE", "TGRI", or the "Company") was incorporated under the laws of the State of Nevada on April 4, 2006. TGRI engaged in the acquisition and exploration of mineral properties and was inactive prior to the acquisition of Vnue, Inc. (a company incorporated under the laws of the State of Washington).

Vnue Washington and Consolidated Entities

Vnue, LLC

Vnue LLC ("Vnue LLC" or “Predecessor”) is a limited liability company organized under the laws of the State of Delaware on August 1, 2013 which began operations in January 2014. On December 12, 2006,3, 2014, Vnue LLC filed a certificate of merger and merged into VNUE Washington with VNUE Washington as the surviving corporation. VNUE LLC offers a technology driven solution for Artist, Venues and Festivals to automate the capturing, publishing and monetization of the content.

Vnue, Inc.

VNUE, Inc. ("VNUE Washington") was incorporated on October 16, 2014 under the laws of the State of Washington for the sole purpose of acquiring all of the membership interests of the Predecessor.

On December 3, 2014, the Company filedissued an aggregate of 7,800,001 shares of the newly formed corporation’s common stock to the members of the Predecessor for all of their membership interests in the Predecessor. No value was given to the common stock issued by the newly formed corporation. The acquisition process utilizes the capital structure of VNUE Washington and amended SB-2 Registration Statement withthe assets and liabilities of the Predecessor, which are recorded at historical cost.

The Company applied paragraph 505-10-S99-3 of the FASB Accounting Standards Codification (formerly Topic 4B of the Staff Accounting Bulletins (“SAB”) (“SAB Topic 4B”) issued by the United States Securities and Exchange Commission that was declared effective(the “SEC”), by reclassifying the Predecessor’s accumulated deficit of $334,543 at December 22, 20063, 2014 to register 3,047,250 shares of common stock for resale by existing shareholdersadditional paid-in capital.

The accompanying financial statements have been prepared as if the Company had its corporate capital structure as of the Company. The Company did not receive any proceedsdate of the incorporation of the Predecessor.

Vnue Technology Inc.

Vnue Technology Inc. ("Vnue Tech") was incorporated under the laws of the State of Washington on October 16, 2014, with VNUE Washington owning 90% of the resaleshares and 10% owned by one of common stockVNUE Washington's directors. Vnue Tech is currently inactive.

Vnue Media Inc.

Vnue Media Inc. ("Vnue Media") was incorporated under the laws of the State of Washington on October 16, 2014, with VNUE Washington owning 89% of the shares and 11% owned by existing shareholders.one of VNUE Washington's directors. Vnue Media is currently inactive.

Acquisition of Vnue Washington Treated as a Reverse Acquisition

On August 10, 2007,May 29, 2015, Vnue, Inc. (formerly Tierra Grande Resources Inc.) (“TGRI”) closed the Company sold a private placementAgreement and Plan of 3.5 million units at a priceMerger (the “Merger Agreement”), initially entered into on April 13, 2015 with Vnue Washington and all of $0.50 per unit, raisingthe stockholders of Vnue Washington.

Upon closing of the Merger Agreement a total of $1,750,000. Each unit consists507,629,872 shares of oneTGRI common sharestock were issued as follows: (i) all shares of Vnue Washington stock of any class or series issued and one non-transferable warrantoutstanding immediately prior to purchasethe closing of one furtherthe Merger Agreement were automatically converted into and exchanged for an aggregate of 477,815,488 fully paid and non-assessable shares of TGRI common sharestock; and (ii) an aggregate of 29,814,384 shares of TGRI common stock were issued to Matheau J. W. Stout, Esq. as payment for services performed prior to and in connection with the Merger. The number of TGRI common shares issued to Vnue Washington's stockholders for the acquisition of all shares of Vnue Washington represented approximately 79.0% of the issued and outstanding common stock immediately after the closing of the Merger Agreement. The board of directors and the members of the management of TGRI resigned and the board of directors and the member of the management of Vnue Washington became the board of directors and the member of the management of the combined entities upon closing of the Merger Agreement.

F-6

As a result of the controlling financial interest of the former stockholders of Vnue Washington, for financial statement reporting purposes, the merger between TGRI and Vnue Washington was treated as a reverse acquisition, with Vnue Washington deemed the accounting acquirer and TGRI deemed the accounting acquiree under the acquisition method of accounting in accordance with Section 805-10-55 of the FASB Accounting Standards Codification. The reverse acquisition is deemed a capital transaction in substance whereas the assets and liabilities of Vnue Washington (the accounting acquirer) are carried forward to TGRI (the legal acquirer and the reporting entity) at an exercise pricetheir carrying value before the combinationand the equity structure (the number and type of $1.00. Each warrant will expire onequity interests issued) of Vnue Washingtonis being retroactively restated using the earlierexchange ratio established in the Merger Agreement to reflect the number of two years fromshares of TGRI issued to effectuate the acquisition.  The number of common shares issued and outstanding and the amount recognized as issued equity interests in the consolidated financial statements is determined by adding the number of common shares deemed issued and the issued equity interests of Vnue Washingtonimmediately prior to the business combination to the unredeemed shares and thefair value of TGRI determined in accordance with the guidance in ASC Section 805-40-55 applicable to business combinations, i.e. the equity structure (the number and type of equity interests issued) in the consolidated financial statements immediately post the combination reflects the equity structure of TGRI, including the equity interests the legal parent issued to effect the combination .

Note 2 - Significant and Critical Accounting Policies and Practices

The Management of the Company is responsible for the selection and use of appropriate accounting policies and the appropriateness of accounting policies and their application. Critical accounting policies and practices are those that are both most important to the portrayal of the Company’s financial condition and results and require management’s most difficult, subjective, or complex judgments, often as a result of the need to make estimates about the effects of matters that are inherently uncertain. The Company’s significant and critical accounting policies and practices are disclosed below as required by generally accepted accounting principles.

Basis of Presentation – Unaudited Interim Financial Information

The unaudited interim financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information, and with the rules and regulations of the United States Securities and Exchange Commission (“SEC”) to Form 10-Q and Article 8 of Regulation S-X.  Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements.  The unaudited interim financial statements furnished reflect all adjustments (consisting of normal recurring accruals) which are, in the opinion of management, necessary to a fair statement of the results for the interim periods presented.  Interim results are not necessarily indicative of the results for the full fiscal year.  These financial statements should be read in conjunction with the financial statements of Vnue Washington for the year ended December 31, 2014 and notes thereto contained in Vnue Inc.’s Current Report amendment No. 1 to Form 8-K as filed with the SEC.

Use of Estimates and Assumptions and Critical Accounting Estimates and Assumptions

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 itof the financial statements and the reported amounts of revenues and expenses during the reporting period.

Critical accounting estimates are estimates for which (a) the nature of the estimate is issuedmaterial due to the levels of subjectivity and judgment necessary to account for highly uncertain matters or after five business days following the seventh consecutive trading daysusceptibility of such matters to change and (b) the impact of the estimate on whichfinancial condition or operating performance is material. The Company’s critical accounting estimates and assumptions affecting the Company’s common stock trades at least once on the NASDAQ operated OTC Bulletin Board at a price equal to or above $1.25 per share.financial statements were:

2. 

Summary(i)

Assumption as a going concern : Management assumes that the Company will continue as a going concern, which contemplates continuity of Significant Accounting Policies

operations, realization of assets, and liquidation of liabilities in the normal course of business ;
 (a)     (ii)

BasisFair value of Presentationlong-lived assets: Fair value is generally determined using the asset’s expected future discounted cash flows or market value, if readily determinable. If long-lived assets are determined to be recoverable, but the newly determined remaining estimated useful lives are shorter than originally estimated, the net book values of the long-lived assets are depreciated over the newly determined remaining estimated useful lives. The Company considers the following to be some examples of important indicators that may trigger an impairment review: (i) significant under-performance or losses of assets relative to expected historical or projected future operating results; (ii) significant changes in the manner or use of assets or in the Company’s overall strategy with respect to the manner or use of the acquired assets or changes in the Company’s overall business strategy; (iii) significant negative industry or economic trends; (iv) increased competitive pressures; (v) a significant decline in the Company’s stock price for a sustained period of time; and Consolidation

(vi) regulatory changes. The Company evaluates acquired assets for potential impairment indicators at least annually and more frequently upon the occurrence of such events .
(iii)Valuation allowance for deferred tax assets : Management assumes that the realization of the Company’s net deferred tax assets resulting from its net operating loss (“NOL”) carry–forwards for Federal income tax purposes that may be offset against future taxable income was considered more likely than not and accordingly, the potential tax benefits of the net loss carry-forwards are recorded as a deferred tax benefit. Management made this assumption based on its ability to raise additional funds to support its daily operations by way of a public or private offering, among other factors.
(iv)Estimates and assumptions used in valuation of derivative liabilities and equity instruments: Management estimates expected term of share options and similar instruments, expected volatility of the Company’s common shares and the method used to estimate it, expected annual rate of quarterly dividends, and risk free rate(s) to value derivative liabilities, share options and similar instruments.

F-7

These significant accounting estimates or assumptions bear the risk of change due to the fact that there are uncertainties attached to these estimates or assumptions, and certain estimates or assumptions are difficult to measure or value.

Management bases its estimates on historical experience and on various assumptions that are believed to be reasonable in relation to the financial statements taken as a whole under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources.

Management regularly evaluates the key factors and assumptions used to develop the estimates utilizing currently available information, changes in facts and circumstances, historical experience and reasonable assumptions. After such evaluations, if deemed appropriate, those estimates are adjusted accordingly.

Actual results could differ from those estimates.

Reverse Acquisition

Identification of the Accounting Acquirer

The Company considers factors in ASC paragraphs 805-10-55-10 through 55-15 in identifying accounting acquirer. The Company uses the existence of a controlling financial interest to identify the acquirer—the entity that obtains control of the acquiree.Other pertinent facts and circumstances also shall be considered in identifying the acquirer in a business combination effected by exchanging equity interests, including the following: a. The relative voting rights in the combined entity after the business combination. The acquirer usually is the combining entity whose owners as a group retain or receive the largest portion of the voting rights in the combined entity taking into consideration the existence of any unusual or special voting arrangements and options, warrants, or convertible securities. b. The existence of a large minority voting interest in the combined entity if no other owner or organized group of owners has a significant voting interest. The acquirer usually is the combining entity whose single owner or organized group of owners holds the largest minority voting interest in the combined entity. c. The composition of the governing body of the combined entity. The acquirer usually is the combining entity whose owners have the ability to elect or appoint or to remove a majority of the members of the governing body of the combined entity. d. The composition of the senior management of the combined entity. The acquirer usually is the combining entity whose former management dominates the management of the combined entity. e. The terms of the exchange of equity interests. The acquirer usually is the combining entity that pays a premium over the pre-combinationfair value of the equity interests of the other combining entity or entities. The acquirer usually is the combining entity whose relative size (measured in, for example, assets, revenues, or earnings) is significantly larger than that of the other combining entity or entities.

Pursuant to ASC Paragraph 805-40-05-2 as one example of a reverse acquisition, a private operating entity may arrange for a public entity to acquire its equity interests in exchange for the equity interests of the public entity. In this situation, the public entity is the legal acquirer because it issued its equity interests, and the private entity is the legal acquiree because its equity interests were acquired. However, application of the guidance in paragraphs 805-10-55-11 through 55-15 results in identifying: a. The public entity as theacquiree for accounting purposes (the accounting acquiree) and b. The private entity as theacquirer for accounting purposes (the accounting acquirer).

Measuring the Consideration Transferred and Non-controlling Interest

Pursuant to ASC Paragraphs 805-40-30-2 and 30-3 in a reverse acquisition, the accounting acquirer usually issues no consideration for theacquiree .. Instead, the accounting acquiree usually issues its equity shares to the owners of the accounting acquirer. Accordingly, theacquisition-date fair value of the consideration transferred by the accounting acquirer for its interest in the accounting acquiree is based on the number of equity interests the legal subsidiary would have had to issue to give the owners of the legal parent the same percentage equity interest in the combined entity that results from the reverse acquisition. The fair value of the number of equity interests calculated in that way can be used as the fair value of consideration transferred in exchange for the acquiree. The assets and liabilities of the legal acquiree are measured and recognized in the consolidated financial statements at their pre-combination carrying amounts (see paragraph 805-40-45-2(a)). Therefore, in a reverse acquisition the non-controlling interest reflects the non-controlling shareholders’ proportionate interest in the pre-combination carrying amounts of the legal acquiree’s net assets even though the non-controlling interests in other acquisitions are measured at their fair values at the acquisition date.

Acquisition-Related Costs

Pursuant to FASB ASC Paragraph 805-10-25-23 acquisition-related costs are costs the acquirer incurs to effect a business combination. Those costs include finder’s fees; advisory, legal, accounting, valuation, and other professional or consulting fees; general administrative costs, including the costs of maintaining an internal acquisitions department; and costs of registering and issuing debt and equity securities. The acquirer shall account for acquisition related costs as expenses in the periods in which the costs are incurred and the services are received, with one exception. The costs to issue debt or equity securities shall be recognized in accordance with other applicable GAAP.

F-8

Presentation of Consolidated Financial Statements Post Reverse Acquisition

Pursuant to ASC Paragraphs 805-40-45-1 and 45-2 consolidated financial statements following a reverse acquisition are issued under the name of the legal parent (accounting acquiree) but described in the notes as a continuation of the financial statements of the legal subsidiary (accounting acquirer), with one adjustment, which is to retroactively adjust the accounting acquirer’s legal capital to reflect the legal capital of the accounting acquiree. That adjustment is required to reflect the capital of the legal parent (the accounting acquiree). Comparative information presented in those consolidated financial statements also is retroactively adjusted to reflect the legal capital of the legal parent (accounting acquiree). The consolidated financial statements reflect all of the following: a. The assets and liabilities of the legal subsidiary (the accounting acquirer) recognized and measured at their pre-combination carrying amounts. b. The assets and liabilities of the legal parent (the accounting acquiree) recognized and measured in accordance with the guidance in Topic 805"business combinations" . c. The retained earnings and other equity balances of the legal subsidiary (accounting acquirer) before the business combination. d. The amount recognized as issued equity interests in the consolidated financial statements determined by adding the issued equity interest of the legal subsidiary (the accounting acquirer) outstanding immediately before the business combination to thefair value of the legal parent (accounting acquiree) determined in accordance with the guidance in this Topic applicable to business combinations. However, the equity structure (that is, the number and type of equity interests issued) reflects the equity structure of the legal parent (the accounting acquiree), including the equity interests the legal parent issued to effect the combination. Accordingly, the equity structure of the legal subsidiary (the accounting acquirer) is restated using the exchange ratio established in the acquisition agreement to reflect the number of shares of the legal parent (the accounting acquiree) issued in the reverse acquisition. e. Thenon-controlling interest ’s proportionate share of the legal subsidiary’s (accounting acquirer’s) pre-combination carrying amounts of retained earnings and other equity interests as discussed in paragraphs 805-40-25-2 and 805-40-30-3.

Pursuant to ASC Paragraphs 805-40-45-4 and 45-5 In calculating the weighted-average number of common shares outstanding (the denominator of the earnings-per-share (“EPS”) calculation) during the period in which the reverse acquisition occurs: a. The number of common shares outstanding from the beginning of that period to theacquisition date shall be computed on the basis of the weighted-average number of common shares of the legal acquiree (accounting acquirer) outstanding during the period multiplied by the exchange ratio established in the merger agreement. b. The number of common shares outstanding from the acquisition date to the end of that period shall be the actual number of common shares of the legal acquirer (the accounting acquiree) outstanding during that period. The basic EPS for each comparative period before the acquisition date presented in the consolidated financial statements following a reverse acquisition shall be calculated by dividing (a) by (b): a. The income of the legal acquiree attributable to common shareholders in each of those periods. b. The legal acquiree’s historical weighted-average number of common shares outstanding multiplied by the exchange ratio established in the acquisition agreement.

Principles of Consolidation

The Company applies the guidance of Topic 810“Consolidation” of the FASB Accounting Standards Codification ("ASC") to determine whether and how to consolidate another entity. Pursuant to ASC Paragraph 810-10-15-10 all majority-owned subsidiaries—all entities in which a parent has a controlling financial interest—shall be consolidated except (1) when control does not rest with the parent, the majority owner; (2) if the parent is a broker-dealer within the scope of Topic 940 and control is likely to be temporary; (3) consolidation by an investment company within the scope of Topic 946 of a non-investment-company investee. Pursuant to ASC Paragraph 810-10-15-8 the usual condition for a controlling financial interest is ownership of a majority voting interest, and, therefore, as a general rule ownership by one reporting entity, directly or indirectly, of more than 50 percent of the outstanding voting shares of another entity is a condition pointing toward consolidation. The power to control may also exist with a lesser percentage of ownership, for example, by contract, lease, agreement with other stockholders, or by court decree. The Company consolidates all less-than-majority-owned subsidiaries, if any, in which the parent’s power to control exists.

The Company consolidates the following subsidiaries and/or entities:

Name of consolidated
subsidiary or
entity
State or other jurisdiction of
incorporation or organization
Date of incorporation or
formation
(date of acquisition/disposition,
if
applicable)
Attributable interest 
  

These consolidated financial statements and related notes are presented in accordance with accounting principles generally accepted in the United States, and are expressed in US dollars. The consolidated financial statements include the financial statements of the Company and its’ wholly-owned subsidiary, Hyde Park Uranium, Inc. All intercompany balances and transactions have been eliminated. The Company’s fiscal year-end is May 31.

Vnue Inc. (formerly TGRI)

F-6


Buckingham Exploration Inc.The State of NevadaApril 4, 2006
(An Exploration Stage Company)
Notes to the Consolidated Financial Statements
Period Ended May 31, 2007
(Expressed in US dollars)

2.     29, 2015)

Summary of Significant Accounting Policies (continued)

 100%
 (b) 

Use

Vnue Inc. (Vnue Washington)The State of Estimates

Washington
October 16, 2014100%
Vnue LLCThe State of WashingtonAugust 1, 2013
(December 3, 2014)
100%
Vnue Technology Inc.The State of WashingtonOctober 16, 201490%
Vnue Media  Inc.The State of WashingtonOctober 16, 201489%

The consolidated financial statements include the accounts of the subsidiaries/entities as of reporting periods end date and for the reporting periods then ended from their respective dates of incorporation/formation, acquisition or disposition.

All inter-company balances and transactions have been eliminated.

F-9

Fair Value of Financial Instruments

The Company follows paragraph 825-10-50-10 of the FASB Accounting Standards Codification for disclosures about fair value of its financial instruments and paragraph 820-10-35-37 of the FASB Accounting Standards Codification (“Paragraph 820-10-35-37”) to measure the fair value of its financial instruments. Paragraph 820-10-35-37 establishes a framework for measuring fair value in generally accepted accounting principles (GAAP), and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, Paragraph 820-10-35-37 establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three (3) broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs.

Financial assets are considered Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable.

The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument.

The carrying amounts of the Company’s financial assets and liabilities, such as cash and accounts payable approximate their fair value because of the short maturity of this instrument.

The Company’s convertible notes payable approximate the fair value of such instruments based upon management’s best estimate of interest rates that would be available to the Company for similar financial arrangements at June 30, 2015 and December 31, 2014.

The Company’s Level 3 financial liabilities consist of the derivative financial instruments for which there is no current market for these securities such that the determination of fair value requires significant judgment or estimation.  The Company valued the automatic conditional conversion, re-pricing/down-round, change of control; default and follow-on offering provisions using a Monte Carlo model, with the assistance of a valuation specialist, for which management understands the methodologies. These models incorporate transaction details such as Company stock price, contractual terms, maturity, risk free rates, as well as assumptions about future financings, volatility, and holder behavior as of the date of issuance and each balance sheet date.

Transactions involving related parties cannot be presumed to be carried out on an arm's-length basis, as the requisite conditions of competitive, free-market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm's-length transactions unless such representations can be substantiated.

Fair Value of Financial Assets and Liabilities Measured on a Recurring Basis

Level 3 Financial Liabilities – Derivative Financial Instruments

The Company uses Level 3 of the fair value hierarchy to measure the fair value of the derivative liabilities and revalues its derivative liability at the end of every reporting period and recognizes gains or losses in the Statements of Operations that are attributable to the change in the fair value of the derivative liability.

Carrying Value, Recoverability and Impairment of Long-Lived Assets

The Company has adopted Section 360-10-35 of the FASB Accounting Standards Codification for its long-lived assets. Pursuant to ASC Paragraph 360-10-35-17 an impairment loss shall be recognized only if the carrying amount of a long-lived asset (asset group) is not recoverable and exceeds its fair value. The carrying amount of a long-lived asset (asset group) 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 (asset group). That assessment shall be based on the carrying amount of the asset (asset group) at the date it is tested for recoverability. An impairment loss shall be measured as the amount by which the carrying amount of a long-lived asset (asset group) exceeds its fair value. Pursuant to ASC Paragraph 360-10-35-20 if an impairment loss is recognized, the adjusted carrying amount of a long-lived asset shall be its new cost basis. For a depreciable long-lived asset, the new cost basis shall be depreciated (amortized) over the remaining useful life of that asset. Restoration of a previously recognized impairment loss is prohibited.

Pursuant to ASC Paragraph 360-10-35-21 the Company’s long-lived asset (asset group) is tested for recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. The Company considers the following to be some examples of such events or changes in circumstances that may trigger an impairment review: (a) significant decrease in the market price of a long-lived asset (asset group); (b) A significant adverse change in the extent or manner in which a long-lived asset (asset group) is being used or in its physical condition; (c) A significant adverse change in legal factors or in the business climate that could affect the value of a long-lived asset (asset group), including an adverse action or assessment by a regulator; (d) An accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of a long-lived asset (asset group); (e) A current-period operating or cash flow loss combined with a history of operating or cash flow losses or a projection or forecast that demonstrates continuing losses associated with the use of a long-lived asset (asset group); and (f) A current expectation that, more likely than not, a long-lived asset (asset group) will be sold or otherwise disposed of significantly before the end of its previously estimated useful life. The Company tests its long-lived assets for potential impairment indicators at least annually and more frequently upon the occurrence of such events.

Pursuant to ASC Paragraphs 360-10-45-4 and 360-10-45-5 an impairment loss recognized for a long-lived asset (asset group) to be held and used shall be included in income from continuing operations before income taxes in the income statement of a business entity. If a subtotal such as income from operations is presented, it shall include the amount of that loss. A gain or loss recognized on the sale of a long-lived asset (disposal group) that is not a component of an entity shall be included in income from continuing operations before income taxes in the income statement of a business entity. If a subtotal such as income from operations is presented, it shall include the amounts of those gains or losses.

F-10

Cash Equivalents

The Company considers all highly liquid investments with maturities of three months or less at the time of purchase to be cash equivalents.

Intangible Assets Other Than Goodwill

The Company has adopted Subtopic 350-30 of the FASB Accounting Standards Codification for intangible assets other than goodwill. Under the requirements, the Company amortizes the acquisition costs of intangible assets other than goodwill on a straight-line basis over or their estimated useful lives, the terms of the exclusive licenses and/or agreements, or the terms of legal lives of the respective assets as follows:

Estimated
Useful
Life (Years)
 
  

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of

Intangible assets and liabilities and disclosure of contingent assets and liabilities15

Upon becoming fully amortized, the related cost and accumulated amortization are removed from the accounts.

Discount on Debt

The Company allocates the proceeds received from convertible debt instruments between the liability component and equity component, and records the conversion feature as a liability in accordance with subtopic 470-20 of the FASB Accounting Standards Codification (“Subtopic 470-20”). The conversion feature and certain other features that are considered embedded derivative instruments, such as a conversion reset provision, a penalty provision and redemption option, have been recorded at their fair value as its fair value can be separated from the convertible note and its conversion is independent of the underlying note value. The conversion liability is marked to market each reporting period with the resulting gains or losses shown in the Statement of Operations. The Company has also recorded the resulting discount on debt related to the conversion features and amortizes the discount using the effective interest rate method over the life of the debt instruments.

Derivative Liability

The Company evaluates its convertible debt, options, warrants or other contracts, if any, to determine if those contracts or embedded components of those contracts qualify as derivatives to be separately accounted for in accordance with paragraph 815-10-05-4 and Section 815-40-25 of the FASB Accounting Standards Codification. The result of this accounting treatment is that the fair value of the embedded derivative is marked-to-market each balance sheet date and recorded as either an asset or a liability. In the event that the fair value is recorded as a liability, the change in fair value is recorded in the consolidated statement of operations as other income or expense. Upon conversion, exercise or cancellation of a derivative instrument, the instrument is marked to fair value at the date of conversion, exercise or cancellation and then that the related fair value is reclassified to equity.

In circumstances where the embedded conversion option in a convertible instrument is required to be bifurcated and there are also other embedded derivative instruments in the convertible instrument that are required to be bifurcated, the bifurcated derivative instruments are accounted for as a single, compound derivative instrument.

The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is re-assessed at the end of each reporting period. Equity instruments that are initially classified as equity that become subject to reclassification are reclassified to liability at the fair value of the instrument on the reclassification date. Derivative instrument liabilities will be classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative instrument is expected within 12 months of the balance sheet date.

The Company adopted Section 815-40-15 of the FASB Accounting Standards Codification (“Section 815-40-15”) to determine whether an instrument (or an embedded feature) is indexed to the Company’s own stock.  Section 815-40-15 provides that an entity should use a two-step approach to evaluate whether an equity-linked financial instrument (or embedded feature) is indexed to its own stock, including evaluating the instrument’s contingent exercise and settlement provisions.

The Company marks to market the fair value of the remaining embedded derivative conversion features at each balance sheet date and records the change in the fair value of the remaining embedded derivative conversion features as other income or expense in the consolidated statements of operations.

F-11

The Company utilizes the Monte Carlo model that values the liability of the derivative conversion feature based on a probability weighted discounted cash flow model with the assistance of the third party valuation firm. Black-Scholes valuation does not consider all of the terms of the instrument which may not be appropriate in many situations given complex features and terms of conversion option (e.g., combined embedded derivatives). The Monte Carlo model is based on future projections of the various potential outcomes. The features that were analyzed and incorporated into the model included the conversion features. The Monte Carlo model analyzed the underlying economic factors that influenced which of these events would occur, when they were likely to occur, and the specific terms that would be in effect at the time (i.e. stock price, exercise price, volatility, etc.). Projections were then made on the underlying factors which led to potential scenarios. Probabilities were assigned to each scenario based on management projections. This led to a cash flow projection and a probability associated with that cash flow. A discounted weighted average cash flow over the various scenarios was completed to determine the value of the conversion features.

Related Parties

The Company follows subtopic 850-10 of the FASB Accounting Standards Codification for the identification of related parties and disclosure of related party transactions.

Pursuant to Section 850-10-20 the related parties include a. affiliates of the Company (“Affiliate” means, with respect to any specified Person, any other Person that, directly or indirectly through one or more intermediaries, controls, is controlled by or is under common control with such Person, as such terms are used in and construed under Rule 405 under the Securities Act); b. entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section 825–10–15, to be accounted for by the equity method by the investing entity; c. trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management; d. principal owners of the Company; e. management of the Company; f. other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and g. other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests.

The financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of consolidated or combined financial statements is not required in those statements. The disclosures shall include: a. the nature of the relationship(s) involved; b. a description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; c. the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and d. amounts due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement.

Commitment and Contingencies

The Company follows subtopic 450-20 of the FASB Accounting Standards Codification to report accounting for contingencies. Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or un-asserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or un-asserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein.

If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s financial statements. If the assessment indicates that a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed.

Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed.

Non-Controlling Interest

The Company follows paragraph 810-10-65-1 of the FASB Accounting Standards Codification to report the non-controlling interest in its majority-owned subsidiaries and controlled entities in the consolidated balance sheets within the equity section, separately from the Company’s stockholders’ equity. Non-controlling interest represents the non-controlling interest holders’ proportionate share of the equity of the Company’s majority-owned subsidiaries and controlled entities. Non-controlling interest is adjusted for the non-controlling interest holders’ proportionate share of the earnings or losses and other comprehensive income (loss) and the non-controlling interest continues to be attributed its share of losses even if that attribution results in a deficit non-controlling interest balance.

Revenue Recognition

The Company follows paragraph 605-10-S99-1 of the FASB Accounting Standards Codification for revenue recognition. The Company recognizes revenue when it is realized or realizable and earned. The Company considers revenue realized or realizable and earned when all of the following criteria are met: (i) persuasive evidence of an arrangement exists, (ii) the product has been shipped or the services have been rendered to the customer, (iii) the sales price is fixed or determinable, and (iv) collectability is reasonably assured.

F-12

Stock-Based Compensation for Obtaining Employee Services

The Company accounts for share-based payment transactions issued to employees under the guidance of the Topic 718 Compensation—Stock Compensation of the FASB Accounting Standards Codification (“ASC Topic 718”).

Pursuant to ASC Section 718-10-20 an employee is an individual over whom the grantor of a share-based compensation award exercises or has the right to exercise sufficient control to establish an employer-employee relationship based on common law as illustrated in case law and currently under U.S. Internal Revenue Service (“IRS”) Revenue Ruling 87-41. A non-employee director does not satisfy this definition of employee. Nevertheless, non-employee directors acting in their role as members of a board of directors are treated as employees if those directors were elected by the employer’s shareholders or appointed to a board position that will be filled by shareholder election when the existing term expires. However, that requirement applies only to awards granted to non-employee directors for their services as directors. Awards granted to non-employee directors for other services shall be accounted for as awards to non-employees.

Pursuant to ASC Paragraphs 718-10-30-2 and 718-10-30-3 a share-based payment transaction with employees shall be measured based on the fair value of the equity instruments issued and an entity shall account for the compensation cost from share-based payment transactions with employees in accordance with the fair value-based method, i.e., the cost of services received from employees in exchange for awards of share-based compensation generally shall be measured based on the grant-date fair value of the equity instruments issued or the fair value of the liabilities incurred/settled.

Pursuant to ASC Paragraphs 718-10-30-6 and 718-10-30-9 the measurement objective for equity instruments awarded to employees is to estimate the fair value at the grant date of the equity instruments that the entity is obligated to issue when employees have rendered the requisite service and satisfied any other conditions necessary to earn the right to benefit from the instruments (for example, to exercise share options). That estimate is based on the share price and other pertinent factors, such as expected volatility, at the grant date. As such, the fair value of an equity share option or similar instrument shall be estimated using a valuation technique such as an option pricing model. For this purpose, a similar instrument is one whose fair value differs from its intrinsic value, that is, an instrument that has time value.

If the Company’s common shares are traded in one of the national exchanges the grant-date share price of the Company’s common stock will be used to measure the fair value of the common shares issued, however, if the Company’s common shares are thinly traded the use of share prices established in its most recent private placement memorandum (“PPM”), or weekly or monthly price observations would generally be more appropriate than the use of daily price observations as such shares could be artificially inflated due to a larger spread between the bid and asked quotes and lack of consistent trading in the market.

Pursuant to ASC Paragraph 718-10-55-21 if an observable market price is not available for a share option or similar instrument with the same or similar terms and conditions, an entity shall estimate the fair value of that instrument using a valuation technique or model that meets the requirements in paragraph 718-10-55-11 and takes into account, at a minimum, all of the following factors:

a.The exercise price of the financial statementsoption.

b.The expected term of the option, taking into account both the contractual term of the option and the reported amountseffects of revenuesemployees’ expected exercise and expenses duringpost-vesting employment termination behavior: The expected life of options and similar instruments represents the reporting period. Actual results could differ from those estimates.period of time the option and/or warrant are expected to be outstanding.  Pursuant to paragraph 718-10-S99-1, it may be appropriate to use thesimplified method ,i.e., expected term = ((vesting term + original contractual term) / 2) , if (i) A company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate expected term due to the limited period of time its equity shares have been publicly traded; (ii) A company significantly changes the terms of its share option grants or the types of employees that receive share option grants such that its historical exercise data may no longer provide a reasonable basis upon which to estimate expected term; or (iii) A company has or expects to have significant structural changes in its business such that its historical exercise data may no longer provide a reasonable basis upon which to estimate expected term. The Company regularly evaluates estimatesuses the simplified method to calculate expected term of share options and assumptions relatedsimilar instruments as the company does not have sufficient historical exercise data to donated expenses, stock-based compensation expenseprovide a reasonable basis upon which to estimate expected term.

c.The current price of the underlying share.

d.The expected volatility of the price of the underlying share for the expected term of the option.  Pursuant to ASC Paragraph 718-10-55-25 a newly publicly traded entity might base expectations about future volatility on the average volatilities of similar entities for an appropriate period following their going public. A nonpublic entity might base its expected volatility on the average volatilities of otherwise similar public entities. For purposes of identifying otherwise similar entities, an entity would likely consider characteristics such as industry, stage of life cycle, size, and deferred income tax asset valuations.financial leverage. Because of the effects of diversification that are present in an industry sector index, the volatility of an index should not be substituted for the average of volatilities of otherwise similar entities in a fair value measurement.  Pursuant to paragraph 718-10-S99-1 if shares of a company are thinly traded the use of weekly or monthly price observations would generally be more appropriate than the use of daily price observations as the volatility calculation using daily observations for such shares could be artificially inflated due to a larger spread between the bid and asked quotes and lack of consistent trading in the market.  The Company basesuses the average historical volatility of the comparable companies over the expected term of the share options or similar instruments as its estimatesexpected volatility.

F-13

e.The expected dividends on the underlying share for the expected term of the option.  The expected dividend yield is based on the Company’s current dividend yield as the best estimate of projected dividend yield for periods within the expected term of the share options and assumptionssimilar instruments.

f.The risk-free interest rate(s) for the expected term of the option. Pursuant to ASC 718-10-55-28 a U.S. entity issuing an option on current facts, historical experienceits own shares must use as the risk-free interest rates the implied yields currently available from the U.S. Treasury zero-coupon yield curve over the contractual term of the option if the entity is using a lattice model incorporating the option’s contractual term. If the entity is using a closed-form model, the risk-free interest rate is the implied yield currently available on U.S. Treasury zero-coupon issues with a remaining term equal to the expected term used as the assumption in the model.

Pursuant to ASC Paragraphs 718-10-30-11 and 718-10-30-17 a restriction that stems from the forfeitability of instruments to which employees have not yet earned the right, such as the inability either to exercise a non-vested equity share option or to sell non-vested shares, is not reflected in estimating the fair value of the related instruments at the grant date. Instead, those restrictions are taken into account by recognizing compensation cost only for awards for which employees render the requisite service and a non-vested equity share or non-vested equity share unit awarded to an employee shall be measured at its fair value as if it were vested and issued on the grant date.

Pursuant to ASC Paragraphs 718-10-35-2 and 718-10-35-3 the compensation cost for an award of share-based employee compensation classified as equity shall be recognized over the requisite service period, with a corresponding credit to equity (generally, paid-in capital). The requisite service period is the period during which an employee is required to provide service in exchange for an award, which often is the vesting period. The total amount of compensation cost recognized at the end of the requisite service period for an award of share-based compensation shall be based on the number of instruments for which the requisite service has been rendered (that is, for which the requisite service period has been completed). An entity shall base initial accruals of compensation cost on the estimated number of instruments for which the requisite service is expected to be rendered. That estimate shall be revised if subsequent information indicates that the actual number of instruments is likely to differ from previous estimates. The cumulative effect on current and prior periods of a change in the estimated number of instruments for which the requisite service is expected to be or has been rendered shall be recognized in compensation cost in the period of the change. Previously recognized compensation cost shall not be reversed if an employee share option (or share unit) for which the requisite service has been rendered expires unexercised (or unconverted).

Under the requirement of ASC Paragraph 718-10-35-8 the Company made a policy decision to recognize compensation cost for an award with only service conditions that has a graded vesting schedule on a straight-line basis over the requisite service period for the entire award.

Equity Instruments Issued to Parties Other Than Employees for Acquiring Goods or Services

The Company accounts for equity instruments issued to parties other than employees for acquiring goods or services under the guidance of Sub-topic 505-50 of the FASB Accounting Standards Codification (“Sub-topic 505-50”).

Pursuant to ASC paragraphs 505-50-25-6 and 505-50-25-7,a grantor shall recognize the goods acquired or services received in a share-based payment transaction when it obtains the goods or as services are received. A grantor may need to recognize an asset before it actually receives goods or services if it first exchanges share-based payment for an enforceable right to receive those goods or services. Nevertheless, the goods or services themselves are not recognized before they are received. If fully vested, nonforfeitable equity instruments are issued at the date the grantor and grantee enter into an agreement for goods or services (no specific performance is required by the grantee to retain those equity instruments), then, because of the elimination of any obligation on the part of the counterparty to earn the equity instruments, a measurement date has been reached. A grantor shall recognize the equity instruments when they are issued (in most cases, when the agreement is entered into). Pursuant to ASC paragraph 505-50-45-1, a grantor may conclude that an asset (other than a note or a receivable) has been received in return for fully vested, nonforfeitable equity instruments that are issued at the date the grantor and grantee enter into an agreement for goods or services (and no specific performance is required by the grantee in order to retain those equity instruments). Such an asset shall not be displayed as contra-equity by the grantor of the equity instruments. The transferability (or lack thereof) of the equity instruments shall not affect the balance sheet display of the asset. This guidance is limited to transactions in which equity instruments are transferred to other than employees in exchange for goods or services.

Pursuant to Paragraphs 505-50-25-8 and 505-50-25-9, an entity may grant fully vested, nonforfeitable equity instruments that are exercisable by the grantee only after a specified period of time if the terms of the agreement provide for earlier exercisability if the grantee achieves specified performance conditions. Any measured cost of the transaction shall be recognized in the same period(s) and in the same manner as if the entity had paid cash for the goods or services or used cash rebates as a sales discount instead of paying with, or using, the equity instruments. A recognized asset, expense, or sales discount shall not be reversed if a stock option that the counterparty has the right to exercise expires unexercised.

Pursuant to ASC Paragraphs 505-50-30-2 and 505-50-30-11 share-based payment transactions with non-employees shall be measured at the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable. The issuer shall measure the fair value of the equity instruments in these transactions using the stock price and other measurement assumptions as of the earlier of the following dates, referred to as the measurement date: (a) The date at which a commitment for performance by the counterparty to earn the equity instruments is reached (a performance commitment); or (b) The date at which the counterparty's performance is complete. If the Company’s common shares are traded in one of the national exchanges the grant-date share price of the Company’s common stock will be used to measure the fair value of the common shares issued; however, if the Company’s common shares are thinly traded the use of share prices established in the Company’s most recent private placement memorandum (“PPM”), or weekly or monthly price observations would generally be more appropriate than the use of daily price observations as such shares could be artificially inflated due to a larger spread between the bid and asked quotes and lack of consistent trading in the market.

F-14

Pursuant to ASC Paragraph 718-10-55-21 if an observable market price is not available for a share option or similar instrument ("instrument") with the same or similar terms and conditions, an entity shall estimate the fair value of that instrument using a valuation technique or model that meets the requirements in paragraph 718-10-55-11 and takes into account, at a minimum, all of the following factors:

a.The exercise price of the instrument.

b.The expected term of the instrument, taking into account both the contractual term of the instrument and various other factors that it believesthe effects of instrument holder's expected exercise behavior: Pursuant to ASC Paragraph 718-10-50-2(f)(2)(i) the expected term of share options and similar instruments represents the period of time the options and similar instruments are expected to be outstanding taking into consideration of the contractual term of the instruments and holder’s expected exercise behavior into the fair value (or calculated value) of the instruments.  The Company uses historical data to estimate holder’s expected exercise behavior.  If the Company is a newly formed corporation or shares of the Company are thinly traded the contractual term of the share options and similar instruments is used as the expected term of share options and similar instruments as the Company does not have sufficient historical exercise data to provide a reasonable underbasis upon which to estimate expected term.

c.The current price of the circumstances,underlying share.

d.The expected volatility of the resultsprice of which form the basisunderlying share for making judgmentsthe expected term of the option.  Pursuant to ASC Paragraph 718-10-55-25 a newly publicly traded entity might base expectations about future volatility on the carrying valuesaverage volatilities of assetssimilar entities for an appropriate period following their going public. A nonpublic entity might base its expected volatility on the average volatilities of otherwise similar public entities. For purposes of identifying otherwise similar entities, an entity would likely consider characteristics such as industry, stage of life cycle, size, and liabilities andfinancial leverage. Because of the accrualeffects of costs and expensesdiversification that are present in an industry sector index, the volatility of an index should not readily apparent from other sources.be substituted for the average of volatilities of otherwise similar entities in a fair value measurement.  Pursuant to paragraph 718-10-S99-1 if shares of a company are thinly traded the use of weekly or monthly price observations would generally be more appropriate than the use of daily price observations as the volatility calculation using daily observations for such shares could be artificially inflated due to a larger spread between the bid and asked quotes and lack of consistent trading in the market.  The actual results experienced byCompany uses the Company may differ materiallyaverage historical volatility of the comparable companies over the expected term of the share options or similar instruments as its expected volatility.

e.The expected dividends on the underlying share for the expected term of the option.  The expected dividend yield is based on the Company’s current dividend yield as the best estimate of projected dividend yield for periods within the expected term of the share options and adverselysimilar instruments.

f.The risk-free interest rate(s) for the expected term of the option. Pursuant to ASC 718-10-55-28 a U.S. entity issuing an option on its own shares must use as the risk-free interest rates the implied yields currently available from the Company’s estimates. ToU.S. Treasury zero-coupon yield curve over the extent there are material differences betweencontractual term of the estimates andoption if the actual results, future results of operations will be affected.

entity is using a lattice model incorporating the option’s contractual term. If the entity is using a closed-form model, the risk-free interest rate is the implied yield currently available on U.S. Treasury zero-coupon issues with a remaining term equal to the expected term used as the assumption in the model.

Pursuant to ASC paragraph 505-50-S99-1, if the Company receives a right to receive future services in exchange for unvested, forfeitable equity instruments, those equity instruments are treated as unissued for accounting purposes until the future services are received (that is, the instruments are not considered issued until they vest). Consequently, there would be no recognition at the measurement date and no entry should be recorded.

Deferred Tax Assets and Income Tax Provision

The Company accounts for income taxes under Section 740-10-30 of the FASB Accounting Standards Codification. Deferred income tax assets and liabilities are determined based upon differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent management concludes it is more likely than not that the assets will not be realized. 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 liabilities of a change in tax rates is recognized in the statements of operations in the period that includes the enactment date.

The Company adopted section 740-10-25 of the FASB Accounting Standards Codification (“Section 740-10-25”). Section 740-10-25 addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under Section 740-10-25, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent (50%) likelihood of being realized upon ultimate settlement. Section 740-10-25 also provides guidance on de-recognition, classification, interest and penalties on income taxes, accounting in interim periods and requires increased disclosures.

 F-15

The estimated future tax effects of temporary differences between the tax basis of assets and liabilities are reported in the accompanying balance sheets, as well as tax credit carry-backs and carry-forwards. The Company periodically reviews the recoverability of deferred tax assets recorded on its balance sheets and provides valuation allowances as management deems necessary.

Management makes judgments as to the interpretation of the tax laws that might be challenged upon an audit and cause changes to previous estimates of tax liability. In addition, the Company operates within multiple taxing jurisdictions and is subject to audit in these jurisdictions. In management’s opinion, adequate provisions for income taxes have been made for all years. If actual taxable income by tax jurisdiction varies from estimates, additional allowances or reversals of reserves may be necessary.

Earnings per Share

Earnings per share ("EPS") is the amount of earnings attributable to each share of common stock. For convenience, the term is used to refer to either earnings or loss per share. EPS is computed pursuant to section 260-10-45 of the FASB Accounting Standards Codification. Pursuant to ASC Paragraphs 260-10-45-10 through 260-10-45-16 Basic EPS shall be computed by dividing income available to common stockholders (the numerator) by the weighted-average number of common shares outstanding (the denominator) during the period. Income available to common stockholders shall be computed by deducting both the dividends declared in the period on preferred stock (whether or not paid) and the dividends accumulated for the period on cumulative preferred stock (whether or not earned) from income from continuing operations (if that amount appears in the income statement) and also from net income. The computation of diluted EPS is similar to the computation of basic EPS except that the denominator is increased to include the number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued during the period to reflect the potential dilution that could occur from common shares issuable through contingent shares issuance arrangement, stock options or warrants.

Pursuant to ASC Paragraphs 260-10-45-45-21 through 260-10-45-45-23 Diluted EPS shall be based on the most advantageous conversion rate or exercise price from the standpoint of the security holder. The dilutive effect of outstanding call options and warrants (and their equivalents) issued by the reporting entity shall be reflected in diluted EPS by application of the treasury stock method unless the provisions of paragraphs 260-10-45-35 through 45-36 and 260-10-55-8 through 55-11 require that another method be applied. Equivalents of options and warrants include non-vested stock granted to employees, stock purchase contracts, and partially paid stock subscriptions (see paragraph 260–10–55–23). Anti-dilutive contracts, such as purchased put options and purchased call options, shall be excluded from diluted EPS. Under the treasury stock method: a. Exercise of options and warrants shall be assumed at the beginning of the period (or at time of issuance, if later) and common shares shall be assumed to be issued. b. The proceeds from exercise shall be assumed to be used to purchase common stock at the average market price during the period. (See paragraphs 260-10-45-29 and 260-10-55-4 through 55-5.) c. The incremental shares (the difference between the number of shares assumed issued and the number of shares assumed purchased) shall be included in the denominator of the diluted EPS computation.

The Company’s contingent shares issuance arrangements are as follows:

  Contingent shares issuance
arrangements
 
  For the Reporting
Period Ended 
September 30,
2015
  For the Reporting
Period Ended 
September 30,
2014
 
       
Convertible notes payable (*)  4,362,162   - 
         
Convertible preferred stock (**)  -   7,425,370 
         
Total contingent shares issuance arrangement  4,362,162   7,425,370 

(*) The Note Conversion Price is determined as follows: (a) if the Note is converted upon the Next Equity Financing, an amount equal to 80% of the price paid per share paid by the investors in the Next Equity Financing; (b) if the Note is converted in the event of a Corporate Transaction, a price per share derived by dividing a "pre-money" valuation of $8,000,000 by the number of shares outstanding immediately prior to the time of such conversion, on a fully diluted basis; or (c) if the Note is converted as part of a Maturity Conversion, a price per unit derived by dividing a "pre-money" valuation of $8,000,000 by the total number of units (restricted and non-restricted) outstanding immediately prior to the time of such conversion, on a fully diluted basis.

(**) One preferred share is convertible to one common share.

There were 4,404,044 and 7,425,370 incremental common shares under the treasury stock method for the reporting period ended June 30, 2015 and 2014, respectively, which were excluded from the diluted earnings per share calculation as they were anti-dilutive.

F-16

Cash Flows Reporting

The Company adopted paragraph 230-10-45-24 of the FASB Accounting Standards Codification for cash flows reporting, classifies cash receipts and payments according to whether they stem from operating, investing, or financing activities and provides definitions of each category, and uses the indirect or reconciliation method (“Indirect method”) as defined by paragraph 230-10-45-25 of the FASB Accounting Standards Codification to report net cash flow from operating activities by adjusting net income to reconcile it to net cash flow from operating activities by removing the effects of (a) all deferrals of past operating cash receipts and payments and all accruals of expected future operating cash receipts and payments and (b) all items that are included in net income that do not affect operating cash receipts and payments.

Subsequent Events

The Company follows the guidance in Section 855-10-50 of the FASB Accounting Standards Codification for the disclosure of subsequent events. The Company will evaluate subsequent events through the date when the financial statements were issued. Pursuant to ASU 2010-09 of the FASB Accounting Standards Codification, the Company as an SEC filer considers its financial statements issued when they are widely distributed to users, such as through filing them on EDGAR.

Recently Issued Accounting Pronouncements

In May 2014, the FASB issued the FASB Accounting Standards Update No. 2014-09 “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”)

This guidance amends the existing FASB Accounting Standards Codification, creating a new Topic 606, Revenue from Contracts with Customer. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.

To achieve that core principle, an entity should apply the following steps:

1.Identify the contract(s) with the customer
 (c)     2.

Basic and Diluted Net Income (Loss) Per Share

Identify the performance obligations in the contract
3.Determine the transaction price
4.Allocate the transaction price to the performance obligations in the contract
5.Recognize revenue when (or as) the entity satisfies a performance obligations

The ASU also provides guidance on disclosures that should be provided to enable financial statement users to understand the nature, amount, timing, and uncertainty of revenue recognition and cash flows arising from contracts with customers.  Qualitative and quantitative information is required about the following:

1.Contracts with customers  – including revenue and impairments recognized, disaggregation of revenue, and information about contract balances and performance obligations (including the transaction price allocated to the remaining performance obligations)
2.Significant judgments and changes in judgments  – determining the timing of satisfaction of performance obligations (over time or at a point in time), and determining the transaction price and amounts allocated to performance obligations
3.Assets recognized from the costs to obtain or fulfill a contract.

ASU 2014-09 is effective for periods beginning after December 15, 2016, including interim reporting periods within that reporting period for all public entities.  Early application is not permitted.

In June 2014, the FASB issued the FASB Accounting Standards Update No. 2014-12 “Compensation—Stock Compensation (Topic 718) :Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period” (“ASU 2014-12”).

The amendments clarify the proper method of accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period.  The Update requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. The performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered.

The amendments in this Update are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted.

In August 2014, the FASB issued the FASB Accounting Standards Update No. 2014-15“Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”).

In connection with preparing financial statements for each annual and interim reporting period, an entity’s management should evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that thefinancial statements are issued (or within one year after the date that thefinancial statements are available to be issued when applicable). Management’s evaluation should be based on relevant conditions and events that are known and reasonably knowable at the date that thefinancial statements are issued (or at the date that thefinancial statements are available to be issued when applicable). Substantial doubt about an entity’s ability to continue as a going concern exists when relevant conditions and events, considered in the aggregate, indicate that it is probable that the entity will be unable to meet its obligations as they become due within one year after the date that the financial statements are issued (or available to be issued). The termprobable is used consistently with its use in Topic 450, Contingencies.

F-17

When management identifies conditions or events that raise substantial doubt about an entity’s ability to continue as a going concern, management should consider whether its plans that are intended to mitigate those relevant conditions or events will alleviate the substantial doubt. The mitigating effect of management’s plans should be considered only to the extent that (1) it is probable that the plans will be effectively implemented and, if so, (2) it is probable that the plans will mitigate the conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern.

If conditions or events raise substantial doubt about an entity’s ability to continue as a going concern, but the substantial doubt is alleviated as a result of consideration of management’s plans, the entity should disclose information that enables users of the financial statements to understand all of the following (or refer to similar information disclosed elsewhere in the footnotes):

a.          Principal conditions or events that raised substantial doubt about the entity’s ability to continue as a going concern (before consideration of management’s plans)

b.          Management’s evaluation of the significance of those conditions or events in relation to the entity’s ability to meet its obligations

c.          Management’s plans that alleviated substantial doubt about the entity’s ability to continue as a going concern.

If conditions or events raise substantial doubt about an entity’s ability to continue as a going concern, and substantial doubt is not alleviated after consideration of management’s plans, an entity should include a statement in the footnotes indicating that there issubstantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued (or available to be issued). Additionally, the entity should disclose information that enables users of the financial statements to understand all of the following:

a.          Principal conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern

b.          Management’s evaluation of the significance of those conditions or events in relation to the entity’s ability to meet its obligations

c.          Management’s plans that are intended to mitigate the conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern.

The amendments in this Update are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted.

In November 2014, the FASB issued the FASB Accounting Standards Update No. 2014-16 “ Derivatives and Hedging (Topic 815) : 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” (“ASU 2014-16”).

The amendments in ASU No. 2014-16 clarify that an entity must take into account all relevant terms and features when reviewing the nature of the host contract. Additionally, the amendments state that no one term or feature would define the host contract’s economic characteristics and risks. Instead, the economic characteristics and risks of the hybrid financial instrument as a whole would determine the nature of the host contract.

The amendments in this Update are effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption, including adoption in an interim period, is permitted.

In February 2015, the FASB issued the FASB Accounting Standards Update No. 2015-02 “ Consolidation (Topic 810) -Amendments to the Consolidation Analysis” (“ASU 2015-02”)  to improve certain areas of consolidation guidance for reporting organizations (i.e., public, private, and not-for-profit) that are required to evaluate whether to consolidate certain legal entities such as limited partnerships, limited liability corporations, and securitization structures (e.g., collateralized debt/loan obligations).   All legal entities are subject to reevaluation under the revised consolidation model. Specifically, the amendments:

·Eliminating the presumption that a general partner should consolidate a limited partnership.
·Eliminating the indefinite deferral of FASB Statement No. 167, thereby reducing the number of Variable Interest Entity (VIE) consolidation models from four to two (including the limited partnership consolidation model).
·Clarifying when fees paid to a decision maker should be a factor to include in the consolidation of VIEs. Note: a VIE is a legal entity in which consolidation is not based on a majority of voting rights.
·Amending the guidance for assessing how related party relationships affect VIE consolidation analysis.
·Excluding certain money market funds from the consolidation guidance.

The amendments in this Update are effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period.

In April 2015, the FASB issued the FASB Accounting Standards Update No. 2015-03 “Interest—Imputation of Interest (Subtopic 835-30) :Simplifying the Presentation of Debt Issuance Costs” (“ASU 2015-03”).

F-18

To simplify presentation of debt issuance costs, the amendments in this Update require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this Update.

For public business entities, the amendments in this Update are effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years.

In August 2015, the FASB issued the FASB Accounting Standards Update No. 2015-14 “Revenue from Contracts with Customers (Topic 606) :Deferral of the Effective Date” (“ASU 2015-14”).

The amendments in this Update defer the effective date of Update 2014-09 for all entities by one year. Public business entities, certain not-for-profit entities, and certain employee benefit plans should apply the guidance in Update 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period.

Management does not believe that any recently issued, but not yet effective accounting pronouncements, when adopted, will have a material effect on the accompanying financial statements.

Note 3 - Going Concern

The Company has elected to adopt early application of Accounting Standards Update No. 2014-15, “Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”) ..

The consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates continuity of operations, realization of assets, and liquidation of liabilities in the normal course of business.

As reflected in the consolidated financial statements, the Company had an accumulated deficit at September 30, 2015, a net loss and net cash used in operating activities for the reporting period then ended. These factors raise substantial doubt about the Company’s ability to continue as a going concern.

Currently, management is attempting to increase revenues and improve gross margins by a revised sales strategy. The Company is redirecting its sales focus from direct sales to domestic and international channel sales, where the Company is primarily selling through a channel of Distributors, Value Added Resellers, Strategic Partners and Original Equipment Manufacturers. While the Company believes in the viability of its strategy to increase revenues and in its ability to raise additional funds, there can be no assurances to that effect. The ability of the Company to continue as a going concern is dependent upon the Company’s ability to continually increase its customer base and realize increased revenues from recently signed contracts.

The consolidated financial statements do not include any adjustments related to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

Note 4 – Intangible Assets

Entry into an Asset Purchase Agreement

On July 23, 2014, the Company entered into an Asset purchase agreement with Lively, LLC (the “Agreement”), whereby the Company acquired certain assets of Lively, LLC for consideration of (i) cash payment of $150,000 and (ii) Preferred shares with a fair market value of $250,000 at the time of the issuance. Assets purchased included: a) software, inventions, customers, customer lists, development, documents and records, designs, claims, intellectual property rights, distribution rights and merchandising rights; b) all copyright, patents, trademarks, trade names, logos or service marks and other intangible property and rights.

Consideration of the Asset Purchase Agreement

The Company issued 133,334 preferred shares of Vnue Washington to Lively LLC to satisfy the consideration (ii) for the acquisition of the intangible assets which were valued at $1.53 per share, the most recent PPM price per common share from the subsequent sale of Vnue Washington's common stock as a Vnue Washington's preferred share is convertible to a common share on a 1 to 1 basis and the business has not changed between July 2014, the date of acquisition of the assets and April 2015, the date of the equity financing. The Company recorded the intangible assets of $354,000 including (i) $150,000 in cash and (ii) $204,000 in Vnue Washington's preferred shares.

F-19

Impairment Testing and Amortization Expense

(i)Impairment Testing

The Company acquired the intangible assets in July 2014 and is in the process of developing the technology for its commercial operations and the management of the Company determined that there was no impairment of such assets at December 31, 2014.

No events or changes in circumstances have occurred through September 30, 2015 to indicate that its carrying amount may not be recoverable.

(ii)Amortization Expense

Amortization expense was $17,700 and $0 for the reporting period ended September 30, 2015 and 2014, respectively.

Note 5 – Related Party Transactions

Related parties

Related parties with whom the Company had transactions are:

Related PartiesRelationshipRelated Party TransactionsBusiness Purpose of
transactions
Management and significant stockholders 
  

The Company computes net income (loss) per share in accordance with SFAS No. 128, "Earnings per Share". SFAS No. 128 requires presentation of both basic and diluted earnings per share (EPS) on the face of the income statement. Basic EPS is computed by dividing net income (loss) available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing Diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares if their effect is anti dilutive.

Matthew CaronaPresident, CEO, significant shareholder, and Director(i) Advances/Repayments(i) Working capital
 (d) 

Comprehensive Loss

Collin HowardCFO and Director(i) Note payable/Repayments(i) Working capital
Chris MannSignificant Shareholder(i) Notes payable/Repayments(i) Working capital
Lou Mann (*)Father of Mr. Chris MannNoneN/A
Entities 
  

SFAS No. 130, “Reporting Comprehensive Income,” establishes standards for the reporting and display of comprehensive loss and its components in the financial statements. As at May 31, 2007 and 2006, the Company has no items that represent a comprehensive loss and, therefore, has not included a schedule of comprehensive loss in the financial statements.

(e)     

Cash and Cash Equivalents

  

The Company considers all highly liquid instruments with maturity of three months or less at the time of issuance to be cash equivalents.

F-7


Buckingham Exploration Inc.
(An Exploration Stage Company)
Notes to the Consolidated Financial Statements
Period Ended May 31, 2007
(Expressed in US dollars)

2.     

Summary of Significant Accounting Policies (continued)

 
(f)     

Mineral Property Costs

Broadcasting Institute of Maryland ("BIM") 

The Company has been in the exploration stage since its inception on April 4, 2006 and has not yet realized any revenues from its planned operations. It is primarily engaged in the acquisition and exploration of mining properties. Mineral property exploration costs are expensed as incurred. Mineral property acquisition costs are initially capitalized when incurred using the guidance in EITF 04-02, “Whether Mineral Rights Are Tangible or Intangible Assets”. The Company assesses the carrying costs for impairment under SFAS 144, “Accounting for Impairment or Disposal of Long Lived Assets” at each fiscal quarter end. When it has been determined that a mineral property can be economically developed as a result of establishing proven and probable reserves, the costs then incurred to develop such property, are capitalized. Such costs will be amortized using the units-of-production method over the estimated life of the probable reserve. If mineral properties are subsequently abandoned or impaired, any capitalized costs will be charged to operations.

An entity controlled by Lou Mann
(g)     

Long-Lived Assets

In accordance with SFAS No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets”, the carrying value of long-lived assets is reviewed on a regular basis for the existence of facts or circumstances that may suggest impairment. The Company recognizes impairment when the sum of the expected undiscounted future cash flows is less than the carrying amount of the asset. Impairment losses, if any, are measured as the excess of the carrying amount of the asset over its estimated fair value.

(h)     

Financial Instruments

The fair value of financial instruments, which include cash, other receivables, accounts payable, accrued liabilities and amounts due to related parties, were estimated to approximate their carrying values due to the immediate or short-term maturity of these financial instruments. Foreign currency transactions are primarily undertaken in Canadian dollars. The financial risk is the risk to the Company’s operations that arise from fluctuations in foreign exchange rates and the degree of volatility of these rates. Currently, the Company does not use derivative instruments to reduce its exposure to foreign currency risk.

 (i)

Income Taxes

Potential benefits of income tax losses are not recognized in the accounts until realization is more likely than not. The Company has adopted SFAS No. 109 “Accounting for Income Taxes” as of its inception. PursuantAdvances to SFAS No. 109 the Company is required to compute tax asset benefits for net operating losses carried forward. Potential benefit of net operating losses have not been recognized in these financial statements because the Company cannot be assured it is more likely than not it will utilize the net operating losses carried forward in future years.

BIM

F-8


Buckingham Exploration Inc.
(An Exploration Stage Company)
Notes to the Consolidated Financial Statements
Period Ended May 31, 2007
(Expressed in US dollars)

2.     

Summary of Significant Accounting Policies (continued)

 (i)

Stock-Based Compensation

The Company records stock-based compensation in accordance with SFAS No. 123R,“Share-Based Payments”, using the fair value method. The Company also complies with the provisions of FASB Emerging Issues Task Force (“EITF”) Issue No. 96-18,Accounting for Equity Instruments That Are Issued to Other Than Employees for Acquiring, or in Conjunction with Selling, Goods or Services

(“EITF 96-18”). All transactions in which goods or services are the consideration received for the issuance of equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable. Equity instruments issued to employees and the cost of the services received as consideration are measured and recognized based on the fair value of the equity instruments issued.

(j)     

Foreign Currency Translation

The Company’s functional and reporting currency is the United States dollar. Monetary assets and liabilities denominated in foreign currencies are translated in accordance with SFAS No. 52 “Foreign Currency Translation”, using the exchange rate prevailing at the balance sheet date. Gains and losses arising on settlement of foreign currency denominated transactions or balances are included in the determination of income. Foreign currency transactions are primarily undertaken in Canadian dollars. The Company has not, to the date of these financials statements, entered into derivative instruments to offset the impact of foreign currency fluctuations.

(l)     

Recent Accounting Pronouncements

In February 2007, the Financial Accounting Standards Board (FASB) issued SFAS No. 159, “The Fair Value Option for Financial Assets and Financial Liabilities – Including an Amendment of FASB Statement No. 115”. This statement permits entities to choose to measure many financial instruments and certain other items at fair value. Most of the provisions of SFAS No. 159 apply only to entities that elect the fair value option. However, the amendment to SFAS No. 115 “Accounting for Certain Investments in Debt and Equity Securities” applies to all entities with available-for-sale and trading securities. SFAS No. 159 is effective as of the beginning of an entity’s first fiscal year that begins after November 15, 2007. Early adoption is permitted as of the beginning of a fiscal year that begins on or before November 15, 2007, provided the entity also elects to apply the provision of SFAS No. 157, “Fair Value Measurements”.The adoption of this statement is not expected to have a material effect on the Company's financial statements.

In September 2006, the SEC issued Staff Accounting Bulletin (“SAB”) No. 108, “Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements.” SAB No. 108 addresses how the effects of prior year uncorrected misstatements should be considered when quantifying misstatements in current year financial statements. SAB No. 108 requires companies to quantify misstatements using a balance sheet and income statement approach and to evaluate whether either approach results in quantifying an error that is material in light of relevant quantitative an qualitative factors. SAB No. 108 is effective for periods ending after November 15, 2006. The adoption of SAB No. 108 did not have a material effect on its financial statements.

planned collaboration

F-9


Buckingham Exploration Inc.
(An Exploration Stage Company)
Notes to the Consolidated Financial Statements
Period Ended May 31, 2007
(Expressed in US dollars)

2.     

Summary of Significant Accounting Policies (continued)

(m)     

Recent Accounting Pronouncements (continued)

In September 2006, the FASB issued SFAS No. 158, “Employers’ Accounting for Defined Benefit Pension and Other Postretirement Plans – an amendment of FASB Statements No. 87, 88, 106, and 132(R)”. This statement requires employers to recognize the overfunded or underfunded status of a defined benefit postretirement plan (other than a multiemployer plan) as an asset or liability in its statement of financial position and to recognize changes in that funded status in the year in which the changes occur through comprehensive income of a business entity or changes in unrestricted net assets of a not-for-profit organization. This statement also requires an employer to measure the funded status of a plan as of the date of its year-end statement of financial position, with limited exceptions. The provisions of SFAS No. 158 are effective for employers with publicly traded equity securities as of the end of the fiscal year ending after December 15, 2006. The adoption of this sta tement did not have a material effect on the Company's future reported financial position or results of operations.

In September 2006, the FASB issued SFAS No. 157, “Fair Value Measurements”. The objective of SFAS No. 157 is to increase consistency and comparability in fair value measurements and to expand disclosures about fair value measurements. SFAS No. 157 defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. SFAS No. 157 applies under other accounting pronouncements that require or permit fair value measurements and does not require any new fair value measurements. The provisions of SFAS No. 157 are effective for fair value measurements made in fiscal years beginning after November 15, 2007. The adoption of this statement is not expected to have a material effect on the Company's future reported financial position or results of operations.

In June 2006, the Financial Accounting Standards Board (FASB) issued FASB Integration No. 48, “Accounting for Uncertainty in Income Taxes, an interpretation of FASB Statements No. 109” (FIN 48). FIN 48 clarifies the accounting for uncertainty in income taxes by prescribing a two-step method of first evaluating whether a tax position has met a more likely than not recognition threshold and second, measuring that tax position to determine the amount of benefit to be recognized in the financial statements. FIN 48 provides guidance on the presentation of such positions within a classified statement of financial position as well as on derecognition, interest and penalties, accounting in interim periods, disclosure, and transition. FIN 48 is effective for fiscal years beginning after December 15, 2006. The adoption of this standard did not have a material effect on the Company’s results of operations or financial position.

F-10


Buckingham Exploration Inc.
(An Exploration Stage Company)
Notes to the Consolidated Financial Statements
Period Ended May 31, 2007
(Expressed in US dollars)

3. Mineral Property

(*) Mr. Lou Mann resigned as President and Director of the Company on August 26, 2015.

Advances from President, CEO and Significant Stockholder

From time to time, President, CEO and significant stockholder of the Company advances funds to the Company for working capital purpose. Those advances are unsecured, non-interest bearing and due on demand.

Convertible Notes Payable to the Officers and Directors

The Company issued convertible notes to the Officers and Directors of the Company for working capital purpose with 0% interest. The notes are convertible at variable prices and payable on demand at any time after the earlier of (i) 36 months following the note issuance or (ii) the consummation of a corporate transaction if not previously converted.

Advances to BIM and Share Transfer Agreement with Louis Mann

The Company advanced $52,037 in aggregate to BIM ("BIM Advances") for planned collaboration during the reporting period ended June 30, 2015. On August 8, 2006, the Company acquired a 100% interest in two mineral claims located in the Northwest Territories for consideration of $245,125 payable as to $45,125 (CDN$50,000) cash, and 2,000,000 common shares, with a fair value of $200,000. The mineral claims are subject to a 2% net smelter return. The Company has the option to acquire up to an additional 1% of the net smelter royalty for proceeds of $902,500 throughout the life of the agreement. As it has not been determined whether there are proven or probable reserves on the property, the Company has recognized an impairment loss of $245,125 of mineral property acquisition costs for the year ended May 31, 2007.

On May 9, 200726, 2015 the Company entered into a purchaseshare transfer agreement with Pikes Peak Resources, Inc.Louis Mann (“MANN”), a British Columbia corporation,then president and CEO of the Company, whereby Mann returned 21,885,591 Common Shares to the Company in exchange for the acquisition of 29 unpatented mining claims located in Teller County, Colorado. The purchase considerationadvances, and Mann resigned from his respective officer and director positions with the Company.

Advisory Agreement - Louis Mann

On August 26, 2015, the Company entered into an Advisory Agreement with MANN. Such Advisory Agreement provides for MANN’s continued and ongoing advisory services to the claimsCompany until December 31, 2015 and MANN will be paid Twenty-Five Thousand Dollars ($25,000) for providing such Advisory Services, which is one million dollarsdue and payable as to $500,000 cash and 5,000,000 shareson or before December 31, 2015. If such Advisor’s Fee is not paid within Four (4) Months following the end of the Term, the Company may elect to issue MANN Twenty-Five Thousand Dollars ($25,000) worth of the Company’s common stock with a fairas payment in full for services rendered under this Agreement. If stock is issued to MANN in lieu of cash, the value of $500,000. Pikes Peak Resources, Inc. will also receive net returns royalty of 2% of the proceeds of minerals mined and sold from the claims. The Company will also reimburse $3,700 to Pikes Peak Resources, Inc. for the costs of locating the claims. The Company has an option to purchase the royalty for $1,000,000 as adjusted for inflation. The Company has also agreed to buy back shares of commonsuch stock from Pikes Peak Resources, Inc. at prevailing market price up to $150,000 for any taxes payableshall be determined by Pikes Peak Resources, Inc. as a result of the transaction. Pikes Peak Resources, Inc. shall also have the option to repurchase the claims u pon abandonment by the Company. As it has not been determined whether there are proven or probable reserves on the property, the Company has recognized an impairment loss of $1,100,000 of mineral property acquisition costs for the year ended May 31, 2007.

4.     

Note Payable

On February 19, 2007, the Company issued a promissory note in exchange for proceeds of $23,362 (CDN$25,000) in the form of an unsecured loan, bearing interest at 1% per month with no repayment terms. During the year ended May 31, 2007, interest expense of $137 relating to the note was accrued.

5.     

Related Party Transactions

(a)     

During the year ended May 31, 2007, the Company incurred $34,500 (2006 - $1,000) for management services provided by the President of the Company, and $3,000 (2006 - $500) for rent provided by a related company which has a common director.

(b)     

At May 31, 2007, the Company is indebted to the President of the Company for $10,172 (2006 - $6,089), representing cash proceeds and expenses paid on behalf of the Company. These amounts are unsecured, non-interest bearing, and have no repayment terms.

(c)     

At May 31, 2007, the Company is indebted to a company with a common director for $3,500 (2006 - $500) for rent expense. This amount is unsecured, non-interest bearing, and has no repayment terms.

(d)     

On May 7, 2007, the Company granted 2,000,000 stock options to the President of the Company. Refer to Note 6.

F-11


Buckingham Exploration Inc.
(An Exploration Stage Company)
Notes to the Consolidated Financial Statements
Period Ended May 31, 2007
(Expressed in US dollars)

6.     

Common Shares

(a)     

On May 8, 2006, the Company issued 20,000,000 shares of common stock at a price of $0.0001 per share to the President of the Company for cash proceeds of $2,000.

(b)     

On May 20, 2006, the Company issued 1,000,000 shares of common stock at a price of $0.0001 per share for cash proceeds of $100.

(c)     

On May 26, 2006, the Company issued 1,000,000 shares of common stock at a price of $0.0001 per share for cash proceeds of $100.

(d)     

During the period ended May 31, 2006, the Company accepted stock subscriptions for 103,500 shares of common stock at a price of $0.10 per share for cash proceeds of $10,350. These shares were issued on July 1, 2006.

(e)     

On July 1, 2006, the Company issued 423,750 shares of common stock at a price of $0.10 per share for cash proceeds of $42,375.

(f)     

On August 8, 2006, the Company issued 2,000,000 shares of common stock at a price of $0.10 per share in lieu of purchase price of a mineral claim of $200,000.

(g)     

On September 28, 2006, the Company issued 120,000 shares of common stock at a price of $0.10 per share in lieu of transfer agent’s fee of $12,000.

(h)     

On May 7, 2007, the Company issued 20,000 shares of common stock at a price of $0.10 per share for cash proceeds of $2,000.

(i)     

On May 7, 2007, the Company issued 200,000 shares of common stock at a price of $0.10 per share in lieu of legal fees of $20,000.

(j)     

On May 11, 2007, the Company issued 5,000,000 shares of common stock at a price of $0.10 per share in lieu of purchase price of mineral claim of $500,000.

(k)     

On May 11, 2007, the Company issued 1,000,000 shares of common stock at a price of $0.10 per share in lieu of a finder’s fee of $100,000 in respect of the mineral property.

(l)     

On May 16, 2007, the Company issued 215,000 shares of common stock at a price of $0.10 per share in lieu of a finder’s fee of $57,350 in respect of the private placement.

(m)     

On May 16, 2007, the Company issued 4,300,000 shares of common stock and 4,300,000 warrants to purchase an additional 4,300,000 shares of common stock in a private placement at a price of $0.25 per share for cash proceeds of $1,075,000. Under the terms of the private placement, the warrants entitle the holder to exercise each warrant at $0.30 per share on or before May 15, 2008, and at $0.35 per share between May 16, 2008 and May 15, 2009, the expiration date of the warrants.

F-12


Buckingham Exploration Inc.
(An Exploration Stage Company)
Notes to the Consolidated Financial Statements
Period Ended May 31, 2007
(Expressed in US dollars)
(unaudited)

7.     

Stock Options

The following is a summary of the stock option activity during the years ended May 31, 2007 and 2006:

                      2007
 Number Of Shares  Weighted Average Exercise Price
Balance, beginning of year - $ 
Granted 2,000,000 0.10 
Exercised 
Expired 
Balance, end of year 2,000,000 $ 0.10 

The following is a summary of the status of stock options outstanding and exercisable at May 31, 2007:

Number Of OptionsWeighted Average Exercise PriceRemaining Contractual Life  
2,000,000 $ 0.10 3 years 

The weighted average assumptions used in calculating the fair value of stock options granted during the year ended May 31, 2007 using the Black-Scholes option pricing model are as follows:closing price published by OTCMarkets.com on December 31, 2015.

 2007 F-20
Risk-Free Interest Rate 4.46% 
Expected Life of the Options 3 years 
Expected Volatility of the Options 108% 
Expected Dividend Yield 0.00% 
Weighted-Average Fair Value at Grant Date  $0.10

F-13


Buckingham Exploration Inc.
(An Exploration Stage Company)
Notes to the Consolidated Financial Statements
Period Ended May 31, 2007
(Expressed in US dollars)

7.     

Stock Options (continued)

The total fair value of the 2,000,000 options granted during the year ended May 31, 2007 was $134,999 (2006 - $nil) based on the Black-Scholes option pricing model, which was charged to operations. As at May 31, 2007, the aggregate intrinsic value of the stock options were $780,000. The company had no unvested options outstanding at May 31, 2007.

8.     

Warrants

The following is a summary of the warrant activity during the years ended May 31, 2007:

 
 2007
  Weighted 
 Number Average 
 Of Exercise 
 Warrants Price 
Balance, beginning of year -  $- 
Granted  4,300,000 0.325 
Exercised 
Expired 
Balance, end of year  4,300,000 $ 0.325 


The warrants were granted on May 16, 2007

Note 6 –Note Payable

On June 15, 2015, as parta condition for the execution of the private placement,Equity Purchase Agreement by Tarpon, the Company issued a Promissory Note to Tarpon in the principal amount of $50,000 with an interest rate at 10% per annum and a maturity date of December 31, 2015. The note was recorded as disclosed in Note 6(m).financing cost upon issuance.

The followingnote is a summarycurrently past due.

Note 7 – Convertible Notes Payable

Convertible notes payable consisted of the warrants outstanding at May 31, 2007:

Number Weighted Expiry 
Of Warrants Average Date 
 Exercise  
 Price  
4,300,000 $ 0.325 May 15, 2009 

F-14


Buckingham Exploration Inc.
(An Exploration Stage Company)
Notes to the Consolidated Financial Statements
Period Ended May 31, 2007
(Expressed in US dollars)

9.     

Income Taxes

The Company has adopted the provisions of SFAS 109,“Accounting for Income Taxes”.Pursuant to SFAS 109 the Company is required to compute tax asset benefits for net operating losses carried forward. The potential benefit of net operating losses have not been recognized in the financial statements because the Company cannot be assured that it is more likely than not that it will utilize the net operating losses carried forward in future years. The Company has approximately $188,741, of net operating loss carryforwards available to offset taxable income in future years which expire through fiscal 2027. For the years ended May 31, 2007 and 2006, the valuation allowance established against the deferred tax assets increased by $63,814 and $2,246, respectively.

The components of the net deferred tax asset at May 31, 2007 and 2006, the statutory tax rate, the effective tax rate and the amount of the valuation allowance are indicated below:

 May 31, May 31, 
  2007 2006 
 $   $
Statutory rate 35% 35% 
Computed expected tax (recovery) (582,382) (2,246) 
Non-deductible expenses 518,568 – 
Change in valuation allowance 63,814 2,246 
Reported income taxes – – 
Deferred tax asset   
- Net operating loss carryforwards 66,060 2,246 
- Less valuation allowance (66,060) (2,246) 
Net deferred tax asset – – 

F-15


Buckingham Exploration Inc.
(An Exploration Stage Company)
Notes to the Consolidated Financial Statements
Period Ended May 31, 2007
(Expressed in US dollars)

9. Income Taxes (continued)

The Company has incurred operating losses of approximately $66,060 which, if unutilized, will expire through to 2027. Future tax benefits, which may arise as a result of these losses, have not been recognized in these financial statements, and have been offset by a valuation allowance. The following table lists the fiscal year in which the loss was incurred and the expiration date of the operating loss carry forwards:

  Expiration 
  Date of 
  Income Tax 
  Operating 
 Net Loss Carry 
 Loss Forwards 
2006 2,246 2026 
2007 63,814 2027 
Total Income Tax Loss Carryforward $ 66,060  

10.     

Commitments

(a)     

On May 7, 2007, the Company entered into a Management Agreement (the “Agreement”) with the President of the Company for management services. Per the Agreement, the Company is required to pay $10,000 per month, commencing May 7, 2007, and will remain in effect on month-to-month basis until terminated by either party giving 14 days notice.

(b)     

On April 15, 2006 the company entered into a commercial lease agreement to lease premises from a related party at the rate of $250 per month. The lease terminates on December 31, 2007. The Company has recorded rent expense of $3,000 for the year ended May 31, 2007.

11.     

Subsequent Events

(a)     

On July 27, 2007, the Company entered into an exploration agreement with an option to purchase a property known as High Park Trails Ranch in Teller County, Colorado. The property adjoins the Company’s High Park Uranium Project. Pursuant to the terms of the Option Agreement, the Company must make an option payment of $100,000 to acquire the surface and mineral estates over 265 acres (paid on July 27, 2007), with a further payment of $2,900,000 at the end of a twelve month period to exercise the non-exclusive option to purchase the property. During the option period, the Company has full access to the property to conduct an exploration and drill program to ascertain whether it wishes to exercise its option. The Company must also pay the Seller a production royalty of approximately 5% of the net returns generated by the Company from the exploration of the property.

(b)     

On August 10, 2007, the Company sold a private placement of 3.5 million units at a price of $0.50 per unit, raising a total of $1,750,000. Each unit consists of one common share and one non-transferable warrant to purchase of one further common share at an exercise price of $1.00. Each warrant will expire on the earlier of two years from the date it is issued or after five business days following the seventh consecutive trading day on which the Company’s common stock trades at least once on the NASDAQ operated OTC Bulletin Board at a price equal to or above $1.25 per share.

F-16


Buckingham Exploration Inc. 
(An Exploration Stage Company) 
November 30, 2007 
(Expressed in US dollars) 
(unaudited) 
Index 
Consolidated Balance Sheets F-1 
Consolidated Statements of Operations F-2 
Consolidated Statements of Cash Flows F-3 
Consolidated Notes to the Financial Statements F-4 

51


Buckingham Exploration Inc.   
(An Exploration Stage Company)   
Consolidated Balance Sheet   
Period Ended November 30, 2007   
(Expressed in US dollars)   
(unaudited)   
 
 
 November 30 May 31, 
 2007 2007 
 $   $
 (unaudited)  
ASSETS   
Current Assets   
         Cash 110,083 456,274 
         Advances to related party (Note 7) 5,778 
         Other receivables 15,486 22,112 
         Prepaid expenses and deposits (Note 4) 244,329 6,125 
Total Current Assets 375,676 484,511 
Property and Equipment (Note 5) 77,299 
Total Assets 452,975 484,511 
LIABILITIES AND STOCKHOLDERS’ EQUITY   
Current Liabilities   
         Accounts payable 13,993 12,462 
         Accrued liabilities 27,438 6,456 
         Due to related parties 13,672 
         Note payable (Note 6) 23,362 
Total Liabilities 41,431 55,952 
Commitments and Contingencies (Notes 1 and 11)   
Stockholders’ Equity   
Preferred Stock, 20,000,000 shares authorized, $0.0001 par value,   
NIL issued and outstanding 
Common Stock, 80,000,000 shares authorized, $0.0001 par value   
40,432,250 and 35,382,250 shares issued and outstanding 4,043 3,538 
Additional Paid-in Capital 4,569,563 2,095,386 
Deficit Accumulated During the Exploration Stage (4,162,062) (1,670,365) 
Total Stockholders’ Equity 411,544 428,559 
Total Liabilities and Stockholders’ Equity 452,975 484,511 

                           

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


F-1


Buckingham Exploration Inc.      
(An Exploration Stage Company)      
Consolidated Statement of Operations      
Period Ended November 30, 2007      
(Expressed in US dollars)      
(unaudited)      
 
     Accumulated 
 For Three For Three   from April 4, 
 Months Months For Six Months  For Six Months 2006 (Date of 
 Ended Ended        Ended Ended Inception) to 
 November 30, November 30, November 30, November 30, November 30, 
 2007 2006          2007 2006 2007 
 $  $$  $
Revenue 
Expenses      
   Amortization 5,153 7,964 7,964 
   General and administrative(1) 211,567 20,025 557,913 33,191 786,313 
   Impairment of mineral property costs (Note 3) 1,475,000 200,000 2,820,125 
   Mineral property costs 274,692 333,652 2,392 336,044 
   Professional fees 44,238 22,642 114,974 48,067 208,495 
Total Expenses 535,650 42,667 2,489,503 283,650 4,158,941 
Other (Income) Expenses      
   Interest income (513) (224) (1,197) (537) (1,757) 
   Interest expense 2,680 3,391 4,878 
Net Loss for the period (537,817) (42,443) (2,491,697) (283,113) (4,162,062) 
Net Loss Per Share – Basic and Diluted (0.01) (0.07) (0.01) 
Weighted Average Shares Outstanding 39,937,195 22,082,000 37,236,108 23,725,000 
(1)Stock based compensation included as follows:      
   General and administrative expenses  -157,182 292,181 
 
                           The accompanying notes are an integral part of these consolidated financial statements

F-2


Buckingham Exploration Inc.    
(An Exploration Stage Company)    
Consolidated Statement of Cash Flows    
Period Ended November 30, 2007    
(Expressed in US dollars)    
(unaudited)    
 
   Accumulated from 
 For Six Months For Six Months April 4, 2006 
 Ended November 30,  Ended November 30, (Date of 
 2007 2006 Inception) to 
   November 30, 
   2007 
 $ $
Operating Activities    
Net loss for the period (2,491,697) (283,113) (4,162,062) 
Adjustments to reconcile net loss to net cash used in    
operating activities    
         Amortization 7,964 7,964 
         Common shares issued for services 32,000 
         Impairment of mineral property costs 1,475,000 200,000 2,820,125 
         Stock-based compensation 157,182 12,000 292,181 
Changes in operating assets and liabilities    
         Accounts payable and accrued liabilities 22,513 15,566 41,431 
         Due to related parties 3,821 
         Other receivables 6,626 (2,182) (15,486) 
         Prepaid expenses (238,204) (244,329) 
Net Cash Used in Operating Activities (1,060,616) (53,908) (1,228,176) 
Investing Activities    
         Acquisition of mineral properties (1,475,000) (2,020,125) 
         Acquisition of property and equipment (85,263) (85,263) 
Net Cash Used in Investing Activities (1,560,263) (2,105,388) 
Financing Activities    
         Advances from (to) a related party, net (19,450) (5,778) 
         Repayment of note payable (23,362) 
         Proceeds from common stock subscription (10,350) 
         Proceeds from the issuance of common stock 2,525,000 52,725 3,656,925 
         Share issuance costs (207,500) (207,500) 
Net Cash Provided by Financing Activities 2,274,688 42,375 3,443,647 
(Decrease) Increase In Cash (346,191) (11,533) 110,083 
Cash - Beginning of Period 456,274 13,837 – 
Cash – End of Period 110,083 2,304 110,083 
Non-Cash Investing and Financing Activities:    
         Common stock issued for mineral property acquisitions  200,000 800,000 
         Common stock issued for mineral property acquisition finders fee 100,000 
Supplemental Disclosures    
         Interest paid 3,391 19 2,197 
         Income tax paid  

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

F-3


Buckingham Exploration Inc.
(An Exploration Stage Company)
Notes to the Consolidated Financial Statements
Period Ended November 30, 2007
(Expressed in US dollars)
(unaudited)

1.     

Nature of Operations and Continuance of Business

Buckingham Exploration Inc. (the “Company”) was incorporated in the State of Nevada on April 4, 2006. The Company is an Exploration Stage Company, as defined by Statement of Financial Accounting Standard (“SFAS”) No.7 “Accounting and Reporting for Development Stage Enterprises”. The Company’s principal business is the acquisition and exploration of mineral resources. The Company has not presently determined whether its properties contain mineral reserves that are economically recoverable.

These consolidated financial statements have been prepared on a going concern basis, which implies the Company will continue to realize its assets and discharge its liabilities in the normal course of business. The Company has never generated revenues since inception and has never paid any dividends and is unlikely to pay dividends or generate earnings in the immediate or foreseeable future. The continuation of the Company as a going concern is dependent upon the continued financial support from its shareholders, the ability of the Company to obtain necessary equity financing to continue operations, and the attainment of profitable operations. As at November 30, 2007, the Company has an accumulated deficit of $4,162,062. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern. These financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might b e necessary should the Company be unable to continue as a going concern.

During the six months ended November 30, 2007, the Company sold a private placement of 5,050,000 units at a price of $0.50 per unit, raising a total of $2,525,000, net of share issuance costs of $207,500. Each unit consists of one common share and one non-transferable warrant to purchase of one common share at an exercise price of $1.00. Each warrant will expire on the earlier of two years from the date it is issued or after five business days following the seventh consecutive trading day on which the Company’s common stock trades at least once on the Over-the-Counter Bulletin Board (“OTCBB”) at a price equal to or above $1.25 per share. As at November 30, 2007, no warrants have been exercised by the warrant holders.

The Company currently trades on the OTCBB under the symbol ‘BUKX.OB’.

2.     

Summary of Significant Accounting Policies

(a)     

Basis of Presentation and Consolidation

These consolidated financial statements and related notes are presented in accordance with accounting principles generally accepted in the United States, and are expressed in US dollars. The consolidated financial statements include the financial statements of the Company and its’ wholly-owned subsidiaries, Hyde Park Uranium, Inc and Alpha Beta Uranium, Inc. All intercompany balances and transactions have been eliminated. The Company’s fiscal year-end is May 31.

(b)     

Interim Consolidated Financial Statements

The interim unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Securities and Exchange Commission (“SEC”) Form 10-QSB. They do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. Therefore, these financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the year ended May 31, 2007, included in the Company’s Annual Report on Form 10-KSB filed on September 4, 2007 with the SEC

The consolidated financial statements included herein are unaudited; however, they contain all normal recurring accruals and adjustments that, in the opinion of management, are necessary to present fairly the Company’s consolidated financial position at November 30, 2007 and May 31, 2007, and the consolidated results of its operations and consolidated cash flows for the six months ended November 30, 2007 and 2006. The results of operations for the six months ended November 30, 2007 are not necessarily indicative of the results to be expected for future quarters or the full year.

F-4


Buckingham Exploration Inc.
(An Exploration Stage Company)
Notes to the Consolidated Financial Statements
Period Ended November 30, 2007
(Expressed in US dollars)
(unaudited)following:

 

2.     

Summary of Significant Accounting Policies (continued)

(c)     

Use of Estimates

The preparation of these consolidated financial statements in conformity with U.S. 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 revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company regularly evaluates estimates and assumptions related to long lived assets, donated expenses, stock-based compensation expense, and deferred income tax asset valuations. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected.

(d)     

Property and Equipment

Property and equipment comprised of office furniture and motor vehicles, are recorded at cost and amortized using the declining balance method at 25% per annum.

(e)     

Basic and Diluted Net Income (Loss) Per Share

The Company computes net income (loss) per share in accordance with SFAS No. 128, "Earnings per Share". SFAS No. 128 requires presentation of both basic and diluted earnings per share (EPS) on the face of the income statement. Basic EPS is computed by dividing net income (loss) available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing Diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares if their effect is anti-dilutive.

(f)     

Comprehensive Loss

SFAS No. 130, “Reporting Comprehensive Income,” establishes standards for the reporting and display of comprehensive loss and its components in the financial statements. As at November 30, 2007 the Company has no items that represent a comprehensive loss and, therefore, has not included a schedule of comprehensive loss in the financial statements.

(g)     

Cash and Cash Equivalents

The Company considers all highly liquid instruments with maturity of three months or less at the time of issuance to be cash equivalents.

(h)     

Mineral Property Costs

The Company has been in the exploration stage since its inception on April 4, 2006 and has not yet realized any revenues from its planned operations. It is primarily engaged in the acquisition and exploration of mining properties. Mineral property exploration costs are expensed as incurred. Mineral property acquisition costs are initially capitalized when incurred using the guidance in EITF 04-02, “Whether Mineral Rights Are Tangible or Intangible Assets”. The Company assesses the carrying costs for impairment under SFAS 144, “Accounting for Impairment or Disposal of Long Lived Assets” at each fiscal quarter end. When it has been determined that a mineral property can be economically developed as a result of establishing proven and probable reserves, the costs then incurred to develop such property, are capitalized. Such costs will be amortized using the units-of-production
  September 30,
2015
  December 31,
2014
 
       
On August 14, 2014 and August 20, 2014 the Company issued three convertible notes to three note holders in the principal amount of $5,000, $10,000 and $10,000 with interest at 10% per annum. Note Conversion Price is determined as follows: (a) if the Note is converted upon the Next Equity Financing, an amount equal to 80% of the price paid per share paid by the investors in the Next Equity Financing; (b) if the Note is converted in the event of a Corporate Transaction, a price per share derived by dividing a "pre-money" valuation of $8,000,000 by the number of shares outstanding immediately prior to the time of such conversion, on a fully diluted basis; or (c) if the Note is converted as part of a Maturity Conversion, a price per unit derived by dividing a "pre-money" valuation of $8,000,000 by the total number of units (restricted and non-restricted) outstanding immediately prior to the time of such conversion, on a fully diluted basis. The note is due and payable on demand at any time after the earlier of (i) 36 months following the note issuance or (ii) the consummation of a corporate transaction if not previously converted. $25,000  $25,000 
         
On August 31, 2014, the Company issued a convertible note to the CFO bearing 0% interest in the amount of $15,000. The Note Conversion Price is determined as follows: (a) if the Note is converted upon the Next Equity Financing, an amount equal to 80% of the price paid per share paid by the investors in the Next Equity Financing; (b) if the Note is converted in the event of a Corporate Transaction, a price per share derived by dividing a "pre-money" valuation of $8,000,000 by the number of shares outstanding immediately prior to the time of such conversion, on a fully diluted basis; or (c) if the Note is converted as part of a Maturity Conversion, a price per unit derived by dividing a "pre-money" valuation of $8,000,000 by the total number of units (restricted and non-restricted) outstanding immediately prior to the time of such conversion, on a fully diluted basis. The note is due and payable on demand at any time after the earlier of (i) 36 months following the note issuance or (ii) the consummation of a corporate transaction if not previously converted. The Company repaid $13,500 of the note during the nine months ended September 30, 2015.  1,500   15,000 
         
Two convertible notes with a director bearing 0% interest were issued on August 31, 2014 in the amounts of $35,000 and $21,000, respectively. Note Conversion Price is determined as follows: (a) if the Note is converted upon the Next Equity Financing, an amount equal to 80% of the price paid per share paid by the investors in the Next Equity Financing; (b) if the Note is converted in the event of a Corporate Transaction, a price per share derived by dividing a "pre-money" valuation of $8,000,000 by the number of shares outstanding immediately prior to the time of such conversion, on a fully diluted basis; or (c) if the Note is converted as part of a Maturity Conversion, a price per unit derived by dividing a "pre-money" valuation of $8,000,000 by the total number of units (restricted and non-restricted) outstanding immediately prior to the time of such conversion, on a fully diluted basis. The note is due and payable on demand at any time after the earlier of (i) 36 months following the note issuance or (ii) the consummation of a corporate transaction if not previously converted.  The Company repaid $27,500 of the note during the nine months ended September 30, 2015.  28,500   56,000 
         
Face amount  55,000   96,000 
         
Discount representing the derivative liability on conversion features  (55,000)  (96,000)
         
Accumulated amortization of discount of convertible notes payable (*)  22,889   21,643 
         
Remaining discount  (32,111)  (74,357)
         
Convertible notes payable, net $22,889  $21,643 

(*) The discount is being amortized using the effective interest rate method over the estimated life of the probable reserve. If mineral properties are subsequently abandoned or impaired, any capitalized costs will be charged to operations.

F-5


Buckingham Exploration Inc.
(An Exploration Stage Company)
Notes to the Consolidated Financial Statements
Period Ended November 30, 2007
(Expressed in US dollars)
(unaudited)

2.     

Summary of Significant Accounting Policies (continued)

(i)     

Long-Lived Assets

In accordance with SFAS No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets”, the carrying value of long-lived assets is reviewed on a regular basis for the existence of facts or circumstances that may suggest impairment. The Company recognizes impairment when the sum of the expected undiscounted future cash flows is less than the carrying amount of the asset. Impairment losses, if any, are measured as the excess of the carrying amount of the asset over its estimated fair value.

(j)     

Financial Instruments

The fair value of financial instruments, which include cash, other receivables, accounts payable, accrued liabilities and amounts due to related parties, were estimated to approximate their carrying values due to the immediate or short-term maturity of these financial instruments. Foreign currency transactions are primarily undertaken in Canadian dollars. The financial risk is the risk to the Company’s operations that arise from fluctuations in foreign exchange rates and the degree of volatility of these rates. Currently, the Company does not use derivative instruments to reduce its exposure to foreign currency risk.

(k)     

Income Taxes

Potential benefits of income tax losses are not recognized in the accounts until realization is more likely than not. The Company has adopted SFAS No. 109 “Accounting for Income Taxes” as of its inception. Pursuant to SFAS No. 109 the Company is required to compute tax asset benefits for net operating losses carried forward. Potential benefit of net operating losses have not been recognized in these financial statements because the Company cannot be assured it is more likely than not it will utilize the net operating losses carried forward in future years.

(l)     

Stock-Based Compensation

The Company records stock-based compensation in accordance with SFAS No. 123R,“Share-Based Payments”, using the fair value method. The Company also complies with the provisions of FASB Emerging Issues Task Force (“EITF”) Issue No. 96-18,Accounting for Equity Instruments That Are Issued to Other Than Employees for Acquiring, or in Conjunction with Selling, Goods or Services(“EITF 96-18”). All transactions in which goods or services are the consideration received for the issuance of equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable. Equity instruments issued to employees and the cost of the services received as consideration are measured and recognized based on the fair value of the equity instruments issued.

(m)     

Foreign Currency Translation

The Company’s functional and reporting currency is the United States dollar. Monetary assets and liabilities denominated in foreign currencies are translated in accordance with SFAS No. 52 “Foreign Currency Translation”, using the exchange rate prevailing at the balance sheet date. Gains and losses arising on settlement of foreign currency denominated transactions or balances are included in the determination of income. Foreign currency transactions are primarily undertaken in Canadian dollars. The Company has not, to the date of these financials statements, entered into derivative instruments to offset the impact of foreign currency fluctuations.

(n)     

Recent Accounting Pronouncements

In December 2007, the FASB issued SFAS No. 160 “Noncontrolling Interests in Consolidated Financial Statements-an amendment of ARB No. 51”. SFAS 160 establishes accounting and reporting standards for the noncontrolling interest in a subsidiary and for the deconsolidation of a subsidiary. The guidance will become effective for the fiscal year beginning after December 15, 2008. The adoption of this statement is not expected to have a material effect on the Company’s consolidated financial statements.

F-6


Buckingham Exploration Inc.
(An Exploration Stage Company)
Notes to the Consolidated Financial Statements
Period Ended November 30, 2007
(Expressed in US dollars)
(unaudited)

2.     

Summary of Significant Accounting Policies (continued)

(n)     

Recent Accounting Pronouncements (continued)

In February 2007, the Financial Accounting Standards Board (FASB) issued SFAS No. 159, “The Fair Value Option for Financial Assets and Financial Liabilities – Including an Amendment of FASB Statement No. 115”. This statement permits entities to choose to measure many financial instruments and certain other items at fair value. Most of the provisions of SFAS No. 159 apply only to entities that elect the fair value option. However, the amendment to SFAS No. 115 “Accounting for Certain Investments in Debt and Equity Securities” applies to all entities with available-for-sale and trading securities. SFAS No. 159 is effective as of the beginning of an entity’s first fiscal year that begins after November 15, 2007. Early adoption is permitted as of the beginning of a fiscal year that begins on or before November 15, 2007, provided the entity also elects to apply the provision of SFAS No. 157, “Fair Value Measurements”.The adoption of this statement is not expected to have a material effect on the Company's consolidated financial statements.

In September 2006, the SEC issued Staff Accounting Bulletin (“SAB”) No. 108, “Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements.” SAB No. 108 addresses how the effects of prior year uncorrected misstatements should be considered when quantifying misstatements in current year financial statements. SAB No. 108 requires companies to quantify misstatements using a balance sheet and income statement approach and to evaluate whether either approach results in quantifying an error that is material in light of relevant quantitative an qualitative factors. SAB No. 108 is effective for periods ending after November 15, 2006. The adoption of this statement did not have a material effect on its consolidated financial statements.

In September 2006, the FASB issued SFAS No. 158, “Employers’ Accounting for Defined Benefit Pension and Other Postretirement Plans – an amendment of FASB Statements No. 87, 88, 106, and 132(R)”. This statement requires employers to recognize the overfunded or underfunded status of a defined benefit postretirement plan (other than a multiemployer plan) as an asset or liability in its statement of financial position and to recognize changes in that funded status in the year in which the changes occur through comprehensive income of a business entity or changes in unrestricted net assets of a not-for-profit organization. This statement also requires an employer to measure the funded status of a plan as of the date of its year-end statement of financial position, with limited exceptions. The provisions of SFAS No. 158 are effective for employers with publicly traded equity securities as of the end of the fiscal year ending after December 15, 2006. The adoption of this sta tement did not have a material effect on the Company's consolidated financial statements.

In September 2006, the FASB issued SFAS No. 157, “Fair Value Measurements”. The objective of SFAS No. 157 is to increase consistency and comparability in fair value measurements and to expand disclosures about fair value measurements. SFAS No. 157 defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. SFAS No. 157 applies under other accounting pronouncements that require or permit fair value measurements and does not require any new fair value measurements. The provisions of SFAS No. 157 are effective for fair value measurements made in fiscal years beginning after November 15, 2007. The adoption of this statement did not have a material effect on the Company's consolidated financial statements.

In June 2006, the Financial Accounting Standards Board (FASB) issued FASB Integration No. 48, “Accounting for Uncertainty in Income Taxes, an interpretation of FASB Statements No. 109” (FIN 48). FIN 48 clarifies the accounting for uncertainty in income taxes by prescribing a two-step method of first evaluating whether a tax position has met a more likely than not recognition threshold and second, measuring that tax position to determine the amount of benefit to be recognized in the financial statements. FIN 48 provides guidance on the presentation of such positions within a classified statement of financial position as well as on derecognition, interest and penalties, accounting in interim periods, disclosure, and transition. FIN 48 is effective for fiscal years beginning after December 15, 2006. The adoption of this standard did not have a material effect on the Company’s consolidated financial statements.

F-7


Buckingham Exploration Inc.
(An Exploration Stage Company)
Notes to the Consolidated Financial Statements
Period Ended November 30, 2007
(Expressed in US dollars)
(unaudited)

3. Mineral Property

On August 8, 2006, the Company acquired a 100% interest in two mineral claims located in the Northwest Territories for consideration of $245,125 payable as to $45,125 (CDN$50,000) cash, and 2,000,000 common shares, with a fair value of $200,000. The mineral claims are subject to a 2% net smelter return. The Company has the option to acquire up to an additional 1% of the net smelter royalty for proceeds of $902,500 throughout the life of the agreement. As it has not been determined whether there are proven or probable reserves ondebt instruments.

Note 8 – Derivative Instruments and the property, the Company has recognized an impairment lossFair Value of $245,125Financial Instruments

In August of mineral property acquisition costs for the year ended May 31, 2007.

On May 9, 2007,2014, the Company entered into a purchaseSecurities Purchase Agreement (the “Securities Purchase Agreement”) with certain investors (the “Holders”) for an aggregate of $96,000 in Convertible Promissory Notes (“Securities”). The Company issued 6 convertible debt instruments with variable conversion prices with reset provisions. The notes convert at a percent of future financing and/or pre-money valuations on a full dilution basis therefore the Company has an indeterminate number of shares required to settle the notes in shares and is a derivative instrument as of issuance. In addition, since this note has an indeterminate number of shares to settle the note in shares this qualifies the convertible debt instruments as derivative instrument as of the issuance.

F-21

Under the Agreements, the holders of the Convertible Promissory Notes have the following terms and conditions:

1. If not previously converted, all outstanding principal and accrued interest under a given

Note will be due and payable on demand by the Holder at any time after the earlier of (i) 36 months following issuance of such Note (the "Maturity Date") or (ii) the consummation of a Corporate Transaction (sale of substantially all of the Company's assets or stock; an IPO by the Company; merger of the Company; or a liquidation/dissolution).

2. The Notes accrue interest at a rate of 0% to 10% per annum compounded annually.

3. The Note is convertible as follows: (a) If the Note is converted upon the Next Equity Financing, shares of the same class of stock issued to investors in the Next Equity Financing; (b) if the Note is converted in the event of a Corporate Transaction, shares of common stock of the Company; or (c) if the Note is converted as part of a Maturity Conversion, units of Class A limited liability company membership interest ("Class A Units").

4. The Note Conversion Price is determined as follows: (a) if the Note is converted upon the Next Equity Financing, an amount equal to 80% of the price paid per share paid by the investors in the Next Equity Financing; (b) if the Note is converted in the event of a Corporate Transaction, a price per share derived by dividing a "pre- money" valuation of $8,000,000 by the number of shares outstanding immediately prior to the time of such conversion, on a fully diluted basis; or (c) if the Note is converted as part of a Maturity Conversion, a price per unit derived by dividing a "pre-money" valuation of $8,000,000 by the total number of units (restricted and non-restricted) outstanding immediately prior to the time of such conversion, on a fully diluted basis.

5. If the Next Equity Financing or a Corporate Transaction has not occurred on or before the Maturity Date, and the Note has not been repaid in full, the outstanding balance will, at the Holder's election, be (a) due and payable in full or (b) converted into Conversion Security.

Valuation of Derivative Financial Instruments

(1)Valuation Methodology

The Company has utilized a third party valuation consultant to assist the Company to fair value the derivative financial instruments. The company uses Monte Carlo models that value the derivative liability within the notes. The technique applied generates a large number of possible (but random) price paths for the underlying (or underlyings) via simulation, and then calculates the associated payment value (cash or stock) of the derivative features. The price of the underlying common stock is modeled such that it follows a geometric Brownian motion with constant drift, and constant volatility. The stock price is determined by a random sampling from a normal distribution. Since the underlying random process is the same, for enough price paths, the value of derivative is derived from path dependent scenarios and outcomes.

The features in the Notes that were analyzed and incorporated into the model included theconversion feature with theadjustable conversion price andredemption provisions (at the option of the Holder). Based on these features, there are two primary events that can occur: the Holder converts the note or the Holder redeems the note.

The model simulates the underlying economic factors that influenced which of these events would occur, when they were likely to occur, and the specific terms that would be in effect at the time (i.e. stock price, conversion price, etc.). Probabilities were assigned to each variable such as redemption likelihood, and timing and pricing of reset events over the remaining term of the note based on management projections. This led to a cash flow simulation over the life of the note. A discounted cash flow for each simulation was completed, and it was compared to the discounted cash flow of the note without the embedded features, thus determining a value for the derivative liability for that simulation. For each valuation, 10,000 simulations were run and the results were averaged to determine the derivative liability as of the date of each valuation.

(2)Valuation Assumptions

The convertible notes were valued at issuance (potentially convertible if a financing event occurred in the period) and also at the quarterly periods with the following assumptions:

- The public market price of$0.0230 (09/30/15 common stock price downloaded from Nasdaq.com using the ticker symbol TGRI) was utilized in the stock price projection as of 09/30/15. The Common shares outstanding as of 09/30/15 are 648,954,554;

- The stock projections are based on the comparable company annual volatilities for each date. These volatilities were in the130 – 132% range:

F-22

  1 year    1 year 
06/30/15  130% 09/30/15  132%

- The stock price projection was modeled such that it follows a geometric Brownian motion with constant drift and a constant volatility;

- An event of default would not occur during the remaining term of the note;

- Conversion of the notes to stock would occur only at maturity if the Note was in the money and a reset event had occurred - either the Next Financing or Corporate Transaction;

- Redemption would have no derivative value since no penalty or interest rate adjustment exist in these Notes;

- Discount rates were based on risk free rates in effect based on the remaining term and date of each valuation and instrument.

-The Note is convertible as follows: (a) if the Note is converted upon the Next Equity Financing, shares of the same class of stock issued to investors in the Next Equity Financing; (b) if the Note is converted in the event of a Corporate Transaction, shares of common stock; or (c) if the Note is converted as part of a Maturity Conversion.

- The Note Conversion Price is based on the following: (a) if the Note is converted upon the Next Equity Financing, an amount equal to 80% of the price paid per share paid by the investors in the Next Equity Financing; (b) if the Note is converted in the event of a Corporate Transaction, a price per share derived by dividing a "pre- money" valuation of $8,000,000 by the number of shares outstanding prior to such conversion, on a fully diluted basis; or (c) if the Note is converted as part of a Maturity Conversion, a price per unit derived by dividing a "pre-money" valuation of $8,000,000 by the total number of units/shares (restricted and non-restricted) outstanding prior to such conversion, on a fully diluted basis.

- If the Next Equity Financing or a Corporate Transaction has not occurred on or before the Maturity Date, and the Note has not been repaid in full, the outstanding balance will, at the Holder's election, be (a) due and payable in full or (b) converted into Conversion Security.

The conversion price adjustments from the Next Financing and Corporate Transaction (the IPO/Reverse Merger on May 29, 2015) and cash requirements since the IPO are:

As a result of the reverse merger and Corporate Transaction with Tierra Grande Resources Inc. (TGRI stock symbol), 634,345,251 issued and outstanding common shares existed following the Closing of the Merger with VNUE on 5/29/15.

As of May 29, 2015 the conversion price assuming an $8 million pre-money valuation and 634,345,251 shares outstanding was $0.01261. The conversion may reset up through maturity assuming the same $8 million pre-money value and the fully diluted shares outstanding at that time.

The Company has no further projected financings in the form of private placements.

As of September 30, 2015 and December 31, 2014, the estimated fair value of derivative liabilities on convertible notes was $103,002 and $215,748, respectively.

The following table summarizes the change of fair value of the derivative liabilities.

Balance at January 1, 2015 $(215,748)
To record derivative liabilities as debt discount    
Change in fair value of derivative liabilities  112,746 
     
Balance at September 30, 2015 $(103,002)

Note 9 – Commitment and Contingencies

Third Party Consulting/Service Agreements

Graphic Design Service Agreement with Flint

On May 1, 2015, the Company entered into a graphic design service agreement with Pikes Peak Resources, Inc.,Flint (the "Consultant") for a British Columbia corporation,period of one year starting on May 1, 2015. Under the Agreement, the Company engaged the Consultant as an independent contractor to provide graphic design services. The Company will compensate the Consultant $16,000 per month.

For the interim period ended September 30, 2015 the Company recorded $39,000 in cost of revenue under this Agreement.

F-23

Consulting Agreement with 2 Doors Management

Prior to May 5, 2015, 2 Doors Management provided certain consulting services to the Company on as needed basis without a written agreement.

On May 5, 2015, the Company entered into a consulting agreement with 2 Doors Management (the "Consultant") for a minimum period of 12 months starting on May 5, 2015. Under the Agreement, the Company engaged the Consultant as an independent contractor to develop venue partnerships, artists' onboard strategy, and facilitate recording of live shows on an ongoing basis. The Company will compensate the Consultant $17,500 per month for a 12 month period plus a monthly invoice paid out to the film crew at $1,500 per show.

The agreement was terminated and the Company recorded $15,994 in the cost of revenue for the acquisitioninterim period ended September 30, 2015.

Advisory Agreement - Einzig

On September 10, 2015, the Company entered into an Advisory Agreement with Steve Einzig, the Founder, President and CEO of 29 unpatented mining claims locatedBookingEntertainment.com.

The Advisory Agreement is effective September 10, 2015 and has a term of One (1) Year, during which Mr. Einzig will work directly with the Directors and Officers of the Company on a strategic level, while leveraging his skills, expertise, experience and abilities in Teller County, Colorado.the music and entertainment business.

Under the terms of the Advisory Agreement, VNUE will compensate Mr. Einzig in the amount of Fifty Thousand Dollars ($50,000) worth of the Company’s common stock as payment in full for services rendered during the Term. The purchase considerationnumber of common stock shares awarded to Mr. Einzig shall be determined by using the closing price published by OTCMarkets.com on the final trading day during the Term of the Agreement.

The Company did not record any consulting fees under this agreement for the claimsinterim period ended September 30, 2015.

Promotion Agreement - BookingEntertainment.com

On September 10, 2015, the Company entered into a Promotion Agreement with BookingEntertainment.com for a term of One (1) Year to secure contracts with Thirty (30) live music venues.

Under the terms of the Promotion Agreement, the Company shall pay BookingEntertainment.com Two Thousand Five Hundred Dollars ($2,500) for each One (1) Year contract secured per venue and Five Thousand Dollars ($5,000) for each Two (2) Year contract secured per venue, with payment due to the Promoter within Thirty (30) Days from the date on which each such contract is $1,000,000, payable as to $500,000 cash andcountersigned.

The Promotion Agreement also compensates BookingEntertainment.com through the issuance of 5,000,000the Company’s common stock under a series of performance benchmarks outlined in Section 2. Under such performance benchmarks, BookingEntertainment.com will earn a total of Three Million (3,000,000) shares of the Company’s common stock for securing contracts with the Thirty (30) live music venues. In addition, if Ten (10) of those venues sign contracts before January 16, 2016, BookingEntertainment.com shall receive a bonus of Three Hundred Thousand (300,000) shares of the Company’s common stock.

BookingEntertainment.com did not achieve any of the performance benchmarks specified in the agreement for the interim period ended September 30, 2015.

Employment Agreements

Christopher Nocera, CIO

On June 24, 2015, the Company entered into an Executive Employment Agreement with Dr. Christopher Nocera, who will serve as the Company’s Chief Information Officer with the following key terms and conditions:

Term

The employment shall commence on the date of signing ("Commencement Date") and continue until the 1st anniversary of the Commencement Date.

Compensation

As compensation for the services to be rendered by the Executive, the Company shall pay the Executive at an annual base salary rate of Ninety-Five Thousand Dollars ($95,000) per year. Beginning on the first anniversary of the date of the initial salary increase and continuing on each anniversary of the increase date, Base Salary shall be increased by an amount no less than five percent (5%) times the Base Salary then in effect, plus any additional amount determined by the Company’s Board of Directors.

F-24

Payment upon Change in Control

In the event that the Company undergoes a Change of Control during the Employment Term or any Renewal Term, the Company will pay the Executive an amount that, after subtracting there from the federal and state income and payroll withholding taxes that would be assessed thereon, would be equal to one (l) times her then current Base Salary, regardless of whether the Executive remains employed by the Company.

Compensation Recorded

The Company recorded $25,507 of salary and compensation under this Agreement for the interim period ended September 30, 2015.

Alex Yuryev, Senior Engineer

On July 23, 2015, the Company entered into an Executive Employment Agreement with Alex Yuryev, who will serve as the Company’s Senior Engineer with the following key terms and conditions:

Term

The employment shall commence on the date of signing ("Commencement Date") and continue until the 1st anniversary of the Commencement Date.

Compensation

As compensation for the services to be rendered by the Executive hereunder, the Company shall pay the Executive at an annual base salary (the “Base Salary”) rate of One Hundred Ten Thousand Dollars ($110,000) per year. Beginning on the first anniversary of the date of the initial salary increase and continuing on each anniversary of the increase date, Base Salary shall be increased by an amount no less than five percent (5%) times the Base Salary then in effect, plus any additional amount determined by the Company’s Board of Directors.

In addition to salary, the Executive shall receive Twenty-Five Thousand (25,000) shares of common stock for each quarter of employment. Upon first anniversary of employment, the Executive shall be eligible to receive an additional Fifty Thousand (50,000) share of restricted common stock at the discretion of the Company's Board of Directors, based on performance.

Payment upon Change in Control

In the event that the Company undergoes a Change of Control during the Employment Term or any Renewal Term, the Company will pay the Executive an amount that, after subtracting there from the federal and state income and payroll withholding taxes that would be assessed thereon, would be equal to one (l) times her then current Base Salary, regardless of whether the Executive remains employed by the Company.

Compensation Recorded

(i) Salary compensation: The Company recorded $20,794 of salary and compensation under this Agreement for the interim period ended September 30, 2015.

(ii) Shares-based compensation: Since the term is finite (one year) and the Employment Agreement specified the rewards will be issued on specific tranches, then it is akin to graded vesting and the measurement date would be the date of grant (i.e. July 23, 2015) for all the instruments. The Company valued the 100,000 aggregate shares of its common stock to be issued on a quarterly basis on the date of grant at its most recent PPM price, or $2,747 and the compensation cost were recognized ratably over the requisite service period.

Peter W. Slavish, Chief Content Officer

On September 8, 2015, the Company entered into an Executive Employment Agreement with Peter W. Slavish, who will serve as the Company’s Chief Content Officer with the following key terms and conditions:

Term

The employment shall commence on the date of signing ("Commencement Date") and continue until the 1st anniversary of the Commencement Date.

Compensation

As compensation for the services to be rendered by the Executive hereunder, the Company shall pay the Executive at an annual base salary (the “Base Salary”) rate of One Hundred Ten Thousand Dollars ($95,000) per year. Beginning on the first anniversary of the date of the initial salary increase and continuing on each anniversary of the increase date, Base Salary shall be increased by an amount no less than five percent (5%) times the Base Salary then in effect, plus any additional amount determined by the Company’s Board of Directors.

The Executive shall be entitled to one million (1,000,000) shares of restricted common stock upon signing of the agreement.

F-25

Payment upon Change in Control

In the event that the Company undergoes a Change of Control during the Employment Term or any Renewal Term, the Company will pay the Executive an amount that, after subtracting there from the federal and state income and payroll withholding taxes that would be assessed thereon, would be equal to one (l) times her then current Base Salary, regardless of whether the Executive remains employed by the Company.

Compensation Recorded

(i) Salary compensation: The Company recorded $5,726 of salary and compensation under this Agreement for the interim period ended September 30, 2015.

(ii) Share-based compensation: The Company valued the 1,000,000 shares of its common stock on the date of grant at its most recent PPM price, or $27,474 and recorded this amount as salary and compensation upon execution of this agreement.

Litigation

Litigation - Hughes Media Law Group, Inc.

On December 11, 2015, Hughes Media Law Group, Inc. ("HLMG") filed a lawsuit against VNUE, Inc. in the Superior Court of King County, Washington, under case number15-2-30108-0. HMLG claims damages of $130,552.78 for unpaid legal fees HMLG alleges are owed pursuant to an April 4, 2014 agreement withVNUE Washington , for legal work performed by HMLG forVNUE Washington prior to the Merger. The Complaint sets forth no legal basis for a lawsuit against VNUE, Inc. (Nevada) and does not, in fact, sueVNUE Washington , HMLG’s former client. The Company believes that VNUE, Inc. (Nevada) is not the proper party for this lawsuit, and reserves all available defenses and counterclaims. Under Washington Superior Court rules, VNUE, Inc. (Nevada) if service of process takes place outside of Washington, a defendant has Sixty (60) days from the date on which it was served the Complaint, to file a response setting forth its defenses. The Company plans to defend the lawsuit and is consulting with Washington litigation counsel in preparation for filing a response.

Note 10 – Stockholders’ Equity (Deficit)

Shares Authorized

Upon formation the total number of shares of all classes of stock the Company is authorized to issue is twenty Million (20,000,000) shares of Preferred Stock, par value $0.0001 per share and eighty Million (80,000,000) shares of Common Stock, par value $0.0001 per share.

January 31, 2011 Certificate of Amendment

On January 31, 2011 the Company filed Certificate of Amendment to Articles of Incorporation and changed the aggregate of number of common shares of the Company with a fairis authorized to issue to three hundred million (300,000,000) shares, par value $0.0001 per share.

April 8, 2013 Certificate of $500,000. Pikes Peak Resources, Inc. will also receive net returns royaltyAmendment

On April 8, 2013 the Company filed Certificate of 2%Amendment to Articles of Incorporation and changed the aggregate of number of common shares of the proceedsCompany is authorized to issue to five hundred million (500,000,000) shares, par value $0.0001 per share.

January 20, 2015 Certificate of minerals minedAmendment

On January 20, 2015 the Company filed Certificate of Amendment to Articles of Incorporation and changed the aggregate of number of common shares of the Company is authorized to issue to seven hundred and fifty million (750,000,000) shares, par value $0.0001 per share.

Common Stock

During the period from January 1, 2015 to May 28, 2015, the Company deemed to have sold from24,981,141 shares of its common stock (448,575 shares of Vnue Washington's common stock) at $686,320 in aggregate for cash.

Immediately prior to the claims. closing of the Merger Agreement on May 29, 2015, the Company had 126,866,348 common shares issued and outstanding.

Upon consummation of the Merger Agreement on May 29, 2015, the Company issued (i) 477,815,488 fully paid and non-assessable shares of TGRI common stock for the acquisition of all shares of Vnue Washington stock of any class or series issued and outstanding immediately prior to the closing of the Merger Agreement; and (ii) 29,814,384 fully paid and non-assessable shares of TGRI common stock to Matheau J. W. Stout, Esq. as payment for services performed prior to and in connection with the Merger.

The Company will also reimburse $3,700 to Pikes Peak Resources, Inc. forvalued the costs of locating the claims. The Company has an option to purchase the royalty for $1,000,000 as adjusted for inflation. The Company has also agreed to buy back29,814,384 acquisition-cost related shares of common stock from Pikes Peak Resources, Inc. at prevailing market price up to $150,000 for any taxes payable by Pikes Peak Resources, Inc. as a resultearned upon consummation of the transaction. Pikes Peak Resources, Inc. shall also have the optionMerger Agreement at Vnue Washington’s most recent PPM price, or $819,105 and recorded this amount as acquisition-related costspursuant to repurchase t he claims upon abandonment by the Company. As it has not been determined whether there are proven or probable reserves on the property, the Company has recognized an impairment loss of $1,100,000 of mineral property acquisition costs for the year ended May 31, 2007.FASB ASC Paragraph 805-10-25-23.

F-26

Equity Purchase Agreement with Tarpon Bay Partners, LLC

On July 27, 2007,June 15, 2015, the Company entered into an exploration agreementEquity Purchase Agreement (the “Equity Purchase Agreement”) with an option to purchaseTarpon Bay Partners, LLC, a property known as High Park Trails Ranch in Teller County, Colorado. The property adjoins the Company’s High Park Uranium Project. Pursuant to the terms of the Option Agreement, the Company must make an option payment of $100,000 to acquire the surface and mineral estates over 265 acres (paid on July 27, 2007), with a further payment of $2,900,000 at the end of a twelve month period to exercise the non-exclusive option to purchase the property. During the option period, the Company has full access to the property to conduct an exploration and drill program to ascertain whether it wishes to exercise its option. The Company must also pay the Seller a production royalty of approximately 5% of the net returns generated by the Company from the exploration of the property.

On August 27, 2007, the Company entered into an exclusive option agreement with Proteus Mining LimitedFlorida limited liability company (“Proteus”Tarpon”) for the acquisition of 939 unpatented lode mining claims located in Colorado. As at August 31, 2007, the Company has made payments of $1,375,000 relating to the acquisition of the mining claims and is committed to a future payment of $6,300,000 and issuance of 2,000,000 common shares of the Company prior to November 28, 2007. As it has not been determined whether there are proven or probable reserves on the property, the Company has recognized an impairment loss of $1,375,000 of mineral property acquisition costs. Refer to Note 11(g) and 12.

4.     

Prepaid Expenses and Deposits

At November 30, 2007, prepaid expenses and deposits includes a $200,000 (May 31, 2007 - $nil) deposit, held in trust with the Company’s legal counsel, for the Company’s option to change the existing terms of agreement with Proteus, as disclosed in Note 3.

5.     

Property and Equipment

   Net Book Value Net Book Value 
  Accumulated November 30, May 31, 
 Cost Amortization 2007 2007 
      $  $ $  
Office furniture and equipment 29,671 2,904 26,767 
Motor Vehicles 55,592 5,060 50,532 
 85,263 7,964 77,299 

F-8


Buckingham Exploration Inc.
(An Exploration Stage Company)
Notes to the Consolidated Financial Statements
Period Ended November 30, 2007
(Expressed in US dollars)
(unaudited)

6.     

Note Payable

On February 19, 2007, the Company issued a promissory note in exchange for proceeds of $23,362 (CDN$25,000) in the form of an unsecured loan, bearing interest at 1% per month with no repayment terms. During the period ended November 30, 2007, the note and accrued interest were repaid.

7.     

Related Party Transactions

(a)     

During the six months ended November 30, 2007, the Company incurred $60,000 (May 31, 2007 - $34,500) for management services provided by the President of the Company, and $1,500 (May 31, 2007 - $3,000) for rent provided by a related company which has a common director. Refer to Notes 11(a) and (b).

(b)     

During the six months ended November 30, 2007, the Company advanced the President of the Company an amount of $5,778 (May 31, 2007 – owed $10,172), representing a deposit on travel expenses paid.

(c)     

At November 30, 2007, the Company is indebted to a company with a common director for $Nil (May 31, 2007 - $3,500) for rent expense. This amount is unsecured, non-interest bearing, and has no repayment terms.

(d)     

On May 7, 2007, the Company granted 2,000,000 stock options to the President of the Company. Refer to Note 9.

8.     

Common Shares

(a)     

On August 10, 2007, the Company sold a private placement of 3,500,000 units at a price of $0.50 per unit, raising a total of $1,750,000. Each unit consists of one common share and one non-transferable warrant to purchase of one further common share at an exercise price of $1.00. Each warrant will expire on the earlier of two years from the date it is issued or after five business days following the seventh consecutive trading day on which the Company’s common stock trades at least once on the NASD operated OTC Bulletin Board (“OTCBB”) at a price equal to or above $1.25 per share

(b)     

On September 18, 2007, the Company issued 650,000 units of a private placement at $0.50 per unit for gross proceeds of $325,000. Each unit consists of one common share of the Company and one non- transferable warrant to purchase one additional common share exercise price of $1.00 within the earlier of two years from the closing date of the private placement or after five business days the Company’s common shares trade at least once on the OTCBB at a share price equal to or above $1.25 per common share for seven consecutive trading days.

(c)     

On October 15, 2007, the Company issued 500,000 units of a private placement at $0.50 per unit for gross proceeds of $250,000. Each unit consists of one common share of the Company and one non-transferable warrant to purchase one additional common share of the Company at an exercise price of $1.00 per common share within the earlier of September 30, 2009, or after five business days the Company’s common shares trade at least once on the OTCBB at a share price equal to or above $1.25 per common share for seven consecutive trading days.

(d)     

On October 26, 2007, the Company issued 200,000 units of a private placement at $0.50 per unit for gross proceeds of $100,000. Each unit consists of one common share of the Company and one non-transferable warrant to purchase one additional common share of the Company at an exercise price of $1.00 per common share within the earlier of October 22, 2009, or after five business days the Company’s common shares trade at least once on the OTCBB at a share price equal to or above $1.25 per common share for seven consecutive trading days.

(e)     

On November 6, 2007, the Company issued 200,000 units of a private placement at $0.50 per unit for gross proceeds of $100,000. Each unit consists of one common share of the Company and one non-transferable warrant to purchase one additional common share of the Company at an exercise price of $1.00 per common share within the earlier of November 6, 2009, or after five business days the Company’s common shares trade at least once on the OTCBB at a share price equal to or above $1.25 per common share for seven consecutive trading days.

F-9


Buckingham Exploration Inc.
(An Exploration Stage Company)
Notes to the Consolidated Financial Statements
Period Ended November 30, 2007
(Expressed in US dollars)
(unaudited)

9.     

Stock Options

In November 2007, the Company adopted a stock option plan (the "Plan") to grant options to executives, employees and consultants. Under the Plan, the Company may grant options to acquire up to 2,000,000 common shares of the Company. Options granted can have a term up to five years and an exercise price as determined by the Stock Option Committee or which represents the fair market value at the date of grant. Options vest as specified by the Stock Option Committee. If not specified, the options shall vest as follows:

As at November 30, 2007, the Company has not issued any stock options relating to the Plan, as outlined above.

The following is a summary of the stock option activity during the six month period ended November 30, 2007

 November 30, 2007 
 Number Weighted Average 
 Of Exercise 
 Shares Price 
Balance, May 31, 2007 2,000,000 $ 0.10 
Granted 1,000,000 0.60 
Exercised 
Expired 
Balance, November 30, 2007 3,000,000 $ 0.27 

F-10


Buckingham Exploration Inc.
(An Exploration Stage Company)
Notes to the Consolidated Financial Statements
Period Ended November 30, 2007
(Expressed in US dollars)
(unaudited)

9. Stock Options (continued)

On August 27, 2007, the Company granted 1,000,000 stock options to Wingspan Foundation (“Wingspan”) as part of the consulting agreement (the “Agreement”), as disclosed in Note 10(b).  Under the terms of the Equity Purchase Agreement, Tarpon will purchase, at the Company's election, up to $5,000,000 of the Company's registered common stock (the “Shares”).

During the term of the Equity Purchase Agreement, the Company may at any time deliver a “put notice” to Tarpon thereby requiring Tarpon to purchase a certain dollar amount of the Shares. Simultaneous with the delivery of such Shares, Tarpon shall deliver payment for the Shares. Subject to certain restrictions, the purchase price for the Shares shall be equal to 90% of the lowest Closing Price during the Valuation Period as such capitalized terms are defined in the Agreement.

The number of Shares sold to Tarpon shall not exceed the number of such shares that, when aggregated with all other shares of common stock options are exercisable at $0.60 per option, are immediately vested, and expire two yearsof the Company then beneficially owned by Tarpon, would result in Tarpon owning more than 9.99% of all of the Company's common stock then outstanding. Additionally, Tarpon may not execute any short sales of the Company's common stock. Further, the Company has the right, but never the obligation to draw down.

The Equity Purchase Agreement shall terminate (i) on the date on which Tarpon shall have purchased Shares pursuant to the Equity Purchase Agreement for an aggregate Purchase Price of $5,000,000, or (ii) on the date occurring 24 months from the date on which the Equity Purchase Agreement was executed and delivered by the Company and Tarpon.

As a condition for the execution of the Agreement. The total fair valueEquity Purchase Agreement by Tarpon, the Company issued a Promissory Note to Tarpon in the principal amount of $50,000 with an interest rate of 10% per annum and a maturity date of December 31, 2015.

Registration Rights Agreement with Tarpon Bay Partners, LLC

In addition, on June 15, 2015, the Company and Tarpon entered into a Registration Rights Agreement (the “Registration Agreement”). Under the terms of the 1,000,000 stock options granted was $157,182 basedRegistration Agreement the Company agreed to file a registration statement with the Securities and Exchange Commission with respect to the Shares within 120 days of June 15, 2015. The Company is obligated to keep such registration statement effective until (i) three months after the last closing of a sale of Shares under the Purchase Agreement, (ii) the date when Tarpon may sell all the Shares under Rule 144 without volume limitations, or (iii) the date Tarpon no longer owns any of the Shares.

Equity Instruments Issued to Parties Other Than Employees for Acquiring Goods or Services

Consulting Agreement - Shenandoah Funding, LLC

On June 29, 2015, the Company entered into a Consulting Agreement with Shenandoah Funding, LLC (“Consultant”) with the following key terms and conditions:

Section 1 Consulting Services

Under the Agreement, the Company engaged the Consultant as an independent contractor to provide investor relations advisory services for the Company.

Section 2

The Consultant has been providing services informally for VNUE for several weeks and will continue to provide services to VNUE for a twelve (12) months period beginning on July 1, 2015. The Company will compensate the Consultant for a total issuance of Five Million (5,000,000) shares. For the purpose of SEC Rule 144, the Consultant shall be deemed to have fully earned and paid for such shares on the Black Scholes option pricing model, which was charged to operations usingdate of execution of this agreement.

Accounting Treatment of the Equity Instruments Issued

The Company valued the 5,000,000 fully earned, nonforfeitable shares on the date of grant at its most recent PPM price, or $137,370 and recorded this amount as prepaid consulting fees and ratably amortizes the amount over the term of the service.

The Company recognized $42,268 of consulting fee earned under this agreement for the interim period ended September 30, 2015.

Consulting Agreement - PanAmerica Global, LLC

On July 27, 2015, the Company entered into a Consulting Agreement with PanAmerica Global, LLC (“Consultant”) with the following risk factors:key terms and conditions:

Section 1 Consulting Services

Under the Agreement, the Company engaged the Consultant as an independent contractor to provide investor relations advisory services for the Company.

 August 27,2007 
Risk-Free Interest Rate F-274.21% 
Expected Life of the Options 2 years 
Expected Volatility of the Options 41.16% 
Expected Dividend Yield 0.00% 
Weighted-Average Fair Value at Grant Date $0.60 

Section 2 Consulting Fees

A. The following isConsultant has been providing services informally for VNUE for several weeks and will continue to provide services to VNUE for a summarytwelve (12) months period beginning on August 1, 2015. Both parties agree to a firm commitment for the First Three Months (August, September, and October 2015) and thereafter, either party can cancel this agreement upon a 30 day notice. B. Upfront Fees. The Company will compensate the Consultant in the amount of Two Million Five Hundred Thousand (2,500,000) shares for service already performed. For the purpose of SEC Rule 144, the Consultant shall be deemed to have fully earned and paid for such shares on the date of execution of this agreement. C. Monthly Fees. The Company will also compensate the Consultant on a monthly basis beginning on August 1, 2015 by the issuance of 791,667 shares on the first day of subsequent month until expiration of the statusTerm,

Accounting Treatment of stock options outstanding and exercisable at November 30, 2007:

Weighted   
Number Average Remaining 
Of Exercise Contractual 
Options Price Life (years) 
2,000,000 $ 0.10 2.50 
1,000,000 $ 0.60 1.75 

As at November 30, 2007, the aggregate intrinsic value of outstanding and exercisable stock options was $2,200,000. Equity Instruments Issued

The Company had no unvested options outstandingvalued the 2,500,000 upfront shares earned upon grant on the date of signing at November 30, 2007its most recent PPM price, or $68,685 and recorded this amount as consulting fees upon execution of this agreement as these shares were issued for service already performed.

10. Warrants

The following isCompany valued the 791,667 August 2015 monthly shares earned as of August 31, 2015 at its most recent PPM price, or $21,750 and recorded this amount as consulting fees when earned. The Company valued the 791,667 September 2015 monthly shares earned as of September 30, 2015 at its most recent PPM price, or $11,875 and recorded this amount as consulting fees when earned.

Settlement and Release Agreement - Dean Graziano

On July 23, 2015, the Company reached a summarySettlement and Release Agreement with Dean Graziano (“GRAZIANO”) after learning that GRAZIANO might assert claims for equity or compensation against the Company or its subsidiary VNUE Washington and that such claims were not contained in the transaction documents surrounding the purchase of the warrant activity duringintangible assets of Lively, LLC (“LIVELY”) closed on July 23, 2014. Under the six month period ended November 30, 2007:

 November 30, 2007 
  Weighted 
 Number Average 
 Of Exercise 
 Warrants Price 
Balance, May 31, 2007 4,300,000 0.325 
Granted 5,050,000 1.00 
Exercised 
Expired 
Balance, November 30, 2007 9,350,000 0.69 

F-11


Buckingham Exploration Inc.
(An Exploration Stage Company)
Notesterms of the settlement, GRAZIANO agreed to resolve any and all claims, damages, causes of action, suits and costs, of whatever nature, character or description, whether known or unknown, anticipated or unanticipated, whether or not directly or indirectly related to the Consolidated Financial Statements
Period Ended November 30, 2007
(Expressedpurchase of the LIVELY assets, or to any alleged verbal understandings of promises of employment, advisory roles, or equity, which GRAZIANO may now have or may hereafter have or claim to have against VNUE, and its subsidiaries (the “GRAZIANO CLAIMS”) in US dollars)
(unaudited)exchange for Three Million Five Hundred Thousand (3,500,000) Shares (the “SETTLEMENT SHARES”). VNUE and GRAZIANO agree that delivery of the Settlement Shares pursuant to the conditions set forth herein shall satisfy VNUE’s obligation in full regarding any and all GRAZIANO CLAIMS. On July 27, 2015 the Company's board passed the resolution and issued the Settlement Shares to GRAZIANO.

10. Warrants (continued)

The following is a summaryCompany valued the 3,500,000 shares of its common stock earned upon grant on the warrants outstandingdate of signing at November 30, 2007:

Number Weighted Expiry 
Of Warrants Average Date 
 Exercise  
 Price  
4,300,000 0.325 May 15, 2009 
3,500,000 1.00 August 10, 2009 
650,000 1.00 September 15, 2009 
500,000 1.00 September 30, 2009 
200,000 1.00 October 22, 2009 
200,000 1.00 November 2, 2009 

11.     

Commitments

(a)     

On April 15, 2006 the Company entered into a commercial lease agreement to lease premises from a related party at the rate of $250 per month. The lease terminates on December 31, 2007. The Company has recorded rent expense of $1,500 for the period ended November 30, 2007 (May 31, 2007 - $3,000).

(b)     

On May 7, 2007, the Company entered into a Management Agreement (the “Agreement”) with the President of the Company for management services. Per the Agreement, the Company is required to pay $10,000 per month, commencing May 7, 2007, and will remain in effect on month-to-month basis until terminated by either party giving 14 days notice.

(c)     

On July 27, 2007, the Company entered into an exploration agreement with an option to purchase a property known as High Park Trails Ranch in Teller County, Colorado. The property adjoins the Company’s High Park Uranium Project. Pursuant to the terms of the Option Agreement, the Company must make an option payment of $100,000 to acquire the surface and mineral estates over 265 acres (paid on July 27, 2007), with a further payment of $2,900,000 at the end of a twelve month period to exercise the non-exclusive option to purchase the property. During the option period, the Company has full access to the property to conduct an exploration and drill program to ascertain whether it wishes to exercise its option. The Company must also pay the Seller a production royalty of approximately 5% of the net returns generated by the Company from the exploration of the property.

(d)     

On July 27, 2007 the Company entered into a residential lease agreement to lease premises at the rate of $900 per month. The lease terminates on July 31, 2008.

(e)     

On August 1, 2007 the Company entered into a commercial lease agreement to lease premises at the rate of $1,073 per month. The lease terminates on July 31, 2008.

(f)     

On August 27, 2007 the Company entered into a consulting Agreement (the “Agreement”) with Wingspan Foundation for operational, financial, management and public relations services. Per the Agreement, the Company is required to pay $10,000 per month, commencing August 27, 2007 and terminating on May 31, 2008 unless terminated by either party providing 30 days notice. In addition, the Company is required to grant 1,000,000 stock options at an exercise price of $0.60 per option, vesting immediately, and exercisable within two years of the date of the signed Agreement. The Agreement is renewable for a further period of one year at the option of the Company.

F-12


its most recent PPM price, or $96,159 and recorded this amount as other expenses - settlement of claims upon execution of this agreement.

Buckingham Exploration Inc.
(An Exploration Stage Company)
Notes

Sale of Common Shares for Cash

On September 24, 2015, the Company sold 2,666,667 shares of its common stock to the Consolidated Financial Statements
Period Ended November 30, 2007
(Expressed in US dollars)
(unaudited)an investor at $0.015 per share, or $40,000 for cash.

11.     

Commitments (continued)

(g)     

On August 27, 2007, the Company entered into an exclusive option agreement with Proteus Mining Limited (“Proteus”) for the acquisition of 100% of the outstanding securities of its wholly owned subsidiaries to whom 939 unpatented lode mining claims located in Colorado have been assigned. In consideration for the exclusive option the Company paid Proteus an amount of $250,000. The Company may exercise the option by making all of the following payments of cash and shares to Proteus.

a)    

$1,125,000 to be paid on August 22, 2007 (paid) 

b)$6,300,000 to be paid by November 28, 2007
c)2,000,000 fully paid and non assessable common shares of the Company to be issued byNovember 28, 2007

If the payments are not made according to the time period set out the option will terminate and be of no further effect.

The claims are subject to net returns royalty of two percent of the proceeds of minerals mined and sold and an option of Pikes Peak Energy LLC to purchase any of the claims for $550 per claim after receiving notice of the intention to abandon any claim.

As at August 31, 2007, the Company has paid $1,375,000 in relation to the option agreement. Refer to Note 3.

(h)     

On September 14, 2007 the Company entered into a consulting Agreement (the “Agreement”) with Max Klemm for operational and management services. Per the Agreement, the Company is required to pay $2,500 per month, commencing September 17, 2007 and terminating on September 18, 2008 unless terminated by either party providing one month advance notice. The Agreement is automatically renewable for a further period of six month. The Company is also required to issue 25,000 stock options in terms of the stock option plan.

12.

Note 11 – Subsequent Events

(a) Further to the exclusive option agreement dated August 27, 2007 with Proteus Mining Limited (“Proteus”) (Refer to Note 11 (g)) the installment of $6,300,000 payable by November 28, 2007 has been waived and the option to acquire the Proteus claims has been extended indefinitely so that the Company may negotiate a reduced purchase price and restructure the transaction with Proteus. As of January 11, 2008, the

The Company has paid $1,575,000 towardevaluated all events that occurred after the acquisition ofbalance sheet date through the Proteus claims and has agreeddate when the financial statements were issued to issue 3,000,000 fully paid and non assessable common sharesdetermine if they must be reported. The Management of the Company atdetermined that there were certain reportable subsequent event(s) to be disclosed as follows:

Artist Agreement

On October 27, 2015, the Company entered into an Artist Agreement with I Break Horses, a price of $1.00 insteadSwedish duo based in Stockholm. 

The Artist Agreement is effective October 27, 2015 and has a term lasting as long as I Break Horses artist recordings are available via the VNUE Service. Under the terms of the original 2,000,000 shares.

(b) On January 8, 2007Artist Agreement, the Company issued 3,000,000 common sharesshall handle rights clearing and distribution for I Break Horses recordings and receive 30% of the Net Income generated thereby.

License Agreement

On November 2, 2015, the Company entered into a License Agreement with Universal Music Corp. (“Universal”).

The License Agreement is effective September 8, 2015, and has a term of Two (2) Years from the Effective Date. Under the terms of the License Agreement, Universal is granting to VNUE a non-exclusive, non-transferable, non-sublicensable license to create and distribute content using certain Universal compositions, more specified in the nameGrant of Proteus Mining Limited (Proteus) in anticipation of completing an agreement with Proteus for the acquisition of Proteus’ mining claims. The new agreement is intended to replace the binding option agreement with Proteus dated August 27, 2007. The issuance and deliveryRight’s section of the shares to Proteus is conditional onLicense Agreement.

The Company will then market and sell this content via the successful negotiationVNUE Service at certain agreed upon price points more specifically described in the Business Model and executionPrice Points Section of the new agreement with Proteus. Until execution of such agreement,License Agreement, and the Company is holdingshall pay Universal royalties for each sale of the sharescontent as specified in escrow. If the agreement is not executed within a reasonable periodRoyalty Rates section of the License Agreement.

F-28

In accordance with the Minimum Guarantee provision of the License Agreement, the Company will cancelshall pay to Universal a minimum first year fee of Fifty Thousand Dollars ($50,000), which is due within 10 days of execution and a second year minimum fee of Fifty Thousand Dollars ($50,000), which is due upon the shares.commencement of the second year of the Term.

F-13


Sale of Common Shares for Cash

During the period from November 5, 2015 to December 3, 2015, the Company sold 11,550,640 shares of its common stock in aggregate to certain investors at the price ranging from $0.012 to $0.028 per share, or $195,000 for cash.

On December 28, 2015, the Company sold 710,227 shares of its common stock to an investor at $0.0352 per share, or $25,000 for cash.

F-29

VNUE, INC.

50,000,000 SHARES
COMMON STOCK

PROSPECTUS

DEALER PROSPECTUS DELIVERY OBLIGATION

Until (180 days after the effective date), all dealers that effect transactions in these securities, whether or not participating in this offering, may be required to deliver a prospectus.  This is in addition to the dealers’ obligation to deliver a prospectus when acting as underwriters and with respect to their unsold allotments or subscriptions.

Part II

Information Not Required In the Prospectus

Other Expenses of Issuance and Distribution

Our

The estimated expenses in connection withcosts of this offering are as follows:

Securities and Exchange Commission registration fee $201.40 
Transfer Agent Fees $298.60 
Accounting fees and expenses $5,000.00 
Legal fees and expenses $25,000.00 
Edgar filing fees $500.00 
Miscellaneous (printing, etc.) $2,000.00 
Total $33,000.00 

All amounts are estimates other than the issuance and distributionCommission's registration fee.

We are paying all expenses of the securities being registered are estimated tooffering listed above.  No portion of these expenses will be as follows:

SEC filing fee $ 190 
Legal fees and expenses 22,000 
Accounting fees and expenses 4,000 
Printing and marketing expenses 100 
Miscellaneous 210 
Total $ 26,500 

Thoughborne by the selling shareholders.  The selling shareholders, however, will pay any other expenses incurred in connection with this offering are not substantially greater than the amountselling their common stock, including any brokerage commissions or costs of the offering, our management felt that an application for registration and the eventual listing on the FINRA OTC Bulletin Board will help us raise additional funds required by us to continue operationssale.

Indemnification of OfficersDirectors and DirectorsOfficers

Under our Articles of Incorporation

Our officers and bylaws, we may indemnify an officer or director who is made a party to any proceeding, including a law suit, because of his position, if he acted in good faith and in a manner he reasonably believed to be in our best interest. We may advance expenses incurred in defending a proceeding. To the extent that the officer or director is successful on the merits in a proceedingdirectors are indemnified as to which he is to be indemnified, we must indemnify him against all expenses incurred, including attorney's fees. With respect to a derivative action, indemnity may be made only for expenses actually and reasonably incurred in defending the proceeding, and if the officer or director is judged liable, onlyprovided by a court order. The indemnification is intended to be to the fullest extent permitted by the laws of the State of Nevada.

Section 78.138 of the Nevada Revised Statutes (“NRS”) provides forand our bylaws.

Under the NRS, directors’ immunity of directors from monetary liability except in certain enumerated circumstances, as follows:

“Except as otherwise provided in NRS 35.230, 90.660, 91.250, 452.200, 452.270, 668.045 and 694A.030, or unless the Articles of Incorporation or an amendment thereto, in each case filed on or after October 1, 2003, provide for greater individual liability,to a director or officer is not individually liable to the corporationcompany or its stockholders or creditorsshareholders for any damages as a result of any act or failure to act in his capacity as a director or officermonetary liabilities applies automatically unless it is proven that:specifically limited by a company's articles of incorporation that is not the case with our articles of incorporation.  Excepted from that immunity are:

(a)     (1)

his act ora willful failure to act constituted a breach of his fiduciary duties as a directordeal fairly with the company or officer; and

(b)     

his breach of those duties involved intentional misconduct, fraud or a knowing violation of law.”

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Section 78.5702 of the NRS provides as follows:

1.     

A corporation may indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, except an action by or in the right of the corporation, by reason of the fact that he is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses, including attorneys’ fees, judgments, fines and amounts paid in settlement actually and reasonably incurred by himits shareholders in connection with a matter in which the action, suit or proceeding if he:

directors has a material conflict of interest;
(2)(a)     

is not liable pursuanta violation of criminal law (unless the directors had reasonable cause to NRS 78.138;believe that his or

(b)     

acted in good faith and in a manner which he reasonably believed to be in her conduct was lawful or not opposed to the best interests of the corporation, and, with respect to any criminal action or proceeding, had no reasonable cause to believe that his or her conduct was unlawful.

unlawful);
(3)a transaction from which the directors derived an improper personal profit; and
2.     (4)

A corporation may indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action or suit by or in the right of the corporation to procure a judgment in its favor by reason of the fact that he is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise against expenses, including amounts paid in settlement and attorneys’ fees actually and reasonably incurred by him in connection with the defense or settlement of the action or suit if he:

(a)     

is not liable pursuant to NRS 78.138; or

(b)     

acted in good faith and in a manner which he reasonably believed to be in or not opposed to the best interests of the corporation.

willful misconduct.  

To the extent that a director, officer, employee or agent of a corporation has been successful on the merits or otherwise in defense of any action, suit or proceeding referred to in subsections 1 and 2, or in defense of any claim, issue or matter therein, the corporation shall indemnify him against expenses, including attorneys’ fees, actually and reasonably incurred by him in connection with the defense.

Regarding indemnification for liabilities arising under the Securities Act, which may be permitted to directors or officers under Nevada law, we are informed that, in the opinion of the SEC, indemnification is against public policy, as expressed in the Act and is, therefore, unenforceable.

Our Bylaws

Our bylaws provide that we will indemnify and advance litigation expenses to our directors, officers, employees and officersagents to the fullest extent permitted by Nevada law.

The general effectlaw, the Articles or our Bylaws, and shall indemnify and advance litigation expenses to our directors, officers, employees and agents to the extent required by law, the Articles or our Bylaws.  Our obligation of indemnification, if any, shall be conditioned on our receiving prompt notice of the foregoingclaim and the opportunity to settle and defend the claim.  We may, to the extent permitted by law, purchase and maintain insurance on behalf of an individual who is or was a directors, officer, employee or agent of ours.

Our bylaws provide that we will advance all expenses incurred to our directors, officers, employees and agents to the extent permitted by law, our Articles or our Bylaws, and shall indemnify and advance litigation expenses to our directors, officers, employees and agents to the extent required by law, the Articles or our Bylaws.  Our obligations of indemnification, if any, shall be conditioned on our receiving of prompt notice of the claim and the opportunity to settle and defend the claim.  We may, to the extent permitted by law, purchase and maintain insurance on behalf of an individual who is or was a control person,director, officer, employee or director from liability, thereby making us responsible for any expenses or damages incurred by such control person, officer or director in any action brought against them based on their conduct in such capacity, provided they did not engage in fraud or criminal activity.agent of ours.

F-53


Recent Sales of Unregistered Securities

Since inception

Upon consummation of the Merger Agreement on April 4, 2006May 29, 2015, the Company issued (i) 477,815,488 fully paid and non-assessable shares of TGRI common stock shares for the acquisition of all shares of Vnue Washington stock of any class or series issued and outstanding immediately prior to February 29, 2008, we have completed the following salesclosing of unregistered securities:the Merger Agreement; and (ii) 29,814,384 fully paid and non-assessable shares of TGRI common stock to Matheau J. W. Stout, Esq. as payment for services performed prior to and in connection with the Merger.

58


59


We completed the offerings of the common stock pursuant to Rule 903 of Regulation S of the Securities Act on the basis that the sale of the common stock was completed in an "offshore transaction", as defined in Rule 902(h) of Regulation S. We did not engage in any directed selling efforts, as defined in Regulation S,Tarpon in the United States in connectionprincipal amount of $50,000 with the salean interest rate of the units. Each investor was not10% per annum and a US person, as defined in Regulation S, and was not acquiring the shares for the account or benefitmaturity date of a US person.December 31, 2015.

Our reliance upon the exemption under Section 4(2) of the Securities Act of 1933 was based on the fact that the issuance of these shares did not involve a “public offering.” The offering was not a "public offering" as defined in Section 4(2) due to the insubstantial number of persons involved in the deal, size of the offering, manner of the offering and number of shares offered. We did not undertake an offering in which we sold a high number of shares to a high number of investors.

Registration Rights Agreement with Tarpon Bay Partners, LLC

In addition, on June 15, 2015, the investors had the necessary investment intent as required by Section 4(2) since they agreed toCompany and receivedTarpon entered into a share certificate bearing a legend stating that such shares are restricted pursuant to Rule 144 of the Securities Act. This restriction ensures that these shares would not be immediately redistributed into the market and therefore not be part of a "public offering." The investors negotiatedRegistration Rights Agreement (the “Registration Agreement”). Under the terms of the transactions directlyRegistration Agreement the Company agreed to file a registration statement with our executive officers. No general solicitation w as used,the Securities and Exchange Commission with respect to the Shares within 120 days of June 15, 2015. The Company is obligated to keep such registration statement effective until (i) three months after the last closing of a sale of Shares under the Purchase Agreement, (ii) the date when Tarpon may sell all the Shares under Rule 144 without volume limitations, or (iii) the date Tarpon no commission or other remuneration was paid in connection with these transactions, and no underwriter participated. Based on an analysislonger owns any of the above factors, these transactions were effectedShares. 

Sale of Common Shares for Cash

On September 24, 2015, the Company sold 2,666,667 shares of its common stock to an investor at $0.015 per share, or $40,000 for cash.

During the period from November 5, 2015 to December 3, 2015, the Company sold 11,550,640 shares of its common stock in reliance onaggregate to certain investors at the exemptionprice ranging from registration provided in Section 4(2)$0.012 to $0.028 per share, or $195,000 for cash.

On December 28, 2015, the Company sold 710,227 shares of the Securities Actits common stock to an investor at $0.0352 per share, or $25,000 for transactions not involving any public offering.cash.

Financial Statement Schedules

The financial statement schedules are omitted because they are inapplicable or the requested information is shown in our financial statements or related notes thereto.Exhibits

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ExhibitsExhibit
ExhibitNumberExhibitDescription
 
3.1(1)Articles of Incorporation as filed with the Nevada Secretary of State on April 4, 2006 (1) 
3.2Certificate of Correction (1) 
3.3 (2)Bylaws (1) 
Instrument Defining the Right of Holders - Form of Share Certificate (1) By-Laws
5.1 Legal Opinion & Consent of Matheau J. W. Stout, Esq., with consent to use
10.1Christopher Robin Relph ManagementEquity Purchase Agreement with Tarpon Bay Partners, LLC dated April 5, 2006 (1) June 15, 2015
10.2Christopher Robin Relph ManagementRegistration Rights Agreement with Tarpon Bay Partners, LLC dated May 7, 2007 (2) June 15, 2015
10.3Purchase and Sale Agreement with Pikes Peak Resources, Inc.Promissory Note issued to Tarpon Bay Partners, LLC dated May 9, 2007 in respect of High Park Uranium Property (2)  June 15, 2015
10.4   23.1Quitclaim Deed and Royalty Agreement with Pikes Peak Resources Inc. dated October 30, 2007 (3) 
10.5 Exploration Agreement with Option to Purchase with Edwin S. Broussard III and Alice M. Broussard dated July 23, 2007 in respect of High Park Trails Property (2) 
10.6 Option Agreement with Proteus Mining Limited dated August 27, 2007 in respect of Proteus Property (4) 
10.7 Assignment and Assumption Agreement among Proteus Mining Limited, Buckingham Exploration Inc., Pikes Peak Energy LLC, and Alpha Beta Uranium Inc. dated as of January 21, 2008 (5) 
10.8 Quitclaim Deed and Royalty Agreement between Pikes Peak Energy LLC and Alpha Beta Uranium Inc. dated as of January 21, 2008 (5) 
10.9 Quitclaim Deed and Royalty Agreement between Pikes Peak Energy LLC and Hyde Park Uranium Inc. dated as of January 22, 2008 (5) 
23.1 Consent of Auditor 

Li and Company, P.C.
(1)     101.1NSXBRL Instance Document
101.SCHXBRL Taxonomy Extension Schema Document
101.CALXBRL Taxonomy Extension Calculation Linkbase Document
101.LABXBRL Taxonomy Extension Label Linkbase Document
101.PREXBRL Taxonomy Extension Presentation Linkbase Document
101.DEFXBRL Taxonomy Extension Definitions Linkbase Document

(1)Included as exhibits onan exhibit with our Form SB-2 filed October 13, 2006

2006.
(2)

Included as exhibits on our 10-KSB filed September 4, 2007

(3)     

Included as an exhibit on our 10-QSB filed January 22, 2008

(4)     

Included as an exhibit onwith our Form 8-K filed August 29, 2007

(5)     

Included as exhibits on our Form 8-K filed January 25, 2008

February 1, 2011.

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Undertakings

The undersigned registrant hereby undertakes:
35

The undersigned registrant hereby undertakes:

1.

toTo file, during any period in which offers or sales are being made, a post-effective amendment to this Prospectus to:registration statement:

(a)To include any Prospectusprospectus required by Section 10(a)(3) of the Securities Act;Act of 1933;
(b)To reflect in the Prospectusprospectus any facts or events arising after the effective date of the Prospectus (or thethis registration statement, or most recent post-effective amendment, thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the Prospectus.this registration statement; Notwithstanding the foregoing,forgoing, any increase or decrease in volumeVolume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of Prospectusprospectus filed with the Commissioncommission pursuant to Rule 424(b)if, in the aggregate, the changes in the volume and price represent no more than 20% change in the maximum aggregate offering price set forth in the "Calculation“Calculation of Registration Fee"Fee” table in the effective Prospectus; andregistration statement.
(c)To include any material information with respect to the plan of distribution not previously disclosed in the Prospectusthis registration statement or any material change to such information in the Prospectus;

registration statement.
 
2.

thatThat, for the purpose of determining any liability under the Securities Act, treat each such post-effective amendment asshall be deemed to be a new Prospectus ofregistration statement relating to the securities offered herein, and the offering of thesuch securities at that time shall be deemed to be the initial bona fide offering;

offering thereof.
 
3.

to fileTo remove from registration by means of a post-effective amendment to remove from registration any of the securities thatbeing registered hereby which remain unsold at the endtermination of the offering; and

offering.

4.

Insofar as indemnification for determining liability of the undersigned registrantliabilities arising under the Securities Act may be permitted to any purchaserofficers, directors, and controlling persons pursuant to the provisions above, or otherwise, we have been advised that in the initial distributionopinion of the securities,Securities and Exchange Commission such indemnification is against public policy as expressed in the undersigned registrant undertakesSecurities Act, and is, therefore, unenforceable.  In the event that a claim for indemnification against such liabilities is asserted our director, officer, or other controlling person in a primary offering of securities of the registrant pursuant to this registration statement, regardless of the underwriting method used to sellconnection with the securities registered, we will, unless in the opinion of our legal counsel the matter has been settled by controlling precedent, submit the question of whether such indemnification is against public policy to a court of appropriate jurisdiction.  We will then be governed by the purchaser, if the securities are offered or sold tofinal adjudication of such purchaser by means of any of the following communications, the undersigned registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:

issue.
 (i) 

Any preliminary5.

Each prospectus or prospectus of the registrant relating to the offering required to be filed pursuant to Rule 424;

(ii)     

Any free writing prospectus424(b) as part of a Registration statement relating to an offering, other than registration statements relying on Rule 430(B) or other than prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the offering prepared by or on behalfregistration statement as of the registrantdate it is first used after effectiveness.  Provided; however, that no statement made in a registration statement or used or referred to by the undersigned registrant;

(iii)     

The portion of any other free writing prospectus relating to the offering containing material information about the undersigned registrant or its securities provided by or on behalfthat is part of the undersigned registrant; and

(iv)     

Any other communicationregistration statement or made in a document incorporated or deemed incorporated by referenced into the registration statement or prospectus that is an offerpart of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that was made in the offeringregistration statement or prospectus that was part of the registration statement or made by the undersigned registrantin any such document immediately prior to the purchaser.

such date of first use.

 

62


Insofar as indemnification for liabilities arising under the Securities Act may be permitted to our directors, officers and controlling persons of the registrant pursuant to the foregoing provisions above, or otherwise, the registrant haswe have been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act, and is, therefore, unenforceable.

In the event that a claim for indemnification against such liabilities, (otherother than the payment by the registrantus of expenses incurred or paid by a director, officerone of our directors, officers, or controlling person of the registrantpersons in the successful defense of any action, suit or proceeding)proceeding, is asserted by such director, officerone of our directors, officers, or controlling person insin connection with the securities being registered, the registrantwe will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act, and we will be governed by the final adjudication of such issue. Each prospectus filed pursuant to Rule 424(b) as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration statement as of th e date it is first used after effectiveness. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such date of first use.

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36

Signatures

In accordance with

Pursuant to the requirements of the Securities Act Buckingham certifies that itof 1933, the registrant has reasonable grounds to believe that it meets all of the requirements for filing on Form S-1 and authorizedduly caused this Prospectus on Form S-1registration statement to be signed on its behalf by the undersigned, thereunto duly authorized in the City of Vancouver, ProvinceHenderson, State of British Columbia, Canada,Nevada, on the 7th22nd day of March, 2008.January, 2016.

 Buckingham ExplorationVNUE, Inc.

By:/s/ Christopher Robin Relph
Christopher Robin Relph
Director, President, Matthew Carona
Matthew Carona
Chief Executive Officer
Chief Financial Officer

In accordance withPursuant to the requirements of the Securities Act of 1933, this Prospectusregistration statement has been signed by the following persons in the capacities and on the dates stated.

SIGNATURES SIGNATURETITLE CAPACITY IN WHICH SIGNEDDATE
 
/s/ Christopher Robin Relph Matthew CaronaDirector, President, Chief Executive Officer Chief  March 7, 2008 January 22, 2016
Christopher Robin Relph Matthew CaronaFinancial Officer, Principal Accounting Officer and Director 
 
 /s/ Collin HowardPrincipalJanuary 22, 2016
Collin Howard

Accounting Officer, Principal

Financial Officer and Director

 


64