bowmo (BOMO) 10-Q 20 Aug 15 2015 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Aug. 17, 2015
Document And Entity Information
Entity Registrant Name	US Highland, Inc.
Entity Central Index Key	1,381,871
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		77,727,669
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,015

Unaudited Consolidated Balance

Unaudited Consolidated Balance Sheets - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Current Assets
Cash and cash equivalents	$ 5,935	$ 14,035
Prepaid expenses	90,529	95,748
Deposit in Highlon acquisition	150,000	150,000
Total Current Assets	246,464	259,783
Deposits	5,284	11,478
Property and Equipment, net	6,987	10,288
Total Assets	258,735	281,549
Current Liabilities
Accounts payable	493,254	499,586
Accrued liabilities ($344,435 and $255,830 related parties, respectively)	796,341	656,482
Convertible debentures ($121,798 and $nil related parties, respectively), net of discounts of $651,902 and $773,700, respectively	380,431	259,633
Derivative liabilities	89,872,077	46,065,517
Loans payable ($742,000 and $268,000 related parties, respectively)	1,040,000	391,500
Total Current Liabilities	92,582,103	47,872,718
Long-term loan payable ($157,000 and $607,000 related parties, respectively)	157,000	607,000
Total Liabilities	$ 92,739,103	$ 48,479,718
Stockholder's Deficit
Preferred stock, 3,550,000 shares authorized, par value $0.01; no shares issued and outstanding
Common stock, 500,000,000 shares authorized, $0.01 par value; 77,727,669 shares issued and outstanding	$ 777,276	$ 777,276
Common stock reserved for future issuance; 263,000 and 244,000 shares at June 30, 2015 and December 31, 2014	178,850	152,236
Treasury stock, at cost - 58,333 shares	(773,500)	(773,500)
Additional Paid-in Capital	54,757,845	54,757,845
Accumulated Deficit	(147,420,839)	(103,112,026)
Total Stockholder's Deficit	(92,480,368)	(48,198,169)
Total Liabilities and Stockholder's Deficit	$ 258,735	$ 281,549

Unaudited Consolidated Balance3

Unaudited Consolidated Balance Sheets (Parenthetical) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Current Liabilities
Accrued liabilities - related parties	$ 344,435	$ 255,830
Convertible debentures - related parties	121,798
Net of discounts	651,902	$ 773,700
Loans payable - related parties current	742,000	268,000
Loans payable - related parties	$ 157,000	$ 607,000
Stockholder's Deficit
Preferred Stock, shares authorized	3,550,000	3,550,000
Preferred Stock, par value (in Dollars per share)	$ 0.01	$ 0.01
Preferred Stock, shares issued	0	0
Preferred Stock, shares outstanding	0	0
Common Stock, shares authorized	500,000,000	500,000,000
Common Stock, par value (in Dollars per share)	$ 0.01	$ 0.01
Common Stock, shares issued	77,727,669	77,727,669
Common Stock, shares outstanding	77,727,669	77,727,669
Common stock reserved for future issuance	263,000	244,000
Treasury Stock - shares	58,333	58,333

Unaudited Consolidated Statemen

Unaudited Consolidated Statements of Operations - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Unaudited Consolidated Statements Of Operations
Revenue
Write-down of inventory		$ 125,616		$ 125,616
Gross Margin		(125,616)		(125,616)
Operating Expenses
Depreciation	$ 1,547	2,536	$ 3,301	5,158
General and administrative	80,191	375,161	187,776	534,954
Professional fees	31,768	117,392	54,920	333,119
Total Operating Expenses	113,506	495,089	245,997	873,231
Operating Loss	(113,506)	(620,705)	(245,997)	(998,847)
Other Income (Expense)
Interest expense	(145,992)	(376,782)	(256,281)	(567,761)
Change in fair value of derivatives	$ (35,777,246)	(10,499,869)	(43,806,560)	(8,809,435)
Other income		396	25	501
Total Other Income (Expense)	$ (35,923,238)	(10,876,255)	(44,062,816)	(9,376,695)
Net Loss	$ (36,036,744)	$ (11,496,960)	$ (44,308,813)	$ (10,375,542)
Net Loss Per Common Share:
- Basic and Diluted	$ (0.46)	$ (0.15)	$ (0.57)	$ (0.13)
Basic and diluted weighted average common shares outstanding	77,727,669	77,727,669	77,727,669	77,727,669

Consolidated Statement of Stock

Consolidated Statement of Stockholders Deficit - 6 months ended Jun. 30, 2015 - USD ($)	Common Stock	Additional Paid-In Capital	Common Stock Reserved For Future Issuance	Stock Subscriptions Receivable	Accumulated Deficit	Treasury Stock	Total
Beginning Balance, Amount at Dec. 31, 2014	$ 777,276	$ 54,757,845	$ 152,236		$ (103,112,026)	$ (773,500)	$ (48,198,169)
Beginning Balance, Shares at Dec. 31, 2014	77,727,669
Shares issuable in payment of accrued interest			$ 26,614				26,614
Net loss					$ (44,308,813)		(44,308,813)
Ending Balance, Amount at Jun. 30, 2015	$ 777,276	$ 54,757,845	$ 178,850		$ (147,420,839)	$ (773,500)	$ (92,480,368)
Ending Balance, Shares at Jun. 30, 2015	77,727,669

Unaudited Condensed Consolidate

Unaudited Condensed Consolidated Statements of Cash Flows - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Operating Activities
Net loss	$ (44,308,813)	$ (10,375,542)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation	3,301	5,158
Amortization expense	121,798	506,276
Change in fair value of derivative	$ 43,806,560	8,809,435
Write down of inventory		125,616
Shares issuable for interest expense	$ 26,614	7,008
Changes in operating assets and liabilities:
Inventory		(25,790)
Prepaid expenses and deposits	$ 5,219	13,660
Accounts payable & accrued liabilities	51,115	$ 463,666
Accrued liabilities - related parties	88,606
Net Cash Used in Operating Activities	(205,600)	$ (470,513)
Financing Activities
Proceeds from loan payable	189,000	$ 434,300
Proceeds from loans payable - related parties	30,200
Repayment of loans	(8,500)	$ (4,300)
Repayment of loans - related parties	(13,200)
Net Cash Provided by Financing Activities	197,500	$ 430,000
Decrease In Cash	(8,100)	(40,513)
Cash - Beginning of Period	14,035	43,044
Cash - End of Period	$ 5,935	$ 2,531
Supplemental Cash Flows Information:
Cash paid for income taxes
Cash paid for interest
Non-cash Investing and Financing Activities
Warrants issued to settle debt		$ 53,606

1. Summary of Business and Basi

1. Summary of Business and Basis of Presentation	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Summary of Business and Basis of Presentation	Organization and Business US Highland, Inc. was originally formed as a limited liability company on February 5, 1999 under the name of Powerhouse Productions, L.L.C. pursuant to the laws of the State of Oklahoma. On November 9, 2006, Powerhouse Productions, L.L.C. filed Articles of Conversion changing the entity from a limited liability company to a corporation under the name Harcom Productions, Inc. On January 25, 2010, Articles of Merger were filed with the State of Oklahoma merging U.S. Highland, Inc., an Oklahoma corporation into Harcom Productions, Inc. and the name of the corporation was changed to US Highland, Inc. US Highland, Inc. (the “Company”) is a recreational power sports Original Equipment Manufacturer (“OEM”), developing motorcycles, quads, single cylinder engines, and v-twin engines under its own brand and for other OEMs. Basis of Presentation The Company’s consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States. These consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, US Highlands Electric Inc. All significant intercompany transactions and balances have been eliminated. The unaudited consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) and reflect all adjustments (consisting of normal recurring adjustments unless otherwise indicated) which, in the opinion of management, are necessary for a fair presentation of the results for the interim periods presented. Certain prior year amounts have been reclassified to conform to current year presentation. Certain information in footnote disclosures normally included in the financial statements were prepared in conformity with accounting principles generally accepted in the United States of America and have been condensed or omitted pursuant to such principles and the financial results for the periods presented may not be indicative of the full year’s results. The Company believes the disclosures are adequate to make the information presented not misleading. These financial statements should be read in conjunction with the Company’s audited financial statements and the notes thereto for the fiscal year ended December 31, 2014 included in the Company’s Annual Report on Form 10-K filed on July 9, 2015 (the “2014 Annual Report”). Significant Accounting Policies There have been no material changes in the Company’s significant accounting policies to those previously disclosed in the 2014 Annual Report. Going Concern The accompanying consolidated financial statements have been prepared in conformity with generally accepted accounting principles which contemplate continuation of the Company as a going-concern basis. The going concern basis assumes that assets are realized and liabilities are extinguished in the ordinary course of business at amounts disclosed in the consolidated financial statements. The Company has incurred recurring losses from operations, and as of June 30, 2015, current liabilities exceed current assets by $92,335,639, and the Company has an accumulated deficit of $147,420,839. The Company’s ability to continue as a going concern depends upon its ability to obtain adequate funding to support its operations through continuing investments of debt and/or equity by qualified investors/creditors, internally generated working capital and monetization of intellectual property assets. These factors raise substantial doubt about the Company’s ability to continue as a going concern. These consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. Management is currently pursuing a business strategy which includes raising the necessary funds to finance the Company's development, marketing and manufacturing efforts.

2. Deposit on Highlon Distribut

2. Deposit on Highlon Distribution Inc. Acquisition	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Deposit on Highlon Distribution Inc. Acquisition	On December 30, 2014, the Company entered into a share exchange agreement with Highlon Distribution, Inc. (Highlon). Per the agreement, the Company will exchange 100 shares of the Company’s common stock for 100% of the Highlon shares. In addition, the Company will transfer $150,000 to Highlon within five days from the execution of the agreement. Highlon is a distribution management business focusing on marketing existing product in logistics area. Currently, parties are negotiating final terms of the share exchange.

3. Property and Equipment

3. Property and Equipment	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Property and Equipment	Property and equipment is recorded at cost and is comprised of: Useful Life June 30, 2015 December 31, 2014 Computers and office equipment 3 years $ 15,930 $ 15,930 Manufacturing equipment 5 - 10 years 19,513 19,513 35,443 35,443 Accumulated depreciation (28,456 ) (25,155 ) Property and equipment, net $ 6,987 $ 10,288 Depreciation expense amounted to approximately $3,301 and $5,158 for the six months ended June 30, 2015 and 2014, respectively.

4. Related Party Transactions

4. Related Party Transactions	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Related Party Transactions	a) During the six months ended June 30, 2015, the Company entered into an unsecured, non-guaranteed loan agreement with a significant shareholder for $20,000. Refer to Note 5(g). b) During the six months ended June 30, 2015, the Company entered into an unsecured, non-guaranteed loan agreement with a director for $10,200. During the six months ended June 30, 2015, the Company repaid $13,200 of loans owed to the director. Refer to Note 5(e).

5. Loans Payable

5. Loans Payable	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Loans Payable	Loans payable consist of the following: June 30, 2015 December 31, 2014 a) Loans payable that are unsecured, non-guaranteed, past due and are non-interest bearing. $ 25,000 $ 25,000 b) Note payable which is unsecured, non-guaranteed, past due and bears interest at 10% per annum. - 7,500 c) On January 15, 2011, the Company entered into 8 unsecured, non-guaranteed, loan agreements pursuant to which the Company received proceeds of $56,000. If the loans were not repaid within 90 days they then bear interest at 1% per month. In addition, if the loan was not repaid within 90 days, the Company is required to issue 167 common shares every month until the loan is repaid in full. As at June 30, 2015, and December 31, 2014, the Company recognized the fair value of 282,000 and 164,000 common shares issuable for interest expense of $178,850 and $152,236, respectively, as shares reserved for future issuance. The Company has not yet issued these common shares. As at June 30, 2015, the Company has also accrued interest expense of $29,960 (December 31, 2014 - $26,600). 56,000 56,000 d) On May 30, 2013 and August 12, 2013, the Company received advances from a director for $2,000 and $25,000, respectively. On August 12, 2013, the Company entered into an unsecured, non-guaranteed, demand loan agreement with the director for $27,000. The loan bears interest at 1% per annum compounded monthly. In addition, the Company is required to issue 5,000 common shares every month until the loan is repaid in full. As at June 30, 2015 and December 31, 2014, the Company recognized the fair value of 110,000 and 80,000 common shares issuable for interest expense of $47,500 and $26,500, respectively, as shares reserved for future issuance. The Company has not yet issued these common shares. As at June 30, 2015, the Company has also accrued interest expense of $522 (December 31, 2014- $385). 27,000 27,000 e) On February 27, 2014, and March 19, 2015, the Company received advances from a director of $6,000, and $10,200, respectively. During the six months ended June 30, 2015, the Company repaid $13,200. The advances are unsecured, due on demand and bears interest at 1% per annum compounded and calculated monthly. 3,000 6,000 f) On September 18, 2014, February 18, 2015, March 9, 2015, March 31, 2015, May 8, 2015 and May 29, 2015 the Company entered into unsecured, non-guaranteed, loan agreements pursuant to which the Company received proceeds of $35,000, $20,000, $50,000, $50,000, $65,000 and $4,000, respectively. The loans bear interest at 8% per annum compounded annually and is due 1 year after the date of issuance. 224,000 35,000 g) On August 26, 2014, December 4, 2014, December 18, 2014, and January 29, 2015, the Company issued unsecured notes payable of $15,000, $20,000, $200,000 and $20,000, respectively to a significant shareholder. The notes bear interest at an annual rate of 8% per annum, are uncollateralized, and due 1 year after the date of issuance. 255,000 235,000 h) The Company issued the following unsecured notes payable to a significant shareholder. The notes bear interest at an annual rate of 8% per annum, are uncollateralized, and are due 2 years after the date of issuance: 1. On January 17, 2014, the Company issued a $50,000 note payable. 50,000 50,000 2. On January 29, 2014 the Company issued a $50,000 note payable. 50,000 50,000 3. On February 19, 2014, the Company issued a $25,000 note payable. 25,000 25,000 4. On March 3, 2014, the Company issued a $50,000 note payable. 50,000 50,000 5. On March 19, 2014, the Company issued a $150,000 note payable. 150,000 150,000 6. On April 25, 2014, the Company issued a $25,000 note payable. 25,000 25,000 7. On May 19, 2014, the Company issued a $25,000 note payable. 25,000 25,000 8. On June 2, 2014, the Company issued an $18,000 note payable. 18,000 18,000 9. On June 12, 2014, the Company issued a $32,000 note payable. 32,000 32,000 10. On July 1, 2014, the Company issued a $25,000 note payable. 25,000 25,000 11. On July 16, 2014, the Company issued a $75,000 note payable to a related party. 75,000 75,000 12. On October 7, 2014, the Company issued a $30,000 note payable. 30,000 30,000 13. On October 31, 2014, the Company issued a $20,000 note payable. 20,000 20,000 14. On November 4, 2014, the Company issued a $32,000 note payable. 32,000 32,000 Total $ 1,197,000 $ 998,500 Less Short Term (1,040,000 ) (391,500 ) Long Term $ 157,000 $ 607,000

6. Convertible Debentures

6. Convertible Debentures	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Convertible Debentures	a) Effective January 25, 2010, the Company issued a convertible note for $225,000. Pursuant to the terms of the agreement, the loan was unsecured, non-interest bearing, and was due on December 21, 2010. The note was convertible into shares of the Company’s common stock at any time at a variable conversion price equal to 65% of the average of the closing bid prices of the common stock during the 28 trading days prior to the date of the conversion notice and was subject to adjustment upon the issuance of certain dilutive instruments. Due to these provisions, the embedded conversion option qualified for derivative accounting and bifurcation under ASC 815-15 Derivatives and Hedging. The initial fair value of the derivative liability of $538,249 resulted in a full discount to the note payable of $225,000 and the recognition of a loss on derivatives of $313,249. On June 2, 2010, the Company issued 6,386 restricted shares of common stock upon the conversion of the principal amount of $166,667. The fair value of the derivative liability at June 2, 2010, was $266,425 and $197,352 was reclassified to additional paid-in capital upon conversion. During the year ended December 31, 2013, the Company repaid $2,000 of the note, during the year ended December 31, 2014, the Company repaid an additional $3,000 and during the six months ended June 30, 2015, the Company repaid $1,000. At June 30, 2015 and December 31, 2014, the carrying value of the note was $52,333 and $53,333, respectively. The note is in default at June 30, 2015. b) Effective July 25, 2013, the Company issued a convertible note to secure a demand loan of $75,000. Pursuant to the terms of the agreement, the loan is unsecured and due on July 31, 2014. The note is convertible into shares of the Company’s common stock at any time at a price of $0.035. The note bears interest at 8% per annum compounded monthly, and is due on demand. The embedded conversion option qualifies for derivative accounting and bifurcation under ASC 815-15 Derivatives and Hedging. The initial fair value of the conversion feature of $577,797 resulted in a discount to the note payable of $75,000 and the recognition of a loss on derivatives of $502,797. As the note is due on demand the entire discount was recorded as interest expense on July 25, 2013. At June 30, 2015 and December 31, 2014, the carrying value of the note was $75,000. c) Effective July 25, 2013, the Company issued a convertible note to secure a demand loan of $45,000. Pursuant to the terms of the agreement, the loan is unsecured and due on July 31, 2014. The note is convertible into shares of the Company’s common stock at any time at a price of $0.035. The note bears interest at 8% per annum compounded monthly, and is due on demand. The embedded conversion option qualifies for derivative accounting and bifurcation under ASC 815-15 Derivatives and Hedging. The initial fair value of the conversion feature of $346,678 resulted in a discount to the note payable of $45,000 and the recognition of a loss on derivatives of $301,678. As the note is due on demand the entire discount was recorded as interest expense on July 25, 2013. At June 30, 2015 and December 31, 2014, the carrying value of the note was $45,000. d) On July 25, 2013, the Company issued a convertible note for up to $500,000 and warrants to purchase 12,500,000 underlying shares of the Company’s common stock. The warrants are exercisable into 10,000,000 common shares of the Company at $0.05 per share and 2,500,000 shares at an exercise price of $0.10 per share until July 31, 2014. During the year ended December 31, 2013, the Company received proceeds of $500,000 under the note. The note bears interest at 8% per annum compounded monthly, and principal and interest are due on July 31, 2014. In addition, so long as any amounts are due hereunder, the Company is obligated to remit to the lender 100% of all revenues, payments and receivables from the sale of the first 50 engines sold by the Company. The note is secured against substantially all of the assets of the Company. The note may be prepaid by the Company without penalty with 30 days prior notice. The note is convertible into shares of the Company’s common stock at any time at a conversion price equal to $0.02 per share and is subject to adjustment upon the issuance of certain dilutive instruments and other events. The conversion price was subsequently reduced to $0.01 per share upon the failure to file various reports with the SEC within 120 days of the issuance of the note. Due to the potential adjustments to the conversion feature and the inability to conclude that the Company has enough unissued-authorized common shares to settle the warrants, the embedded conversion option and the warrants qualify for derivative accounting and bifurcation under ASC 815-15 Derivatives and Hedging. The initial fair value of the conversion feature of $6,714,279 and warrants of $3,169,531 resulted in a discount to the note payable of $500,000 and the recognition of a loss on derivatives of $9,383,810. On July 24, 2014, the Company and the note holder agreed to extend the maturity date to December 31, 2014 and increase the interest rate to 12% starting on August 1, 2014. The Company accounted for the modification in accordance with ASC 405-20 and ASC 470-50-40. As the present value of the future cash flows was more than 10% different than the cash flows of the original debt, it was determined that the original and new debt instruments are substantially different and the Company treated the original convertible note extinguished and exchanged for a new convertible note. The Company recorded a loss on extinguishment of debt of $474,668. The Company also recognized the fair value of the embedded conversion feature of $24,501,757 as a derivative liability and reduced the value of the convertible loan to $nil. On December 31, 2014, the Company and the note holder agreed to extend the maturity date to December 31, 2015. Interest shall accrue at 12% per annum but may be reduced to 8% for any period of time in which the interest is paid in cash and not accrued. The Company accounted for the modification in accordance with ASC 405-20 and ASC 470-50-40. As the present value of the future cash flows was more than 10% different than the cash flows of the original debt, it was determined that the original and new debt instruments are substantially different and the Company treated the original convertible note extinguished and exchanged for a new convertible note. The Company recorded a loss on extinguishment of debt of $411,820. The Company also recognized the fair value of the embedded conversion feature of $25,088,180 as a derivative liability and reduced the value of the convertible loan to $nil. During the six months ended June 30, 2015, the Company recorded total accretion of $69,955. At June 30, 2015 and December 31, 2014, the carrying value of the note was $69,955 and $Nil with unamortized discount of $430,045 and $500,000, respectively. e) On July 25, 2013, the Company issued a convertible note for up to $500,000 and warrants to purchase 10,197,916 underlying shares of the Company’s common stock. The warrants are exercisable into 8,158,333 common shares of the Company at $0.05 per share and 2,039,583 shares at an exercise price of $0.10 per share until July 31, 2014. During the year ended December 31, 2013, the Company received proceeds of $273,700 under the note. At November 30, 2013, the Company had determined that no additional funding would be received pursuant to the convertible note. The note bears interest at 8% per annum compounded monthly, and principal and interest are due on July 31, 2014. The note may be prepaid by the Company without penalty with 30 days prior notice. The note is convertible into shares of the Company’s common stock at any time at a conversion price equal to $0.02 per share and is subject to adjustment upon the issuance of certain dilutive instruments and other events. The conversion price was subsequently reduced to $0.01 per share upon the failure to file various reports with the SEC within 120 days of the issuance of the note. Due to the potential adjustments to the conversion rate of the conversion feature and the inability to conclude that the Company has enough unissued-authorized common shares to settle the warrants, the embedded conversion option and the warrants qualify for derivative accounting and bifurcation under ASC 815-15 Derivatives and Hedging. The initial fair value of the conversion feature of $5,278,978 and warrants of $2,450,519 resulted in a discount to the note payable of $273,700 and the recognition of a loss on derivatives of $7,455,797. The note was not repaid on July 31, 2014. On August 4, 2014, the Company and the note holder agreed to extend the maturity date to December 31, 2014 and increase the interest rate to 12% starting on August 1, 2014. The Company accounted for the modification in accordance with ASC 405-20 and ASC 470-50-40. As the present value of the future cash flows was more than 10% different than the cash flows of the original debt, it was determined that the original and new debt instruments are substantially different and the Company treated the original convertible note extinguished and exchanged for a new convertible note. The Company recorded a loss on extinguishment of debt of $273,700. The Company also recognized the fair value of the embedded conversion feature of $13,685,849 as a derivative liability and reduced the value of the convertible loan to $nil. On December 31, 2014, the Company and the note holder agreed to extend the maturity date to December 31, 2015. Interest shall accrue at 12% per annum but may be reduced to 8% for any period of time in which the interest is paid in cash and not accrued. The Company accounted for the modification in accordance with ASC 405-20 and ASC 470-50-40. As the present value of the future cash flows was more than 10% different than the cash flows of the original debt, it was determined that the original and new debt instruments are substantially different and the Company treated the original convertible note extinguished and exchanged for a new convertible note. The Company recorded a loss on extinguishment of debt of $225,431. The Company also recognized the fair value of the embedded conversion feature of $13,733,269 as a derivative liability and reduced the value of the convertible loan to $nil. During the six months ended June 30, 2015, the Company recorded total accretion of $51,843. At June 30, 2015 and December 31, 2014, the carrying value of the note was $51,843 and $Nil with unamortized discount of $221,857 and $273,700, respectively. f) Effective November 12, 2013, the Company issued a convertible note for up to $500,000 and warrants to purchase 694,445 underlying shares of the Company’s common stock. The warrants are exercisable into 555,556 common shares of the Company at $0.05 per share and 138,889 shares at an exercise price of $0.10 per share until July 31, 2014. During the year ended December 31, 2013, the Company received proceeds of $20,000 under the note. At November 30, 2013, the Company had determined that no additional funding would be received pursuant to the convertible note. The note bears interest at 8% per annum compounded monthly, and principal and interest are due on July 31, 2014. The note may be prepaid by the Company without penalty with 30 days prior notice. The note is convertible into shares of the Company’s common stock at any time at a conversion price equal to $0.02 per share and is subject to adjustment upon the issuance of certain dilutive instruments and other events. The conversion price was subsequently reduced to $0.01 per share upon the failure to file various reports with the SEC within 120 days of the issuance of the note. Due to the potential adjustments to the conversion feature and the inability to conclude that the Company has enough unissued-authorized common shares to settle the warrants, the embedded conversion option and the warrants qualify for derivative accounting and bifurcation under ASC 815-15 Derivatives and Hedging. The initial fair value of the conversion feature of $250,021 and warrants of $145,943, resulted in a discount to the note payable of $20,000 and the recognition of a loss on derivatives of $375,964. During the year ended December 31, 2014, the Company recorded accretion of $13,479. At June 30, 2015 and December 31, 2014, the carrying value of the note was $20,000. The note is in default at June 30, 2015. g) Effective October 7, 2013, the Company issued a convertible note for up to $500,000 and warrants to purchase 868,055 underlying shares of the Company’s common stock. The warrants are exercisable into 694,444 common shares of the Company at $0.05 per share and 173,611 shares at an exercise price of $0.10 per share until July 31, 2014. During the year ended December 31, 2013, the Company received proceeds of $25,000 under the note. At November 30, 2013, the Company had determined that no additional funding would be received pursuant to the convertible note. The note bears interest at 8% per annum compounded monthly, and principal and interest are due on July 31, 2014. The note may be prepaid by the Company without penalty with 30 days prior notice. The note is convertible into shares of the Company’s common stock at any time at a conversion price equal to $0.02 per share and is subject to adjustment upon the issuance of certain dilutive instruments and other events. The conversion price was subsequently reduced to $0.01 per share upon the failure to file various reports with the SEC within 120 days of the issuance of the note. Due to the potential adjustments to the conversion feature and the inability to conclude that the Company has enough unissued-authorized common shares to settle the warrants, the embedded conversion option and the warrants qualify for derivative accounting and bifurcation under ASC 815-15 Derivatives and Hedging. The initial fair value of the conversion feature of $312,522 and warrants of $182,522 resulted in a discount to the note payable of $25,000 and the recognition of a loss on derivatives of $470,045. On July 24, 2014, the Company and the note holder agreed to extend the maturity date to December 31, 2014 and increase the interest rate to 12% starting on August 1, 2014. The Company accounted for the modification in accordance with ASC 405-20 and ASC 470-50-40. As the present value of the future cash flows was more than 10% different than the cash flows of the original debt, it was determined that the original and new debt instruments are substantially different and the Company treated the original convertible note extinguished and exchanged for a new convertible note. The Company recorded a loss on extinguishment of debt of $25,000. The Company also recognized the fair value of the embedded conversion feature of $1,250,082 as a derivative liability and reduced the value of the convertible loan to $nil. During the year ended December 31, 2014, the Company recorded total accretion of $42,032. At June 30, 2015 and December 31, 2014, the carrying value of the note was $25,000. The note is in default at June 30, 2015. h) On July 25, 2013, the Company issued a convertible note for up to $500,000 and warrants to purchase 739,584 underlying shares of the Company’s common stock. The warrants are exercisable into 591,667 common shares of the Company at $0.05 per share and 147,917 shares at an exercise price of $0.10 per share until July 31, 2014. During the year ended December 31, 2013, the Company received proceeds of $41,300 under the note. At November 30, 2013, the Company had determined that no additional funding would be received pursuant to the convertible note. The note bears interest at 8% per annum compounded monthly, and principal and interest are due on July 31, 2014. The note may be prepaid by the Company without penalty with 30 days prior notice. The note is convertible into shares of the Company’s common stock at any time at a conversion price equal to $0.02 per share and is subject to adjustment upon the issuance of certain dilutive instruments and other events. The conversion price was subsequently reduced to $0.01 per share upon the failure to file various reports with the SEC within 120 days of the issuance of the note. Due to the potential adjustments to the conversion feature and the inability to conclude that the Company has enough unissued-authorized common shares to settle the warrants, the embedded conversion option and the warrants qualify for derivative accounting and bifurcation under ASC 815-15 Derivatives and Hedging. The initial fair value of the conversion feature of $547,736 and warrants of $187,531, resulted in a discount to the note payable of $41,300 and the recognition of a loss on derivatives of $693,967. On August 4, 2014, the Company and the note holder agreed to extend the maturity date to December 31, 2014 and increase the interest rate to 12% starting on August 1, 2014. The Company accounted for the modification in accordance with ASC 405-20 and ASC 470-50-40. As the present value of the future cash flows was more than 10% different than the cash flows of the original debt, it was determined that the original and new debt instruments are substantially different and the Company treated the original convertible note extinguished and exchanged for a new convertible note. The Company recorded a loss on extinguishment of debt of $41,300. The Company also recognized the fair value of the embedded conversion feature of $2,065,135 as a derivative liability and reduced the value of the convertible loan to $nil. During the year ended December 31, 2014, the Company recorded total accretion of $65,955. At June 30, 2015 and December 31, 2014, the carrying value of the note was $41,300. The note is in default at June 30, 2015.

7. Derivative Liabilities

7. Derivative Liabilities	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Derivative Liabilities	The embedded conversion options of the Company’s convertible debentures described in Note 6 contain conversion features that qualify for embedded derivative classification. The warrants described in Notes 6 and 8 also qualify for derivative classification. The fair value of these liabilities will be re-measured at the end of every reporting period and the change in fair value will be reported in the statement of operations as a gain or loss on derivative financial instruments. The table below sets forth a summary of changes in the fair value of the Company’s Level 3 financial liabilities: June 30, 2015 December 31, 2014 Balance at the beginning of the period $ 46,065,517 $ 29,430,719 Addition of new derivative liabilities (warrants) – 53,606 Change in fair value of warrants 235,692 (5,184,569 ) Change in fair value of embedded conversion option 43,570,868 21,627,561 Modification of embedded conversion options – 138,200 Balance at the end of the period $ 89,872,077 $ 46,065,517 The following table summarizes the change in fair value of derivatives: Six Months Ended June 30, 2015 June 30, 2014 Change in fair value of derivative liabilities during the period $ (43,806,560 ) $ (8,809,435 ) Change in fair value of derivatives $ (43,806,560 ) $ (8,809,435 ) The Company uses Level 3 inputs for its valuation methodology for the warrant derivative liabilities and embedded conversion option liabilities as their fair values were determined by using the Black-Scholes option pricing model based on various assumptions. The model incorporates the price of a share of the Company’s common stock (as quoted on the Over the Counter Bulletin Board), volatility, risk free rate, dividend rate and estimated life. Significant changes in any of these inputs in isolation would result in a significant change in the fair value measurement. As required, these are classified based on the lowest level of input that is significant to the fair value measurement. The following table shows the assumptions used in the calculations: Expected Volatility Risk-free Interest Rate Expected Dividend Yield Expected Life (in years) At December 31, 2014 167% - 369% 0.04% - 0.67% 0 % 0.25-2.50 At June 30, 2015 81% - 226% 0.10% - 1.00%% 0 % 0.50-2.50

8. Stock Purchase Warrants

8. Stock Purchase Warrants	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Stock Purchase Warrants	A summary of the changes in the Company’s common share purchase warrants is presented below: Number Weighted Average Exercise Price Weighted Average Expected Life Balance December 31, 2014 2,246,250 $ 0.08 1.10 years Expired (956,250 ) 0.19 Balance June 30, 2015 1,290,000 $ 0.0005 1.16 years

9. Commitments

9. Commitments	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Commitments	a) During 2012, the Company entered into two leases for the provision of office and warehouse space until April 30, 2015. On April 1, 2013, the Company entered into an amendment to the lease agreements. Pursuant to the amendment, one of the leases was terminated and the other was extended to June 30, 2019. During the six months ended June 30, 2015, the Company recognized $42,904 (2014 - $30,914) of rent expense. The Company’s future minimum lease payments are as follows: Fiscal year ending Amount December 31, 2015 32,072 December 31, 2016 65,970 December 31, 2017 67,963 December 31, 2018 69,956 December 31, 2019 17,863 $ 253,824 b) The Company issued a $500,000 convertible note on July 25, 2013, of which so long as any amounts are due hereunder, the Company is obligated to remit to the lender 100% of all revenues, payments and receivables from the sale of the first 50 engines sold by the Company. c) On June 17, 2014, the Company was informed that a debtor will be instituting legal proceedings against the Company for collection of the sum of $76,712. The Company believes it owes the debtor $9,986 which it has recorded as owing. Accordingly, the Company intends to defend these potential matters vigorously. d) On December 16, 2013, the Company was informed that a vendor will be instituting legal proceedings against the Company for collection of the sum of $12,455. The Company believes it does not owe the vendor anything. Accordingly, the Company intends to defend these potential matters vigorously. e) On July 8, 2014, the Company filed civil actions against John R. Fitzpatrick, III, its former Chief Executive Officer, President, Chief Financial Officer, and a former director of the Company and against Mr. Steven (“Posie”) Pfaff, the Director of Manufacturing of the Company regarding an employment dispute. Mr. Fitzpatrick and Mr. Pfaff have answered the Petition and asserted various counterclaims against US Highland, Inc. and third party claims against directors of the Company and one of the Company’s attorneys. Mr. Fitzpatrick and Mr. Pfaff also filed complaints with the Oklahoma Department of Labor. On March 3, 2015, the Oklahoma Department of Labor entered awards of $ 72,000 in favor of Mr. Fitzpatrick and $ 54,000 in favor of Mr. Pfaff. Mr. Fitzpatrick and Mr. Pfaff are appealing these awards in Tulsa County District Court in the State of Oklahoma.

10. Subsequent Events

10. Subsequent Events	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Subsequent Events	a) On July 3, 2015, the Company entered into an unsecured, non-guaranteed, loan agreement pursuant to which the Company received proceeds of $5,000. The loan bears interest at 8% per annum compounded annually and is due 1 year after the date of issuance.

1 . Summary of Business and Bas

1 . Summary of Business and Basis of Presentation (Policies)	6 Months Ended
	Jun. 30, 2015
Summary Of Business And Basis Of Presentation Policies
Organization and Business	US Highland, Inc. was originally formed as a limited liability company on February 5, 1999 under the name of Powerhouse Productions, L.L.C. pursuant to the laws of the State of Oklahoma. On November 9, 2006, Powerhouse Productions, L.L.C. filed Articles of Conversion changing the entity from a limited liability company to a corporation under the name Harcom Productions, Inc. On January 25, 2010, Articles of Merger were filed with the State of Oklahoma merging U.S. Highland, Inc., an Oklahoma corporation into Harcom Productions, Inc. and the name of the corporation was changed to US Highland, Inc. US Highland, Inc. (the “Company”) is a recreational power sports Original Equipment Manufacturer (“OEM”), developing motorcycles, quads, single cylinder engines, and v-twin engines under its own brand and for other OEMs.
Basis of Presentation	The Company’s consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States. These consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, US Highlands Electric Inc. All significant intercompany transactions and balances have been eliminated. The unaudited consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) and reflect all adjustments (consisting of normal recurring adjustments unless otherwise indicated) which, in the opinion of management, are necessary for a fair presentation of the results for the interim periods presented. Certain prior year amounts have been reclassified to conform to current year presentation. Certain information in footnote disclosures normally included in the financial statements were prepared in conformity with accounting principles generally accepted in the United States of America and have been condensed or omitted pursuant to such principles and the financial results for the periods presented may not be indicative of the full year’s results. The Company believes the disclosures are adequate to make the information presented not misleading. These financial statements should be read in conjunction with the Company’s audited financial statements and the notes thereto for the fiscal year ended December 31, 2014 included in the Company’s Annual Report on Form 10-K filed on July 9, 2015 (the “2014 Annual Report”).
Significant Accounting Policies	There have been no material changes in the Company’s significant accounting policies to those previously disclosed in the 2014 Annual Report.
Going Concern	The accompanying consolidated financial statements have been prepared in conformity with generally accepted accounting principles which contemplate continuation of the Company as a going-concern basis. The going concern basis assumes that assets are realized and liabilities are extinguished in the ordinary course of business at amounts disclosed in the consolidated financial statements. The Company has incurred recurring losses from operations, and as of June 30, 2015, current liabilities exceed current assets by $92,335,639, and the Company has an accumulated deficit of $147,420,839. The Company’s ability to continue as a going concern depends upon its ability to obtain adequate funding to support its operations through continuing investments of debt and/or equity by qualified investors/creditors, internally generated working capital and monetization of intellectual property assets. These factors raise substantial doubt about the Company’s ability to continue as a going concern. These consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. Management is currently pursuing a business strategy which includes raising the necessary funds to finance the Company's development, marketing and manufacturing efforts.

3. Property and Equipment (Tabl

3. Property and Equipment (Tables)	6 Months Ended
	Jun. 30, 2015
Property And Equipment Tables
Property, Plant and Equipment	Property and equipment is recorded at cost and is comprised of: Useful Life June 30, 2015 December 31, 2014 Computers and office equipment 3 years $ 15,930 $ 15,930 Manufacturing equipment 5 - 10 years 19,513 19,513 35,443 35,443 Accumulated depreciation (28,456 ) (25,155 ) Property and equipment, net $ 6,987 $ 10,288

5. Loans Payable (Tables)

5. Loans Payable (Tables)	6 Months Ended
	Jun. 30, 2015
Loans Payable Tables
Schedule of Debt	Loans payable consist of the following: June 30, 2015 December 31, 2014 a) Loans payable that are unsecured, non-guaranteed, past due and are non-interest bearing. $ 25,000 $ 25,000 b) Note payable which is unsecured, non-guaranteed, past due and bears interest at 10% per annum. - 7,500 c) On January 15, 2011, the Company entered into 8 unsecured, non-guaranteed, loan agreements pursuant to which the Company received proceeds of $56,000. If the loans were not repaid within 90 days they then bear interest at 1% per month. In addition, if the loan was not repaid within 90 days, the Company is required to issue 167 common shares every month until the loan is repaid in full. As at June 30, 2015, and December 31, 2014, the Company recognized the fair value of 282,000 and 164,000 common shares issuable for interest expense of $178,850 and $152,236, respectively, as shares reserved for future issuance. The Company has not yet issued these common shares. As at June 30, 2015, the Company has also accrued interest expense of $29,960 (December 31, 2014 - $26,600). 56,000 56,000 d) On May 30, 2013 and August 12, 2013, the Company received advances from a director for $2,000 and $25,000, respectively. On August 12, 2013, the Company entered into an unsecured, non-guaranteed, demand loan agreement with the director for $27,000. The loan bears interest at 1% per annum compounded monthly. In addition, the Company is required to issue 5,000 common shares every month until the loan is repaid in full. As at June 30, 2015 and December 31, 2014, the Company recognized the fair value of 110,000 and 80,000 common shares issuable for interest expense of $47,500 and $26,500, respectively, as shares reserved for future issuance. The Company has not yet issued these common shares. As at June 30, 2015, the Company has also accrued interest expense of $522 (December 31, 2014- $385). 27,000 27,000 e) On February 27, 2014, and March 19, 2015, the Company received advances from a director of $6,000, and $10,200, respectively. During the six months ended June 30, 2015, the Company repaid $13,200. The advances are unsecured, due on demand and bears interest at 1% per annum compounded and calculated monthly. 3,000 6,000 f) On September 18, 2014, February 18, 2015, March 9, 2015, March 31, 2015, May 8, 2015 and May 29, 2015 the Company entered into unsecured, non-guaranteed, loan agreements pursuant to which the Company received proceeds of $35,000, $20,000, $50,000, $50,000, $65,000 and $4,000, respectively. The loans bear interest at 8% per annum compounded annually and is due 1 year after the date of issuance. 224,000 35,000 g) On August 26, 2014, December 4, 2014, December 18, 2014, and January 29, 2015, the Company issued unsecured notes payable of $15,000, $20,000, $200,000 and $20,000, respectively to a significant shareholder. The notes bear interest at an annual rate of 8% per annum, are uncollateralized, and due 1 year after the date of issuance. 255,000 235,000 h) The Company issued the following unsecured notes payable to a significant shareholder. The notes bear interest at an annual rate of 8% per annum, are uncollateralized, and are due 2 years after the date of issuance: 1. On January 17, 2014, the Company issued a $50,000 note payable. 50,000 50,000 2. On January 29, 2014 the Company issued a $50,000 note payable. 50,000 50,000 3. On February 19, 2014, the Company issued a $25,000 note payable. 25,000 25,000 4. On March 3, 2014, the Company issued a $50,000 note payable. 50,000 50,000 5. On March 19, 2014, the Company issued a $150,000 note payable. 150,000 150,000 6. On April 25, 2014, the Company issued a $25,000 note payable. 25,000 25,000 7. On May 19, 2014, the Company issued a $25,000 note payable. 25,000 25,000 8. On June 2, 2014, the Company issued an $18,000 note payable. 18,000 18,000 9. On June 12, 2014, the Company issued a $32,000 note payable. 32,000 32,000 10. On July 1, 2014, the Company issued a $25,000 note payable. 25,000 25,000 11. On July 16, 2014, the Company issued a $75,000 note payable to a related party. 75,000 75,000 12. On October 7, 2014, the Company issued a $30,000 note payable. 30,000 30,000 13. On October 31, 2014, the Company issued a $20,000 note payable. 20,000 20,000 14. On November 4, 2014, the Company issued a $32,000 note payable. 32,000 32,000 Total $ 1,197,000 $ 998,500 Less Short Term (1,040,000 ) (391,500 ) Long Term $ 157,000 $ 607,000

7. Derivative Liabilities (Tabl

7. Derivative Liabilities (Tables)	6 Months Ended
	Jun. 30, 2015
Derivative Liabilities Tables
Schedule of Derivative Instruments	The table below sets forth a summary of changes in the fair value of the Company’s Level 3 financial liabilities: June 30, 2015 December 31, 2014 Balance at the beginning of the period $ 46,065,517 $ 29,430,719 Addition of new derivative liabilities (warrants) – 53,606 Change in fair value of warrants 235,692 (5,184,569 ) Change in fair value of embedded conversion option 43,570,868 21,627,561 Modification of embedded conversion options – 138,200 Balance at the end of the period $ 89,872,077 $ 46,065,517
Fair Value, by Balance Sheet Grouping	The following table summarizes the change in fair value of derivatives: Six Months Ended June 30, 2015 June 30, 2014 Change in fair value of derivative liabilities during the period $ (43,806,560 ) $ (8,809,435 ) Change in fair value of derivatives $ (43,806,560 ) $ (8,809,435 )
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions	The following table shows the assumptions used in the calculations: Expected Volatility Risk-free Interest Rate Expected Dividend Yield Expected Life (in years) At December 31, 2014 167% - 369% 0.04% - 0.67% 0 % 0.25-2.50 At June 30, 2015 81% - 226% 0.10% - 1.00%% 0 % 0.50-2.50

8. Stock Purchase Warrants (Tab

8. Stock Purchase Warrants (Tables)	6 Months Ended
	Jun. 30, 2015
Stock Purchase Warrants Tables
Schedule of Share-based Compensation, Stock Options and Stock Appreciation Rights Award Activity	A summary of the changes in the Company’s common share purchase warrants is presented below: Number Weighted Average Exercise Price Weighted Average Expected Life Balance December 31, 2014 2,246,250 $ 0.08 1.10 years Expired (956,250 ) 0.19 Balance June 30, 2015 1,290,000 $ 0.0005 1.16 years

9. Commitments (Tables)

9. Commitments (Tables)	6 Months Ended
	Jun. 30, 2015
Commitments Tables
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense	Fiscal year ending Amount December 31, 2015 32,072 December 31, 2016 65,970 December 31, 2017 67,963 December 31, 2018 69,956 December 31, 2019 17,863 $ 253,824

1. Summary of Business and Ba23

1. Summary of Business and Basis of Presentation (Details Narrative) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Summary Of Business And Basis Of Presentation Details Narrative
Current liabilities exceed current assets	$ 92,335,639
Accumulated Deficit	$ (147,420,839)	$ (103,112,026)

3. Property and Equipment (Deta

3. Property and Equipment (Details) - USD ($)	6 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Property and Equipment Gross	$ 35,443	$ 35,443
Accumulated depreciation	(28,456)	(25,155)
Property and equipment, net	6,987	10,288
Computers and office equipment
Property and Equipment Gross	$ 15,930	15,930
Property, Plant and Equipment, Useful Life	3 years
Manufacturing equipment [Member]
Property and Equipment Gross	$ 19,513	$ 19,513
Manufacturing equipment [Member] | Minimum [Member]
Property, Plant and Equipment, Useful Life	5 years
Manufacturing equipment [Member] | Maximum [Member]
Property, Plant and Equipment, Useful Life	10 years

3. Property and Equipment (De25

3. Property and Equipment (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Property And Equipment Details Narrative
Depreciation expense	$ 1,547	$ 2,536	$ 3,301	$ 5,158

4. Related Party Transactions (

4. Related Party Transactions (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Repayment of loans - related parties	$ 13,200
Shareholder [Member]
Unsecured, non-guaranteed loan agreement	20,000
Director [Member]
Unsecured, non-guaranteed loan agreement	$ 10,200

5. Loans Payable (Details)

5. Loans Payable (Details) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Loan Payable	$ 1,197,000	$ 998,500
Less Short Term	(1,040,000)	(391,500)
Long Term	157,000	607,000
Loan 1 [Member]
Loan Payable	$ 25,000	25,000
Loan 2 [Member]
Loan Payable		7,500
Loan 3 [Member]
Loan Payable	$ 56,000	56,000
Loan 4 [Member]
Loan Payable	27,000	27,000
Loan 5 [Member]
Loan Payable	3,000	6,000
Loan 6 [Member]
Loan Payable	224,000	35,000
Loan 7 [Member]
Loan Payable	255,000	235,000
Loan 8 [Member]
Loan Payable	50,000	50,000
Loan 9 [Member]
Loan Payable	50,000	50,000
Loan 10 [Member]
Loan Payable	25,000	25,000
Loan 11 [Member]
Loan Payable	50,000	50,000
Loan 12 [Member]
Loan Payable	150,000	150,000
Loan 13 [Member]
Loan Payable	25,000	25,000
Loan 14 [Member]
Loan Payable	25,000	25,000
Loan 15 [Member]
Loan Payable	18,000	18,000
Loan 16 [Member]
Loan Payable	32,000	32,000
Loan 17 [Member]
Loan Payable	25,000	25,000
Loan 18 [Member]
Loan Payable	75,000	75,000
Loan 19 [Member]
Loan Payable	30,000	30,000
Loan 20 [Member]
Loan Payable	20,000	20,000
Loan 21 [Member]
Loan Payable	$ 32,000	$ 32,000

6. Convertible Debentures (Deta

6. Convertible Debentures (Details Narrative) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Conversion option warrants [Member]
Additional repaid	$ 1,000	$ 3,000
Carrying value of the note	52,333	53,333
Conversion option warrants one [Member]
Carrying value of the note	75,000	75,000
Conversion option warrants two [Member]
Carrying value of the note	45,000	$ 45,000
Conversion option warrants three [Member]
Carrying value of the note	69,955
Unamortized discount	430,045	$ 500,000
Total accretion	69,955
Conversion option warrants four [Member]
Carrying value of the note	51,843
Unamortized discount	221,857	$ 273,700
Total accretion	51,843
Conversion option warrants five [Member]
Carrying value of the note	20,000	20,000
Total accretion		13,479
Conversion option warrants six [Member]
Carrying value of the note	25,000	25,000
Total accretion		42,032
Conversion option warrants seven [Member]
Carrying value of the note	$ 41,300	41,300
Total accretion		$ 65,955

7. Derivative Liabilities (Deta

7. Derivative Liabilities (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Derivative Liabilities Details
Balance at the beginning of period	$ 46,065,517	$ 29,430,719
Addition of new derivative liabilities (warrants)		53,606
Change in fair value of warrants	$ 235,692	(5,184,569)
Change in fair value of embedded conversion option	$ 43,570,868	21,627,561
Modification of embedded conversion options		138,200
Balance at the end of the period	$ 89,872,077	$ 46,065,517

7. Derivative Liabilities (De30

7. Derivative Liabilities (Details 1) - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Derivative Liabilities Details 1
Change in fair value of derivative liabilities during the period	$ (43,806,560)	$ (8,809,435)
Change in fair value of derivatives	$ (43,806,560)	$ (8,809,435)

7. Derivative Liabilities (De31

7. Derivative Liabilities (Details 2)	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Minimum [Member]
Expected Volatility	81.00%	167.00%
Risk-free Interest Rate	0.10%	0.04%
Expected Dividend Yield	0.00%	0.00%
Expected Life (in years)	6 months	3 months
Maximum [Member]
Expected Volatility	226.00%	369.00%
Risk-free Interest Rate	1.00%	0.67%
Expected Dividend Yield	0.00%	0.00%
Expected Life (in years)	2 years 6 months	2 years 6 months

8. Stock Purchase Warrants (Det

8. Stock Purchase Warrants (Details) - 6 months ended Jun. 30, 2015 - $ / shares	Total
Stock Purchase Warrants Details
Number Beginning Balance	2,246,250
Expired	(956,250)
Number Ending Balance	1,290,000
Weighted Average Exercise Price Beginning Balance	$ 0.08
Expired	0.19
Weighted Average Exercise Price Ending Balance	$ 0.0005
Weighted Average Remaining Term Beginning Balance	1 year 1 month 6 days
Weighted Average Remaining Term Ending Balance	1 year 1 month 28 days

9. Commitments (Details)

9. Commitments (Details)	Jun. 30, 2015USD ($)
Commitments Details
December 31, 2015	$ 32,072
December 31, 2016	65,970
December 31, 2017	67,963
December 31, 2018	69,956
December 31, 2019	17,863
Total	$ 253,824

9. Commitments (Details Narrati

9. Commitments (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Commitments Details Narrative
Rent expense	$ 42,904	$ 30,914

Uncategorized Items - uhln-2015

Label	Element	Value
Net loss	us-gaap_NetIncomeLoss	$ (11,496,960)
Net loss	us-gaap_NetIncomeLoss	$ (36,036,744)
Write-down of inventory	us-gaap_InventoryWriteDown
Write-down of inventory	us-gaap_InventoryWriteDown	$ 125,616
Change in fair value of derivatives	us-gaap_UnrealizedGainLossOnDerivatives	(10,499,869)
Change in fair value of derivatives	us-gaap_UnrealizedGainLossOnDerivatives	$ (35,777,246)