(3) | Is it anticipated that any significant change in results of operations from the corresponding period for the last fiscal year will be reflected by the earnings statements to be included in the subject report or portion thereof? If so, attach an explanation of the anticipated change, both narratively and quantitatively, and, if appropriate, state the reasons why a reasonable estimate of the results cannot be made. |
| Yes [X] No [ ] | The Company expects to report a net operating loss of approximately $247,822 for the six months ended June 30, 2015, as compared to a net operating loss of $75,953 in the same period ended June 30, 2014; and to report a net loss of approximately $122,776 for the six months ended June 30, 2015, as compared to a net loss of $116,787 in the prior comparative period. The substantive increase to operating costs is predominantly the result of increased general and administrative expense from $83,687 in the six months ended June 30, 2014 to $257,806 in the six months ended June 30, 2015 as a result of increased expenditure on advertising and marketing, consulting fees, management salaries and listing and filing expenses. Other expenses during the six months ended June 30, 2015 include a gain on the change of the fairvalue of derivative liabilities of $444,235 compared to a loss of $16,727 in the prior period, and interest expenses of $319,189 (2015) as compared to only $24,107 as at June 30, 2014. Revenue increased period over period from $7,734 to $15,645 in the six months ended June 30, 2015. |