U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________________________
FORM 10-Q
[X] Quarterly report under Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the quarterly period ended June 30, 2015
[ ] Transition report pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Commission File No. 000-33053
_____________________________________
MIND SOLUTIONS, INC.
(Exact name of registrant as specified in its
charter)
|
|
Nevada
(State or other jurisdiction of
incorporation or organization) |
01-0719410
(I.R.S. Employer Identification Number) |
3525 Del Mar Heights Road, Suite 802
San Diego, California
(Address of principal executive offices) |
92130
(Zip Code) |
(888) 461-3932
(registrant’s telephone number,
including area code) |
Indicate by check mark whether the registrant
(1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding
12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such
filing requirement for the past 90 days. Yes [X] No [ ]
Indicate by check mark whether the registrant
has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted
and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter
period that the registrant was required to submit and post such files). Yes [ X ] No [ ]
Indicate by check mark whether the registrant
is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions
of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule
12b-2 of the Exchange Act (Check One):
Large accelerated filer [ ] |
Accelerated filer [ ] |
Non-accelerated filer [ ] |
Smaller reporting company [X] |
Indicate by check mark whether the registrant
is a shell company (as defined in Rule 12(b)-2 of the Exchange Act). Yes [ ] No [ X ]
Indicate the number of
shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date. At November
4, 2015, the registrant had outstanding 1,081,384,647 shares of common stock.
Table of Contents
|
|
PAGE |
PART I - FINANCIAL INFORMATION |
|
Item 1. |
Financial Statements |
3 |
Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations |
21 |
Item 3. |
Quantitative and Qualitative Disclosures About Market Risk |
26 |
Item 4. |
Controls and Procedures |
26 |
Item
4 (T) |
Controls
and Procedures |
26 |
PART II - OTHER INFORMATION |
|
Item 1. |
Legal Proceedings |
27 |
Item 1A. |
Risk Factors |
28 |
Item 2. |
Unregistered Sales of Equity Securities and Use of Proceeds |
29 |
Item 3. |
Defaults Upon Senior Securities |
29 |
Item 4. |
Mining Safety Disclosures |
29 |
Item 5. |
Other Information |
29 |
Item 6. |
Exhibits |
29 |
PART I – FINANCIAL INFORMATION
Item 1. Financial Statements.
MIND SOLUTIONS, INC. |
BALANCE SHEETS |
(Unaudited) |
| |
| |
December 31, |
| |
June 30, | |
2014 |
Assets: | |
2015 | |
Restated |
Current Assets | |
| | | |
| | |
Cash and Cash Equivalents | |
$ | 682 | | |
$ | 113,199 | |
Receivable From Related Party | |
| 70,538 | | |
$ | 0 | |
Prepaids | |
| 748,300 | | |
| 2,414,376 | |
Total Current Assets | |
| 819,520 | | |
| 2,527,575 | |
| |
| | | |
| | |
Fixed Assets: | |
| | | |
| | |
Property & equipment | |
| 89,653 | | |
| 89,653 | |
Less: accumulated depreciation | |
| (88,222 | ) | |
| (86,876 | ) |
Total Fixed Assets | |
| 1,431 | | |
| 2,777 | |
| |
| | | |
| | |
Other Assets: | |
| | | |
| | |
Marketable Securities: Available-for-sale | |
| 40 | | |
| 3,958 | |
Total Other Assets | |
| 40 | | |
| 3,958 | |
| |
| | | |
| | |
Total Assets | |
| 820,991 | | |
| 2,534,310 | |
| |
| | | |
| | |
Liabilities and Stockholders' (Deficit) Equity: | |
| | | |
| | |
| |
| | | |
| | |
Current Liabilities | |
| | | |
| | |
Accounts Payable & Accrued Expenses | |
| 383,652 | | |
| 389,165 | |
Accounts Payable to Related Parties | |
| 3,500 | | |
| 3,500 | |
Accrued Interest | |
| 358,956 | | |
| 342,647 | |
Notes Payable | |
| 172,500 | | |
| 145,000 | |
Convertible Notes Payable, net of discount of $347,041 and $381,389 as of June 30, 2015 (unaudited) and December 31, 2014 (restated) | |
| 28,320 | | |
| 69,339 | |
Derivative Liability | |
| 678,707 | | |
| 714,633 | |
Total Current Liabilities | |
| 1,625,635 | | |
| 1,664,284 | |
| |
| | | |
| | |
Commitments and Contingencies | |
| | | |
| | |
| |
| | | |
| | |
Stockholders' Deficit: | |
| | | |
| | |
Preferred stock, Series A par value $0.001, 10,000,000 shares authorized, 7,010,000 and 10,000,000 shares issued and outstanding as of June 30, 2015 (unaudited) and December 31, 2014, respectively | |
| 7,010 | | |
| 10,000 | |
Preferred stock, Series B par value $0.001, 1,000,000 shares authorized, 1,000,000 shares issued and outstanding as of June 30, 2015 (unaudited) and 0 as of December 31, 2014 | |
| 1,000 | | |
| — | |
Common stock, par value $0.001, 5,000,000,000 shares authorized and 2,476,489,859 and 1,388,783,762 shares issued and outstanding as of June 30, 2015 (unaudited) and December 31, 2014 respectively. | |
| 2,476,489 | | |
| 1,388,784 | |
Stock Payable | |
| — | | |
| 36,605 | |
Additional paid in capital | |
| 21,775,206 | | |
| 20,339,368 | |
Deficit Accumulated | |
| (25,064,349 | ) | |
| (20,904,731 | ) |
Total Stockholders' (Deficit) Equity | |
| (804,644 | ) | |
| 870,026 | |
| |
| | | |
| | |
Total Liabilities and Stockholders' Deficit | |
$ | 820,991 | | |
$ | 2,534,310 | |
| |
| | | |
| | |
The accompanying notes are an integral part of these condensed unaudited financial statements. |
MIND SOLUTIONS, INC. |
STATEMENTS OF OPERATIONS |
(UNAUDITED) |
| |
| |
| |
| |
|
| |
Three Months Ended | |
Six Months Ended |
| |
June 30, | |
June 30, | |
June 30, | |
June 30, |
| |
2015 | |
2014 | |
2015 | |
2014 |
| |
| |
| |
| |
|
Revenues | |
$ | — | | |
$ | 18,889 | | |
$ | — | | |
$ | 50,000 | |
| |
| | | |
| | | |
| | | |
| | |
Operating Expenses: | |
| | | |
| | | |
| | | |
| | |
Consulting | |
| 891,164 | | |
| 220,292 | | |
| 1,827,054 | | |
| 618,526 | |
Officer Compensation | |
| 596,000 | | |
| — | | |
| 636,130 | | |
| — | |
Professional Fees | |
| 46,861 | | |
| 51,063 | | |
| 71,272 | | |
| 92,425 | |
Research and Development | |
| 56,977 | | |
| — | | |
| 107,117 | | |
| — | |
General and Administration | |
| 13,234 | | |
| 64,442 | | |
| 29,512 | | |
| 75,379 | |
Total Operating Expenses | |
| 1,604,236 | | |
| 335,797 | | |
| 2,671,085 | | |
| 786,330 | |
| |
| | | |
| | | |
| | | |
| | |
Operating Loss | |
| (1,604,236 | ) | |
| (316,908 | ) | |
| (2,671,085 | ) | |
| (736,330 | ) |
| |
| | | |
| | | |
| | | |
| | |
Other Expense | |
| | | |
| | | |
| | | |
| | |
Interest Expense | |
| (330,304 | ) | |
| (16,533 | ) | |
| (366,887 | ) | |
| (34,170 | ) |
Loss on Derivative Adjustment | |
| (105,417 | ) | |
| (1,070,233 | ) | |
| (1,117,727 | ) | |
| (1,070,233 | ) |
Total Other Expense | |
| (435,721 | ) | |
| (1,086,766 | ) | |
| (1,484,614 | ) | |
| (1,104,403 | ) |
| |
| | | |
| | | |
| | | |
| | |
Net Loss before taxes | |
| (2,039,957 | ) | |
| (1,403,674 | ) | |
| (4,155,699 | ) | |
| (1,840,733 | ) |
| |
| | | |
| | | |
| | | |
| | |
Income Tax Provision | |
| — | | |
| — | | |
| — | | |
| — | |
| |
| | | |
| | | |
| | | |
| | |
Net Loss After Taxes | |
| (2,039,957 | ) | |
| (1,403,674 | ) | |
| (4,155,699 | ) | |
| (1,840,733 | ) |
| |
| | | |
| | | |
| | | |
| | |
Other Comprehensive Loss: | |
| | | |
| | | |
| | | |
| | |
Loss on Available-for-Sale Securities | |
| (218 | ) | |
| (9,167 | ) | |
| (3,919 | ) | |
| (37,500 | ) |
| |
| | | |
| | | |
| | | |
| | |
Net Loss | |
$ | (2,040,175 | ) | |
$ | (1,412,841 | ) | |
$ | (4,159,618 | ) | |
$ | (1,878,233 | ) |
| |
| | | |
| | | |
| | | |
| | |
Net (loss) per share- basic | |
| | | |
| | | |
| | | |
| | |
and diluted | |
$ | (0.00) | * | |
$ | (0.00) | * | |
$ | (0.00) | * | |
$ | (0.00) | * |
| |
| | | |
| | | |
| | | |
| | |
Weighted average common shares | |
| | | |
| | | |
| | | |
| | |
outstanding- basic and diluted | |
| 2,282,261,314 | | |
| 570,106,350 | | |
| 1,979,889,705 | | |
| 525,648,770 | |
| |
| | | |
| | | |
| | | |
| | |
* denotes a loss of less than $(0.01) per share. | |
| | | |
| | | |
| | | |
| | |
| |
| | | |
| | | |
| | | |
| | |
The accompanying notes are an integral part of these condensed unaudited financial statements. |
MIND SOLUTIONS, INC. |
CONDENSED STATEMENTS OF CASH FLOWS |
(UNAUDITED) |
| |
| |
|
| |
| |
|
| |
| For the six months | | |
| For the six months | |
| |
| June 30, | | |
| June 30, | |
| |
| 2015 | | |
| 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |
| | | |
| | |
Net loss for the period | |
$ | (4,159,618 | ) | |
$ | (1,878,233 | ) |
Adjustments to reconcile net loss to net cash | |
| | | |
| | |
provided by operating activities: | |
| | | |
| | |
Stock issued for services | |
| 51,000 | | |
| 354,738 | |
Derivative expense from convertible notes | |
| — | | |
| 1,070,233 | |
Debt Discount | |
| 395,747 | | |
| 34,170 | |
Derivative (gain) or loss adjustment | |
| 1,117,727 | | |
| 1,070,233 | |
Original interest discount | |
| 20,500 | | |
| — | |
Available-for-sale securities received for services revenues | |
| (3,918 | ) | |
| 87,500 | |
Compensation for fair market value of Series B preferred shares | |
| 581,000 | | |
| — | |
Depreciation | |
| 1,346 | | |
| 1,166 | |
Changes in Operating Assets and Liabilities | |
| | | |
| | |
Increase in receivable from related party | |
| (70,538 | ) | |
| — | |
Increase in prepaid expense | |
| 1,666,077 | | |
| — | |
Decrease in accounts payable | |
| (86,840 | ) | |
| 13,424 | |
Net Cash Used in Operating Activities | |
| (487,517 | ) | |
| (364,596 | ) |
| |
| | | |
| | |
CASH FLOWS FROM INVESTING ACTIVITIES | |
| | | |
| | |
Purchase of fixed assets | |
| — | | |
| (2,936 | ) |
Net Cash (Used in) Provided by Investing Activities | |
| — | | |
| (2,936 | ) |
| |
| | | |
| | |
CASH FLOWS FROM FINANCING ACTIVITIES: | |
| | | |
| | |
Proceeds from convertible notes | |
| 350,000 | | |
| 457,500 | |
Proceeds from promissory note | |
| 25,000 | | |
| — | |
Net Cash Provided by Financing Activities | |
| 375,000 | | |
| 457,500 | |
| |
| | | |
| | |
Net (Decrease) Increase in Cash | |
| (112,517 | ) | |
| 89,968 | |
Cash at Beginning of Period | |
| 113,199 | | |
| 47,428 | |
Cash at End of Period | |
| 682 | | |
| 137,396 | |
| |
| | | |
| | |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |
| | | |
| | |
Cash paid during the year for: | |
| | | |
| | |
Interest | |
$ | — | | |
$ | — | |
Income taxes paid | |
$ | — | | |
$ | — | |
| |
| | | |
| | |
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING | |
| | | |
| | |
AND FINANCING ACTIVITIES: | |
| | | |
| | |
| |
| | | |
| | |
Shares issued as payment of note payable | |
$ | 1,362,246 | | |
$ | — | |
| |
| | | |
| | |
| |
| | | |
| | |
The accompanying notes are an integral part of these condensed unaudited financial statements. | |
MIND SOLUTIONS, INC.
NOTES TO FINANCIAL STATEMENTS
June 30, 2015 AND DECEMBER 31, 2014
NOTE 1 -
ORGANIZATION
AND DESCRIPTION
OF BUSINESS
Mind Solutions, Inc. (the “registrant”)
was initially incorporated in the state of Delaware on May 19, 2000 as Medical Records by Net, Inc. On October 17, 2000, the
registrant changed its name to Lifelink Online, Inc. In January 2001, its name was changed to MedStrong Corporation, and on March
9, 2001, the registrant name was changed to MedStrong International Corporation. On March 30, 2007, the registrant’s name
was changed to VOIS, Inc. and the domicile was changed to the State of Florida. On October 19, 2012, the registrant executed a
merger agreement with Mind Solutions, Inc. whereas Mind Solutions, Inc. became a wholly owned subsidiary of the registrant. Mind
Solutions, Inc. was incorporated under the laws of Nevada on May 24, 2002, under the name Red Meteor Media, Inc. The registrant
changed its name to Prize Entertainment, Inc. in November 2003, and then again to Mind Solutions, Inc. in January 2011. On October
28, 2013, the registrant changed its name from VOIS, Inc. to Mind Solutions, Inc. as well as changing its domicile from Florida
to Nevada.
On October 28, 2013, the registrant closed an
Agreement and Plan of Merger with Mind Solutions, Inc. For accounting purposes this agreement was treated as a reverse merger.
The operations of the registrant became those solely of Mind Solutions, Inc. In connection with the merger agreement, the registrant
changed its fiscal year end to coincide with that of Mind Solutions, Inc., which is December 31. Pursuant to the Plan of Merger
with Mind Solutions, Inc., the holders of stock in VOIS, Inc. received one share of common stock, $0.001 par value per share, in
Mind Solutions, Inc. for every 2,000 shares of common stock in VOIS, Inc. (in effect, a one for 2,000 reverse split). As a result,
the then current common stockholders of VOIS, Inc. held all of the issued and outstanding shares of common stock in the surviving
corporation Mind Solutions, Inc.
The registrant has developed three software applications which are compatible with the Emotiv EEG headsets currently on the
market. The registrant has recently developed and brought to market a Brain-Computer-Interface (BCI) called "NeuroSync", which
allows the user to operate thought-controlled applications on their mobile smart phone devices as well as on traditional PC
computers. This BCI receives electrical impulses from the brain and allows the user to control actions on their smart phones
and PC computers through the power of thought. The technology involves the use of a wireless headset, which detects brainwaves
on both the conscious and non-conscious level. This revolutionary neural processing technology makes it possible for computers
to interact directly with the human brain. The Company sells their recently developed BCI device and software online through
the Company's website as well as other online platforms such as Amazon.com.
NOTE 2 - PREPARATION OF FINANCIAL STATEMENTS
Basis of presentation
The accompanying unaudited
interim financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the
United States of America and the rules of the Securities and Exchange Commission, and should be read in conjunction with the audited
financial statements and notes thereto contained in the Company’s most recent Annual Financial Statements filed with the
SEC on Form 10-K. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair
presentation of financial position and the results of operations for the interim period presented have been reflected herein. The
results of operations for the interim period are not necessarily indicative of the results to be expected for the full year. Notes
to the financial statements which would substantially duplicate the disclosures contained in the audited financial statements for
the most recent fiscal period, as reported in the Form 10-K, have been omitted.
NOTE 3-
SUMMARY OF SIGNIFICANT
ACCOUNTING
POLICIES
The
registrant considers
all cash on hand
and in banks,
including
accounts in book overdraft
positions, certificates of
deposit and
other highly-liquid
investments with maturities
of three months
or less, when
purchased,
to be cash and equivalents.
The Company had no cash equivalents at December 31, 2014 and June 30, 2015.
Fixed assets are recorded at cost.
Major renewals and improvements
are capitalized, while maintenance
and repairs are expensed
when incurred.
Depreciation of equipment is computed by the straight-line method over the assets estimated useful life of three, five (5), or
seven (7) years. Upon sale or retirement of equipment, the related cost and accumulated depreciation are removed from the accounts
and any gain or loss is reflected in statements of operations.
C. Advertising
expenses
Advertising
and marketing expenses
are charged
to operations
as incurred.
For the six months ended
June 30, 2015 and 2014, advertising
and marketing
expense
were $5,400 and $11,815, respectively.
D. Revenue recognition
The registrant follows paragraph 605-10-S99-1
of the FASB Accounting Standards Codification for revenue recognition. The registrant will recognize revenue when it is realized
or realizable and earned. The registrant 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.
E. Stock-based
compensation
The Company accounts for
equity instruments issued to parties other than employees for acquiring goods or services under guidance of Sub-topic 505-50 of
the FASB Accounting Standards Codification (“Sub-topic 505-50”).
Pursuant to ASC Section
505-50-30, 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. The measurement date used to determine the fair value of the equity instrument issued is the earlier
of the date on which the performance is complete or the date on which it is probable that performance will occur. If the Company
is a newly formed corporation or shares of the Company 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.
The fair value of share
options and similar instruments is estimated on the date of grant using a Black-Scholes option-pricing valuation model. The ranges
of assumptions for inputs are as follows:
|
● |
Expected term of share options and similar instruments: 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. |
|
|
|
|
● |
Expected volatility of the entity’s shares and the method used to estimate it. Pursuant to ASC Paragraph 718-10-50-2(f)(2)(ii) a thinly-traded or nonpublic entity that uses the calculated value method shall disclose the reasons why it is not practicable for the Company to estimate the expected volatility of its share price, the appropriate industry sector index that it has selected, the reasons for selecting that particular index, and how it has calculated historical volatility using that index. The Company uses the average historical volatility of the comparable companies over the expected contractual life of the share options or similar instruments as its expected volatility. 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. |
|
|
|
|
● |
Expected annual rate of quarterly dividends. An entity that uses a method that employs different dividend rates during the contractual term shall disclose the range of expected dividends used and the weighted-average expected dividends. 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. |
Risk-free rate(s). An entity that
uses a method that employs different risk-free rates shall disclose the range of risk-free rates used. The risk-free
interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods within the expected term of
the share options and similar instruments.
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. Section 505-50-30 provides guidance on the determination of the measurement date
for transactions that are within the scope of this Subtopic.
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 share option and similar
instrument that the counterparty has the right to exercise expires unexercised.
Pursuant to ASC paragraph
505-50-30-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.
F. Income
Taxes
The registrant adopted FASB ASC Topic 740, Income
Taxes, at its inception. Under FASB ASC Topic 740, the deferred tax provision is determined under the liability method. Under this
method, deferred tax assets and liabilities are recognized based on the differences between the financial statement carrying amounts
and the tax bases of assets and liabilities using presently enacted tax rates.
G. Loss per share
The registrant adopted FASB ASC Topic 260, Earnings
Per Share. Basic earnings per share is based on the weighted effect of all common shares issued and outstanding and is calculated
by dividing net income (loss) available to common stockholders by the weighted average shares outstanding during the period. Diluted
earnings per share is calculated by dividing net income available to common stockholders by the weighted average number of common
shares used in the basic earnings per share calculation plus the number of common shares, if any, that would be issued assuming
conversion of all potentially dilutive securities outstanding. For all periods,
potentially issuable securities are anti-dilutive.
There are approximately 686,330,276 potentially
dilutive shares of common stock outstanding as of June 30, 2015, which are derived from the outstanding convertible promissory
notes. The registrant also has 7,009,110 shares of Series A Preferred Stock issued and outstanding, each share of which can be
converted into 100 shares of our common stock, therefore there are an additional 700,911,0000 potentially dilutive shares of common
stock.
H. Use of estimates
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 certain reported amounts and disclosures. Significant estimates for the periods reported include certain assumptions
used in deriving the fair value of share-based compensation recognized, the useful life of tangible assets and the future value
of our website development costs. Assumptions and estimates used in these areas are material to our reported financial condition
and results of our operations. Actual results will differ from those estimates.
I. Fair value of financial instruments measured
on a recurring basis
The registrant 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 accounting principles generally accepted
in the United States of America (U.S. 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 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. The three levels of fair value hierarchy defined by Paragraph 820-10-35-37 are described below:
Level 1 |
|
Quoted market prices available in active markets for identical assets or liabilities as of the reporting date. |
|
|
|
Level 2 |
|
Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. |
|
|
|
Level 3 |
|
Pricing inputs that are generally observable inputs and not corroborated by market data. |
Financial instruments 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 amount of the registrant’s
financial assets and liabilities, such as cash, prepaid expenses and accrued expenses approximate their fair value because of the
short maturity of those instruments. The registrant’s line of credit and notes payable approximate the fair value of such
instruments based upon management’s best estimate of interest rates that would be available to the registrant for similar
financial arrangements at June 30, 2015 and December 31, 2014.
The following table represents the Company’s assets and liabilities
by level measured at fair value on a recurring basis at June 30, 2015.
Description | |
Level 1 | |
Level 2 | |
Level 3 |
| |
| | | |
| | | |
| | |
Assets | |
| | | |
| | | |
| | |
| |
$ | — | | |
$ | — | | |
$ | — | |
Liabilities | |
| | | |
| | | |
| | |
Beneficial conversion | |
$ | — | | |
$ | — | | |
$ | 678,707 | |
J. Commitments and contingencies
The registrant follows subtopic 450-20 of the
FASB Accounting Standards Codification to report accounting for contingencies. Certain conditions may exist as of the date the
consolidated financial statements are issued, which may result in a loss to the registrant but which will only be resolved when
one or more future events occur or fail to occur. The registrant 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 registrant
or unasserted claims that may result in such proceedings, the registrant evaluates the perceived merits of any legal proceedings
or unasserted 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 registrant’s consolidated 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. Management does not believe, based
upon information available at this time, that these matters will have a material adverse effect on the registrant’s consolidated
financial position, results of operations or cash flows. However, there is no assurance that such matters will not materially and
adversely affect the registrant’s business, financial position, and results of operations or cash flows.
K. Related parties
The registrant 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 registrant; (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 registrant; (e) management of the registrant;
(f) other parties with which the registrant 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) 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) ammounts 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.
L. Embedded Conversion Features
The Company evaluates embedded
conversion features within convertible debt under ASC 815 “Derivatives and Hedging” to determine whether the embedded
conversion feature(s) should be bifurcated from the host instrument and accounted for as a derivative at fair value with changes
in fair value recorded in earnings. If the conversion feature does not require derivative treatment under ASC 815, the instrument
is evaluated under ASC 470-20 “Debt with Conversion and Other Options” for consideration of any beneficial conversion
features.
M. Derivative Financial Instruments
Fair value accounting requires
bifurcation of embedded derivative instruments such as conversion features in convertible debt or equity instruments, and measurement
of their fair value for accounting purposes. In determining the appropriate fair value, the Company uses the multinomial lattice
model. In assessing the convertible debt instruments, management determines if the convertible debt host instrument is conventional
convertible debt and further if there is a beneficial conversion feature requiring measurement. If the instrument is not considered
conventional convertible debt, the Company will continue its evaluation process of these instruments as derivative financial instruments.
Once determined, derivative liabilities are
adjusted to reflect fair value at each reporting period end, with any increase or decrease in the fair value being recorded in
results of operations as an adjustment to fair value of derivatives. In addition, the fair value of freestanding derivative instruments
such as warrants, are also valued using the Black-Scholes option-pricing model.
N. Beneficial Conversion Feature
For conventional convertible
debt where the rate of conversion is below market value, the Company records a "beneficial conversion feature" ("BCF")
and related debt discount.
When the Company records
a BCF, the relative fair value of the BCF is recorded as a debt discount against the face amount of the respective debt instrument
(offset to additional paid in capital) and amortized to interest expense over the life of the debt.
O. Debt Issue Costs and Debt Discount
The Company may record
debt issue costs and/or debt discounts in connection with raising funds through the issuance of debt. These costs may be paid in
the form of cash, or equity (such as warrants). These costs are amortized to interest expense over the life of the debt. If a conversion
of the underlying debt occurs, a proportionate share of the unamortized amounts is immediately expensed.
P. Recently Issued Accounting Standards
In June 2014, FASB issued
Accounting Standards Update (“ASU”) No. 2014-10, “Development Stage Entities (Topic 915): Elimination of Certain
Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation”.
The update removes all incremental financial reporting requirements from GAAP for development stage entities, including the removal
of Topic 915 from the FASB Accounting Standards Codification. In addition, the update adds an example disclosure in Risks and Uncertainties
(Topic 275) to illustrate one way that an entity that has not begun planned principal operations could provide information about
the risks and uncertainties related to the company’s current activities. Furthermore, the update removes an exception provided
to development stage entities in Consolidations (Topic 810) for determining whether an entity is a variable interest entity-which
may change the consolidation analysis, consolidation decision, and disclosure requirements for a company that has an interest in
a company in the development stage. The update is effective for the annual reporting periods beginning after December 15, 2014,
including interim periods therein. Early application with the first annual reporting period or interim period for which the entity’s
financial statements have not yet been issued (Public business entities) or made available for issuance (other entities). The Company
adopted this pronouncement for the three months ended March 31, 2015.
In June 2014, FASB issued
Accounting Standards Update (“ASU”) 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”. The amendments in this ASU apply to all reporting entities that grant their employees share-based payments in which
the terms of the award provide that a performance target that affects vesting could be achieved after the requisite service period.
The amendments require that a performance target that affects vesting and that could be achieved after the requisite service period
be treated as a performance condition. A reporting entity should apply existing guidance in Topic 718 as it relates to awards with
performance conditions that affect vesting to account for such awards. For all entities, the amendments in this ASU are effective
for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted.
Entities may apply the amendments in this ASU either (a) prospectively to all awards granted or modified after the effective date
or (b) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period
presented in the financial statements and to all new or modified awards thereafter. If retrospective transition is adopted, the
cumulative effect of applying this Update as of the beginning of the earliest annual period presented in the financial statements
should be recognized as an adjustment to the opening retained earnings balance at that date. Additionally, if retrospective transition
is adopted, an entity may use hindsight in measuring and recognizing the compensation cost. This updated guidance is not expected
to have a material impact on our results of operations, cash flows or financial condition. We are currently reviewing the
provisions of this ASU to determine if there will be any impact on our results of operations, cash flows or financial condition.
All other newly issued
accounting pronouncements but not yet effective have been deemed either immaterial or not applicable.
NOTE 4 –GOING CONCERN
The accompanying financial statements have been
prepared assuming that the registrant 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 of June 30, 2015, the registrant had an accumulated
deficit of $25,064,349. Also, during the six months ended June 30, 2015, the registrant used net cash
of $487,517 for operating activities. These factors raise substantial doubt about the registrant’s ability to continue as
a going concern.
While the registrant is attempting to commence
operations and generate revenues, the registrant’s cash position may not be significant enough to support the registrant’s
daily operations. Management intends to raise additional funds by way of a public or private offering. Management believes that
the actions presently being taken to further implement its business plan and generate revenues provide the opportunity for the
registrant to continue as a going concern. While the registrant believes in the viability of its strategy to generate revenues
and in its ability to raise additional funds, there can be no assurances to that effect. The ability of the registrant to continue
as a going concern is dependent upon the registrant’s ability to further implement its business plan and generate revenues.
The financial statements do not include any
adjustments that might be necessary if the registrant is unable to continue as a going concern.
NOTE 5– PREPAIDS
The prepaid assets recorded at June 30, 2015
and December 31, 2014 were the result of:
| a.) | In the six months ended June 30, 2015, the Company made prepayments totaling $69,292 in cash which consisted of $54,792 to
a manufacturer overseas and $14,500 for consulting and legal services. |
| b.) | The registrant executing a six month consulting agreement on September 2, 2014, whereby the registrant issued 30,000,000 free
trading S-8 shares to Noah Fouch to provide weekly marketing services through social media platforms. The 30,000,000 shares were
valued at the closing price of $0.0016 on the date of the agreement which will result in the registrant recording consulting expense
of $48,000 over the life of the contract. |
| c.) | The registrant executing a one year service agreement on September 12, 2014, whereby the registrant issued 5,000,000 shares
of Series A Preferred Stock to its CEO, Kerry Driscoll. The 5,000,000 shares were valued at par $0.0034 which will result in the
registrant recording officer compensation expense of $1,700,000 over the life of the contract. |
| d.) | The registrant executing a (1) year service agreement on September 12, 2014, whereby the registrant issued 5,000,000 shares
of Series A Preferred Stock to a former officer of the registrant. The 5,000,000 shares were valued at par $0.0034 which will result
in the registrant recording officer compensation expense of $1,700,000 over the life of the contract. |
As of June 30, 2015 and December 31, 2014, the
registrant had a prepaid balance of $748,300 and $2,414,376 which is derived from the uncompleted portion of the consulting agreements
as well as prepayments for manufacturing costs and legal services.
NOTE 6– PROPERTY &
EQUIPMENT
Furniture and Equipment
consisted of the
following:
| |
June 30,
2015 | |
December 31,
2014 |
| |
| | | |
| | |
Equipment | |
$ | 85,467 | | |
$ | 85,467 | |
Furniture | |
| 4,186 | | |
| 4,186 | |
Total | |
| 89,653 | | |
| 89,653 | |
Less accumulated Depreciation | |
| (88,222 | ) | |
| (86,876 | ) |
Property and equipment, net | |
$ | 1,431 | | |
$ | 2,777 | |
| |
| | | |
| | |
Depreciation expense
for the six months ended June 30, 2015
and 2014 was $1,346 and $1,166.
NOTE 7 – RELATED
PARTY TRANSACTIONS
Consulting agreement(s) with CEO
The registrant executed a consulting agreement
on December 25, 2013, with its current Chief Executive Officer whereby the registrant issued 120,000,000 shares of common stock
for one year of executive services. The 120,000,000 shares were valued at the closing price of $0.0022 on the date of the agreement
which will result in the registrant recording officer compensation of $264,000 over the life of the contract.
The registrant executed a service
agreement on September 12, 2014, with its current Chief Executive Officer, Kerry Driscoll, whereby the registrant issued
5,000,000 shares of Series A Preferred Stock for one year of services such as compliance, guidance, infrastructure and
business strategy. The 5,000,000 shares were valued at par $0.0034 which resulted in the registrant recording officer
compensation of $1,700,000 over the life of the contract.
Service Agreement with Former Officer
The registrant executed a service
agreement on September 12, 2014, with Brent Fouch, a former officer of the Company, whereby the registrant issued 5,000,000
shares of Series A Preferred Stock for one year services to facilitate the development of BCI software compatibility with the
registrant’s micro BCI headset. The 5,000,000 preferred shares were valued at par $0.0034 which resulted in the
registrant recording a consulting expense of $1,700,000 over the life of the contract.
Free office space provided by chief executive officer
The registrant has been provided office space
by its chief executive officer Kerry Driscoll at no cost. Management has determined that such cost is nominal and did not recognize
the rent expense in its financial statements.
NOTE 8– AVAILABLE-FOR-SALE
SECURITIES
On February 12, 2014, the registrant entered
into a consulting agreement with Monster Arts, Inc. (“Monster”), whereby the registrant provided Monster with thought
controlled software development services over a one year term. The registrant will be paid four quarterly payments of $50,000
in restricted common stock of Monster. As of June 30, 2015, the registrant had received two certificates of Monster’s stock
totally 39,583,333 common shares worth approximately $100,000, based on the closing stock price at the date of receipt. The registrant
revalued the 39,583,333 shares on June 30, 2015. For the six months ended June 30, 2015 and 2014, the Company realized a loss
on available-for-sale securities of $3,919 and $37,500.
As of June 30, 2015 and December 31, 2014,
the registrant had available for sale securities balance of $40 and $3,958.
NOTE 9– CONVERTIBLE
NOTES PAYABLE
In the six months ended June 30, 2015, the registrant
entered into three convertible note agreements. As of June 30, 2015 and December 31, 2014, the registrant has $28,320 (net of debt
discount of $347,041) and $69,339 (net of debt discount of $381,389) in outstanding convertible notes payable with five non-related
entities.
The following table reflects the convertible
notes payable, and the related debt discount and derivative liability that have been re-measured to fair value which are discussed
later in this footnote, as of June 30, 2015:
|
|
|
|
|
|
June
30, 2015 |
|
Date |
Maturity |
Original |
Interest |
Conversion |
Note |
|
Unamortized |
|
Derivative |
|
Issued |
Date |
Amount |
Rate |
feature |
Balance |
|
Discount |
|
Liability |
GEL
Properties |
8/28/14 |
8/28/15 |
25,000 |
10.0% |
55%
of 1 lows in 10 previous trading days |
$ 500 |
|
$ 341 |
|
$ 755 |
JSJ
Investments |
5/28/15 |
11/28/15 |
150,000 |
12.0% |
52%
of average 3 lows in previous 20 trading days |
150,000 |
|
145,148 |
|
239,734 |
Iconic
Holdings |
11/4/14 |
11/4/15 |
35,750 |
10.0% |
50%
of 1 lows in 20 previous trading days |
8,250 |
|
5,152 |
|
17,442 |
JMJ
Financial |
12/16/14 |
12/16/15 |
31,111 |
0.0% |
60%
of 1 lows in previous 25 trading days |
30,111 |
|
24,437 |
|
48,613 |
Iconic
Holdings |
2/5/15 |
2/5/16 |
55,000 |
10.0% |
50%
of 1 lows in previous 20 trading days |
55,000 |
|
45,710 |
|
114,215 |
LG
Capital Funding |
3/11/15 |
2/10/16 |
31,500 |
10.0% |
50%
of 1 lows in previous 10 trading days |
31,500 |
|
27,273 |
|
52,814 |
Iconic
Holdings |
3/30/15 |
3/30/16 |
82,500 |
10.0% |
50%
of 1 lows in previous 20 trading days |
82,500 |
|
81,519 |
|
169,246 |
Iconic
Holdings |
3/30/15 |
3/31/16 |
17,500 |
10.0% |
50%
of 1 lows in previous 20 trading days |
17,500 |
|
17,461 |
|
35,888 |
|
|
|
|
|
|
$ 375,361 |
|
$ 347,041 |
|
$ 678,707 |
Conversion of convertible debt.
In the six months ended June 30, 2015, JMJ Financial
converted $85,978 in principle into 187,977,785 shares of commons stock, JSJ Investments Inc. converted $100,000 of convertible
debt into 158,079,053 shares of common stock, LG Capital Funding LLC converted $63,000 of convertible debt into 69,087,250 shares
of common stock, Iconic Holdings, LLC converted $27,500 of convertible debt into 67,708,333 shares of common stock, WHC Capital,
LLC converted $10,000 of convertible debt into 31,829,910 shares of common stock, KBM Worldwide Inc. converted $52,500 of convertible
debt into 111,873,176 shares of common stock and Cicero Consulting Group converted $100,000 of convertible debt into 100,000,000
shares of common stock.
In the six months ended June 30, 2015 and 2014,
the registrant recorded interest expense relating to the outstanding convertible notes payable in the amounts of $366,887 and $23,414.
Derivative liability.
At June 30, 2015 and December 31, 2014, the
Company had $678,707 and $714,633 in derivative liability. In the six months ended June 30, 2015, the Company reduced its derivative
liability by $35,926
We calculate the derivative liability using
the multinominal lattice model which factors in the Company’s stock price volatility as well as the convertible terms applicable
to the outstanding convertible notes. The following is the range of variables used in revaluing the derivative liabilities at June
30, 2015 and December 31, 2014:
| |
| June
30,
2015 | | |
| December
31,
2014 | |
Annual dividend yield | |
| 0 | | |
| 0 | |
Expected life (years) | |
| 0.01 – .90 | | |
| 0.01 – .90 | |
Risk-free interest rate | |
| 10 | % | |
| 10 | % |
Expected volatility | |
| 510.0 | % | |
| 508.1 | % |
NOTE 10– NOTES
PAYABLE
The total amount due on notes payable and related
interest and penalty is as follows:
| |
June 30,
2015 | |
December 31,
2014 |
| |
| |
|
Notes Payable | |
$ | 145,000 | | |
$ | 145,000 | |
| |
| | | |
| | |
Total | |
$ | 145,000 | | |
$ | 145,000 | |
The Company has outstanding notes due to a former
director in the aggregate amount of $145,000. The notes are unsecured and accrue interest and penalty of 15% inasmuch as they are
past due. The former director elected not to participate with the holders of other promissory notes, including our then executive
officers, in the exchange of those notes for equity which occurred during January 2009. At June 30, 2015, and December 31, 2014,
total accrued interest and penalty pertaining to the outstanding $145,000 in notes payable is $294,526 and $280,024.
NOTE 11– STOCKHOLDERS’
EQUITY
Authorized Common Stock
On May 17, 2013, the company’s board voted
to authorize an amendment to the registrant’s articles of incorporation to increase its authorized shares of common stock
from 1,000,000,000 to 3,000,000,000. On August 23, 2013, the registrant’s board authorized an amendment to the registrant’s
articles of incorporation to increase its authorized shares of common stock from 3,000,000,000 to 5,000,000,000.
Authorized Preferred Stock
The registrant is authorized to issue 10,000,000
shares of Series A Preferred Stock.
The board of directors passed a resolution designating
certain preferential liquidity, dividend, voting and other relative rights to Shares of Series A Preferred Stock. Each share of
Series A Preferred Stock may at the option of the holder be converted into 100 fully paid and non-assessable shares of common stock.
Issued Preferred Stock
On September 12, 2014, the registrant issued
5,000,000 Preferred A Shares to its chief executive officer, Kerry Driscoll, for one year of services to be rendered to the registrant.
The 5,000,000 shares were valued at par $0.001 which resulted in the registrant recording officer compensation of $1,700,000 over
the life of the contract.
The registrant executed a service agreement
on September 12, 2014, with Brent Fouch, a former officer, whereby the registrant issued 5,000,000 shares of Series A Preferred
Stock for one year services to facilitate the development of BCI software compatibility with the registrant’s micro BCI headset.
The 5,000,000 preferred shares were valued at par $0.001which resulted in the registrant recording a consulting expense of $1,700,000
over the life of the contract.
In the six months ended June 30, 2015,
a preferred stockholder converted 2,990,000 preferred shares into 299,000,000 shares of common stock.
On June 8, 2015, the Company designated a
new class of preferred stock known as Series B preferred stock. Par Value to be $0.001. The stock shall have the following
rights, limitations, restrictions, and privileges as follows: (1) The Series B preferred stock is entitled to receive
dividends declared by the board of directors, (2) Series B preferred stock would be entitled to a liquidation preference of
$0.001 per share, (3) Series B preferred stock shall have 5,000 votes per share in any matters voted on by the shareholders,
(4) Series B preferred stock shall have the right to convert to common shares at the rate of 100 common shares per share, (5)
the Series B preferred stock can be redeemed by the Company at the Market Value at the option of its directors, and (6)
Holders of Series A preferred stock shall have preferred status, can restrict dividends to common shareholders and retain
purchase rights on an as converted basis.
On June 9, 2015 the Company exchanged
1,000,000 Series A preferred shares for 1,000,000 Series B preferred shares with Kerry Driscoll, the Company’s sole
director and CEO/CFO. The Company recognized an additional $581,000 of compensation related to the super voting rights
Issued Common Stock
In the six months ended June 30, 2015, the registrant
issued 1,087,706,097 shares of common stock of which 781,706,097 shares were for the conversion of $442,867 in principle convertible
debt and $14,117 of accrued interest, 7,000,000 shares were for settlement of prepaid consulting expenses and 299,000,000 shares
were for the conversion of 2,990,000 shares of preferred stock.
Stock Payable
In the three months ended June 30, 2015, the registrant issued 55,149,902
shares of common stock pursuant to two conversion notices executed in December of 2014 totaling $36,605 leaving a stock payable
balance of $0.
NOTE 12– COMMITMENTS
We were a defendant in two actions, each entitled
951 Yamato Acquisition registrant, LLC vs. VOIS, Inc., both as filed in December 2009 in the Circuit Court of the 15th Judicial
Circuit in and for Palm Beach County, Florida under case numbers 502010CA040121XXXXMB and 502010CC19027XXXXBBRS, which are related
to the lease agreements for our former office space. A combined summary judgment was entered in April, 2010 against VOIS, Inc.
in the amount of $106,231. At June 30, 2015 and December 31, 2014, our liabilities as reported in our financial statements contained
elsewhere in this report reflect the principal amount of the judgment together with $31,869 and $30,278 in accrued interest, respectively.
On April 30, 2008, we filed a complaint
against two former members of our board of directors alleging breach of fiduciary duty, waste of corporate assets and unjust enrichment.
The complaint, styled VOIS Inc., Plaintiff, vs. Edward Spindel and Michael Spindel, Defendants, Case No. CA012201XXXXMB,
in the Circuit Court for the 15th Judicial District in and for Palm Beach County, Florida, alleges that during 2002 and 2003 while
Mind Solutions, which at that time was known as Medstrong International, was under significant financial distress the defendants
caused us to issue demand promissory notes charging excessive and/or usurious interest rates with the knowledge that we would be
unable to repay the notes upon any demand. The defendants, who are brothers, were members of the Medstrong International board
of directors until their resignations in April 2006.
The complaint further alleges that the
defendants engaged in a repeated systematic scheme to defraud our company by continuing to restructure the promissory notes while
they were members of the prior board of directors at such excessive and usurious interest rates that the defendants violated their
fiduciary duties and responsibilities and approved debt obligations that benefited them and not Mind Solutions and that their wrongful
actions and omissions resulted in their unjust enrichment. We sought damages in excess of $968,000.
On June 18, 2009, the defendants removed
the lawsuit from Palm Beach Circuit Court (State) to the United States District Court for the Southern District of Florida (Federal).
Thereafter, the defendants sought to have the case transferred to the United States District Court in New York. On October 27,
2009, the judge denied the defendant’s Motion to Transfer. On October 28, 2009 the defendants filed their Answer and Defenses
to the Complaint. The defendants did not file a counterclaim at that time. On November 12, 2009, the Court entered a Scheduling
Order and a Notice of Trial for December 2009. On December 4, 2009, the Court selected a mediator. In February 2010, the defendants
changed law firms and sought leave from the Court to file a counterclaim. At that time, the defendants also served discovery in
the form of interrogatories, request for production and request for admission. The defendant’s counterclaim was filed on
February 17, 2010, and we filed our Answer on March 13, 2010. Over the course of the next several months we responded to the discovery
requests.
On November 13, 2009, the parties attended
a pretrial hearing to address legal issues related to our complaint and the defendants’ counterclaim. Based upon questions
posed by the Court and the argument of counsel, the Court struck the defense of usury and additionally dismissed our complaint
without prejudice, providing us 10 days to file an amended complaint. The defendants were also provided 10 days to file an Amended
counterclaim. Based upon the rulings, the matter was then removed from the Court’s December 2009 trial docket. We have decided
that it is not cost effective or beneficial to pursue our affirmative claims in this matter and have, accordingly, elected not
to file an amended complaint.
On July 19, 2010, the counter–plaintiffs,
Edward and Michael Spindel filed a motion for summary judgment. We filed a response in opposition on August 5, 2010. The Spindels
filed a reply on September 9, 2010. The court held a hearing on September 16, 2010, and at the hearing granted summary judgment
in favor of the Spindels. Final judgment was ordered on November 16, 2010, in the amount of $287,266 plus post judgment interest.
Attorney’s fees of $172,304 were also awarded.
On December 6, 2010, we filed an appeal
to the judgment.
On July 13, 2011, the United States
Court of Appeals for the Eleventh Circuit issued an opinion in favor of VOIS, Inc. This Opinion was made final when the Court issued
the mandate on August15th, 2011. This ruling effectively reversed the Summary Judgment previously granted to the Spindels by the
District Court on November 4, 2010, in the amount of $287,266. At the present time, this lawsuit is still pending in the State
Circuit Court of Florida. Mind Solutions intends to mount a vigorous defense.
NOTE 13 – RESTATED FINANCIAL STATEMENTS
The Company has restated its balance sheet
as of December 31, 2014 for the following;
|
|
1. Recalculation
of derivative liability and debt discount relating to the Company’s outstanding convertible debentures.
2.
Recalulation of the valuation of preferred series A shares issued for consulting expense.
3.
Write off worthless investment that resulted in accumulated comprehensive loss in prior year. |
The following are previously recorded and restated balances as of
December 31, 2014, for the year ended December 31, 2014.
MIND SOLUTIONS, INC. |
BALANCE SHEET |
(A Development Stage Company) |
|
|
|
December 31, 2014 |
|
|
|
Originally |
|
|
|
|
|
|
|
|
|
Reported |
|
|
Restated |
|
|
Difference |
|
Cash |
|
$ |
113,199 |
|
|
$ |
113,199 |
|
|
$ |
- |
|
Prepaid expenses |
|
|
46,020 |
|
|
|
2,414,376 |
|
|
|
2,368,356 |
|
Total Current Assets |
|
|
159,219 |
|
|
|
2,527,575 |
|
|
|
2,368,356 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed Assets |
|
|
|
|
|
|
|
|
|
|
|
|
Property and equipment, net |
|
|
2,777 |
|
|
|
2,777 |
|
|
|
- |
|
Total Fixed Assets |
|
|
2,777 |
|
|
|
2,777 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Assets |
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale securities |
|
|
3,958 |
|
|
|
3,958 |
|
|
|
- |
|
Total Other Assets |
|
|
3,958 |
|
|
|
3,958 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets |
|
$ |
165,954 |
|
|
$ |
2,534,310 |
|
|
$ |
2,368,356 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
Current Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable & accrued expenses |
|
$ |
389,165 |
|
|
$ |
389,165 |
|
|
$ |
- |
|
Accounts payable to related parties |
|
|
3,500 |
|
|
|
3,500 |
|
|
|
|
- |
Accrued interest |
|
|
342,647 |
|
|
|
342,647 |
|
|
|
- |
|
Notes payable |
|
|
145,000 |
|
|
|
145,000 |
|
|
|
- |
|
Convertible notes payable, net of discounts |
|
|
451,728 |
|
|
|
69,339 |
|
|
|
(382,389) |
|
Derivative Liability |
|
|
1,767,223 |
|
|
|
714,633 |
|
|
|
(1,052,590) |
|
Total Liabilities |
|
|
3,099,263 |
|
|
|
1,664,284 |
|
|
|
(1,434,979) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock, Series A, par value $0.001, 10,000,000,000 shares authorized, 10,000,000 shares issued and outstanding |
|
|
10,000 |
|
|
|
10,000 |
|
|
|
- |
|
Common stock, par value $0.0015,000,000,000 shares authorized, 1,388,783,762 shares issued and outstanding, |
|
|
1,388,784 |
|
|
|
1,388,784 |
|
|
|
- |
|
Additional paid in capital |
|
|
16,949,368 |
|
|
|
20,339,368 |
|
|
|
3,390,000 |
|
Stock subscription payable |
|
|
36,605 |
|
|
|
36,605 |
|
|
|
- |
|
Accumulated Comprehensive Loss |
|
|
(426,042 |
) |
|
|
- |
|
|
|
426,042 |
|
Deficit accumulated |
|
|
(20,892,024 |
) |
|
|
(20,904,731 |
) |
|
|
(12,707 |
) |
Total stockholders' equity (deficit) |
|
|
(2,933,309 |
) |
|
|
870,026 |
|
|
|
3,803,335 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities and Stockholders' Equity |
|
$ |
165,954 |
|
|
$ |
2,534,310 |
|
|
$ |
2,368,356 |
|
Item 2. Management’s Discussion and Analysis
of Financial Condition and Results of Operations.
THE FOLLOWING DISCUSSION SHOULD BE READ
TOGETHER WITH THE INFORMATION CONTAINED IN THE FINANCIAL STATEMENTS AND RELATED NOTES INCLUDED ELSEWHERE IN THIS REPORT ON FORM
10-Q.
The following discussion reflects our
plan of operation. This discussion should be read in conjunction with the financial statements which are included in this Report.
This discussion contains forward-looking statements, including statements regarding our expected financial position, business and
financing plans. These statements involve risks and uncertainties. Our actual results could differ materially from the results
described in or implied by these forward-looking statements as a result of various factors, including those discussed below and
elsewhere in this Report.
Unless the context otherwise suggests,
“we,” “our,” “us,” and similar terms, as well as references to “VOIS” and “Mind
Solutions,” all refer to Mind Solutions as of the date of this report.
Mind Solutions has successfully developed
software applications described below that run on Emotive EEG headsets. We have experienced minimal sales of our software applications.
It was decided by management that to better position Mind Solutions in the market, we should develop our own unique EEG headset
that would allow us to have more market strength. We have invested a significant amount of money and time into developing a prototype
EEG headset. We have completed a prototype which has been successfully tested on several Android devices and tablets.
On August 1, 2012, Dr. Gordon Chiu, our
chief scientific adviser, filed an International Patent Application No. PCT/US2012/049135. Generally, the proprietary technology
we are using consists of a “Portable Brain Activity Monitor.” On February 12, 2011, Mind Technology, Inc., one of our
predecessors, and Dr. Gordon Chiu, our chief science advisor, granted us a license to use the technology covered by his patent
application. Through the series of mergers described in this report, Mind Solutions acquired the license granted to Mind Technology,
Inc. For the period, that Mind Technology, Inc. (now Mind Solutions) exists and funds the development and progress of the covered
invention, Dr. Chiu agreed to license the use of the technology to Mind Solutions. If Mind Solutions fails to support the launch,
progress and/or funding of the production of the invention, then the license may be terminated. The agreement provided that Dr.
Chiu will receive a non-refundable, non-dilatable cash royalty payment equal to 20% of the gross proceeds received by Mind Solutions
from the use of the covered technology. In addition, Brent Fouch, the former president of Mind Technology, and one of our advisors,
will receive a non-refundable, non-dilatable cash royalty payment equal to 5% of the gross proceeds received by Mind Solutions
from the use of the covered technology. See “Business – Patents and Intellectual Property.”
Going Concern
As of June 30, 2015, the registrant had
an accumulated deficit during development stage of $25,064,349. During the six months ended June 30, 2015, the registrant used net
cash of $487,517 for operating activities. These factors raise substantial doubt about the registrant’s ability to continue
as a going concern.
While the registrant is attempting to
commence operations and generate revenues, the registrant’s cash position may not be significant enough to support the registrant’s
daily operations. Management intends to raise additional funds by way of a public or private offering. Management believes that
the actions presently being taken to further implement its business plan and generate revenues provide the opportunity for the
registrant to continue as a going concern. While the registrant believes in the viability of its strategy to generate revenues
and in its ability to raise additional funds, there can be no assurances to that effect. The ability of the registrant to continue
as a going concern is dependent upon the registrant’s ability to further implement its business plan and generate revenues.
Results of Operations
Three Months Ended June 30, 2015, Compared to Three
Months Ended June 30, 2014.
Revenues. During the three months
ended June 30, 2015, and 2014, the registrant recognized $0 and $18,889 of revenues. The $18,889 of service revenues recognized
were from the registrant’s services provided to a third party which it received stock in the third party as compensation.
The registrant is aggressively looking for ways to leverage it’s technology to develop revenue streams.
General and Administrative Expenses.
Consulting Fees. During the three
months ended June 30, 2015, consulting expense increased to $891,164 as compared to $220,292 from the prior three months ended
June 301, 2014. The increase was primarily the result of the valuation of preferred stock being issued for services rendered to
the Company
Officer Compensation. During the three
months ended June 30, 2015, officer compensation increased to $596,000 as compared to $0 from the prior three months ended June
30, 2014. Officer compensation increased due to additional payments made to our chief executive office for services rendered as
well as $581,000 valuation when the Company exchanged 1,000,000 Series A preferred shares for 1,000,000 Series B.
Professional Fees. During
the three months ended June 30, 2015, professional fees decreased to $46,861 as compared to $51,063 from the prior three
months ended June 30, 2014. Professional fees decreased slightly but for the most part stayed fairly constant as the
registrants legal and accounting services have not changed.
General and
Administrative Expense. During the three months ended June 30, 2015, general and administrative expenses decreased to
$13,234 as compared to $64,442 from the prior three months ended June 30, 2014. The decrease was due primarily to less travel
expenses.
Research and Development. During
the three months ended June 30, 2015, research and development expenses increased to $56,977 as compared to $0 from the prior three
months ended June 30, 2014. Research and development costs increased as the Company is testing, modifying and updating its hardware
and software with its prototype headset.
Interest Expense. During the three
months ended June 30, 2015, interest expense increased to $330,304 as compared to $16,533 from the prior three months ended
June 30, 2014. The increase was primarily due to original issue discount on issued convertible promissory notes. Interest expense
accrued pursuant to the outstanding convertible notes stayed fairly constant.
Derivative Adjustment. During
the three months ended June 30, 2015, loss on derivative adjustment was $105,417 as compared to $1,070,233 for the prior three
months ended June 30, 2014. The change was due to the derivative liability calculated using the multinominal lattice model
pursuant to the outstanding convertible notes payable.
Net Loss from Operations. Our net loss
from operations increased to $1,604,236 for the three months ended June 30, 2015 compared to $316,908 for the three months ended
June 30, 2014. The increase was primarily due to $581,000 valuation when the Company exchanged 1,000,000 Series A preferred shares
for 1,000,000 Series B as well as $845,178 valuation from the preferred shares issued for consulting services.
Six Months Ended June 30, 2015, Compared to Six Months
Ended June 30, 2014.
Revenues. During the six months
ended June 30, 2015, and 2014, the registrant recognized $0 and $50,000 of revenues. The $50,000 of service revenues recognized
were from the registrant’s services provided to a third party which it received stock in the third party as compensation.
The registrant is aggressively looking for ways to leverage our technology to develop revenue streams.
General and Administrative Expenses.
Consulting Fees. During the six
months ended June 30, 2015, consulting expense increased to $1,827,054 as compared to $618,526 from the previous period in 2014.
The increase was primarily the result of the valuation of preferred stock being issued for services rendered to the Company.
Officer Compensation. During
the six months ended June 30, 2015, officer compensation increased to $636,130 as compared to $0 from the prior six months ended
June 30, 2014. Officer compensation increased due to additional payments made to our chief executive office for services rendered
as well as $581,000 valuation when the Company exchanged 1,000,000 Series A preferred shares for 1,000,000 Series B.
Professional Fees. During the
six months ended June 30, 2015, professional fees decreased to $71,272 as compared to $92,425 from the prior six months ended June
30 2014. Professional fees decreased slightly but for the most part stayed fairly constant as the registrants legal and accounting
services have not changed.
General and Administrative
Expense. During the six months ended June 30, 2015, general and administrative expenses decreased to $29,512 as compared
to $75,379 from the prior six months ended June 30, 2014. The decrease was due primarily to less travel expenses.
Research and Development. During
the six months ended June 30, 2015, research and development expenses increased to $107,117 as compared to $0 from the prior six
months ended June 30, 2014. Research and development costs increased as the Company is testing, modifying and updating its hardware
and software with its prototype headset.
Interest Expense. During the six
months ended June 30, 2015, interest expense increased to $366,887 as compared to $34,170 from the prior six months ended June
30 2014. The increase was primarily due to original issue discount on issued convertible promissory notes. Interest expense accrued
pursuant to the outstanding convertible notes stayed fairly constant.
Derivative Adjustment.
During the six months ended June 30, 2015, loss on derivative adjustment was $1,117,727 as compared to $1,070,233 for the
prior six months ended June 30, 2014. The change was due to the derivative liability calculated using the multinominal
lattice model pursuant to the outstanding convertible notes payable.
Net Loss from Operations. Our net loss
from operations increased to $2,671,085 for the six months ended June 30, 2015 compared to $736,330 for the six months ended June
30, 2014. The increase was primarily due to the $581,000 valuation when the Company exchanged 1,000,000 Series A preferred shares
for 1,000,000 Series B as well as $845,178 valuation from the preferred shares issued for consulting services.
Liquidity and Capital Resources
Liquidity is the ability of a company
to generate adequate amounts of cash to meet its needs for cash. The following table provides certain selected balance sheet comparisons
between June 30, 2015, and December 31, 2014:
|
|
June 30, |
|
December 31, |
|
$ |
|
% |
2015 |
2014(Restated) |
Change |
Change |
|
|
|
|
|
|
|
|
|
Working Capital |
|
$ (805,115) |
|
$ 862,791 |
|
$ (1,667,906) |
|
(193.32)% |
Cash |
|
682 |
|
113,199 |
|
(112,517) |
|
(99.4)% |
Total current assets |
|
819,520 |
|
2,527,575 |
|
(1,708,055) |
|
(67.6)% |
Total assets |
|
820,991 |
|
2,534,310 |
|
(1,713,319) |
|
(67.6)% |
Accounts payable and accrued liabilities |
|
383,652 |
|
389,165 |
|
(5,513) |
|
(1.4)% |
Notes payable and accrued interest |
|
1,242,983 |
|
1,275,619 |
|
(32,636) |
|
(2.6) % |
Total current liabilities |
|
1,625,635 |
|
1,664,784 |
|
(38,149) |
|
(2.3) % |
Total liabilities |
|
1,625,635 |
|
1,664,784 |
|
(38,149) |
|
(2.3)% |
In the six months ended June 30, 2015,
our working capital deficit decreased primarily as a result of a decrease in derivative liability of $1,303,152 and a decrease
in convertible notes payable of $681,575 both due from the conversion of convertible debt into shares of common stock in the registrant.
Operating activities
Net cash used in for continuing operating
activities during the six months ended June 30, 2015, was $487,517 as compared to $364,596 for the six months ended June 30, 2014.
Non-cash items totaling approximately $ contributing to the net cash used in continuing operating activities for the six months
ended June 30, 2015, include:
|
|
$51,000 representing the value of shares issued to consultants,
$1,117,727 loss on derivative liability adjustment,
$20,500 of original issue discount on convertible debentures issued
$395,747 of debt discount
$581,000 compensation for preferred shares exchanged
$1,666,077 in prepaids |
|
|
$1,346 of depreciation,
$86,840 decrease in accounts payable and accrued expenses |
Investing activities
Net cash used in investing activities
was $0 for the six months ended June 30, 2015.
Net cash used in investing activities
was $2,936 for the six months ended June 30, 2014
Financing Activities
Net cash provided by financing activities
was $375,000 for the six months ended June 30, 2015. This included $350,000 from proceeds from convertible notes and $25,000 from
promissory notes
Net cash provided by financing activities
was $457,500 for the six months ended June 30, 2014 which was entirely from proceeds from convertible notes.
JSJ Investments, LLC
On May 28, 2015, the registrant executed
a convertible promissory note with JSJ Investment, LLC.in the principle amount of $150,000. The convertible promissory note
bore interest of 12% per annum, was unsecured, and due June 23, 2015. The note is convertible into common shares of the
registrant at a conversion rate of 48% of the market price, calculated as the lowest trading price in the previous 30 days
leading up to the date of conversion As of June 30, 2015 the Company recorded $150,000 in original debt discount pertaining
to the note issued. As of June 30, 2015 JSJ Investments, LLC has not converted any principle on this note.
Seasonality
We do not anticipate that our business
will be affected by seasonal factors. The only expected impact would be increased retail sales of our software applications during
the Christmas season.
Impact of Inflation
General inflation in the economy has
driven the operating expenses of many businesses higher. We will continuously seek methods of reducing costs and streamlining operations
while maximizing efficiency through improved internal operating procedures and controls. While we are subject to inflation as described
above, our management believes that inflation currently does not have a material effect on our operating results. However, inflation
may become a factor in the future.
Critical Accounting Policies
Our financial statements and accompanying
notes are prepared in accordance with generally accepted accounting principles in the United States. Preparing financial statements
requires management to make estimates and assumptions that impact the reported amounts of assets, liabilities, revenue, and expenses.
These estimates and assumptions are affected by management’s application of accounting policies. Critical accounting policies
include revenue recognition and impairment of long-lived assets.
We recognize revenue in accordance with
Staff Accounting Bulletin No. 101, “Revenue Recognition in Financial Statements.” Sales are recorded when products
are shipped to customers. Provisions for discounts and rebates to customers, estimated returns and allowances and other adjustments
are provided for in the same period the related sales are recorded.
We evaluate our long-lived assets for
financial impairment on a regular basis in accordance with Statement of Financial Accounting Standards No. 144, “Accounting
for the Impairment or Disposal of Long-Lived Assets” which evaluates the recoverability of long-lived assets not held for
sale by measuring the carrying amount of the assets against the estimated discounted future cash flows associated with them. At
the time such evaluations indicate that the future discounted cash flows of certain long-lived assets are not sufficient to recover
the carrying value of such assets, the assets are adjusted to their fair values.
Stock-Based Compensation
We recognize compensation cost for stock-based
awards based on the estimated fair value of the award on date of grant. We measure compensation cost at the grant date based on
the fair value of the award and recognize compensation cost upon the probable attainment of a specified performance condition or
over a service period.
Recently Issued Accounting Pronouncements
In June 2014, FASB
issued Accounting Standards Update (“ASU”) No. 2014-10, “Development Stage Entities (Topic 915):
Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in
Topic 810, Consolidation”. The update removes all incremental financial reporting requirements from GAAP for
development stage entities, including the removal of Topic 915 from the FASB Accounting Standards Codification. In addition,
the update adds an example disclosure in Risks and Uncertainties (Topic 275) to illustrate one way that an entity that has
not begun planned principal operations could provide information about the risks and uncertainties related to the
company’s current activities. Furthermore, the update removes an exception provided to development stage entities in
Consolidations (Topic 810) for determining whether an entity is a variable interest entity-which may change the consolidation
analysis, consolidation decision, and disclosure requirements for a company that has an interest in a company in the
development stage. The update is effective for the annual reporting periods beginning after December 15, 2014, including
interim periods therein. Early application with the first annual reporting period or interim period for which the
entity’s financial statements have not yet been issued (Public business entities) or made available for issuance
(other entities). The Company adopted this pronouncement for the three months ended March 31, 2015.
In June 2014, FASB issued
Accounting Standards Update (“ASU”) 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”. The amendments in this ASU apply to all reporting entities that grant their employees share-based payments in which
the terms of the award provide that a performance target that affects vesting could be achieved after the requisite service period.
The amendments require that a performance target that affects vesting and that could be achieved after the requisite service period
be treated as a performance condition. A reporting entity should apply existing guidance in Topic 718 as it relates to awards with
performance conditions that affect vesting to account for such awards. For all entities, the amendments in this ASU are effective
for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted.
Entities may apply the amendments in this ASU either (a) prospectively to all awards granted or modified after the effective date
or (b) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period
presented in the financial statements and to all new or modified awards thereafter. If retrospective transition is adopted, the
cumulative effect of applying this Update as of the beginning of the earliest annual period presented in the financial statements
should be recognized as an adjustment to the opening retained earnings balance at that date. Additionally, if retrospective transition
is adopted, an entity may use hindsight in measuring and recognizing the compensation cost. This updated guidance is not expected
to have a material impact on our results of operations, cash flows or financial condition. We are currently reviewing the
provisions of this ASU to determine if there will be any impact on our results of operations, cash flows or financial condition.
All other newly issued
accounting pronouncements but not yet effective have been deemed either immaterial or not applicable.
Off-Balance Sheet Arrangements
We do not have any off-balance sheet
arrangements.
Item 3. Quantitative and Qualitative Disclosures about
Market Risk.
There has been no material change in
our market risks since the end of the fiscal year 2014.
Item 4. Controls and Procedures.
See Item 4(T) below.
Item 4(T). Controls and Procedures.
The term disclosure controls and procedures
means controls and other procedures of an issuer that are designed to ensure that information required to be disclosed by the issuer
in the reports that it files or submits under the Exchange Act (15 U.S.C. 78a, et seq. ) is recorded, processed, summarized
and reported, within the time periods specified in the Commission’s rules and forms. Disclosure controls and procedures include,
without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports
that it files or submits under the Exchange Act is accumulated and communicated to the issuer’s management, including its
principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions
regarding required disclosure.
The term internal control over financial
reporting is defined as a process designed by, or under the supervision of, the issuer’s principal executive and principal
financial officers, or persons performing similar functions, and effected by the issuer’s board of directors, management
and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with generally accepted accounting principles and includes those policies and procedures
that:
| · | Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the
transactions and dispositions of the assets of the issuer; |
| · | Provide reasonable assurance that transactions are recorded as necessary to permit preparation
of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the
issuer are being made only in accordance with authorizations of management and directors of the issuer; and |
| · | Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition,
use or disposition of the issuer’s assets that could have a material effect on the financial statements. |
Our management, including our chief
executive officer and chief financial officer, does not expect that our disclosure controls and procedures or our internal controls
over financial reporting will prevent all error and all fraud. A control system, no matter how well conceived and operated, can
provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control
system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their
costs. Because of inherent limitations in all control systems, internal control over financial reporting may not prevent or detect
misstatements, and no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if
any, within the registrant have been detected. Also, projections of any evaluation of effectiveness to future periods are subject
to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies
or procedures may deteriorate.
Evaluation of Disclosure and Controls
and Procedures. Our management is responsible for establishing and maintaining adequate internal control over financial reporting
as defined in Rule 13a-15(f) under the Exchange Act. Our internal control over financial reporting is a process designed to provide
reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external
purposes in accordance with accounting principles generally accepted in the United States. We carried out an evaluation, under
the supervision and with the participation of our management, including our chief executive officer and chief financial officer,
of the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered
by this report. The evaluation was undertaken in consultation with our accounting personnel. Based on that evaluation, our chief
executive officer and chief financial officer concluded that our disclosure controls and procedures were not effective at June
30, 2015, due to the lack of accounting personnel. We intend to hire additional employees when we obtain sufficient capital.
Changes in Internal Controls over
Financial Reporting. There were no changes in the internal controls over our financial reporting that occurred during the period
covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over
financial reporting.
PART II – OTHER INFORMATION
Item 1. Legal Proceedings.
On April 30, 2008, we filed a complaint
against two former members of our board of directors alleging breach of fiduciary duty, waste of corporate assets and unjust enrichment.
The complaint, styled VOIS Inc., Plaintiff, vs. Edward Spindel and Michael Spindel, Defendants, Case No. CA012201XXXXMB,
in the Circuit Court for the 15th Judicial District in and for Palm Beach County, Florida, alleges that during 2002 and 2003 while
Mind Solutions, which at that time was known as Medstrong International, was under significant financial distress the defendants
caused us to issue demand promissory notes charging excessive and/or usurious interest rates with the knowledge that we would be
unable to repay the notes upon any demand. The defendants, who are brothers, were members of the Medstrong International board
of directors until their resignations in April 2006.
The complaint further alleges that the
defendants engaged in a repeated systematic scheme to defraud our company by continuing to restructure the promissory notes while
they were members of the prior board of directors at such excessive and usurious interest rates that the defendants violated their
fiduciary duties and responsibilities and approved debt obligations that benefited them and not Mind Solutions and that their wrongful
actions and omissions resulted in their unjust enrichment. We sought damages in excess of $968,000.
On June 18, 2009, the defendants
removed the lawsuit from Palm Beach Circuit Court (State) to the United States District Court for the Southern District of
Florida (Federal). Thereafter, the defendants sought to have the case transferred to the United States District Court in New
York. On October 27, 2009, the judge denied the defendant’s Motion to Transfer. On October 28, 2009 the defendants
filed their Answer and Defenses to the Complaint. The defendants did not file a counterclaim at that time. On November 12,
2009, the Court entered a Scheduling Order and a Notice of Trial for December 2009. On December 4, 2009, the Court selected a
mediator. In February 2010, the defendants changed law firms and sought leave from the Court to file a counterclaim. At that
time, the defendants also served discovery in the form of interrogatories, request for production and request for admission.
The defendant’s counterclaim was filed on February 17, 2010, and we filed our Answer on March 13, 2010. Over the course
of the next several months we responded to the discovery requests.
On November 13, 2009, the parties attended
a pretrial hearing to address legal issues related to our complaint and the defendants’ counterclaim. Based upon questions
posed by the Court and the argument of counsel, the Court struck the defense of usury and additionally dismissed our complaint
without prejudice, providing us 10 days to file an amended complaint. The defendants were also provided 10 days to file an Amended
counterclaim. Based upon the rulings, the matter was then removed from the Court’s December 2009 trial docket. We have decided
that it is not cost effective or beneficial to pursue our affirmative claims in this matter and have, accordingly, elected not
to file an amended complaint.
On July 19, 2010, the counter–plaintiffs,
Edward and Michael Spindel filed a motion for summary judgment. We filed a response in opposition on August 5, 2010. The Spindels
filed a reply on September 9, 2010. The court held a hearing on September 16, 2010, and at the hearing granted summary judgment
in favor of the Spindels. Final judgment was ordered on November 16, 2010, in the amount of $287,266 plus post judgment interest.
Attorney’s fees of $172,304 were also awarded.
On December 6, 2010, we filed an appeal
to the judgment.
On July 13, 2011, the United States
Court of Appeals for the Eleventh Circuit issued an opinion in favor of VOIS, Inc. This Opinion was made final when the Court issued
the mandate on August15th, 2011. This ruling effectively reversed the Summary Judgment previously granted to the Spindels by the
District Court on November 4, 2010, in the amount of $287,266. At the present time, this lawsuit is still pending in the State
Circuit Court of Florida. Mind Solutions intends to mount a vigorous defense.
Mind Solutions had two
outstanding notes due to Edward Spindel and Michael Spindel in the aggregate amount of $145,000. The notes were unsecured and
accrue interest and penalty of 15% inasmuch as they are past due. Messrs. Spindels filed a lawsuit styled Edward Spindel
and Michael Spindel, Counter-Plaintiffs, vs. VOIS, Inc. F/K/A Medstrong International Corp., Counter-Defendant, in the
United States District Court for the Southern District of Florida, West Palm Beach Division, Case No.
08-80689-CIV-Ryskamp/Hopkins. On November 16, 2012, judgment was entered against VOIS in favor of Edward Spindel against VOIS
in the amount of $188,942.47 and in favor of Michael Spindel against VOIS in the amount of $99,527.41, together with
post-judgment interest as provided by law. Messrs. Spindels have sought to garnish the bank accounts of Mind Solutions to
recover on the judgment and as of the date of this report, the two garnishments have netted $30,771 in favor of Messrs.
Spindels. At March 31, 2015, total principal, accrued interest and penalty pertaining to the outstanding $145,000 in notes
payable is $432,274.
We were a defendant in two actions,
each entitled 951 Yamato Acquisition Company, LLC vs. VOIS, Inc. both as filed in December 2009 the Circuit Court of the
15th Judicial Circuit in and for Palm Beach County, Florida under case numbers 502010CA040121XXXXMB and 502010CC19027XXXXBBRS,
which are related to the lease agreements for our former office space. A combined summary judgment was entered in April 2010 against
VOIS in the amount of $106,231. At March 31, 2015, our liabilities as reported in our financial statements contained elsewhere
in this report reflect the principal amount of the judgment together with $138,103 in accrued interest.
Mind Solutions is not engaged in any
other litigation at the present time, and management is unaware of any claims or complaints that could result in future litigation.
Management will seek to minimize disputes with its customers but recognizes the inevitability of legal action in today’s
business environment as an unfortunate price of conducting business.
Item 1A. Risk Factors.
Not applicable.
Item 2. Unregistered Sales of Equity Securities and Use
of Proceeds.
None
Item 3. Defaults Upon Senior Securities.
Not applicable.
Item 4. Mine Safety Disclosures.
Not applicable.
Item 5. Other Information.
None.
Item 6. Exhibits.
Exhibit No. |
Identification of Exhibit |
2.1** |
Plan and Agreement of Merger Between VOIS, Inc. (a Florida Corporation) and Mind Solutions, Inc. (a Nevada corporation) dated October 15, 2013, filed as an exhibit to the registrant’s Definitive Schedule 14C on October 23, 2013, Commission File Number 000-33053. |
2.2** |
Agreement and Plan of Merger dated October 19, 2012, by and among VOIS, Inc., Mind Solutions, Inc., a Nevada corporation, Mind Solutions, Inc., an Ontario corporation and Mind Solutions Acquisition Corp., a Nevada corporation filed as Exhibit 2.1 to the registrant’s Form 8-K on October 23, 2012, Commission File Number 000-33053. |
3.1** |
Delaware Certificate of Incorporation of Medical Records by Net, Inc., dated May 19, 2000, filed as Exhibit 2(a) to the registrant’s Registration Statement on Form SB-1 on March 22, 2001, Commission File Number 333-57468 |
|
Delaware Certificate of Amendment to the Certificate of Incorporation of Medical Records by Net, Inc. changing the its corporate name to Lifelink Online, Inc., dated October 17, 2000, filed as Exhibit 2(a) to the registrant’s Registration Statement on Form SB-1 on March 22, 2001, Commission File Number 333-57468. |
|
Delaware Certificate of Amendment to the Certificate of Incorporation of Lifelink Online, Inc. changing the its corporate name to MedStrong Corporation, dated January 17, 2001, filed as Exhibit 2(a) to the registrant’s Registration Statement on Form SB-1 on March 22, 2001, Commission File Number 333-57468. |
|
Delaware Certificate of Amendment to the Certificate of Incorporation of MedStrong Corporation changing the its corporate name to MedStrong International Corporation, dated March 9, 2001, filed as Exhibit 2(a) to the registrant’s Registration Statement on Form SB-1 on March 22, 2001, Commission File Number 333-57468. |
3.2** |
Certificate of Amendment to the Certificate of Incorporation of MedStrong International Corporation dated August 2006, filed as Exhibit 3.1(a) to the registrant’s Report on Form 10-QSB on August 21, 2006, Commission File Number 333-57468. |
|
Form of Restated Certificate of Incorporation of MedStrong International Corporation dated May 19, 2000, filed as Exhibit 3.1(b) to the registrant’s Report on Form 10-QSB on August 21, 2006, Commission File Number 333-57468. |
3.3** |
Certificate of Amendment to the Certificate of Incorporation of MedStrong International Corporation dated October 24, 2006, filed as Exhibit 3.1(c) to the registrant’s Report on Form 10-KSB on March 30, 2007, Commission File Number 333-57468. |
3.4** |
Certificate of Amendment to the Certificate of Incorporation of MedStrong International Corporation changing its name to VOIS, Inc. dated March 26, 2007, filed as Exhibit 3.1(e) to the registrant’s Report on Form 10-QSB on May 15, 2007, Commission File Number 333-57468. |
3.5** |
Bylaws of Lifelink Online, Inc. filed as Exhibit 2(b) to the registrant’s Registration Statement on Form SB-1 on March 23, 2001, Commission File Number 333-57468. |
3.6** |
Certificate of Domestication and Articles of Incorporation of VOIS, Inc. filed with the Secretary of State of Florida on March 18, 2009, filed as Exhibit 3.10 to the registrant’s Report on Form 8-K on March 24, 2009, Commission File Number 000-33035. |
3.7** |
Articles of Amendment to the Articles of Incorporation of VOIS, Inc. as filed with the Secretary of State of Florida on November 4, 2010, filed as Exhibit 3.13 to the registrant’s Current Report on Form 8-K on November 22, 2010, Commission File Number 000-33053. |
3.8** |
Articles of Amendment to the Articles of Incorporation of VOIS Inc. filed with the Florida Secretary of State on December 2, 2011, filed as Exhibit 3.8 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
3.9** |
Articles of Merger between Mind Solutions, Inc. and Mind Solutions Acquisition Corp. filed with the State of Nevada on October 23, 2012, filed as Exhibit 3.9 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
3.10** |
Articles of Amendment to the Articles of Incorporation of VOIS Inc. filed with the Florida Secretary of State on May 17, 2013, filed as Exhibit 3.10 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
3.11** |
Articles of Amendment to the Articles of Incorporation of VOIS Inc. filed with the Florida Secretary of State on August 28, 2013, filed as Exhibit 3.1 to the registrant’s Current Report on Form 8-K on August 30, 2013, Commission File Number 000-33053. |
3.12** |
Amended and Restated Articles of Incorporation of Mind Solutions, Inc. on October 28, 2013, filed as an exhibit to the registrant’s Definitive Schedule 14C on October 23, 2013, Commission File Number 000-33053. |
3.13** |
Amended and Restated Bylaws of Mind Solutions, Inc. on October 28, 2013, filed as an exhibit to the registrant’s Definitive Schedule 14C on October 23, 2013, Commission File Number 000-33053. |
3.14** |
Articles of Merger between Mind Solutions, Inc. and VOIS, Inc. filed with the State of Florida on October 28, 2013, filed as Exhibit 3.14 to the registrant’s Annual Report on Form 10-K on April 14, 2014, Commission File Number 000-33053. |
3.15** |
Articles of Merger between Mind Solutions, Inc. and VOIS, Inc. filed with the State of Nevada on October 28, 2013, filed as Exhibit 3.15 to the registrant’s Annual Report on Form 10-K on April 14, 2014, Commission File Number 000-33053. |
3.16** |
Amendment to the Articles of Incorporation of VOIS, Inc. filed with the State of Florida on August 28, 2013, filed as Exhibit 3.16 to the registrant’s Annual Report on Form 10-K on April 14, 2014, Commission File Number 000-33053. |
3.17** |
Articles of Incorporation of Red Meteor, Inc. filed with the Secretary of State of Nevada on May 24, 2002, filed as Exhibit 3.17 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
3.18** |
Certificate of Amendment to the Articles of Incorporation of Red Meteor, Inc. changing its name to Prize Entertainment, Inc. filed with the Secretary of State of Nevada on November 13, 2003, filed as Exhibit 3.18 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
3.19** |
Certificate of Amendment to the Articles of Incorporation of Prize Entertainment, Inc. changing its name to Mind Solutions, Inc. filed with the Secretary of State of Nevada on November 20, 2009, filed as Exhibit 3.19 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
3.20** |
Bylaws of Red Meteor, Inc. filed as Exhibit 3.20 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
4.1** |
Certificate of Designation for Series A Preferred Stock filed with the Secretary of State of Nevada on September 10, 2014, filed as Exhibit 4.1 to the registrant’s Report on Form 8-K on September 10, 2014, Commission File Number 000-33035. |
10.1** |
Asset Purchase Agreement dated April 30, 2013, by and between Mind Technologies, Inc., a Nevada corporation, and VOIS, Inc. filed as Exhibit 10.1 to the registrant’s Current Report on Form 8-K on May 7, 2013, Commission File Number 000-33053. |
10.2** |
Equity Purchase Agreement, dated March 11, 2014, between Mind Solutions, Inc. and Premier Venture Partners, LLC filed as Exhibit 10.1 to the registrant’s Current Report on Form 8-K on March 26, 2014, Commission File Number 000-33053. |
10.3** |
Securities Purchase Agreement, dated March 11, 2014, between Mind Solutions, Inc. and Premier Venture Partners, LLC filed as Exhibit 10.2 to the registrant’s Current Report on Form 8-K on March 26, 2014, Commission File Number 000-33053. |
|
10.4** |
Convertible Promissory Note in the original principal amount of $10,000 executed by Mind Solutions, Inc. in favor of Premier Venture Partners, LLC filed as Exhibit 10.3 to the registrant’s Current Report on Form 8-K on March 26, 2014, Commission File Number 000-33053. |
|
10.5** |
Registration Rights Agreement, dated March 11, 2014, between Mind Solutions, Inc. and Premier Venture Partners, LLC filed as Exhibit 10.4 to the registrant’s Current Report on Form 8-K on March 26, 2014, Commission File Number 000-33053. |
|
10.6** |
Charter of the Audit Committee of Mind Solutions, Inc. filed as Exhibit 10.6 to the registrant’s Annual Report on Form 10-K on April 14, 2014, Commission File Number 000-33053. |
10.7** |
Code of Business Conduct of Mind Solutions, Inc. filed as Exhibit 10.7 to the registrant’s Annual Report on Form 10-K on April 14, 2014, Commission File Number 000-33053. |
10.8** |
Amended Code of Ethics for Senior Executive Officers and Senior Financial Officers of Mind Solutions, Inc. filed as Exhibit 10.8 to the registrant’s Annual Report on Form 10-K on April 14, 2014, Commission File Number 000-33053. |
10.9** |
Charter of the Compensation Committee of Mind Solutions, Inc. filed as Exhibit 10.9 to the registrant’s Annual Report on Form 10-K on April 14, 2014, Commission File Number 000-33053. |
10.10** |
Corporate Governance Principles of the Board of Directors of Mind Solutions, Inc. filed as Exhibit 10.10 to the registrant’s Annual Report on Form 10-K on April 14, 2014, Commission File Number 000-33053. |
10.11** |
Charter of the Executive Committee of the Board of Directors of Mind Solutions, Inc. filed as Exhibit 10.11 to the registrant’s Annual Report on Form 10-K on April 14, 2014, Commission File Number 000-33053. |
10.12** |
Charter of the Finance Committee of Mind Solutions, Inc. filed as Exhibit 10.12 to the registrant’s Annual Report on Form 10-K on April 14, 2014, Commission File Number 000-33053. |
10.13** |
Charter of the Governance and Nominating Committee of Mind Solutions, Inc. filed as Exhibit 10.13 to the registrant’s Annual Report on Form 10-K on April 14, 2014, Commission File Number 000-33053. |
10.14** |
Royalty, Ownership and Inventor’s Agreement, dated February 12, 2011, by and between Dr. Gordon Chiu, Brent Fouch, and Mind Technologies, Inc. filed as Exhibit 10.14 to the registrant’s Annual Report on Form 10-K on April 14, 2014, Commission File Number 000-33053. |
|
10.15** |
Consulting Agreement dated December 25, 2013, by and between Kerry Driscoll and the registrant filed as Exhibit 10.15 to the registrant’s Annual Report on Form 10-K on April 14, 2014, Commission File Number 000-33053. |
|
10.16** |
Officer Agreement dated August 20, 2013, by and between Jeff Dashefsky and VOIS, Inc. filed as Exhibit 10.16 to the registrant’s Annual Report on Form 10-K on April 14, 2014, Commission File Number 000-33053. |
|
10.17** |
Settlement Agreement and Stipulation dated November 21, 2013, by and between IBC Funds, LLC and the registrant filed as Exhibit 10.17 to the registrant’s Annual Report on Form 10-K on April 14, 2014, Commission File Number 000-33053. |
|
10.18** |
Order Granting Approval of Settlement Agreement and Stipulation between IBC Funds, LLC and the registrant dated November 22, 2013, filed as Exhibit 10.18 to the registrant’s Annual Report on Form 10-K on April 14, 2014, Commission File Number 000-33053. |
|
10.19** |
Securities Purchase Agreement dated February 5, 2013, between Hanover Holdings I, LLC and the registrant with respect to the issuance of a Convertible Promissory Note in the amount of $16,500 filed as Exhibit 10.19 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
|
10.20** |
Convertible Promissory Note dated February 5, 2013, issued by the registrant in favor of Hanover Holdings I, LLC, in the amount of $16,500 filed as Exhibit 10.20 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
|
10.21** |
Securities Purchase Agreement dated March 7, 2013, between Hanover Holdings I, LLC and the registrant with respect to the issuance of a Convertible Promissory Note in the amount of $16,500 filed as Exhibit 10.21 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.22** |
Convertible Promissory Note dated March 7, 2013, issued by the registrant in favor of Hanover Holdings I, LLC, in the amount of $16,500 filed as Exhibit 10.22 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.23** |
Securities Purchase Agreement dated June 5, 2013, between Hanover Holdings I, LLC and the registrant with respect to the issuance of a Convertible Promissory Note in the amount of $41,500 filed as Exhibit 10.23 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.24** |
Convertible Promissory Note dated June 5, 2013, issued by the registrant in favor of Hanover Holdings I, LLC, in the amount of $41,500 filed as Exhibit 10.24 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.25** |
Securities Purchase Agreement dated August 7, 2013, between Hanover Holdings I, LLC and the registrant with respect to the issuance of a Convertible Promissory Note in the amount of $26,500 filed as Exhibit 10.25 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.26** |
Convertible Promissory Note dated August 7, 2013, issued by the registrant in favor of Hanover Holdings I, LLC, in the amount of $26,500 filed as Exhibit 10.26 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.27** |
Securities Purchase Agreement dated November 23, 2013, between Hanover Holdings I, LLC and the registrant with respect to the issuance of a Convertible Promissory Note in the amount of $26,500 filed as Exhibit 10.27 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.28** |
Convertible Promissory Note dated November 23, 2013, issued by the registrant in favor of Hanover Holdings I, LLC, in the amount of $26,500 filed as Exhibit 10.28 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.29** |
Securities Purchase Agreement dated December 26, 2012, between Asher Enterprises, Inc. and the registrant with respect to the issuance of a Convertible Promissory Note in the amount of $32,500 filed as Exhibit 10.29 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.30** |
Convertible Promissory Note dated December 26, 2012, issued by the registrant in favor of Asher Enterprises, Inc., in the amount of $32,500 filed as Exhibit 10.30 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.31** |
Securities Purchase Agreement dated March 1, 2013, between Asher Enterprises, Inc. and the registrant with respect to the issuance of a Convertible Promissory Note in the amount of $32,500 filed as Exhibit 10.31 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.32** |
Convertible Promissory Note dated March 1, 2013, issued by the registrant in favor of Asher Enterprises, Inc., in the amount of $32,500 filed as Exhibit 10.32 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.33** |
Securities Purchase Agreement dated April 18, 2013, between Asher Enterprises, Inc. and the registrant with respect to the issuance of a Convertible Promissory Note in the amount of $32,500 filed as Exhibit 10.33 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.34** |
Convertible Promissory Note dated April 18, 2013, issued by the registrant in favor of Asher Enterprises, Inc., in the amount of $32,500 filed as Exhibit 10.34 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.35** |
Securities Purchase Agreement dated November 7, 2013, between Asher Enterprises, Inc. and the registrant with respect to the issuance of a Convertible Promissory Note in the amount of $42,500 filed as Exhibit 10.35 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.36** |
Convertible Promissory Note dated November 7, 2013, issued by the registrant in favor of Asher Enterprises, Inc., in the amount of $42,500 filed as Exhibit 10.36 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.37** |
Securities Purchase Agreement dated February 6, 2014, between Asher Enterprises, Inc. and the registrant with respect to the issuance of a Convertible Promissory Note in the amount of $37,500 filed as Exhibit 10.37 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.38** |
Convertible Promissory Note dated February 6, 2014, issued by the registrant in favor of Asher Enterprises, Inc., in the amount of $37,500 filed as Exhibit 10.38 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.39** |
Convertible Promissory Note dated December 31, 2010, issued by Mind Solutions, Inc. in favor of Brent Fouch, in the amount of $157,324.06 filed as Exhibit 10.39 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.40** |
Assignment Agreement dated June 5, 2013, by and between Brent Fouch, as assignor, Magna Group, LLC, as assignee, and VOIS, Inc. assigning $106,324 of the Convertible Promissory Note dated December 31, 2010, issued by Mind Solutions, Inc. in favor of Brent Fouch, in the amount of $157,324.06 filed as Exhibit 10.40 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.41** |
Debt Conversion Agreement dated April 4, 2013, by and between Brent Fouch and VOIS, Inc. converting $51,000 of the Convertible Promissory Note dated December 31, 2010, issued by Mind Solutions, Inc. in favor of Brent Fouch, in the amount of $157,324.06 into 21,250,000 shares of the registrant filed as Exhibit 10.41 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.42** |
Convertible Promissory Note dated December 31, 2011, issued by Mind Solutions, Inc. in favor of Brent Fouch, in the amount of $33,674.05 filed as Exhibit 10.42 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.43** |
Convertible Promissory Note dated June 30, 2012, issued by Mind Solutions, Inc. in favor of Brent Fouch, in the amount of $50,435 filed as Exhibit 10.43 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.44** |
Assignment Agreement dated February 5, 2013, by and between Brent Fouch, as assignor, Magna Group, LLC, as assignee, and VOIS, Inc. assigning $40,000 of the Convertible Promissory Note dated June 30, 2012, issued by Mind Solutions, Inc. in favor of Brent Fouch, in the amount of $50,435 filed as Exhibit 10.44 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.45** |
Convertible Promissory Note dated January 3, 2014, issued by Mind Solutions, Inc. in favor of Brent Fouch, in the amount of $61,096 filed as Exhibit 10.45 to the registrant’s registration statement on Form S-1 on June 27, 2014, Commission File Number 000-33053. |
10.46** |
Assignment Agreement dated June 5, 2014, by and between Brent Fouch, as assignor, Magna Group, LLC, as assignee, and VOIS, Inc. assigning the Convertible Promissory Note dated January 3, 2014, issued by Mind Solutions, Inc. in favor of Brent Fouch, in the amount of $61,096 filed as Exhibit 10.46 to the registrant’s registration statement on Form S-1 on June 27, 2014, Commission File Number 000-33053. |
10.47** |
Convertible Promissory Note dated April 3, 2013, issued by Mind Solutions, Inc. in favor of Brent Fouch, in the amount of $48,872 filed as Exhibit 10.47 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.48** |
Assignment Agreement dated November 11, 2013, by and between Brent Fouch, as assignor, Magna Group, LLC, as assignee, and VOIS, Inc. assigning the Convertible Promissory Note dated April 3, 2013, issued by Mind Solutions, Inc. in favor of Brent Fouch, in the amount of $48,872 filed as Exhibit 10.48 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.49** |
Convertible Promissory Note dated May 15, 2013, issued by the registrant in favor of JMJ Financial, in the amount of $250,000 filed as Exhibit 10.49 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.50** |
Consulting Agreement dated January 2, 2014, by and between Brent Fouch and the registrant filed as Exhibit 10.50 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.51** |
Consulting Agreement dated February 12, 2014, by and between Monster Arts, Inc. and the registrant filed as Exhibit 10.51 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.52** |
Consulting Agreement dated March 18, 2014, by and between Bret Cusick and the registrant filed as Exhibit 10.52 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.53** |
Consulting Agreement dated March 19, 2014, by and between Noah Fouch and the registrant filed as Exhibit 10.53 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.54** |
Consulting Agreement dated May 11, 2014, by and between IN2NE Corp. and the registrant filed as Exhibit 10.54 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.55** |
Securities Purchase Agreement dated May 8, 2014, between KBM Worldwide, Inc. and the registrant with respect to the issuance of a Convertible Promissory Note in the amount of $42,500 filed as Exhibit 10.54 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.56** |
Convertible Promissory Note dated May 8, 2014, issued by the registrant in favor of KBM Worldwide, Inc., in the amount of $42,500 filed as Exhibit 10.56 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.57** |
License Agreement as of December 18, 2012, by and among VOIS Inc., a Florida corporation (“Licensee”), and Mind Technologies, Inc., a Nevada corporation (“Licensor”) filed as Exhibit 10.1 to the registrant’s Form 8-K on December 20, 2012, Commission File Number 000-33053. |
10.58** |
Consulting Agreement dated May 2, 2014, by and between Brent Fouch and the registrant filed as Exhibit 10.58 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.59** |
Securities Purchase Agreement dated May 8, 2014, between Asher Enterprises, Inc. and the registrant with respect to the issuance of a Convertible Promissory Note in the amount of $42,500 filed as Exhibit 10.59 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.60** |
Convertible Promissory Note dated May 8, 2014, issued by the registrant in favor of Asher Enterprises, Inc., in the amount of $42,500 filed as Exhibit 10.60 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.61** |
Convertible Promissory Note dated February 4, 2014, issued by the registrant in favor of GEL Properties, LLC in the amount of $25,000 filed as Exhibit 10.61 to the registrant’s Quarterly Report on Form 10-Q on May 15, 2014, Commission File Number 000-33053. |
10.62** |
Securities Purchase Agreement dated February 4, 2014, between LG Capital Funding, LLC and the registrant with respect to the issuance of two Convertible Promissory Notes in the aggregate amount of $50,000 filed as Exhibit 10.62 to the registrant’s Quarterly Report on Form 10-Q on May 15, 2014, Commission File Number 000-33053. |
10.63** |
Convertible Promissory Note dated February 4, 2014, issued by the registrant in favor of LG Capital Funding, LLC in the amount of $25,000 filed as Exhibit 10.63 to the registrant’s Quarterly Report on Form 10-Q on May 15, 2014, Commission File Number 000-33053. |
10.64** |
Convertible Promissory Note dated February 4, 2014, issued by the registrant in favor of LG Capital Funding, LLC in the amount of $25,000 filed as Exhibit 10.64 to the registrant’s Quarterly Report on Form 10-Q on May 15, 2014, Commission File Number 000-33053. |
10.65** |
Securities Purchase Agreement dated March 25, 2014, between LG Capital Funding, LLC and the registrant with respect to the issuance of a Convertible Promissory Note in the amount of $40,000 filed as Exhibit 10.65 to the registrant’s Quarterly Report on Form 10-Q on May 15, 2014, Commission File Number 000-33053. |
10.66** |
Convertible Promissory Note dated March 25, 2014, issued by the registrant in favor of LG Capital Funding, LLC in the amount of $40,000 filed as Exhibit 10.66 to the registrant’s Quarterly Report on Form 10-Q on May 15, 2014, Commission File Number 000-33053. |
10.67** |
Securities Purchase Agreement dated April 15, 2014, between Caesar Capital Group, LLC and the registrant with respect to the issuance of a Convertible Promissory Note in the amount of $50,000 filed as Exhibit 10.67 to the registrant’s Quarterly Report on Form 10-Q on May 15, 2014, Commission File Number 000-33053. |
10.68** |
Convertible Promissory Note dated April 15, 2014, issued by the registrant in favor of Caesar Capital Group, LLC in the amount of $50,000 filed as Exhibit 10.68 to the registrant’s Quarterly Report on Form 10-Q on May 15, 2014, Commission File Number 000-33053. |
10.69** |
Consulting Agreement dated May 12, 2014, by and between Cicero Consulting Group, LLC and the registrant filed as Exhibit 10.69 to the registrant’s Quarterly Report on Form 10-Q on May 15, 2014, Commission File Number 000-33053. |
10.70** |
Convertible Promissory Note dated May 12, 2014, issued by the registrant in favor of Cicero Consulting Group, LLC in the amount of $200,000 filed as Exhibit 10.70 to the registrant’s Quarterly Report on Form 10-Q on May 15, 2014, Commission File Number 000-33053. |
10.71** |
Securities Purchase Agreement dated April 30, 2014, between AARG Corp. and the registrant with respect to the issuance of a Convertible Promissory Note in the amount of $50,000 filed as Exhibit 10.71 to the registrant’s Quarterly Report on Form 10-Q on May 15, 2014, Commission File Number 000-33053. |
10.72** |
Convertible Promissory Note dated April 30, 2014, issued by the registrant in favor of AARG Corp. in the amount of $50,000 filed as Exhibit 10.72 to the registrant’s Quarterly Report on Form 10-Q on May 15, 2014, Commission File Number 000-33053. |
10.73** |
Consulting Agreement dated October 24, 2012, by and between Brent Fouch and the registrant filed as Exhibit 10.73 to the registrant’s Annual Report on Form 10-K/A. Amendment No. 2 on August 1, 2014, Commission File Number 000-33053. |
10.74** |
Consulting Agreement dated December 18, 2012, by and between Brent Fouch and the registrant Consulting Agreement dated October 24, 2012, by and between Brent Fouch and the registrant filed as Exhibit 10.74 to the registrant’s Annual Report on Form 10-K/A. Amendment No. 2 on August 1, 2014, Commission File Number 000-33053. |
10.75** |
Consulting Agreement dated January 30, 2013, by and between Brent Fouch and the registrant Consulting Agreement dated October 24, 2012, by and between Brent Fouch and the registrant filed as Exhibit 10.75 to the registrant’s Annual Report on Form 10-K/A. Amendment No. 2 on August 1, 2014, Commission File Number 000-33053. |
10.76** |
Consulting Agreement dated February 20, 2013, by and between Brent Fouch and the registrant Consulting Agreement dated October 24, 2012, by and between Brent Fouch and the registrant filed as Exhibit 10.76 to the registrant’s Annual Report on Form 10-K/A. Amendment No. 2 on August 1, 2014, Commission File Number 000-33053. |
10.77** |
Consulting Agreement dated September 2, 2013, by and between Brent Fouch and the registrant Consulting Agreement dated October 24, 2012, by and between Brent Fouch and the registrant filed as Exhibit 10.77 to the registrant’s Annual Report on Form 10-K/A. Amendment No. 2 on August 1, 2014, Commission File Number 000-33053. |
10.78** |
Consulting Agreement dated September 26, 2013, by and between Brent Fouch and the registrant Consulting Agreement dated October 24, 2012, by and between Brent Fouch and the registrant filed as Exhibit 10.78 to the registrant’s Annual Report on Form 10-K/A. Amendment No. 2 on August 1, 2014, Commission File Number 000-33053. |
10.79** |
Consulting Agreement dated May 1, 2013, by and between Brent Fouch and the registrant Consulting Agreement dated October 24, 2012, by and between Brent Fouch and the registrant filed as Exhibit 10.79 to the registrant’s Annual Report on Form 10-K/A. Amendment No. 2 on August 1, 2014, Commission File Number 000-33053. |
10.80** |
Consulting Agreement dated July 19, 2013, by and between Brent Fouch and the registrant Consulting Agreement dated October 24, 2012, by and between Brent Fouch and the registrant filed as Exhibit 10.80 to the registrant’s Annual Report on Form 10-K/A. Amendment No. 2 on August 1, 2014, Commission File Number 000-33053. |
10.81** |
Securities Purchase Agreement dated May 30, 2014, between WHC Capital, LLC and the registrant with respect to the issuance of a Convertible Promissory Note in the amount of $60,000 Consulting Agreement dated October 24, 2012, by and between Brent Fouch and the registrant filed as Exhibit 10.81 to the registrant’s Annual Report on Form 10-K/A. Amendment No. 2 on August 1, 2014, Commission File Number 000-33053. |
10.82** |
Convertible Promissory Note dated May 30, 2014, issued by the registrant in favor of WHC Capital, LLC in the amount of $60,000 Consulting Agreement dated October 24, 2012, by and between Brent Fouch and the registrant filed as Exhibit 10.82 to the registrant’s Annual Report on Form 10-K/A. Amendment No. 2 on August 1, 2014, Commission File Number 000-33053. |
|
|
10.83** |
Consulting Agreement dated March 18, 2013, by and between Christian Hansen and the registrant Consulting Agreement dated October 24, 2012, by and between Brent Fouch and the registrant filed as Exhibit 10.83 to the registrant’s Annual Report on Form 10-K/A. Amendment No. 2 on August 1, 2014, Commission File Number 000-33053. |
10.84** |
Consulting Agreement dated March 20, 2013, by and between Larry Simon and the registrant filed as Exhibit 10.84 to the registrant’s Annual Report on Form 10-K/A. Amendment No. 2 on August 1, 2014, Commission File Number 000-33053. |
10.85** |
Consulting Agreement dated March 20, 2013, by and between Relaunch Consulting Group and the registrant filed as Exhibit 10.85 to the registrant’s Annual Report on Form 10-K/A. Amendment No. 2 on August 1, 2014, Commission File Number 000-33053. |
10.86** |
Consulting Agreement dated November 11, 2013, by and between Mirador Consulting LLC and the registrant filed as Exhibit 10.86 to the registrant’s Annual Report on Form 10-K/A. Amendment No. 2 on August 1, 2014, Commission File Number 000-33053. |
10.87** |
Consulting Agreement dated November 11, 2013, by and between First Swiss Capital, Inc. and the registrant filed as Exhibit 10.87 to the registrant’s Annual Report on Form 10-K/A. Amendment No. 2 on August 1, 2014, Commission File Number 000-33053. |
10.88** |
Amendment to Equity Purchase Agreement, dated June 19, 2014, between Mind Solutions, Inc. and Premier Venture Partners, LLC date March 11, 2014, filed as Exhibit 10.88 to the registrant’s Annual Report on Form 10-K/A. Amendment No. 2 on August 1, 2014, Commission File Number 000-33053. |
10.89** |
Securities Purchase Agreement dated July 22, 2014, between KBM Worldwide, Inc. and the registrant with respect to the issuance of a Convertible Promissory Note in the amount of $27,500 filed as Exhibit 10.1 to the registrant’s Current Report on Form 8-K on July 31, 2014, Commission File Number 000-33053. |
10.90** |
Convertible Promissory Note dated July 22, 2014, issued by the registrant in favor of KBM Worldwide, Inc., in the amount of $27,500 filed as Exhibit 10.2 to the registrant’s Current Report on Form 8-K on July 31, 2014, Commission File Number 000-33053. |
10.91** |
Note Purchase Agreement dated February 18, 2014, between Iconic Holdings, LLC and the registrant with respect to the issuance of a Convertible Promissory Note in the amount of $220,000 filed as Exhibit 10.1 to the registrant’s Current Report on Form 8-K on July 31, 2014, Commission File Number 000-33053. |
10.92** |
Convertible Promissory Note dated February 18, 2014, issued by the registrant in favor of Iconic Holdings, LLC, in the amount of $220,000 filed as Exhibit 10.2 to the registrant’s Current Report on Form 8-K on July 31, 2014, Commission File Number 000-33053. |
10.93** |
Securities Purchase Agreement dated September 4, 2014, between LG Capital Funding, LLC and the registrant with respect to the issuance of convertible promissory note in the aggregate amount of $63,000, filed as Exhibit 10.1 to the registrant’s Form 8-K/A on September 10, 2014, Commission File Number 000-33053. |
10.94** |
10% Convertible Redeemable Note dated September 4, 2014, issued by the registrant in favor of LG Capital, in the amount of $31,500, filed as Exhibit 10.2 to the registrant’s Form 8-K/A on September 10, 2014, Commission File Number 000-33053. |
10.95** |
Collateralized Secured Promissory Note dated September 4, 2014, issued by the registrant in favor of LG Capital, in the amount of $31,500, filed as Exhibit 10.3 to the registrant’s Form 8-K/A on September 10, 2014, Commission File Number 000-33053. |
10.96** |
Convertible Promissory Note dated September 22, 2014, issued by the registrant in favor of JSJ Investments, Inc., in the amount of $100,000, filed as Exhibit 10.1 to the registrant’s Form 8-K on October 8, 2014, Commission File Number 000-33053. |
10.97** |
Securities Purchase Agreement dated October 29, 2014, between KBM Worldwide, Inc. and the registrant with respect to the issuance of a Convertible Promissory Note in the amount of $32,500, filed as Exhibit 10.1 to the registrant’s Form 8-K on November 3, 2014, Commission File Number 000-33053. |
10.98** |
Convertible Promissory Note dated October 29, 2014, issued by the registrant in favor of KBM Worldwide, Inc., in the amount of $32,500, filed as Exhibit 10.2 to the registrant’s Form 8-K on November 3, 2014, Commission File Number 000-33053. |
10.99** |
Securities Purchase Agreement dated September 4, 2014, between LG Capital Funding, LLC and the registrant with respect to the issuance of convertible promissory note in the aggregate amount of $63,000, filed as Exhibit 10.1 to the registrant’s Form 8-K on September 10, 2014, Commission File Number 000-33053. |
10.100** |
10% Convertible Redeemable Note dated September 4, 2014, issued by the registrant in favor of LG Capital, in the amount of $31,500, filed as Exhibit 10.21 to the registrant’s Form 8-K on September 10, 2014, Commission File Number 000-33053. |
10.101** |
Collateralized Secured Promissory Note dated September 4, 2014, issued by the registrant in favor of LG Capital, in the amount of $31,500, filed as Exhibit 10.3 to the registrant’s Form 8-K on September 10, 2014, Commission File Number 000-33053. |
10.102** |
Convertible Promissory Note dated September 22, 2014, issued by the registrant in favor of JSJ Investments, Inc., in the amount of $100,000, filed as Exhibit 10.13 to the registrant’s Form 8-K on October 8, 2014, Commission File Number 000-33053. |
10.103** |
Securities Purchase Agreement dated October 29, 2014, between KBM Worldwide, Inc. and the registrant with respect to the issuance of a Convertible Promissory Note in the amount of $32,500, filed as Exhibit 10.1 to the registrant’s Form 8-K on November 3, 2014, Commission File Number 000-33053. |
10.104** |
Convertible Promissory Note dated October 29, 2014, issued by the registrant in favor of KBM Worldwide, Inc., in the amount of $32,500, filed as Exhibit 10.2 to the registrant’s Form 8-K on November 3, 2014, Commission File Number 000-33053. |
10.105** |
Securities Purchase Agreement dated February 10, 2015, between LG Capital Funding, LLC, and the registrant with respect to the issuance of a Convertible Promissory Note in the amount of $31,500, filed as Exhibit 10.105 to the registrant’s Form 8-K on March 10, 2015, Commission File Number 000-33053. |
10.106** |
Convertible Promissory Note dated February 10, 2015, issued by the registrant in favor of LG Capital Funding, LLC in the amount of $31,500, filed as Exhibit 10.106 to the registrant’s Form 8-K on March 10, 2015, Commission File Number 000-33053. |
10.107** |
Amendment to Convertible Promissory Note dated February 18, 2014, issued by the registrant in favor of Iconic Holdings, LLC in the amount of $220,000, with respect to a payment due on or before October 30, 2014, filed as Exhibit 10.107 to the registrant’s Form 8-K on March 10, 2015, Commission File Number 000-33053. |
10.108** |
Amendment to Convertible Promissory Note dated February 18, 2014, issued by the registrant in favor of Iconic Holdings, LLC in the amount of $220,000, with respect to a payment due on or before February 4, 2015, filed as Exhibit 10.108 to the registrant’s Form 8-K on March 10, 2015, Commission File Number 000-33053. |
31.1* |
Certification of Kerry Driscoll, Chief Executive Officer of Mind Solutions, Inc., pursuant to 18 U.S.C. §1350, as adopted pursuant to §302 of the Sarbanes-Oxley Act of 2002. |
31.2* |
Certification of Kerry Driscoll, Chief Financial Officer and Principal Accounting Officer of Mind Solutions, Inc., pursuant to 18 U.S.C. §1350, as adopted pursuant to §302 of the Sarbanes-Oxley Act of 2002. |
32.1* |
Certification of Kerry Driscoll, Chief Executive Officer of Mind Solutions, Inc., pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002. |
32.2* |
Certification of Kerry Driscoll, Chief Financial Officer and Principal Accounting Officer of Mind Solutions, Inc., pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002. |
____________
* Filed herewith.
** Previously filed.
SIGNATURES
In accordance with Section 13 or 15(d)
of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
|
MIND SOLUTIONS, INC. |
Date: November 4, 2015.
|
By /s/ Kerry Driscoll
Kerry Driscoll, Chief Executive Officer
By /s/ Kerry Driscoll
Kerry Driscoll, Chief Financial Officer and Principal Accounting Officer |
Exhibit 31.1
CERTIFICATION OF CHIEF EXECUTIVE OFFICER
AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, Kerry Driscoll, certify that:
1. I have reviewed this Form 10-Q
of Mind Solutions, Inc.;
2. Based on my knowledge, this report
does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made,
in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this
report;
3. Based on my knowledge, the financial
statements, and other financial information included in this report, fairly present in all material respects the financial condition,
results of operations and cash flows of the registrant as of, and for, the periods present in this report;
4. The registrant’s other certifying
officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act
Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13-a-15(f) and 15d-15(f))
for the registrant and have:
(a) Designed such disclosure controls
and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material
information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities,
particularly during the period in which this report is being prepared;
(b) Designed such internal control
over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide
reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting principals;
(c) Evaluated the effectiveness of
the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness
of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d) Disclosed in this report any
change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent
fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or
is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5. The registrant’s other certifying
officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s
auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies
and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to
adversely affect the registrant’s ability to record, process, summarize and report financial information; and
(b) Any fraud, whether or not material,
that involved management or other employees who have a significant role in the registrant’s internal control over financial
reporting.
Date: November 4, 2015.
/s/ Kerry Driscoll
Kerry Driscoll, Chief Executive Officer
Exhibit 31.2
CERTIFICATION OF CHIEF FINANCIAL OFFICER
AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, Kerry Driscoll, certify that:
1. I have reviewed this Form 10-Q
of Mind Solutions, Inc.;
2. Based on my knowledge, this report
does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made,
in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this
report;
3. Based on my knowledge, the financial
statements, and other financial information included in this report, fairly present in all material respects the financial condition,
results of operations and cash flows of the registrant as of, and for, the periods present in this report;
4. The registrant’s other certifying
officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act
Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13-a-15(f) and 15d-15(f))
for the registrant and have:
(a) Designed such disclosure controls
and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material
information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities,
particularly during the period in which this report is being prepared;
(b) Designed such internal control
over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide
reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting principals;
(c) Evaluated the effectiveness of
the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness
of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d ) Disclosed in this report any
change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent
fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or
is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5. The registrant’s other certifying
officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s
auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies
and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to
adversely affect the registrant’s ability to record, process, summarize and report financial information; and
(b) Any fraud, whether or not material,
that involved management or other employees who have a significant role in the registrant’s internal control over financial
reporting.
Date: November 4, 2015.
/s/ Kerry Driscoll
Kerry Driscoll, Chief Financial Officer
and Principal Accounting Officer
Exhibit 32.1
CERTIFICATION OF CHIEF EXECUTIVE OFFICER
PURSUANT TO 18 U.S.C. SECTION 1350
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY
ACT OF 2002
In connection with the
accompanying Quarterly Report on Form 10-Q of Mind Solutions, Inc. for the fiscal quarter ending June 30, 2015, I, Kerry
Driscoll, Chief Executive Officer of Mind Solutions, Inc., hereby certify pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, to the best of my knowledge and belief, that:
1. Such Quarterly Report on
Form 10-Q for the fiscal quarter ending June 30, 2015, fully complies with the requirements of section 13(a) or 15(d) of the
Securities Exchange Act of 1934; and
2. The information contained in
such Quarterly Report on Form 10-Q for the fiscal quarter ending June 30, 2015, fairly presents, in all material
respects, the financial condition and results of operations of Mind Solutions, Inc.
Date November 4, 2015.
/s/ Kerry Driscoll
Kerry Driscoll, Chief Executive
Officer
Exhibit 32.2
CERTIFICATION OF CHIEF FINANCIAL OFFICER
PURSUANT TO 18 U.S.C. SECTION 1350
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY
ACT OF 2002
In connection with the
accompanying Quarterly Report on Form 10-Q of Mind Solutions, Inc. for the fiscal quarter ending June 30, 2015, I, Kerry
Driscoll, Chief Financial Officer of Mind Solutions, Inc., hereby certify pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, to the best of my knowledge and belief, that:
1. Such Quarterly Report on
Form 10-Q for the fiscal quarter ending June 30, 2015, fully complies with the requirements of section 13(a) or 15(d) of the
Securities Exchange Act of 1934; and
2. The information contained in
such Quarterly Report on Form 10-Q for the fiscal quarter ending June 30, 2015, fairly presents, in all material respects, the
financial condition and results of operations of Mind Solutions, Inc.
Date: November 4, 2015.
/s/ Kerry Driscoll
Kerry Driscoll, Chief Financial
Officer and Principal Accounting Officer
Mind Solutions (CE) (USOTC:VOIS)
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