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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Optimizer Systems, LLC was formed in the State
of Michigan on January 31, 2006. It then became a corporation in the State of Michigan on October 22, 2007 and changed its name
to OptimizeRx Corporation. On April 14, 2008, RFID, Ltd., a Colorado corporation, consummated a reverse merger by entering into
a share exchange agreement with the stockholders of OptimizeRx Corporation, pursuant to which the stockholders of OptimizeRx Corporation
exchanged all of the issued and outstanding capital stock of OptimizeRx Corporation for 1,256,958 shares of common stock of RFID,
Ltd., representing 100% of the outstanding capital stock of RFID, Ltd. As of April 30, 2008, RFID’s officers and directors
resigned their positions and RFID changed its business to OptimizeRx’s business. On April 15, 2008, RFID, Ltd.’s
corporate name was changed to OptimizeRx Corporation. On September 4, 2008, a migratory merger was completed, thereby changing
the state of incorporation from Colorado to Nevada, resulting in the current corporate structure, in which OptimizeRx Corporation,
a Nevada corporation, is the parent corporation, and OptimizeRx Corporation, a Michigan corporation, is a wholly-owned subsidiary
(together, "OptimizeRx" and "the Company").</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The wholly-owned subsidiary, OptimizeRx Corporation,
is a technology solutions company targeting the health care industry. Their objective is to bring better access to better care
through connecting patients, physicians and pharmaceutical manufacturers through technology. Once defined as a marketing and advertising
company through its consumer website, OptimizeRx is maturing as a technology solutions provider as it launched its direct to physician
solution, SampleMD. SampleMD allows physicians to search, print and send available sample trial vouchers and/or co-pay coupons
on behalf of their patients. The SampleMD solution can either sit on the doctor’s desktop or can be integrated into the ePrescribing
or Electronic Medical Records applications. OptimizeRx solutions provide pharmaceutical manufacturers either a direct to consumer
and/or direct to physician channels for communicating and promoting their products. It provides health care providers a means to
provide sampling and coupons without having to physically store samples on site, and it provides better access and affordability
to the patients.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
1256958
1.00
2006-01-31
2007-10-22
<p style="text-align: justify; font: 11pt Times New Roman, Times, Serif; margin: 0px"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Basis of Presentation</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The financial statements of the Company have
been prepared in accordance with generally accepted accounting principles in the United States of America and are presented in
US dollars.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Accounting Basis</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company uses the accrual basis of accounting
and accounting principles generally accepted in the United States of America (“GAAP” accounting). The Company has adopted
a December 31 fiscal year end.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; letter-spacing: -0.1pt; text-align: center"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; letter-spacing: -0.1pt; text-align: justify"><u>Principles of Consolidation</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; letter-spacing: -0.1pt; text-align: justify">The financial statements
reflect the consolidated results of OptimizeRx Corporation (a Nevada corporation) and its wholly owned subsidiary OptimizeRx Corporation
(a Michigan corporation). All material inter-company transactions have been eliminated in the consolidation.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; letter-spacing: -0.1pt; text-align: center"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; letter-spacing: -0.1pt; text-align: justify"><u>Cash and Cash Equivalents</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; letter-spacing: -0.1pt; text-align: justify">For purposes of the
accompanying financial statements, the Company considers all highly liquid instruments with an initial maturity of three months
or less to be cash equivalents.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; letter-spacing: -0.1pt; text-align: center"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; letter-spacing: -0.1pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Fair Value of Financial Instruments</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; letter-spacing: -0.1pt; text-align: justify">The fair value of cash,
accounts receivable, prepaid expenses, patent rights, web development costs, accounts payable, accounts payable – related
party, accrued expenses and deferred revenue approximates the carrying amount of these financial instruments due to their short-term
nature. The fair value of long-term debt, which approximates its carrying value, is based on current rates at which the Company
could borrow funds with similar remaining maturities.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Fair value is defined as the price that would
be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at
the measurement date and in the principal or most advantageous market for that asset or liability. The fair value should be calculated
based on assumptions that market participants would use in pricing the asset or liability, not on assumptions specific to the entity.
In addition, the fair value of liabilities should include consideration of non-performance risk including our own credit risk.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In addition to defining fair value, the disclosure
requirements around fair value establish a fair value hierarchy for valuation inputs which is expanded. The hierarchy prioritizes
the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market. Each
fair value measurement is reported in one of the three levels which is determined by the lowest level input that is significant
to the fair value measurement in its entirety. These levels are:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Level 1 – inputs are based upon unadjusted
quoted prices for identical instruments traded in active markets.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Level 2 – inputs are based upon significant
observable inputs other than quoted prices included in Level 1, such as quoted prices for identical or similar instruments in markets
that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market or
can be corroborated by observable market data for substantially the full term of the assets or liabilities.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Level 3 – inputs are generally unobservable
and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability.
The fair values are therefore determined using model-based techniques that include option pricing models, discounted cash flow
models, and similar techniques. The Company’s stock options and warrants are valued using level 3 inputs.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The carrying value of the Company’s financial
assets and liabilities which consist of cash, accounts receivable, prepaid expenses, patent rights, web development costs, accounts
payable, accounts payable – related party, accrued expenses and deferred revenue are valued using level 1 inputs. The Company
believes that the recorded values approximate their fair value due to the short maturity of such instruments. Unless otherwise
noted, it is management’s opinion that the Company is not exposed to significant interest, exchange or credit risks arising
from these financial instruments.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Accounts Receivable and Allowance for Doubtful
Accounts</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Accounts receivable are reported at realizable
value, net of allowances for doubtful accounts, which is estimated and recorded in the period the related revenue is recorded.
The Company has a standardized approach to estimate and review the collectability of its receivables based on a number of factors,
including the period they have been outstanding. Historical collection and payer reimbursement experience is an integral part of
the estimation process related to allowances for doubtful accounts. In addition, the Company regularly assesses the state of its
billing operations in order to identify issues, which may impact the collectability of these receivables or reserve estimates.
Bad debt expense was $0 and $6,923 for the years ended December 31, 2013 and 2012, respectively. The allowance for doubtful
accounts was $0 as of December 31, 2013 and 2012.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Property and Equipment</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; letter-spacing: -0.1pt; text-align: justify">The capital assets
are being depreciated over their estimated useful lives, three to seven years using the straight-line method of depreciation for
book purposes.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><u>Revenue Recognition and Revenue Share Expense</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">All revenue is recognized when it is earned.
Revenues are generated either through the Company’s web-based activities, in which we earn revenue from advertising and lead
generation activities, from our SampleMD activities by which we deliver eCoupons and eVouchers through a distribution network of
ePrescribers and Electronic Health Record technology providers (channel partners), or from reselling services for other of our
partners products that complement our business.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">For our SampleMD business the company recognizes
setup fees that are required for integrating client offerings and campaigns into the SampleMD content delivery system and network.
Setup fees are recognized upon completion of the setup and launch of the client’s campaign within the SampleMD system. As
the eCoupons and or eVouchers are distributed through the SampleMD platform and network of channel partners (a transaction), these
transactions are recorded and revenue is recognized. Revenue for transactions can be realized as cost per distribution or cost
per redemption depending on the client contract. Additionally, the company also recognizes revenue for providing program performance
reporting and maintenance, either by the company directly delivering reports or by providing access to its online reporting portal
that the client can utilize. These fees are administered monthly and recognized as recurring monthly revenue.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The company on occasion has also resold products
and or services that are available through our channel partners, and that is complementary to our core businesses and client base.
In these events net revenue is recognized as this is a commission based revenue split that the company recognizes.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Based on the volume of transactions that are
delivered through our channel partner network, we provide a revenue share to compensate the partner for their promotion of the
campaign. Revenue shares are a negotiated percentage of the transaction fee depending upon if the revenue is generated through
distributions and or redemptions and can also be specific to special considerations and campaigns. Traditionally, revenue share
has been recognized between 25% and 50% of the transaction value. See Note 18.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><u>Income Taxes</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Income taxes are computed using the asset and
liability method. Under the asset and liability method, deferred income tax assets and liabilities are determined based on the
differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted
tax rates and laws. A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence,
are not expected to be realized.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><u>Use of Estimates</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; letter-spacing: -0.1pt; text-align: justify">The preparation of
financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of
revenues and expenses during the reporting period. Estimates and assumptions have been made in determining the depreciable lives
of such assets and the allowance for doubtful accounts receivable. Actual results could differ from these estimates.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><u>Concentration of Credit Risks</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; letter-spacing: -0.1pt; text-align: justify">The Company maintains
its cash and cash equivalents in bank deposit accounts, which, at times, may exceed federally insured limits. The Company has not
experienced any losses in such accounts; however, amounts in excess of the federally insured limit may be at risk if the bank experiences
financial difficulties.</p>
<p style="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"></p>
<p style="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Research and Development</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; letter-spacing: -0.1pt; text-align: justify">The Company’s
key members are part of a continual research development team and monitor new technologies, trends, services and partnerships that
can provide the Company with additional services, value to healthcare and pharmaceutical industries and to the patients it serves.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 0; letter-spacing: -0.1pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; letter-spacing: -0.1pt; text-align: justify">The Company seeks to
educate team members through understanding of all market dynamics that have the potential to affect the business both short term
and longer term. The primary goal is to help patients better afford and access the medicines their doctor prescribes, as well as
other healthcare products and services they need. Based on this, the Company continually seeks better ways to meet this mission
through technology, better user experiences and new ways to engage industries to provide new support for patients needing their
products. The Company is always seeking new services and solutions to offer. At this time, the three current platforms provide
robust opportunities and growth during the next five years.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; letter-spacing: -0.1pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Earnings Per Common and Common Equivalent
Share</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; letter-spacing: -0.1pt; text-align: justify">The computation of
basic earnings per common share is computed using the weighted average number of common shares outstanding during the year. The
computation of diluted earnings per common share is based on the weighted average number of shares outstanding during the year
plus common stock equivalents which would arise from the exercise of warrants outstanding using the treasury stock method and the
average market price per share during the year. Options, warrants and convertible preferred stock which are common stock equivalents
are included in the diluted earnings per share calculation for the year ended December 31, 2013. They have not been included
in the diluted earnings per share calculation for the year ended December 31, 2012 since their effect is anti-dilutive.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Impairment of Long-Lived Assets</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; letter-spacing: -0.1pt; text-align: justify">The Company continually
monitors events and changes in circumstances that could indicate carrying amounts of long-lived assets may not be recoverable.
When such events or changes in circumstances are present, the Company assesses the recoverability of long-lived assets by determining
whether the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the total of the
future cash flows is less than the carrying amount of those assets, the Company recognizes an impairment loss based on the excess
of the carrying amount over the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount
or the fair value less costs to sell.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; letter-spacing: -0.1pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><u>Recently Issued Accounting Guidance</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; letter-spacing: -0.1pt; text-align: justify">The Company does not
expect the adoption of recently issued accounting pronouncements to have a significant impact on the Company’s results of
operations, financial position or cash flow.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The financial statements of the Company have been prepared in accordance with
generally accepted accounting principles in the United States of America and are presented in US dollars.</p>
<p></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company uses the accrual basis of accounting and accounting principles generally accepted in the United States of America (“GAAP”
accounting). The Company has adopted a December 31 fiscal year end.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; letter-spacing: -0.1pt; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; letter-spacing: -0.1pt; text-align: justify">The financial statements
reflect the consolidated results of OptimizeRx Corporation (a Nevada corporation) and its wholly owned subsidiary OptimizeRx Corporation
(a Michigan corporation). All material inter-company transactions have been eliminated in the consolidation.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; letter-spacing: -0.1pt; text-align: center"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; letter-spacing: -0.1pt; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; letter-spacing: -0.1pt; text-align: justify">For purposes of the accompanying financial statements, the Company considers
all highly liquid instruments with an initial maturity of three months or less to be cash equivalents.</p>
<p></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; letter-spacing: -0.1pt; text-align: justify">The fair value of cash,
accounts receivable, prepaid expenses, patent rights, web development costs, accounts payable, accounts payable – related
party, accrued expenses and deferred revenue approximates the carrying amount of these financial instruments due to their short-term
nature. The fair value of long-term debt, which approximates its carrying value, is based on current rates at which the Company
could borrow funds with similar remaining maturities.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Fair value is defined as the price that would
be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at
the measurement date and in the principal or most advantageous market for that asset or liability. The fair value should be calculated
based on assumptions that market participants would use in pricing the asset or liability, not on assumptions specific to the entity.
In addition, the fair value of liabilities should include consideration of non-performance risk including our own credit risk.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In addition to defining fair value, the disclosure
requirements around fair value establish a fair value hierarchy for valuation inputs which is expanded. The hierarchy prioritizes
the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market. Each
fair value measurement is reported in one of the three levels which is determined by the lowest level input that is significant
to the fair value measurement in its entirety. These levels are:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Level 1 – inputs are based upon unadjusted
quoted prices for identical instruments traded in active markets.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Level 2 – inputs are based upon significant
observable inputs other than quoted prices included in Level 1, such as quoted prices for identical or similar instruments in markets
that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market or
can be corroborated by observable market data for substantially the full term of the assets or liabilities.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Level 3 – inputs are generally unobservable
and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability.
The fair values are therefore determined using model-based techniques that include option pricing models, discounted cash flow
models, and similar techniques. The Company’s stock options and warrants are valued using level 3 inputs.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The carrying value of the Company’s financial
assets and liabilities which consist of cash, accounts receivable, prepaid expenses, patent rights, web development costs, accounts
payable, accounts payable – related party, accrued expenses and deferred revenue are valued using level 1 inputs. The Company
believes that the recorded values approximate their fair value due to the short maturity of such instruments. Unless otherwise
noted, it is management’s opinion that the Company is not exposed to significant interest, exchange or credit risks arising
from these financial instruments.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Accounts receivable are reported at realizable
value, net of allowances for doubtful accounts, which is estimated and recorded in the period the related revenue is recorded.
The Company has a standardized approach to estimate and review the collectability of its receivables based on a number of factors,
including the period they have been outstanding. Historical collection and payer reimbursement experience is an integral part of
the estimation process related to allowances for doubtful accounts. In addition, the Company regularly assesses the state of its
billing operations in order to identify issues, which may impact the collectability of these receivables or reserve estimates.
Bad debt expense was $0 and $6,923 for the years ended December 31, 2013 and 2012, respectively. The allowance for doubtful
accounts was $0 as of December 31, 2013 and 2012.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The capital assets are being depreciated over their estimated useful lives,
three to seven years using the straight-line method of depreciation for book purposes.</p>
<p></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">All revenue is recognized when it is earned.
Revenues are generated either through the Company’s web-based activities, in which we earn revenue from advertising and lead
generation activities, from our SampleMD activities by which we deliver eCoupons and eVouchers through a distribution network of
ePrescribers and Electronic Health Record technology providers (channel partners), or from reselling services for other of our
partners products that complement our business.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">For our SampleMD business the company recognizes
setup fees that are required for integrating client offerings and campaigns into the SampleMD content delivery system and network.
Setup fees are recognized upon completion of the setup and launch of the client’s campaign within the SampleMD system. As
the eCoupons and or eVouchers are distributed through the SampleMD platform and network of channel partners (a transaction), these
transactions are recorded and revenue is recognized. Revenue for transactions can be realized as cost per distribution or cost
per redemption depending on the client contract. Additionally, the company also recognizes revenue for providing program performance
reporting and maintenance, either by the company directly delivering reports or by providing access to its online reporting portal
that the client can utilize. These fees are administered monthly and recognized as recurring monthly revenue.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The company on occasion has also resold products
and or services that are available through our channel partners, and that is complementary to our core businesses and client base.
In these events net revenue is recognized as this is a commission based revenue split that the company recognizes.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Based on the volume of transactions that are
delivered through our channel partner network, we provide a revenue share to compensate the partner for their promotion of the
campaign. Revenue shares are a negotiated percentage of the transaction fee depending upon if the revenue is generated through
distributions and or redemptions and can also be specific to special considerations and campaigns. Traditionally, revenue share
has been recognized between 25% and 50% of the transaction value. See Note 18.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">Income taxes are computed using the asset and liability method. Under the asset
and liability method, deferred income tax assets and liabilities are determined based on the differences between the financial
reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws. A valuation
allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized.</p>
<p></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">The Company maintains its cash and cash equivalents in bank deposit accounts,
which, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts; however, amounts
in excess of the federally insured limit may be at risk if the bank experiences financial difficulties.</p>
<p></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; letter-spacing: -0.1pt; text-align: justify">The computation of
basic earnings per common share is computed using the weighted average number of common shares outstanding during the year. The
computation of diluted earnings per common share is based on the weighted average number of shares outstanding during the year
plus common stock equivalents which would arise from the exercise of warrants outstanding using the treasury stock method and the
average market price per share during the year. Options, warrants and convertible preferred stock which are common stock equivalents
are included in the diluted earnings per share calculation for the year ended December 31, 2013. They have not been included
in the diluted earnings per share calculation for the year ended December 31, 2012 since their effect is anti-dilutive.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: 0px">The
Company continually monitors events and changes in circumstances that could indicate carrying amounts of long-lived assets may
not be recoverable. When such events or changes in circumstances are present, the Company assesses the recoverability of long-lived
assets by determining whether the carrying value of such assets will be recovered through undiscounted expected future cash flows.
If the total of the future cash flows is less than the carrying amount of those assets, the Company recognizes an impairment loss
based on the excess of the carrying amount over the fair value of the assets. Assets to be disposed of are reported at the lower
of the carrying amount or the fair value less costs to sell.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">The Company does not expect the adoption of recently issued accounting pronouncements
to have a significant impact on the Company’s results of operations, financial position or cash flow.</p>
<p></p>
0
0
--12-31
P3Y
P7Y
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; letter-spacing: -0.1pt; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; letter-spacing: -0.1pt; text-align: justify">Prepaid expenses consisted
of the following as of December 31, 2013 and 2012:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" align="center" style="width: 40%; border-collapse: collapse; font-size: 10pt">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center">2013</td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center">2012</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="width: 54%; padding-left: 5.4pt">Insurance</td>
<td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td>
<td style="width: 20%; text-align: right">6,722</td>
<td style="width: 1%; text-align: left"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td>
<td style="width: 20%; text-align: right">6,437</td>
<td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt">Rent</td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">5,049</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">5,049</td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="padding-left: 5.4pt">Consulting</td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">0</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">31,672</td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 5.4pt">Legal</td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">0</td>
<td style="padding-bottom: 1pt; text-align: left"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">25,000</td>
<td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="padding-bottom: 2.5pt; text-align: left; padding-left: 5.4pt">Total prepaid expenses</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.5pt double; text-align: left">$</td>
<td style="border-bottom: black 2.5pt double; text-align: right">11,771</td>
<td style="padding-bottom: 2.5pt; text-align: left"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.5pt double; text-align: left">$</td>
<td style="border-bottom: black 2.5pt double; text-align: right">68,158</td>
<td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; letter-spacing: -0.1pt; text-align: justify"></p>
<table cellspacing="0" cellpadding="0" align="center" style="width: 40%; border-collapse: collapse; font-size: 10pt">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center">2013</td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center">2012</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="width: 54%; padding-left: 5.4pt">Insurance</td>
<td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td>
<td style="width: 20%; text-align: right">6,722</td>
<td style="width: 1%; text-align: left"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td>
<td style="width: 20%; text-align: right">6,437</td>
<td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt">Rent</td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">5,049</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">5,049</td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="padding-left: 5.4pt">Consulting</td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">0</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">31,672</td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 5.4pt">Legal</td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">0</td>
<td style="padding-bottom: 1pt; text-align: left"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">25,000</td>
<td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="padding-bottom: 2.5pt; text-align: left; padding-left: 5.4pt">Total prepaid expenses</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.5pt double; text-align: left">$</td>
<td style="border-bottom: black 2.5pt double; text-align: right">11,771</td>
<td style="padding-bottom: 2.5pt; text-align: left"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.5pt double; text-align: left">$</td>
<td style="border-bottom: black 2.5pt double; text-align: right">68,158</td>
<td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
6722
6437
5049
5049
0
31672
0
25000
<p style="text-align: justify; font: 11pt Times New Roman, Times, Serif; margin: 0px; letter-spacing: -0.1pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company owned equipment recorded at cost
which consisted of the following as of December 31, 2013 and 2012:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; letter-spacing: -0.1pt; text-align: center"> </p>
<table cellspacing="0" cellpadding="0" align="center" style="width: 40%; border-collapse: collapse; font-size: 10pt">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center">2013</td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center">2012</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="width: 54%; text-align: left; padding-left: 5.4pt">Computer equipment</td>
<td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td>
<td style="width: 20%; text-align: right">22,360</td>
<td style="width: 1%; text-align: left"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td>
<td style="width: 20%; text-align: right">22,360</td>
<td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; text-align: left; padding-left: 5.4pt">Furniture and fixtures</td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">11,088</td>
<td style="padding-bottom: 1pt; text-align: left"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">11,088</td>
<td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="padding-left: 5.4pt">     Subtotal</td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">33,448</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">33,448</td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; text-align: left; padding-left: 5.4pt">Accumulated depreciation</td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">(18,391</td>
<td style="padding-bottom: 1pt; text-align: left">)</td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">(12,763</td>
<td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="padding-bottom: 2.5pt; text-align: left; padding-left: 5.4pt">    Property and equipment, net</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.5pt double; text-align: left">$</td>
<td style="border-bottom: black 2.5pt double; text-align: right">15,057</td>
<td style="padding-bottom: 2.5pt; text-align: left"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.5pt double; text-align: left">$</td>
<td style="border-bottom: black 2.5pt double; text-align: right">20,685</td>
<td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Depreciation expense was $5,628 and $5,476
for the years ended December 31, 2013 and 2012, respectively.</p>
<p style="text-align: justify; font: 11pt Times New Roman, Times, Serif; margin: 0px; letter-spacing: -0.1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" align="center" style="width: 40%; border-collapse: collapse; font-size: 10pt">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center">2013</td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center">2012</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="width: 54%; text-align: left; padding-left: 5.4pt">Computer equipment</td>
<td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td>
<td style="width: 20%; text-align: right">22,360</td>
<td style="width: 1%; text-align: left"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td>
<td style="width: 20%; text-align: right">22,360</td>
<td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; text-align: left; padding-left: 5.4pt">Furniture and fixtures</td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">11,088</td>
<td style="padding-bottom: 1pt; text-align: left"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">11,088</td>
<td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="padding-left: 5.4pt">     Subtotal</td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">33,448</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">33,448</td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; text-align: left; padding-left: 5.4pt">Accumulated depreciation</td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">(18,391</td>
<td style="padding-bottom: 1pt; text-align: left">)</td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">(12,763</td>
<td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="padding-bottom: 2.5pt; text-align: left; padding-left: 5.4pt">    Property and equipment, net</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.5pt double; text-align: left">$</td>
<td style="border-bottom: black 2.5pt double; text-align: right">15,057</td>
<td style="padding-bottom: 2.5pt; text-align: left"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.5pt double; text-align: left">$</td>
<td style="border-bottom: black 2.5pt double; text-align: right">20,685</td>
<td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
22360
22360
11088
11088
33448
33448
18391
12763
5628
5476
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has capitalized costs in developing
their web-based technology, which consisted of the following as of December 31, 2013 and 2012:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" align="center" style="width: 45%; border-collapse: collapse; font-size: 10pt">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center">2013</td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center">2012</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="width: 54%; text-align: left; padding-left: 5.4pt">OptimizeRx web-based technology</td>
<td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td>
<td style="width: 20%; text-align: right">154,133</td>
<td style="width: 1%; text-align: left"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td>
<td style="width: 20%; text-align: right">154,133</td>
<td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: left; padding-left: 5.4pt">SampleMD web-based technology</td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">602,517</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">602,517</td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="padding-bottom: 1pt; text-align: left; padding-left: 5.4pt">SampleMD 2.0 web-based technology</td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">148,060</td>
<td style="padding-bottom: 1pt; text-align: left"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">0</td>
<td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: left; padding-left: 5.4pt">    Subtotal, web-based technology</td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">904,710</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">756,650</td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="text-align: left; padding-left: 5.4pt">Accumulated amortization</td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">(440,641</td>
<td style="text-align: left">)</td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">(310,352</td>
<td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 5.4pt">Impairment</td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">(59,083</td>
<td style="padding-bottom: 1pt; text-align: left">)</td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">(59,083</td>
<td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="padding-bottom: 2.5pt; text-align: left; padding-left: 5.4pt">    Web-based technology, net</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.5pt double; text-align: left">$</td>
<td style="border-bottom: black 2.5pt double; text-align: right">404,986</td>
<td style="padding-bottom: 2.5pt; text-align: left"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.5pt double; text-align: left">$</td>
<td style="border-bottom: black 2.5pt double; text-align: right">387,215</td>
<td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Amortization is recorded using the straight-line
method over a period of five years. The Company is currently developing enhanced SampleMD web-based technology and has capitalized
$148,060. The development is currently in process. It was not completed at December 31, 2013. Accordingly, no amortization
has been recorded. The development is expected to be completed in 2014. Amortization expense for the web-based technology costs
was $130,289 and $126,923 for the years ended December 31, 2013 and 2012, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" align="center" style="width: 45%; border-collapse: collapse; font-size: 10pt">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center">2013</td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center">2012</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="width: 54%; text-align: left; padding-left: 5.4pt">OptimizeRx web-based technology</td>
<td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td>
<td style="width: 20%; text-align: right">154,133</td>
<td style="width: 1%; text-align: left"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td>
<td style="width: 20%; text-align: right">154,133</td>
<td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: left; padding-left: 5.4pt">SampleMD web-based technology</td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">602,517</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">602,517</td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="padding-bottom: 1pt; text-align: left; padding-left: 5.4pt">SampleMD 2.0 web-based technology</td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">148,060</td>
<td style="padding-bottom: 1pt; text-align: left"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">0</td>
<td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: left; padding-left: 5.4pt">    Subtotal, web-based technology</td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">904,710</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">756,650</td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="text-align: left; padding-left: 5.4pt">Accumulated amortization</td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">(440,641</td>
<td style="text-align: left">)</td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">(310,352</td>
<td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 5.4pt">Impairment</td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">(59,083</td>
<td style="padding-bottom: 1pt; text-align: left">)</td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">(59,083</td>
<td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="padding-bottom: 2.5pt; text-align: left; padding-left: 5.4pt">    Web-based technology, net</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.5pt double; text-align: left">$</td>
<td style="border-bottom: black 2.5pt double; text-align: right">404,986</td>
<td style="padding-bottom: 2.5pt; text-align: left"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.5pt double; text-align: left">$</td>
<td style="border-bottom: black 2.5pt double; text-align: right">387,215</td>
<td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="margin: 0pt"></p>
154133
154133
602517
602517
904710
756650
440641
310352
-59083
-59083
148060
0
P5Y
130289
126923
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On April 26, 2010, the Company acquired
from an officer and shareholder the technical contributions and assignment of all exclusive rights to and for the SampleMD patent
in exchange for 300,000 shares of common stock to be granted at the discretion of the seller in addition to 200,000 stock options
valued at $360,000. The shares were valued on the grant date at $570,000 and have been recorded as a payable to the related party.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has capitalized costs in purchasing
and defending the SampleMD patent, which consisted of the following as of December 31, 2013 and 2012:</p>
<p style="font: 10pt/6pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" align="center" style="width: 45%; border-collapse: collapse; font-size: 10pt">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center">2013</td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center">2012</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="width: 54%; text-align: left; padding-left: 5.4pt">Patent rights and intangible assets</td>
<td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td>
<td style="width: 20%; text-align: right">930,000</td>
<td style="width: 1%; text-align: left"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td>
<td style="width: 20%; text-align: right">930,000</td>
<td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: left; padding-left: 5.4pt">Patent defense costs</td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">87,993</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">0</td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="text-align: left; padding-left: 5.4pt">New patents and trademarks</td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">62,595</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">0</td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; text-align: left; padding-left: 5.4pt">Accumulated amortization</td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">(194,638</td>
<td style="padding-bottom: 1pt; text-align: left">)</td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">(136,764</td>
<td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="padding-bottom: 2.5pt; text-align: left; padding-left: 5.4pt">    Patent rights and intangible assets, net</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.5pt double; text-align: left">$</td>
<td style="border-bottom: black 2.5pt double; text-align: right">885,950</td>
<td style="padding-bottom: 2.5pt; text-align: left"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.5pt double; text-align: left">$</td>
<td style="border-bottom: black 2.5pt double; text-align: right">793,236</td>
<td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"></p>
<p style="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company began amortizing the patent, using
the straight-line method over the estimated useful life of 17 years, once it was put into service in July 2010. In 2013, the Company
began incurring costs related to defense of the patent. These costs have been capitalized and will be amortized using the straight-line
method over the remaining useful life of the original patent. Amortization expense was $57,874 and $54,705 for the years ended
December 31, 2013 and 2012, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="margin: 0pt"></p>
<p style="font: 11pt/6pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<table cellspacing="0" cellpadding="0" align="center" style="width: 45%; border-collapse: collapse; font-size: 10pt">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center">2013</td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center">2012</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="width: 54%; text-align: left; padding-left: 5.4pt">Patent rights and intangible assets</td>
<td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td>
<td style="width: 20%; text-align: right">930,000</td>
<td style="width: 1%; text-align: left"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td>
<td style="width: 20%; text-align: right">930,000</td>
<td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: left; padding-left: 5.4pt">Patent defense costs</td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">87,993</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">0</td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="text-align: left; padding-left: 5.4pt">New patents and trademarks</td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">62,595</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">0</td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; text-align: left; padding-left: 5.4pt">Accumulated amortization</td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">(194,638</td>
<td style="padding-bottom: 1pt; text-align: left">)</td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">(136,764</td>
<td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="padding-bottom: 2.5pt; text-align: left; padding-left: 5.4pt">    Patent rights and intangible assets, net</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.5pt double; text-align: left">$</td>
<td style="border-bottom: black 2.5pt double; text-align: right">885,950</td>
<td style="padding-bottom: 2.5pt; text-align: left"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.5pt double; text-align: left">$</td>
<td style="border-bottom: black 2.5pt double; text-align: right">793,236</td>
<td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
194638
136764
87993
0
930000
930000
300000
300000
200000
200000
360000
360000
570000
570000
P17Y
57874
54705
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Accrued
expenses at December 31, 2013 and 2012 consisted of amounts owed to the Company’s outside independent auditors for services
rendered for periods reported on in these financial statements.</font></p>
<p></p>
<p style="margin: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">The Company has signed several contracts with customers
for either the distribution or redemption of coupons. The payments are not taken into revenue until either the coupon is distributed
to a patient or the coupon has been redeemed depending on the specific contract. The distributions and redemptions are tracked
by the Company’s administrative tool. Additionally, customer setup contracts that have been paid in full are deferred until
the Company has completed the obligations of the contacts. Deferred revenue was $4,252 and $49,252 as of December 31, 2013
and 2012, respectively.</font></p>
<p></p>
<p style="margin: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">During the year ended December 31, 2010, the
Company acquired from an officer and shareholder the technical contributions and assignment of all exclusive rights to and for
the SampleMD patent currently in process in exchange for 300,000 shares of common stock to be granted at the discretion of the
seller in addition to 200,000 stock options valued at $360,000. The shares were valued on the grant date at $570,000 and have
been recorded as a payable to the related party.</font></p>
<p></p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">OptimizeRx Corporation has 500,000,000 shares
of $.001 par value common stock authorized as of December 31, 2013. There were 14,773,496 and 14,232,496 common shares issued and
outstanding at December 31, 2013 and 2012, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On June 1, 2012, the Company entered into
a consulting agreement with North Coast Advisors, Inc. for various services. The Company agreed to issue 40,000 shares of common
stock as of the date of the contract. However, these shares were not issued until July 12, 2012. The Company also agreed to
issue an additional 40,000 shares every six months in alignment with the agreement renewal up to the two years of the agreement.
The first 40,000 shares were valued at the Company’s common stock price as of the date of the contract, which was $1.12/share
and has been expensed. No additional shares were issued and the agreement was voided and replaced by a new agreement as noted below.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On June 1, 2013, the Company entered into
a consulting agreement with North Coast Advisors, Inc. for various services. The Company agreed to issue 20,000 shares of common
stock as of the date of the contract. The Company also agreed to issue an additional 20,000 shares every six months in alignment
with the agreement renewal up to the two years of the agreement. The first 20,000 shares were valued at the Company’s common
stock closing price as of the date of the contract, which was $1.945/share; and the second 20,000 shares were valued at the Company’s
common stock closing price of $1.50/share on the date of issuance, and have been expensed.</p>
<p style="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"></p>
<p style="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p>
<p style="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On September 20, 2013, the Company entered
into a separation agreement that includes post-employment consulting services with a former officer. The Company agreed to issue
500,000 shares of common stock, 250,000 shares immediately and 250,000 by January 1, 2014. The first 250,000 shares have been
issued and the Company has recognized the entire issuance in the December 31, 2013 shares outstanding. The shares were valued at
$505,000 and $174,808 of that amount remains as deferred stock compensation as of December 31, 2013.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="margin: 0pt"></p>
20000
40000
250000
250000
20000
65
65
65
14192496
14232496
14773496
8333333
1.945
1.12
1.50
1.20
P2Y
P2Y
3/31/14
12/30/13
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Series A Preferred</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the year ended December 31, 2008,
35 preferred shares were issued for $3,500,000. Issuance costs totaled $515,000 resulting in net proceeds of $2,985,000. The 35
shares are convertible to 3,500,000 shares of common stock and bear a 10% cumulative dividend. In addition, there was a warrant
issued to purchase 6,000,000 shares of common stock at an exercise price of $2 for a period of seven years.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The holders of the preferred stock are entitled
to semi-annual dividends payable on the stated value of the Series A preferred stock at a rate of 10% per annum, which shall be
cumulative, and accrue daily from the issuance date. The dividends may be paid in cash or shares of the Company's common stock
at management’s discretion. If after the conversion eligibility date, the market price for the common stock for any ten consecutive
trading days in which the stock trades for over $2 per share and trading exceeds 100,000 shares per day, the preferred shareholders
can be required to convert their shares to common stock. Each share of Series A preferred stock shall also be convertible at the
option of the holder into that number of shares of common stock of the Company at the stated value of such share at a $1 conversion
price.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The holder may cause this conversion at the
time the shares are eligible for resale by the holder. The conversion price is subject to adjustment as hereinafter provided, at
any time, or from time to time upon the terms and in the manner hereinafter set forth in the shareholder agreement. There is no
conversion expiration date, however, the holder must provide 30 days notice for the registration of the conversion.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On May 12, 2010, the Company’s Board
declared and issued 236,598 common shares as payment for all cumulative and current semi-annual dividends. On November 16,
2010, the Company’s Board declared and issued 173,922 common shares for its semi-annual dividend payment. On March 25,
2011, the Company’s Board declared and issued 176,768 common shares for its semi-annual dividend payment. On September 21,
2011, the Company's Board declared and issued 156,306 common shares for its semi-annual dividend payment. The Company has undeclared
dividends that were due in February and September 2012 totaling $350,000 and undeclared dividends of $350,000 that were due in
February and September 2013 for a total undeclared amount of $700,000 as of December 31, 2013.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Series B Preferred</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the year ended December 31, 2010,
15 preferred shares were issued for $1,500,000. The 15 shares are convertible to 1,000,000 shares of common stock and bear a 10%
cumulative dividend. In addition, there was a warrant issued to purchase 3,000,000 shares of common stock at an exercise price
of $3 for a period of seven years.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The preferred stock was issued for $1,500,000
less associated issuance costs of $350,000 for net proceeds of $1,150,000. Additionally, 3,000,000 common stock warrants were issued
with the preferred stock. Based on the fair values of the preferred stock and common stock warrants on the issue date, $341,100
was allocated to preferred stock and $1,158,900 was allocated to the common stock warrants. Equity issuance costs of $350,000 were
allocated to the preferred stock.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the quarter ended September 30,
2011, 15 preferred shares were issued to an investor for $1,500,000. The 15 shares are convertible to 1,000,000 shares of common
stock and bear a 10% cumulative dividend. In addition, there was a warrant issued to purchase 1,000,000 shares of common stock
at an exercise price of $3 for a period of seven years. Based on the fair values of the preferred stock and common stock warrants
on the issue date, $855,460 was allocated to preferred stock and $644,540 was allocated to the common stock warrants. See Note
12.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The holders of the preferred stock are entitled
to semi-annual dividends payable on the stated value of the Series B preferred stock at a rate of 10% per annum, which shall be
cumulative, and accrue daily from the issuance date. The dividends may be paid in cash or shares of the Company's common stock
at management’s discretion. If after the conversion eligibility date, the market price for the common stock for any ten consecutive
trading days in which the stock trades for over $2 per share and trading exceeds 100,000 shares per day, the preferred shareholders
can be required to convert their shares to common stock. Each share of Series B preferred stock shall also be convertible at the
option of the holder into that number of shares of common stock of the Company at the stated value of such share at a $1.50 conversion
price.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The holder may cause this conversion at the
time the shares are eligible for resale by the holder. The conversion price is subject to adjustment as hereinafter provided, at
any time, or from time to time upon the terms and in the manner hereinafter set forth in the shareholder agreement.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On March 25,
2011, the Company’s Board declared and issued 75,758 common shares for its semi-annual dividend payment. On September 21,
2011, the Company's Board declared and issued 66,988 common shares for its semi-annual dividend payment. The Company has undeclared
dividends that were due in February and September 2012 totaling $150,000 and undeclared dividends of $150,000 that were due in
February and September 2013 for a total undeclared amount of $300,000 as of December 31, 2013.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
35
3500000
515000
2985000
3500000
0.10
6000000
3000000
1000000
2.00
3.00
3.00
1.20
P7Y
P7Y
P7Y
P5Y
176768
156306
236598
173922
15
15
1500000
1500000
1000000
1000000
.10
0.10
350000
1150000
3000000
804139
341100
855460
1158900
644540
75758
66988
350000
350000
700000
150000
150000
300000
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company accounts for employee stock-based
compensation in accordance with the guidance of ASC Topic 718: Compensation - Stock Compensation, which requires all share-based
payments to employees, including grants of employee stock options, to be recognized in the financial statements based on their
fair values.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company follows ASC Topic 505-50, formerly
EITF 96-18, “Accounting for Equity Instruments that are Issued to Other than Employees for Acquiring, or in Conjunction with
Selling Goods and Services,” for stock options and warrants issued to consultants and other non-employees. In accordance
with ASC Topic 505-50, these stock options and warrants issued as compensation for services provided to the Company are accounted
for based upon the fair value of the services provided or the estimated fair market value of the option or warrant, whichever can
be more clearly determined. The fair value of the equity instrument is charged directly to compensation expense and additional
paid-in capital over the period during which services are rendered.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On May 31, 2011, the Company issued 285,000
stock options to 3 employees at an exercise price of $1.00. The options were valued on the grant date using the Black-Scholes option-pricing
model with the following assumptions: dividend yield of 0%, expected volatility of 218%, risk-free interest rate of 1.68% and expected
life of 60 months. The total value of the options was $320,585. The options vest over one year. The Company recognized share-based
compensation expense of $187,005 during the year ended December 31, 2011. The remaining balance of $133,580 was recognized over
the first five months of 2012.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the quarter ended December 31,
2011, the Company issued 20,000 stock options to 2 employees at an exercise price of $1.00. The options were valued on the grant
date using the Black-Scholes option-pricing model with the following assumptions: dividend yield of 0%, expected volatility of
204-205%, risk-free interest rate of 0.88-0.93% and expected life of 60 months. The total value of the options was $19,270. The
options vest over one year. <font style="background-color: white"> The Company recognized share-based compensation expense
of $2,480 and $16,790 during the years ended December 31, 2012 and 2011</font>, respectively.<font style="background-color: white"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On November 21, 2011, the Company issued
100,000 stock options to an individual at an exercise price of $0.73. The options were valued on the grant date using the Black-Scholes
option-pricing model with the following assumptions: dividend yield of 0%, expected volatility of 205%, risk-free interest rate
of 0.92% and expected life of 60 months. <font style="background-color: white">The Company recognized expenses of $91,811
and $8,346 during the years ended December 31, 2012 and 2011</font>, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the quarter ended March 31, 2012,
the Company issued 50,000 stock options to 4 non-employees at an exercise price of $0.89. The options were valued on the grant
date using the Black-Scholes option-pricing model with the following assumptions: dividend yield of 0%, expected volatility of
198%, risk-free interest rate of 0.65% and expected life of 48 months. The total value of the options was $35,091. The options
vest over 4 months. The Company recognized share-based compensation expense of $35,091 during the six months ended June 30, 2012.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the quarter ended December 31,
2012, the Company issued 25,000 stock options to a non-employee at an exercise price of $1.58. The options were valued on the grant
date using the Black-Scholes option-pricing model with the following assumptions: dividend yield of 0%, expected volatility of
200%, risk-free interest rate of 0.67% and expected life of 60 months. The total value of the options was $40,007. The options
vest over 1 year. The Company recognized share-based compensation expense of $31,672 and $8,335 during the years ended December 31,
2013 and 2012, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On October 30, 2013, the Company issued 50,000
stock options to 6 employees at an exercise price of $1.00. The options were valued on the grant date using the Black-Scholes option-pricing
model with the following assumptions: dividend yield of 0%, expected volatility of 171%, risk-free interest rate of 1.30% and expected
life of 60 months. The total value of the options was $46,322. The options vest over one year. <font style="background-color: white"> The
Company recognized share-based compensation expense of $7,720 during the year ended December 31, 201</font>3<font style="background-color: white">.
The remaining balance will be recognized during 2014.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">  </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On November 8, 2013, the Company issued 75,000
stock options to 2 non-employees at an exercise price of $1.00. The options were valued on the grant date using the Black-Scholes
option-pricing model with the following assumptions: dividend yield of 0%, expected volatility of 171%, risk-free interest rate
of 1.42% and expected life of 60 months. The total value of the options was $70,961. The options vest over 1 year. The Company
recognized share-based compensation expense of $11,827 during the three months ended December 31, 2013. The remaining balance
of $59,134 has been recorded as deferred stock compensation and will be recognized during 2014.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company had the following options outstanding
as of December 31, 2013:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" align="center" style="width: 50%; border-collapse: collapse; font-size: 10pt">
<tr style="vertical-align: bottom">
<td colspan="3" style="text-align: left"> </td>
<td style="padding-bottom: 1pt; text-align: center"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center">Number of Options</td>
<td style="padding-bottom: 1pt; text-align: center"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center">Weighted average exercise price</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="width: 1%; text-align: left"> </td>
<td style="width: 31%; text-align: left; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">Outstanding, January 1, 2012</font></td>
<td style="width: 1%; text-align: left"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td>
<td style="width: 31%; text-align: right">405,000</td>
<td style="width: 1%; text-align: left"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td>
<td style="width: 30%; text-align: right">1.01</td>
<td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: left"> </td>
<td style="text-align: left; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">Granted - 2012</font></td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">75,000</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">1.17</td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="text-align: left"> </td>
<td style="text-align: left; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">Exercised - 2012</font></td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">0</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">0</td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">Expired – 2012</font></td>
<td style="padding-bottom: 1pt; text-align: left"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">(455,000</td>
<td style="padding-bottom: 1pt; text-align: left">)</td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">(.98</td>
<td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="text-align: left"> </td>
<td style="text-align: left; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">    Balance, December 31, 2012</font></td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">25,000</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">1.58</td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: left"> </td>
<td style="text-align: left; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">Granted – 2013</font></td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">125,000</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">1.00</td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="text-align: left"> </td>
<td style="text-align: left; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">Exercised – 2013</font></td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">0</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">0</td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">Expired – 2013</font></td>
<td style="padding-bottom: 1pt; text-align: left"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">(25,000</td>
<td style="padding-bottom: 1pt; text-align: left">)</td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">(1.58</td>
<td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="border-bottom: black 2.5pt double; text-align: left"> </td>
<td style="border-bottom: black 2.5pt double; text-align: left; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">    Balance, December 31, 2013</font></td>
<td style="padding-bottom: 2.5pt; text-align: left"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.5pt double; text-align: left"> </td>
<td style="border-bottom: black 2.5pt double; text-align: right">125,000</td>
<td style="padding-bottom: 2.5pt; text-align: left"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.5pt double; text-align: left">$</td>
<td style="border-bottom: black 2.5pt double; text-align: right">1.00</td>
<td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company had the following warrants outstanding
as of December 31, 2013:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" align="center" style="width: 50%; border-collapse: collapse; font-size: 10pt">
<tr style="vertical-align: bottom">
<td colspan="3" style="text-align: left"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center">Number of Warrants</td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center">Weighted average exercise price</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="width: 1%; text-align: left"> </td>
<td style="width: 31%; text-align: left; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">Outstanding, January 1, 2012</font></td>
<td style="width: 1%; text-align: left"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td>
<td style="width: 31%; text-align: right">14,344,434</td>
<td style="width: 1%; text-align: left"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td>
<td style="width: 30%; text-align: right">2.41</td>
<td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: left"> </td>
<td style="text-align: left; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">Granted - 2012</font></td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">0</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">0</td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="text-align: left"> </td>
<td style="text-align: left; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">Exercised - 2012</font></td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">0</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">0</td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">Expired - 2012</font></td>
<td style="padding-bottom: 1pt; text-align: left"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">0</td>
<td style="padding-bottom: 1pt; text-align: left"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">0</td>
<td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="text-align: left"> </td>
<td style="text-align: left; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">    Balance, December 31, 2012</font></td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">14,344,434</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">2.41</td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: left"> </td>
<td style="text-align: left; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">Granted - 2013</font></td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">0</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">0</td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="text-align: left"> </td>
<td style="text-align: left; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">Exercised - 2013</font></td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">0</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">0</td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">Expired - 2013</font></td>
<td style="padding-bottom: 1pt; text-align: left"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">(686,100</td>
<td style="padding-bottom: 1pt; text-align: left">)</td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">(2.71</td>
<td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="border-bottom: black 2.5pt double; text-align: left"> </td>
<td style="border-bottom: black 2.5pt double; text-align: left; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">    Balance, December 31, 2013</font></td>
<td style="padding-bottom: 2.5pt; text-align: left"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.5pt double; text-align: left"> </td>
<td style="border-bottom: black 2.5pt double; text-align: right">13,658,334</td>
<td style="padding-bottom: 2.5pt; text-align: left"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.5pt double; text-align: left">$</td>
<td style="border-bottom: black 2.5pt double; text-align: right">2.44</td>
<td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="margin: 0pt"></p>
<p style="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<table cellspacing="0" cellpadding="0" align="center" style="width: 50%; border-collapse: collapse; font-size: 10pt">
<tr style="vertical-align: bottom">
<td colspan="3" style="text-align: left"> </td>
<td style="padding-bottom: 1pt; text-align: center"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center">Number of Options</td>
<td style="padding-bottom: 1pt; text-align: center"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center">Weighted average exercise price</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="width: 1%; text-align: left"> </td>
<td style="width: 31%; text-align: left; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">Outstanding, January 1, 2012</font></td>
<td style="width: 1%; text-align: left"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td>
<td style="width: 31%; text-align: right">405,000</td>
<td style="width: 1%; text-align: left"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td>
<td style="width: 30%; text-align: right">1.01</td>
<td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: left"> </td>
<td style="text-align: left; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">Granted - 2012</font></td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">75,000</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">1.17</td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="text-align: left"> </td>
<td style="text-align: left; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">Exercised - 2012</font></td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">0</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">0</td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">Expired – 2012</font></td>
<td style="padding-bottom: 1pt; text-align: left"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">(455,000</td>
<td style="padding-bottom: 1pt; text-align: left">)</td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">(.98</td>
<td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="text-align: left"> </td>
<td style="text-align: left; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">    Balance, December 31, 2012</font></td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">25,000</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">1.58</td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: left"> </td>
<td style="text-align: left; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">Granted – 2013</font></td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">125,000</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">1.00</td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="text-align: left"> </td>
<td style="text-align: left; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">Exercised – 2013</font></td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">0</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">0</td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">Expired – 2013</font></td>
<td style="padding-bottom: 1pt; text-align: left"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">(25,000</td>
<td style="padding-bottom: 1pt; text-align: left">)</td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">(1.58</td>
<td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="border-bottom: black 2.5pt double; text-align: left"> </td>
<td style="border-bottom: black 2.5pt double; text-align: left; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">    Balance, December 31, 2013</font></td>
<td style="padding-bottom: 2.5pt; text-align: left"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.5pt double; text-align: left"> </td>
<td style="border-bottom: black 2.5pt double; text-align: right">125,000</td>
<td style="padding-bottom: 2.5pt; text-align: left"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.5pt double; text-align: left">$</td>
<td style="border-bottom: black 2.5pt double; text-align: right">1.00</td>
<td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="margin: 0pt"> </p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" align="center" style="width: 50%; border-collapse: collapse; font-size: 10pt">
<tr style="vertical-align: bottom">
<td colspan="3" style="text-align: left"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center">Number of Warrants</td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center">Weighted average exercise price</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="width: 1%; text-align: left"> </td>
<td style="width: 31%; text-align: left; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">Outstanding, January 1, 2012</font></td>
<td style="width: 1%; text-align: left"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td>
<td style="width: 31%; text-align: right">14,344,434</td>
<td style="width: 1%; text-align: left"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td>
<td style="width: 30%; text-align: right">2.41</td>
<td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: left"> </td>
<td style="text-align: left; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">Granted - 2012</font></td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">0</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">0</td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="text-align: left"> </td>
<td style="text-align: left; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">Exercised - 2012</font></td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">0</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">0</td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">Expired - 2012</font></td>
<td style="padding-bottom: 1pt; text-align: left"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">0</td>
<td style="padding-bottom: 1pt; text-align: left"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">0</td>
<td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="text-align: left"> </td>
<td style="text-align: left; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">    Balance, December 31, 2012</font></td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">14,344,434</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">2.41</td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: left"> </td>
<td style="text-align: left; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">Granted - 2013</font></td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">0</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">0</td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="text-align: left"> </td>
<td style="text-align: left; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">Exercised - 2013</font></td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">0</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">0</td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">Expired - 2013</font></td>
<td style="padding-bottom: 1pt; text-align: left"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">(686,100</td>
<td style="padding-bottom: 1pt; text-align: left">)</td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">(2.71</td>
<td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="border-bottom: black 2.5pt double; text-align: left"> </td>
<td style="border-bottom: black 2.5pt double; text-align: left; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">    Balance, December 31, 2013</font></td>
<td style="padding-bottom: 2.5pt; text-align: left"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.5pt double; text-align: left"> </td>
<td style="border-bottom: black 2.5pt double; text-align: right">13,658,334</td>
<td style="padding-bottom: 2.5pt; text-align: left"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.5pt double; text-align: left">$</td>
<td style="border-bottom: black 2.5pt double; text-align: right">2.44</td>
<td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="margin: 0pt"></p>
125000
25000
405000
1.00
1.58
1.01
125000
75000
1.00
1.17
0
0
0
0
-25000
-455000
-1.58
-0.98
13658334
14344434
14344434
2.44
2.41
2.41
0
0
0
0
0
0
0
0
-686100
0
-2.71
0
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company signed a lease for new office space
on December 1, 2011 at an approximate rent of $5,000 per month. The new offices are in Rochester, Michigan. The lease is for three
years with an option to renew for an additional two years at approximately $5,200 per month with six months advance notice to exercise
the option. Minimum annual rent is as follows for the initial term of the lease:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" align="center" style="width: 35%; border-collapse: collapse; font-size: 10pt">
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="width: 77%; padding-bottom: 1pt; text-align: right; padding-left: 5.4pt"> Year ended December 31, 2014</td>
<td style="width: 1%; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: black 1pt solid; text-align: left">$</td>
<td style="width: 20%; border-bottom: black 1pt solid; text-align: right">55,542</td>
<td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 2.5pt; text-align: right; padding-left: 5.4pt">Total lease commitment</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.5pt double; text-align: left">$</td>
<td style="border-bottom: black 2.5pt double; text-align: right">55,542</td>
<td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" align="center" style="width: 35%; border-collapse: collapse; font-size: 10pt">
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="width: 77%; padding-bottom: 1pt; text-align: right; padding-left: 5.4pt"> Year ended December 31, 2014</td>
<td style="width: 1%; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: black 1pt solid; text-align: left">$</td>
<td style="width: 20%; border-bottom: black 1pt solid; text-align: right">55,542</td>
<td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 2.5pt; text-align: right; padding-left: 5.4pt">Total lease commitment</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.5pt double; text-align: left">$</td>
<td style="border-bottom: black 2.5pt double; text-align: right">55,542</td>
<td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
P3Y
5000
5200
<p style="margin: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">The Company had two major customers that accounted
for 58% and two major customers that accounted for 52% of the Company’s revenues for the years ended December 31, 2013
and 2012, respectively. The Company expects to continue to maintain these relationships with the customers.</font></p>
<p></p>
.58
.52
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">For the year ended December 31, 2013,
the Company incurred net income of approximately $216,000 but has no tax liability. The Company began operations in 2007 and has
previous net operating loss carry-forwards of approximately $13,934,000 through December 31, 2012. The cumulative loss of
approximately $13,718,000 will be carried forward and can be used through the year 2033 to offset future taxable income. In the
future, the cumulative net operating loss carry-forward for income tax purposes may differ from the cumulative financial statement
loss due to timing differences between book and tax reporting.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The provision for Federal income tax consists
of the following for the years ended December 31, 2013 and 2012:</p>
<p style="font: 10pt/6pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" align="center" style="width: 40%; border-collapse: collapse; font-size: 10pt">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center">2013</td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center">2012</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: left">Federal income tax (expense) benefit attributable to:</td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right"> </td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right"> </td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="width: 54%; text-align: left">  Current operations</td>
<td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td>
<td style="width: 20%; text-align: right">(73,000</td>
<td style="width: 1%; text-align: left">)</td>
<td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td>
<td style="width: 20%; text-align: right">155,000</td>
<td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; text-align: left">  Valuation allowance</td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">73,000</td>
<td style="padding-bottom: 1pt; text-align: left"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">(155,000</td>
<td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="padding-bottom: 2.5pt; text-align: left">      Net provision for federal income tax</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.5pt double; text-align: left">$</td>
<td style="border-bottom: black 2.5pt double; text-align: right">0</td>
<td style="padding-bottom: 2.5pt; text-align: left"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.5pt double; text-align: left">$</td>
<td style="border-bottom: black 2.5pt double; text-align: right">0</td>
<td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The cumulative tax effect at the expected rate
of 34% of significant items comprising our net deferred tax amount is as follows as of December 31, 2013 and 2012:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; letter-spacing: -0.1pt; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" align="center" style="width: 40%; border-collapse: collapse; font-size: 10pt">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center">2013</td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center">2012</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: left">Deferred tax asset attributable to:</td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right"> </td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right"> </td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="width: 54%; text-align: left">  Net operating loss carryover</td>
<td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td>
<td style="width: 20%; text-align: right">4,665,000</td>
<td style="width: 1%; text-align: left"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td>
<td style="width: 20%; text-align: right">4,738,000</td>
<td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; text-align: left">  Valuation allowance</td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">(4,665,000</td>
<td style="padding-bottom: 1pt; text-align: left">)</td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">(4,738,000</td>
<td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="padding-bottom: 2.5pt; text-align: left">      Net deferred tax asset</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.5pt double; text-align: left">$</td>
<td style="border-bottom: black 2.5pt double; text-align: right">0</td>
<td style="padding-bottom: 2.5pt; text-align: left"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.5pt double; text-align: left">$</td>
<td style="border-bottom: black 2.5pt double; text-align: right">0</td>
<td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Due to the change in ownership provisions of
the Tax Reform Act of 1986, net operating loss carry forwards of approximately $13,718,000 for Federal income tax reporting purposes
are subject to annual limitations. Should a change in ownership occur, net operating loss carry forwards may be limited as to use
in future years.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" align="center" style="width: 40%; border-collapse: collapse; font-size: 10pt">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center">2013</td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center">2012</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: left">Federal income tax (expense) benefit attributable to:</td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right"> </td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right"> </td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="width: 54%; text-align: left">  Current operations</td>
<td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td>
<td style="width: 20%; text-align: right">(73,000</td>
<td style="width: 1%; text-align: left">)</td>
<td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td>
<td style="width: 20%; text-align: right">155,000</td>
<td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; text-align: left">  Valuation allowance</td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">73,000</td>
<td style="padding-bottom: 1pt; text-align: left"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">(155,000</td>
<td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="padding-bottom: 2.5pt; text-align: left">      Net provision for federal income tax</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.5pt double; text-align: left">$</td>
<td style="border-bottom: black 2.5pt double; text-align: right">0</td>
<td style="padding-bottom: 2.5pt; text-align: left"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.5pt double; text-align: left">$</td>
<td style="border-bottom: black 2.5pt double; text-align: right">0</td>
<td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="margin: 0pt"> </p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" align="center" style="width: 40%; border-collapse: collapse; font-size: 10pt">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center">2013</td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center">2012</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: left">Deferred tax asset attributable to:</td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right"> </td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right"> </td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="width: 54%; text-align: left">  Net operating loss carryover</td>
<td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td>
<td style="width: 20%; text-align: right">4,665,000</td>
<td style="width: 1%; text-align: left"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td>
<td style="width: 20%; text-align: right">4,738,000</td>
<td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; text-align: left">  Valuation allowance</td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">(4,665,000</td>
<td style="padding-bottom: 1pt; text-align: left">)</td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">(4,738,000</td>
<td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="padding-bottom: 2.5pt; text-align: left">      Net deferred tax asset</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.5pt double; text-align: left">$</td>
<td style="border-bottom: black 2.5pt double; text-align: right">0</td>
<td style="padding-bottom: 2.5pt; text-align: left"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.5pt double; text-align: left">$</td>
<td style="border-bottom: black 2.5pt double; text-align: right">0</td>
<td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
-73000
155000
73000
-155000
0
0
216000
2033-01-01
0.34
13718000
13934000
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On January 14, 2013, the Company hired a new
CEO. The employment agreement required annual compensation of $175,000 that was to be accrued and deferred until at least January
1, 2014. Additionally, the agreement required the issuance of 2,000,000 options with an exercise price of $1.00 for a term of five
years. The options were not exercisable until at least January 1, 2014, and were only exercisable after reaching certain financial
terms and conditions. Due to these restrictions, no accrual was made for the issuance of these options.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On September 20, 2013, the Company entered
into a separation agreement with the CEO. As part of the terms of the separation agreement, the accrued compensation up to the
date of separation was paid and the options were terminated.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Operating expenses consisted of the following
for the years ended December 31, 2013 and 2012, respectively:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 2.5in; text-indent: 4.5pt"> </p>
<table cellspacing="0" cellpadding="0" align="center" style="width: 45%; border-collapse: collapse; font-size: 10pt">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td style="padding-bottom: 1pt; text-align: center"> </td>
<td colspan="3" style="text-align: center">Years ended December 31,</td>
<td style="padding-bottom: 1pt; text-align: center"> </td>
<td colspan="3" style="text-align: center">Years ended December 31,</td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center">2013</td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center">2012</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="width: 54%; padding-left: 5.4pt">Advertising</td>
<td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td>
<td style="width: 20%; text-align: right">47,105</td>
<td style="width: 1%; text-align: left"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td>
<td style="width: 20%; text-align: right">57,218</td>
<td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: left; padding-left: 5.4pt">Professional fees</td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">552,824</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">263,396</td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="padding-left: 5.4pt">Consulting</td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">100,077</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">19,148</td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: left; padding-left: 5.4pt">Salaries, wages and benefits</td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">1,319,712</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">1,184,367</td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="padding-left: 5.4pt">Rent</td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">60,592</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">62,362</td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: left; padding-left: 5.4pt">Depreciation and amortization</td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">193,971</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">187,104</td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="padding-left: 5.4pt">Stock-based compensation</td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">411,412</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">285,605</td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; text-align: left; padding-left: 5.4pt">General and administrative</td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">288,297</td>
<td style="padding-bottom: 1pt; text-align: left"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">269,448</td>
<td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="padding-bottom: 2.5pt; text-align: left; padding-left: 5.4pt">Total Operating Expenses</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.5pt double; text-align: left">$</td>
<td style="border-bottom: black 2.5pt double; text-align: right">2,973,990</td>
<td style="padding-bottom: 2.5pt; text-align: left"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.5pt double; text-align: left">$</td>
<td style="border-bottom: black 2.5pt double; text-align: right">2,328,648</td>
<td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" align="center" style="width: 45%; border-collapse: collapse; font-size: 10pt">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td style="padding-bottom: 1pt; text-align: center"> </td>
<td colspan="3" style="text-align: center">Years ended December 31,</td>
<td style="padding-bottom: 1pt; text-align: center"> </td>
<td colspan="3" style="text-align: center">Years ended December 31,</td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center">2013</td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center">2012</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="width: 54%; padding-left: 5.4pt">Advertising</td>
<td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td>
<td style="width: 20%; text-align: right">47,105</td>
<td style="width: 1%; text-align: left"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td>
<td style="width: 20%; text-align: right">57,218</td>
<td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: left; padding-left: 5.4pt">Professional fees</td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">552,824</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">263,396</td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="padding-left: 5.4pt">Consulting</td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">100,077</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">19,148</td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: left; padding-left: 5.4pt">Salaries, wages and benefits</td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">1,319,712</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">1,184,367</td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="padding-left: 5.4pt">Rent</td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">60,592</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">62,362</td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: left; padding-left: 5.4pt">Depreciation and amortization</td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">193,971</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">187,104</td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="padding-left: 5.4pt">Stock-based compensation</td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">411,412</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">285,605</td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; text-align: left; padding-left: 5.4pt">General and administrative</td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">288,297</td>
<td style="padding-bottom: 1pt; text-align: left"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">269,448</td>
<td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="padding-bottom: 2.5pt; text-align: left; padding-left: 5.4pt">Total Operating Expenses</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.5pt double; text-align: left">$</td>
<td style="border-bottom: black 2.5pt double; text-align: right">2,973,990</td>
<td style="padding-bottom: 2.5pt; text-align: left"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.5pt double; text-align: left">$</td>
<td style="border-bottom: black 2.5pt double; text-align: right">2,328,648</td>
<td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="margin: 0pt"></p>
47105
57218
552824
263396
100077
19148
1319712
1184367
-60592
-62362
288297
269448
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; letter-spacing: -0.1pt; text-align: justify">On January 2,
2014 the Company executed an amendment to their securities redemption option agreement with Vicis Capital Master Fund that provides
an option to purchase all of the outstanding shares and derivative securities held by Vicis for a total of $6,000,000. The term
of the option is through March 31, 2014. The original agreement payment was for $9,000,000 and term was through December 30,
2013.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; letter-spacing: -0.1pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On March 17, 2014, the Company entered
into a securities purchase agreement, pursuant to which the Company sold an aggregate of 8,333,333 shares of the
Company’s common stock for $1.20 per share, or gross proceeds of $10,000,000.</p>
<p style="margin: 0pt"></p>
22809586
0
0
.001
.001
10000000
10000000
65
65
3189591
1873726
2973990
2328648
215601
-454922
-364345
-246
-469
0
-100
246
369
215847
-454553
-363976
0
0
215847
-454553
-363976
14388017
14211455
0.02
-0.03
14713017
17211455
0.01
-0.03
0
49618
19547
40007
4957016
1989086
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the quarter ended December 31, 2013,
the Company corrected an accounting error related to revenue share expenses. The Company will accrue the expense for amounts due,
versus when they are paid, for proper matching. The revenue share expense was not properly accrued at the end of 2012 or at the
end of each 2013 quarter</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The restated Consolidated Balance Sheet, Consolidated
Statement of Operations and Consolidated Statement of Cash Flows for the year ended December 31, 2012 is as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" align="center" style="width: 50%; border-collapse: collapse; font-size: 10pt">
<tr style="vertical-align: bottom">
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center">Year ended December 31, 2012</td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="border-bottom: black 1pt solid; padding-bottom: 1pt; text-align: left; padding-left: 5.4pt">Financial Statement</td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; padding-bottom: 1pt; text-align: left; padding-left: 5.4pt">Line Item</td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">Corrected</font></td>
<td style="padding-bottom: 1pt; text-align: left"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">Previously Stated</font></td>
<td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="width: 30%; text-align: left; padding-left: 5.4pt">Balance sheet</td>
<td style="width: 1%"> </td>
<td style="width: 29%; padding-left: 5.4pt">Revenue share payable</td>
<td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td>
<td style="width: 17%; text-align: right">90,577</td>
<td style="width: 1%; text-align: left"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td>
<td style="width: 17%; text-align: right">0</td>
<td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: left; padding-left: 5.4pt">Income statement</td>
<td> </td>
<td style="padding-left: 5.4pt">Revenue share expense</td>
<td> </td>
<td style="text-align: left">$</td>
<td style="text-align: right">115,360</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left">$</td>
<td style="text-align: right">24,783</td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="text-align: left; padding-left: 5.4pt">Income statement</td>
<td> </td>
<td style="text-align: left; padding-left: 5.4pt">Loss from operations</td>
<td> </td>
<td style="text-align: left">$</td>
<td style="text-align: right">(454,922</td>
<td style="text-align: left">)</td>
<td> </td>
<td style="text-align: left">$</td>
<td style="text-align: right">(364,345</td>
<td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: left; padding-left: 5.4pt">Income statement</td>
<td> </td>
<td style="text-align: left; padding-left: 5.4pt">Loss before provision for income taxes</td>
<td> </td>
<td style="text-align: left">$</td>
<td style="text-align: right">(454,553</td>
<td style="text-align: left">)</td>
<td> </td>
<td style="text-align: left">$</td>
<td style="text-align: right">(363,976</td>
<td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="text-align: left; padding-left: 5.4pt">Income statement</td>
<td> </td>
<td style="text-align: left; padding-left: 5.4pt">Net loss</td>
<td> </td>
<td style="text-align: left">$</td>
<td style="text-align: right">(454,553</td>
<td style="text-align: left">)</td>
<td> </td>
<td style="text-align: left">$</td>
<td style="text-align: right">(363,976</td>
<td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: left; padding-left: 5.4pt">Statement of cash flows</td>
<td> </td>
<td style="text-align: left; padding-left: 5.4pt">Net loss</td>
<td> </td>
<td style="text-align: left">$</td>
<td style="text-align: right">(454,553</td>
<td style="text-align: left">)</td>
<td> </td>
<td style="text-align: left">$</td>
<td style="text-align: right">(363,976</td>
<td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="text-align: left; padding-left: 5.4pt">Statement of cash flows</td>
<td> </td>
<td style="text-align: left; padding-left: 5.4pt">Increase in revenue share payable</td>
<td> </td>
<td style="text-align: left">$</td>
<td style="text-align: right">90,577</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left">$</td>
<td style="text-align: right">0</td>
<td style="text-align: left"> </td></tr>
</table>
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" align="center" style="width: 50%; border-collapse: collapse; font-size: 10pt">
<tr style="vertical-align: bottom">
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center">Year ended December 31, 2012</td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="border-bottom: black 1pt solid; padding-bottom: 1pt; text-align: left; padding-left: 5.4pt">Financial Statement</td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; padding-bottom: 1pt; text-align: left; padding-left: 5.4pt">Line Item</td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">Corrected</font></td>
<td style="padding-bottom: 1pt; text-align: left"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">Previously Stated</font></td>
<td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="width: 30%; text-align: left; padding-left: 5.4pt">Balance sheet</td>
<td style="width: 1%"> </td>
<td style="width: 29%; padding-left: 5.4pt">Revenue share payable</td>
<td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td>
<td style="width: 17%; text-align: right">90,577</td>
<td style="width: 1%; text-align: left"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td>
<td style="width: 17%; text-align: right">0</td>
<td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: left; padding-left: 5.4pt">Income statement</td>
<td> </td>
<td style="padding-left: 5.4pt">Revenue share expense</td>
<td> </td>
<td style="text-align: left">$</td>
<td style="text-align: right">115,360</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left">$</td>
<td style="text-align: right">24,783</td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="text-align: left; padding-left: 5.4pt">Income statement</td>
<td> </td>
<td style="text-align: left; padding-left: 5.4pt">Loss from operations</td>
<td> </td>
<td style="text-align: left">$</td>
<td style="text-align: right">(454,922</td>
<td style="text-align: left">)</td>
<td> </td>
<td style="text-align: left">$</td>
<td style="text-align: right">(364,345</td>
<td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: left; padding-left: 5.4pt">Income statement</td>
<td> </td>
<td style="text-align: left; padding-left: 5.4pt">Loss before provision for income taxes</td>
<td> </td>
<td style="text-align: left">$</td>
<td style="text-align: right">(454,553</td>
<td style="text-align: left">)</td>
<td> </td>
<td style="text-align: left">$</td>
<td style="text-align: right">(363,976</td>
<td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="text-align: left; padding-left: 5.4pt">Income statement</td>
<td> </td>
<td style="text-align: left; padding-left: 5.4pt">Net loss</td>
<td> </td>
<td style="text-align: left">$</td>
<td style="text-align: right">(454,553</td>
<td style="text-align: left">)</td>
<td> </td>
<td style="text-align: left">$</td>
<td style="text-align: right">(363,976</td>
<td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: left; padding-left: 5.4pt">Statement of cash flows</td>
<td> </td>
<td style="text-align: left; padding-left: 5.4pt">Net loss</td>
<td> </td>
<td style="text-align: left">$</td>
<td style="text-align: right">(454,553</td>
<td style="text-align: left">)</td>
<td> </td>
<td style="text-align: left">$</td>
<td style="text-align: right">(363,976</td>
<td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="text-align: left; padding-left: 5.4pt">Statement of cash flows</td>
<td> </td>
<td style="text-align: left; padding-left: 5.4pt">Increase in revenue share payable</td>
<td> </td>
<td style="text-align: left">$</td>
<td style="text-align: right">90,577</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left">$</td>
<td style="text-align: right">0</td>
<td style="text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif">The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities
at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates
and assumptions have been made in determining the depreciable lives of such assets and the allowance for doubtful accounts receivable.
Actual results could differ from these estimates.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; letter-spacing: -0.1pt; text-align: justify">The Company’s
key members are part of a continual research development team and monitor new technologies, trends, services and partnerships that
can provide the Company with additional services, value to healthcare and pharmaceutical industries and to the patients it serves.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 0 0; letter-spacing: -0.1pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; letter-spacing: -0.1pt; text-align: justify">The Company seeks to
educate team members through understanding of all market dynamics that have the potential to affect the business both short term
and longer term. The primary goal is to help patients better afford and access the medicines their doctor prescribes, as well as
other healthcare products and services they need. Based on this, the Company continually seeks better ways to meet this mission
through technology, better user experiences and new ways to engage industries to provide new support for patients needing their
products. The Company is always seeking new services and solutions to offer. At this time, the three current platforms provide
robust opportunities and growth during the next five years.</p>
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6923
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62595
0
4252
49252
55542
55542
P2Y
4665000
4738000
-4665000
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0
0
175000
2000000
1.00
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2014-01-01
15276153
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2039368
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0
<p style="font: 10pt Times New Roman, Times, Serif"><font style="font: 10pt Times New Roman, Times, Serif">The holders of the
preferred stock are entitled to semi-annual dividends payable on the stated value of the Series A preferred stock at a rate of
10% per annum, which shall be cumulative, and accrue daily from the issuance date. The dividends may be paid in cash or shares
of the Company's common stock at management’s discretion. If after the conversion eligibility date, the market price for
the common stock for any ten consecutive trading days in which the stock trades for over $2 per share and trading exceeds 100,000
shares per day, the preferred shareholders can be required to convert their shares to common stock. Each share of Series A preferred
stock shall also be convertible at the option of the holder into that number of shares of common stock of the Company at the stated
value of such share at a $1 conversion price.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif"><font style="font: 10pt Times New Roman, Times, Serif">The holder may cause
this conversion at the time the shares are eligible for resale by the holder. The conversion price is subject to adjustment as
hereinafter provided, at any time, or from time to time upon the terms and in the manner hereinafter set forth in the shareholder
agreement. There is no conversion expiration date, however, the holder must provide 30 days notice for the registration of the
conversion.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The holders of the preferred stock are entitled
to semi-annual dividends payable on the stated value of the Series B preferred stock at a rate of 10% per annum, which shall be
cumulative, and accrue daily from the issuance date. The dividends may be paid in cash or shares of the Company's common stock
at management’s discretion. If after the conversion eligibility date, the market price for the common stock for any ten consecutive
trading days in which the stock trades for over $2 per share and trading exceeds 100,000 shares per day, the preferred shareholders
can be required to convert their shares to common stock. Each share of Series B preferred stock shall also be convertible at the
option of the holder into that number of shares of common stock of the Company at the stated value of such share at a $1.50 conversion
price.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The holder may cause this conversion at the
time the shares are eligible for resale by the holder. The conversion price is subject to adjustment as hereinafter provided, at
any time, or from time to time upon the terms and in the manner hereinafter set forth in the shareholder agreement.</p>
285000
20000
100000
50000
25000
50000
75000
1.00
1.00
0.73
0.89
1.58
1.00
1.00
19270
35091
40007
46322
70961
P1Y
P4M
P1Y
P1Y
P1Y
6000000
9000000
10000000
970000
400000