<SUBMISSION>
<ACCESSION-NUMBER>0001078782-17-001274
<TYPE>10-Q
<PUBLIC-DOCUMENT-COUNT>5
<PERIOD>20170731
<FILING-DATE>20170914
<DATE-OF-FILING-DATE-CHANGE>20170914
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>APT Systems Inc
<CIK>0001543739
<ASSIGNED-SIC>8742
<IRS-NUMBER>990370904
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>0131
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>10-Q
<ACT>34
<FILE-NUMBER>000-54865
<FILM-NUMBER>171086045
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>505 MONTGOMERY STREET
<STREET2>11TH FLOOR
<CITY>SAN FRANCISCO
<STATE>CA
<ZIP>94111
<PHONE>(415)-200-1105
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>505 MONTGOMERY STREET
<STREET2>11TH FLOOR
<CITY>SAN FRANCISCO
<STATE>CA
<ZIP>94111
</MAIL-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>f10q073117_10q.htm
<DESCRIPTION>FORM 10-Q QUARTERLY REPORT
<TEXT>
<HTML>
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<HEAD>
<TITLE>Form 10-Q Quarterly Report</TITLE>
</HEAD>
<BODY>
<DIV style=margin-left:36pt;width:523.3pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>UNITED STATES</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>SECURITIES AND EXCHANGE COMMISSION</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Washington, D.C. 20549</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=center style='font:12pt Times New Roman;margin:0'><B>FORM 10-Q</B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'> [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>For the Quarterly period ended July 31, 2017</B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'> [ &nbsp;&nbsp;] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</P>
<P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Commission File No. </B>000-54865</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=center style='font:14pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'><B>APT SYSTEMS, INC.</B></FONT></P>
<P align=center style='font:10pt Times New Roman;margin:0'>(Exact name of issuer as specified in its charter)</P>
<P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<TABLE align=center style=border-collapse:collapse><TR style=height:7.2pt><TD valign=top style=width:261.65pt><P align=center style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'><B>Delaware</B></FONT></P>
</TD><TD valign=top style=width:261.65pt><P align=center style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'><B>99-0370904</B></FONT></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:261.65pt><P align=center style='font:10pt Times New Roman;margin:0'>(State or other jurisdiction</P>
</TD><TD valign=top style=width:261.65pt><P align=center style='font:10pt Times New Roman;margin:0'>(IRS Employer File Number)</P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse><TR style=height:7.2pt><TD valign=top style=width:261.65pt><P align=center style='font:10pt Times New Roman;margin:0'><B>505 Montgomery Street</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>11th Floor</B></P>
</TD><TD valign=top style=width:261.65pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:261.65pt><P align=center style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'><B>San Francisco, CA</B></FONT></P>
</TD><TD valign=top style=width:261.65pt><P align=center style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'><B>94111</B></FONT></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:261.65pt><P align=center style='font:10pt Times New Roman;margin:0'>(Address of principal executive offices)</P>
</TD><TD valign=top style=width:261.65pt><P align=center style='font:10pt Times New Roman;margin:0'>(zip code)</P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'><B>(415)-200-1105</B></FONT></P>
<P align=center style='font:10pt Times New Roman;margin:0'>(Registrant's telephone number, including area code)</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Indicate by check mark whether the registrant: (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports); and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [ &nbsp;&nbsp;]</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or such shorter period that the registrant was required to submit and post such files). </P>
<P align=right style='font:10pt Times New Roman;margin:0'>Yes [X] No [ &nbsp;&nbsp;]</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Indicate by check mark whether the registrant is a large accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of &#8220;large accelerated filer,&#8221; &#8220;accelerated filer,&#8221; and &#8220;small reporting company&#8221; in Rule 12b-2 of the Exchange Act.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse><TR style=height:7.2pt><TD valign=top style=width:130.5pt;padding-left:5.4pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'>Large accelerated filer</P>
</TD><TD valign=top style=width:224.8pt;padding-left:5.4pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'>[ &nbsp;&nbsp;]</P>
</TD><TD valign=top style=width:130.7pt;padding-left:5.4pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'>Accelerated filer</P>
</TD><TD valign=top style=width:26.4pt;padding-left:5.4pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'>[ &nbsp;&nbsp;]</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:130.5pt;padding-left:5.4pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'>Non-accelerated filer</P>
</TD><TD valign=top style=width:224.8pt;padding-left:5.4pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'>[ &nbsp;&nbsp;] (Do not check if a smaller reporting company)</P>
</TD><TD valign=top style=width:130.7pt;padding-left:5.4pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'>Smaller reporting company</P>
</TD><TD valign=top style=width:26.4pt;padding-left:5.4pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'>[ &nbsp;&nbsp;]</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:130.5pt;padding-left:5.4pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'>Emerging growth company</P>
</TD><TD valign=top style=width:224.8pt;padding-left:5.4pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'>[X]</P>
</TD><TD valign=top style=width:130.7pt;padding-left:5.4pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=width:26.4pt;padding-left:5.4pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;background-color:#FFFFFF'>If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ &nbsp;&nbsp;]</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) Yes [ &nbsp;&nbsp;] No [X]</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>As of September 14, 2017, registrant had 298,308,696 outstanding shares of common stock. </P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<HR style='border:0;height:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'>1</P>
<HR style='page-break-after:always;border:0;height:3pt;background-color:#909090;margin:8pt 0'><P align=center style='font:10pt Times New Roman;margin:0'><B>FORM 10-Q</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>APT SYSTEMS, INC.</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>TABLE OF CONTENTS</B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse><TR style=height:7.2pt><TD valign=top style=width:391.5pt><P style='font:10pt Times New Roman;margin:0'><B>PART I FINANCIAL INFORMATION</B></P>
</TD><TD valign=top style=width:40.2pt><P align=center style='font:10pt Times New Roman;margin:0'><B>PAGE</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:391.5pt><P style='font:10pt Times New Roman;margin:0;text-indent:-48.6pt;margin-left:48.6pt'><KBD style='position:absolute;font:10pt Times New Roman;text-indent:0'>Item 1. </KBD><KBD style=margin-left:48.6pt></KBD>Unaudited Financial Statements As of July 31, 2017 and for the Three and Six Month Periods Ended July 31, 2017 and 2016 &nbsp;</P>
</TD><TD valign=top style=width:40.2pt><P align=center style='font:10pt Times New Roman;margin:0'>4</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:391.5pt><P style='font:10pt Times New Roman;margin:0'><KBD style=margin-left:61.3pt></KBD>Balance Sheets&nbsp;</P>
</TD><TD valign=top style=width:40.2pt><P align=center style='font:10pt Times New Roman;margin:0'>5</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:391.5pt><P style='font:10pt Times New Roman;margin:0'><KBD style=margin-left:61.3pt></KBD>Statements of Operations &nbsp;</P>
</TD><TD valign=top style=width:40.2pt><P align=center style='font:10pt Times New Roman;margin:0'>6</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:391.5pt><P style='font:10pt Times New Roman;margin:0'><KBD style=margin-left:61.3pt></KBD>Statements of Cash Flows &nbsp;</P>
</TD><TD valign=top style=width:40.2pt><P align=center style='font:10pt Times New Roman;margin:0'>7</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:391.5pt><P style='font:10pt Times New Roman;margin:0'><KBD style=margin-left:61.3pt></KBD>Notes to Unaudited Financial Statements&nbsp;</P>
</TD><TD valign=top style=width:40.2pt><P align=center style='font:10pt Times New Roman;margin:0'>8</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:391.5pt><P style='font:10pt Times New Roman;margin:0'><KBD style='position:absolute;font:10pt Times New Roman'>Item 2. </KBD><KBD style=margin-left:49.5pt></KBD>Management&#8217;s Discussion and Analysis and Plan of Operation&nbsp;</P>
</TD><TD valign=top style=width:40.2pt><P align=center style='font:10pt Times New Roman;margin:0'>14</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:391.5pt><P style='font:10pt Times New Roman;margin:0'><KBD style='position:absolute;font:10pt Times New Roman'>Item 3. </KBD><KBD style=margin-left:49.5pt></KBD>Quantitative and Qualitative Disclosures About Market Risk&nbsp;</P>
</TD><TD valign=top style=width:40.2pt><P align=center style='font:10pt Times New Roman;margin:0'>20</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:391.5pt><P style='font:10pt Times New Roman;margin:0'><KBD style='position:absolute;font:10pt Times New Roman'>Item 4. </KBD><KBD style=margin-left:49.5pt></KBD>Controls and Procedures&nbsp;</P>
</TD><TD valign=top style=width:40.2pt><P align=center style='font:10pt Times New Roman;margin:0'>20</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:391.5pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=width:40.2pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:391.5pt><P style='font:10pt Times New Roman;margin:0;background-color:#FFFFFF'><B>PART II OTHER INFORMATION</B></P>
<P style='font:10pt Times New Roman;margin:0;background-color:#FFFFFF'><B> </B>&nbsp;</P>
</TD><TD valign=top style=width:40.2pt><P align=center style='font:10pt Times New Roman;margin:0;background-color:#FFFFFF'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:391.5pt><P style='font:10pt Times New Roman;margin:0'><KBD style='position:absolute;font:10pt Times New Roman'>Item 1. </KBD><KBD style=margin-left:49.5pt></KBD>Legal Proceedings &nbsp;</P>
</TD><TD valign=top style=width:40.2pt><P align=center style='font:10pt Times New Roman;margin:0'>21</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:391.5pt><P style='font:10pt Times New Roman;margin:0'><KBD style='position:absolute;font:10pt Times New Roman'>Item 1A. </KBD><KBD style=margin-left:49.5pt></KBD>Risk Factors&nbsp;</P>
</TD><TD valign=top style=width:40.2pt><P align=center style='font:10pt Times New Roman;margin:0'>21</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:391.5pt><P style='font:10pt Times New Roman;margin:0'><KBD style='position:absolute;font:10pt Times New Roman'>Item 2. </KBD><KBD style=margin-left:49.5pt></KBD>Properties&nbsp;</P>
</TD><TD valign=top style=width:40.2pt><P align=center style='font:10pt Times New Roman;margin:0'>21</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:391.5pt><P style='font:10pt Times New Roman;margin:0'><KBD style='position:absolute;font:10pt Times New Roman'>Item 3. </KBD><KBD style=margin-left:49.5pt></KBD>Unregistered Sales of Equity Securities and Use of Proceeds&nbsp;</P>
</TD><TD valign=top style=width:40.2pt><P align=center style='font:10pt Times New Roman;margin:0'>21</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:391.5pt><P style='font:10pt Times New Roman;margin:0'><KBD style='position:absolute;font:10pt Times New Roman'>Item 4. </KBD><KBD style=margin-left:49.5pt></KBD>Defaults Upon Senior Securities&nbsp;</P>
</TD><TD valign=top style=width:40.2pt><P align=center style='font:10pt Times New Roman;margin:0'>22</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:391.5pt><P style='font:10pt Times New Roman;margin:0'><KBD style='position:absolute;font:10pt Times New Roman'>Item 5. </KBD><KBD style=margin-left:49.5pt></KBD>Mine Safety Disclosures&nbsp;</P>
</TD><TD valign=top style=width:40.2pt><P align=center style='font:10pt Times New Roman;margin:0'>22</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:391.5pt><P style='font:10pt Times New Roman;margin:0'><KBD style='position:absolute;font:10pt Times New Roman'>Item 6. </KBD><KBD style=margin-left:49.5pt></KBD>Other Information&nbsp;</P>
</TD><TD valign=top style=width:40.2pt><P align=center style='font:10pt Times New Roman;margin:0'>22</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:391.5pt><P style='font:10pt Times New Roman;margin:0'><KBD style='position:absolute;font:10pt Times New Roman'>Item 7. </KBD><KBD style=margin-left:49.5pt></KBD>Exhibits&nbsp;</P>
</TD><TD valign=top style=width:40.2pt><P align=center style='font:10pt Times New Roman;margin:0'>23</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:391.5pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=top style=width:40.2pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:391.5pt><P style='font:10pt Times New Roman;margin:0'>Signatures</P>
</TD><TD valign=top style=width:40.2pt><P align=center style='font:10pt Times New Roman;margin:0'>24</P>
</TD></TR>
</TABLE>
<HR style='border:0;height:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'>2</P>
<HR style='page-break-after:always;border:0;height:3pt;background-color:#909090;margin:8pt 0'><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><B>FINANCIAL INFORMATION</B></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><B>Certain Terms Used in this Report</B></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>For purposes of this report, unless otherwise indicated or the context otherwise requires, all references herein to &#8220;APT Systems,&#8221; &#8220;APT,&#8221; &#8220;the Company,&#8221; &#8220;we,&#8221; &#8220;us,&#8221; and &#8220;our,&#8221; refer to APT Systems, Inc., a Delaware corporation.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><B>FORWARD LOOKING STATEMENTS</B></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The following notes contains forward-looking statements regarding us, our business, prospects and results of operations that are subject to certain risks and uncertainties posed by many factors and events that could cause our actual business, prospects and results of operations to differ materially from those that may be anticipated by such forward-looking statements. Factors that may affect such forward-looking statements include, without limitation: our ability to successfully develop new products and services for new markets; the impact of competition on our revenues, changes in law or regulatory requirements that adversely affect or preclude clients from using us for certain applications; delays our introduction of new products or services; and our failure to keep pace with our competitors.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>When used in this discussion, words such as &quot;believes&quot;, &quot;anticipates&quot;, &quot;expects&quot;, &quot;intends&quot; and similar expressions are intended to identify forward-looking statements, but are not the exclusive means of identifying forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this report. We undertake no obligation to revise any forward-looking statements in order to reflect events or circumstances that may subsequently arise. APTY may also opt to disseminate information about itself, including the results of its operations and financial information, via social media platforms such as Facebook, LinkedIn and Twitter. Readers are urged to carefully review and consider the various disclosures made by us in this report and other reports filed with the Securities and Exchange Commission that attempt to advise interested parties of the risks and factors that may affect our business.</P>
<HR style='border:0;height:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'>3</P>
<HR style='page-break-after:always;border:0;height:3pt;background-color:#909090;margin:8pt 0'><P align=justify style='font:10pt Times New Roman;margin:0'><B>ITEM 1. FINANCIAL STATEMENTS</B></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>APT SYSTEMS, INC.</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>UNAUDITED FINANCIAL STATEMENTS</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>For the Three and Six Month Periods Ended July 31, 2017 and 2016</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>TABLE OF CONTENTS</B></P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:9pt'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse><TR style=height:7.2pt><TD valign=top style=width:274.5pt><P align=justify style='font:10pt Times New Roman;margin:0'><B> </B>&nbsp;</P>
</TD><TD valign=top style=width:38.6pt><P align=justify style='font:10pt Times New Roman;margin:0'><B>PAGE</B></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:274.5pt><P align=justify style='font:10pt Times New Roman;margin:0'>Balance Sheets</P>
</TD><TD valign=top style=width:38.6pt><P align=center style='font:10pt Times New Roman;margin:0'>5</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:274.5pt><P align=justify style='font:10pt Times New Roman;margin:0'>Statements of Operations</P>
</TD><TD valign=top style=width:38.6pt><P align=center style='font:10pt Times New Roman;margin:0'>6</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:274.5pt><P align=justify style='font:10pt Times New Roman;margin:0'>Statements of Cash Flows</P>
</TD><TD valign=top style=width:38.6pt><P align=center style='font:10pt Times New Roman;margin:0'>7</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:274.5pt><P align=justify style='font:10pt Times New Roman;margin:0'>Notes to Unaudited Financial Statements</P>
</TD><TD valign=top style=width:38.6pt><P align=center style='font:10pt Times New Roman;margin:0'>8</P>
</TD></TR>
</TABLE>
<HR style='border:0;height:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'>4</P>
<HR style='page-break-after:always;border:0;height:3pt;background-color:#909090;margin:8pt 0'><TABLE align=center style=border-collapse:collapse;width:544.9pt><TR style=height:7.2pt><TD colspan=5 valign=bottom style=width:544.9pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'><B>APT SYSTEMS, INC.</B></P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=5 valign=bottom style=width:544.9pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'><B>Balance Sheets</B></P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=5 valign=bottom style=width:544.9pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:319.5pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:98.8pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'><B>July 31, 2017</B></P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:93.8pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>January 31,2017</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:319.5pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:98.8pt;white-space:nowrap;border-top:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>(Unaudited)</B></P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:93.8pt;white-space:nowrap;border-top:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:319.5pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'><B>ASSETS</B></P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:98.8pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:93.8pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:319.5pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:98.8pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:93.8pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:319.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'><B>Current Assets</B></P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:98.8pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:93.8pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:319.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:8.25pt'>Cash and cash equivalents</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:98.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>25,289</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:93.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>7,713</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:319.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:8.25pt'>Trading investments</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:98.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>15,024</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:93.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>14,681</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:319.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:8.25pt'>Prepaid expenses</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:98.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:93.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>17,141</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:319.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:8.25pt'>Other current assets</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:98.8pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>268</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:93.8pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>268</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:319.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:8.25pt'>Total current assets</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:98.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>40,581</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:93.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>39,803</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:319.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:98.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:93.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:319.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'><B>Other Assets</B></P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:98.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:93.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:319.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:98.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:93.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:319.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Software (net of $31,908 and $22,291 accumulated amortization </P>
<P style='font:10pt Times New Roman;margin:0'>respectively)</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:98.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>92,884</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:93.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>82,494</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:319.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'> Total other assets</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:98.8pt;white-space:nowrap;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>92,884</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:93.8pt;white-space:nowrap;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>82,494</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:319.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'><B>Total Assets</B></P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'><B>$</B></P>
</TD><TD valign=bottom style='width:98.8pt;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'><B>133,465</B></P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'><B>$</B></P>
</TD><TD valign=bottom style='width:93.8pt;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'><B>122,297</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:319.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:98.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:93.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:319.5pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'><B>LIABILITIES &amp; STOCKHOLDERS' DEFICIT</B></P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:98.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:93.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:319.5pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:98.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:93.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:319.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'><B>Current Liabilities</B></P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:98.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:93.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:319.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:8.25pt'>Accounts payable and accrued expenses</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:98.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>123,847</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:93.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>113,170</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:319.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:8.25pt'>Accrued officer compensation</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:98.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>200,300</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:93.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>170,300</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom bgcolor=#FFFFFF style=width:319.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:-4.5pt;margin-left:12.75pt'>Convertible notes payable, net of unamortized discounts of $2,125 and </P>
<P style='font:10pt Times New Roman;margin:0;text-indent:-4.5pt;margin-left:12.75pt'>$4,233, respectively</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom bgcolor=#FFFFFF style=width:98.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>157,875</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom bgcolor=#FFFFFF style=width:93.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>139,267</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:319.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:8.25pt'>Notes payable</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom bgcolor=#FFFFFF style=width:98.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>75,299</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom bgcolor=#FFFFFF style=width:93.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>76,619</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:319.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:8.25pt'>Loan from director</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom bgcolor=#FFFFFF style=width:98.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>4,560</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:93.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>4,465</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:319.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'> Total current liabilities</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom bgcolor=#FFFFFF style='width:98.8pt;white-space:nowrap;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>561,881</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:93.8pt;white-space:nowrap;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>503,821</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:319.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom bgcolor=#FFFFFF style=width:98.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:93.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:319.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Convertible notes payable - related party</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom bgcolor=#FFFFFF style=width:98.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>26,276</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:93.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>26,276</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:319.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'><B>Total Liabilities</B></P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:98.8pt;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>588,157</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:93.8pt;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>530,097</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:319.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:98.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:93.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom bgcolor=#FFFFFF style=width:319.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:-4.5pt;margin-left:12.75pt'>Series B 6% Convertible Cumulative Preferred Stock; $0.001 par value, </P>
<P style='font:10pt Times New Roman;margin:0;text-indent:-4.5pt;margin-left:12.75pt'>1,000,000 shares designated; 52,500 and 0 shares issued outstanding as of </P>
<P style='font:10pt Times New Roman;margin:0;text-indent:-4.5pt;margin-left:12.75pt'>July 31, 2017 and January 31, 2017 respectively.</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:98.8pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>52,500</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:93.8pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:319.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:98.8pt;white-space:nowrap;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:93.8pt;white-space:nowrap;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:319.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'><B>STOCKHOLDERS' DEFICIT</B></P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:98.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:93.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:319.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:98.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:93.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:319.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:-0.75pt'>Preferred stock, $0.001 par value, 100,000,000 authorized</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:98.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:93.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom bgcolor=#FFFFFF style=width:319.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:-0.75pt'>Preferred A stock $0.001 par value, 1,000,000 shares designated;</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:98.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:93.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom bgcolor=#FFFFFF style=width:319.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:-8.25pt;margin-left:8.25pt'>  &nbsp;1,000,000 and 0 issued as of July 31, 2017 and January 31, 2017, </P>
<P style='font:10pt Times New Roman;margin:0;text-indent:-8.25pt;margin-left:8.25pt'>respectively</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:98.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>1,000</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:93.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom bgcolor=#FFFFFF style=width:319.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Common stock $0.0001 par value, 750,000,000 shares authorized;</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:98.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:93.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom bgcolor=#FFFFFF style=width:319.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'> &nbsp;&nbsp;297,300,531 and 229,252,036 shares issued and outstanding as of</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:98.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:93.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom bgcolor=#FFFFFF style=width:319.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'> &nbsp;&nbsp;July 31, 2017 and January 31, 2017, respectively</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:98.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>29,730</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:93.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>22,926</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:319.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:-0.75pt'>Additional paid-in capital</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:98.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>1,868,538</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:93.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>855,511</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:319.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:-0.75pt'>Common stock payable</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:98.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:93.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>1,180</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:319.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:-0.75pt'>Accumulated deficit </P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:98.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(2,406,460)</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:93.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(1,287,417)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:319.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'><B>TOTAL STOCKHOLDERS' DEFICIT</B></P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:98.8pt;white-space:nowrap;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(507,192)</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:93.8pt;white-space:nowrap;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(407,800)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:319.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'><B> &nbsp;&nbsp;&nbsp;&nbsp;TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT</B></P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:98.8pt;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'><B>133,465</B></P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:93.8pt;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'><B>122,297</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:319.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:98.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:93.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=5 valign=bottom style=width:544.9pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>The accompanying notes are an integral part of these unaudited financial statements</P>
</TD></TR>
</TABLE>
<HR style='border:0;height:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'>5</P>
<HR style='page-break-after:always;border:0;height:3pt;background-color:#909090;margin:8pt 0'><TABLE align=center style=border-collapse:collapse;width:98.9%><TR style=height:7.2pt><TD colspan=10 valign=bottom style=white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'><B>APT SYSTEMS, INC</B></P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=10 valign=bottom style=white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'><B>Statements of Operations</B></P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=10 valign=bottom style=white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'><B>(Unaudited)</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'><B>Three Months Ended</B></P>
</TD><TD valign=bottom style=white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'><B>Three Months Ended</B></P>
</TD><TD valign=bottom style=white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'><B>Six Months Ended</B></P>
</TD><TD valign=bottom style=white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'><B>Six Months Ended</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>July 31, 2017</B></P>
</TD><TD valign=bottom style=white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>July 31, 2016</B></P>
</TD><TD valign=bottom style=white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>July 31, 2017</B></P>
</TD><TD valign=bottom style=white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>July 31, 2016</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'><B>Revenue</B></P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>E-book sales</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>27</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>11</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>27</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'><B>Total Revenue</B></P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>27</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>11</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>27</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'><B>Cost of Revenue</B></P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'><B>Gross Profit</B></P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>27</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>11</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>27</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'><B>Operating Expenses</B></P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Amortization</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>4,555</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>500</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>9,617</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>1,000</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Compensation to officer and directors</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>883,654</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>15,000</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>898,654</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>30,000</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>General and administrative</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>48,351</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>99,450</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>112,337</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>298,765</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'><B>Total Operating Expenses</B></P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>936,560</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>114,950</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>1,020,608</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>329,765</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'><B>Net Operating Loss</B></P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(936,560)</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(114,923)</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(1,020,597)</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(329,738)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'><B>Other Income (Expense)</B></P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'> &nbsp;&nbsp;&nbsp;Other income</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>268</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>859</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>371</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>5,557</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'> &nbsp;&nbsp;&nbsp;Loss on settlement of notes and accounts payable</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(73,497)</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(73,497)</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'> &nbsp;&nbsp;&nbsp;Interest expense and amortization of debt discount</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(18,537)</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(24,452)</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(25,320)</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(31,830)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'><B>Total Other Income (Expense)</B></P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(91,766)</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(23,593)</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(98,446)</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(26,273)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'><B>Net Loss</B></P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(1,028,326)</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(138,516)</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(1,119,043)</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(356,011)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'><B>Dividends Applicable to Preferred Stock</B></P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(609)</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(855)</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'><B>Net Loss Applicable to Common Stockholders</B></P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(1,028,935)</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(138,516)</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(1,119,898)</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(356,011)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'><B>Net loss per common share:</B></P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'><B> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic and diluted</B></P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(0.00)</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(0.00)</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(0.00)</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(0.00)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'><B>Weighted average number of </B></P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'><B> &nbsp;&nbsp;common shares outstanding:</B></P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'><B> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic and diluted</B></P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom bgcolor=#FFFFFF style='white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'><B>273,091,966</B></P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom bgcolor=#FFFFFF style='white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'><B>122,689,759</B></P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom bgcolor=#FFFFFF style='white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'><B>255,987,704</B></P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom bgcolor=#FFFFFF style='white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'><B>119,389,472</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=9 valign=bottom style=white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>The accompanying notes are an integral part of these unaudited financial statements</P>
</TD></TR>
</TABLE>
<HR style='border:0;height:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'>6</P>
<HR style='page-break-after:always;border:0;height:3pt;background-color:#909090;margin:8pt 0'><TABLE align=center style=border-collapse:collapse;width:106.7%><TR style=height:7.2pt><TD colspan=5 valign=bottom style=white-space:nowrap><P align=center style='font:9.5pt Times New Roman;margin:0'><B>APT SYSTEMS, INC</B></P>
</TD></TR>
<TR style=height:9pt><TD colspan=5 valign=bottom style=white-space:nowrap><P align=center style='font:9.5pt Times New Roman;margin:0'><B>Statements of Cash Flows </B></P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=5 valign=bottom style=white-space:nowrap><P align=center style='font:9.5pt Times New Roman;margin:0'><B>(Unaudited)</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P align=center style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P align=center style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=center style='font:9.5pt Times New Roman;margin:0'><B>Six Months Ended </B></P>
</TD><TD valign=bottom style=white-space:nowrap><P align=center style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=center style='font:9.5pt Times New Roman;margin:0'><B>Six Months Ended </B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P align=center style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:9.5pt Times New Roman;margin:0'><B>July 31, 2017</B></P>
</TD><TD valign=bottom style=white-space:nowrap><P align=center style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:9.5pt Times New Roman;margin:0'><B>July 31, 2016</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:9.5pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'><B>CASH FLOWS FROM OPERATING ACTIVITIES</B></FONT></P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:9.5pt Times New Roman;margin:0'> &nbsp;&nbsp;&nbsp;Net loss </P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>(1,119,043)</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0;margin-right:-0.75pt'>$</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>(356,011)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:9.5pt Times New Roman;margin:0'> &nbsp;&nbsp;&nbsp;Adjustments to reconcile net loss to net cash provided by (used in) operating activities:</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:9.5pt Times New Roman;margin:0'> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization expense</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>9,617</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>1,000</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:9.5pt Times New Roman;margin:0'> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on investments</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>(343)</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>(5,343)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:9.5pt Times New Roman;margin:0'> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of debt discount</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>5,108</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>19,141</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:9.5pt Times New Roman;margin:0'> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on settlement of notes and accounts payable</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>73,497</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:9.5pt Times New Roman;margin:0'> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock issued for consulting services</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>868,654</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>191,150</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:9.5pt Times New Roman;margin:0'> &nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities:</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:9.5pt Times New Roman;margin:0'> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>17,141</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>7,732</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:9.5pt Times New Roman;margin:0'> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>30,772</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>33,405</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:9.5pt Times New Roman;margin:0'> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued officer compensation</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:9.5pt Times New Roman;margin:0'>30,000</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:9.5pt Times New Roman;margin:0'>30,000</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:9.5pt Times New Roman;margin:0'><B><I>  &nbsp; &nbsp;&nbsp;&nbsp;Net cash (used in) operating activities</I></B></P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:9.5pt Times New Roman;margin:0'>(84,597)</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:9.5pt Times New Roman;margin:0'>(78,926)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:9.5pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'><B>CASH FLOWS FROM INVESTING ACTIVITIES</B></FONT></P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:9.5pt Times New Roman;margin:0'> &nbsp;&nbsp;&nbsp;&nbsp;Purchase of investments</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>(20,550)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:9.5pt Times New Roman;margin:0'> &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale of investments</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>13,354</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:9.5pt Times New Roman;margin:0'> &nbsp;&nbsp;&nbsp;&nbsp;Investment in software development</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:9.5pt Times New Roman;margin:0'>(20,007)</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:9.5pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:9.5pt Times New Roman;margin:0'><B> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <I>Net cash (used in) investing activities</I></B></P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:9.5pt Times New Roman;margin:0'>(20,007)</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:9.5pt Times New Roman;margin:0'>(7,196)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:9.5pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'><B>CASH FLOWS FROM FINANCING ACTIVITIES</B></FONT></P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:9.5pt Times New Roman;margin:0'> &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from director loan</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>4,150</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:9.5pt Times New Roman;margin:0'> &nbsp;&nbsp;&nbsp;&nbsp;Payment of loan from director</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>(5,000)</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>(3,655)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:9.5pt Times New Roman;margin:0'> &nbsp;&nbsp;&nbsp;&nbsp;Issuance of convertible notes and short-term notes payable</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>50,000</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>80,000</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:9.5pt Times New Roman;margin:0'> &nbsp;&nbsp;&nbsp;&nbsp;Payments on convertible notes payable</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>(26,500)</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:9.5pt Times New Roman;margin:0'> &nbsp;&nbsp;&nbsp;&nbsp;Issuance of long-term notes payable</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>5,655</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:9.5pt Times New Roman;margin:0'> &nbsp;&nbsp;&nbsp;&nbsp;Payments on Notes Payable</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>(1,320)</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:9.5pt Times New Roman;margin:0'> &nbsp;&nbsp;&nbsp;&nbsp;Procceds from issaunce of common and preferred shares</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>105,000</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:9.5pt Times New Roman;margin:0'><B><I>  &nbsp;&nbsp;&nbsp; &nbsp;Net cash provided by financing activities</I></B></P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:9.5pt Times New Roman;margin:0'>122,180</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:9.5pt Times New Roman;margin:0'>86,150</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:9.5pt Times New Roman;margin:0'><B><I> &nbsp; &nbsp;&nbsp;&nbsp; Net change in cash and cash equivalents</I></B></P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>17,576</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>28</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:9.5pt Times New Roman;margin:0'><B><I>Cash and cash equivalents at beginning of period</I></B></P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:9.5pt Times New Roman;margin:0'>7,713</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:9.5pt Times New Roman;margin:0'>833</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000'><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000'><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:9.5pt Times New Roman;margin:0'><B><I>Cash and cash equivalents at end of period</I></B></P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:9.5pt Times New Roman;margin:0'><B>25,289</B></P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'> $</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:9.5pt Times New Roman;margin:0'><B>861</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:9.5pt Times New Roman;margin:0'><B>SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION </B></P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:9.5pt Times New Roman;margin:0'>Cash paid for :</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:9.5pt Times New Roman;margin:0'> &nbsp;&nbsp;Interest</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:9.5pt Times New Roman;margin:0'>11,538</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:9.5pt Times New Roman;margin:0'>3,114</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:9.5pt Times New Roman;margin:0'> &nbsp;&nbsp;Income Taxes</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:9.5pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:9.5pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:9.5pt Times New Roman;margin:0'>Non-Cash Transactions</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:9.5pt Times New Roman;margin:0'> &nbsp;&nbsp;Stock and stock payable issued for software acquisition</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:9.5pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:9.5pt Times New Roman;margin:0'>91,100</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:9.5pt Times New Roman;margin:0'> &nbsp;&nbsp;Stock issued settlement of notes payable</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:9.5pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:9.5pt Times New Roman;margin:0'>25,000</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:9.5pt Times New Roman;margin:0'> &nbsp;&nbsp;Common stock issued to settle notes and accounts payable</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:9.5pt Times New Roman;margin:0'>25,000</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:9.5pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:9.5pt Times New Roman;margin:0'> &nbsp;&nbsp;Common stock issued for stock payable</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:9.5pt Times New Roman;margin:0'>1,180</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:9.5pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:9.5pt Times New Roman;margin:0'> &nbsp;&nbsp;Expenses paid by director</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:9.5pt Times New Roman;margin:0'>5,095</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:9.5pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:9.5pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=5 valign=bottom style=white-space:nowrap><P align=center style='font:9.5pt Times New Roman;margin:0'>The accompanying notes are an integral part of these unaudited financial statements</P>
</TD></TR>
</TABLE>
<HR style='border:0;height:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'>7</P>
<HR style='page-break-after:always;border:0;height:3pt;background-color:#909090;margin:8pt 0'><P align=center style='font:10pt Times New Roman;margin:0'><B>APT SYSTEMS, INC.</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>NOTES TO CONDENSED UNAUDITED FINANCIAL STATEMENTS</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>FOR THE SIX MONTH PERIODS ENDED JULY 31, 2017 AND 2016</B></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'><B>1. NATURE OF OPERATIONS</B></FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><B>APT Systems, Inc</B>. (&#8220;APT Systems&#8221;, &#8220;the Company&#8221;, &quot;We&quot; or &quot;Us&quot;) was incorporated in the State of Delaware on October 29, 2010 (&#8220;Inception&#8221;) to operate as a Fintech Company to engage in the creation of innovative and intuitive stock trading platforms, financial apps and visualization solutions for charting the financial markets. While management works to deliver a mobile trading platform it also is strategically acquiring other compatible software or financial businesses which demonstrate strong growth potential stemming from a solid business plan. After we identify prospective opportunities then we continue with due diligence efforts that will and do include testing software performance and within funded external trading accounts as necessary. The Company successfully acquired Global Trader predictive indicators and added these to its intellectual property. Over the previous year, the Company had continued to claim income earned from its testing of strategies and trading software as other income. The testing continues to generate positive returns when deployed. In this second quarter, the Company continued its development of separate native charting apps branded as KenCharts for potential future licensing opportunities and subscriptions. After beta testing is completed, our proprietary custom charting tools and trading platform apps will later be available to subscribers for a fee. Upon successful completion of the apps, we anticipate modest revenues prior to marketing campaigns scheduled for the fourth quarter. Some revenue continues to come from the Apple store from a previously launched publication promoting a trading strategy that is successfully testing Apple revenue payment delivery to our bank account. </P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Management will continue to expand upon trading its platform named Intuitrader and related software products, being those recently acquired predictive indicators called Global Trader as well as those developed in-house such as KenCharts. Any profits generated from funds used in live trading tests can be used to offset future development costs, for which there is a plan to operate from within a wholly-owned subsidiary. We constantly strive to pioneer original trading tools and indicators along with new approaches for managing trading risk. We are well into the development of the KenCharts apps for Android and iOS release. </P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'><B>2. GOING CONCERN AND LIQUIDITY</B></FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>As of July 31, 2017, the Company had cash of $25,289, insufficient revenue to meet its ongoing operating expenses, and liabilities of $588,157, accumulated losses of $2,406,460 and a shareholders&#8217; deficit of $507,192. The Company has not as yet generated significant product sales revenues as its key products are still under development.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The unaudited financial statements for the three and six months ended July 31, 2017 have been prepared on a going concern basis which assumes the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. The Company anticipates future losses in the development of its business raising substantial doubt about the Company&#8217;s ability to continue as a going concern. The ability to continue as a going concern is dependent upon the Company generating profitable operations in the future and, or, obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. Management intends to finance operating costs over the next twelve months with existing cash on hand, loans, loans from directors and, or, the sale of common stock. There is no assurance that this series of events will be satisfactorily completed.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Financial statements do not include any adjustments relating to the recoverability and classification of assets and liabilities that may be necessary if the Company is unable to continue as a going concern.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'><B>3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</B></FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Basis of Presentation of Financial Statements</FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The accompanying unaudited financial statements of APT Systems have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In our opinion the financial statements include all adjustments (consisting of normal recurring accruals) necessary in order to make the condensed financial statements not misleading. Operating results for the three and six month ended July 31, 2017 are not necessarily indicative of the final results that may be expected for the year ended January 31, 2018. For more complete financial information, these unaudited financial statements should be read in conjunction with the audited financial statements for the year ended January 31, 2017 included in our Form 10-K filed with the SEC. Notes to the financial statements which would substantially duplicate the disclosures contained in the audited financial statements for the most recent fiscal period, as reported in the Form 10-K, have been omitted.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Reclassifications</FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Certain reclassifications have been made to the prior periods to conform to the current period presentation.</P>
<HR style='border:0;height:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'>8</P>
<HR style='page-break-after:always;border:0;height:3pt;background-color:#909090;margin:8pt 0'><P align=justify style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'><B>4. RELATED PARTY TRANSACTIONS</B></FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Effective November 1, 2013, the Company began to accrue a monthly salary of $5,000 per month for the President on an ongoing basis. Accrued officer compensation as of July 31, 2017 and January 31, 2017 was $200,300 and $170,300 respectively. The accrued compensation will only be paid as and when the directors decide the Company has sufficient liquidity to pay some, or all, of the amounts accrued. As resolved, the accrued compensation will only be paid after January 1, 2018 as and when the directors decide the Company has sufficient liquidity to pay some, or all, of the amounts accrued in cash or by issuing shares. The President of the Company can also consider submitting a request to the Board of Directors for permission to convert some, or all, of her accrued compensation into shares of the Company&#8217;s common stock, but only after January 1, 2018. The share price considerations will be either the publicly quoted share price, when such a publicly quoted price is available; or equal to or above the last cash price the Company recorded for the sale of its common shares to third parties.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>As of July 31, 2017 and January 31, 2017, the Company owed the President $4,560 and $4,465 respectively by way of loans. The loans are unsecured, due on demand and interest free.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'><B>5. SOFTWARE </B></FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The Company has software that it uses for the development of certain mobile applications. The software and any upgrades are being amortized over useful lives ranging from 3 - 5 years. The Company recorded amortization expense of $9,617 and $1,000 for the six months ended July 31, 2017 and 2016, respectively.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse><TR style=height:7.2pt><TD valign=top style=width:157.5pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=top style=width:18pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:80.25pt;border-bottom:0.75pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>July 31, 2017</P>
</TD><TD valign=bottom style=width:18pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:82.5pt;border-bottom:0.75pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>January 31, 2017</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:157.5pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=top style=width:18pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=top style=width:80.25pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=top style=width:18pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=top style=width:82.5pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:157.5pt><P style='font:10pt Times New Roman;margin:0'>Charting software</P>
</TD><TD valign=bottom style=width:18pt><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:80.25pt><P align=right style='font:10pt Times New Roman;margin:0'>102,705</P>
</TD><TD valign=bottom style=width:18pt><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:82.5pt><P align=right style='font:10pt Times New Roman;margin:0'>102,705</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:157.5pt><P style='font:10pt Times New Roman;margin:0'>Ken Chart Native Apps</P>
</TD><TD valign=bottom style=width:18pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:80.25pt><P align=right style='font:10pt Times New Roman;margin:0'>20,007</P>
</TD><TD valign=bottom style=width:18pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:82.5pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:157.5pt><P style='font:10pt Times New Roman;margin:0'>Website</P>
</TD><TD valign=bottom style=width:18pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:80.25pt;border-bottom:0.75pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>2,080</P>
</TD><TD valign=bottom style=width:18pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:82.5pt;border-bottom:0.75pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>2,080</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:157.5pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:18pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:80.25pt><P align=right style='font:10pt Times New Roman;margin:0'>124,792</P>
</TD><TD valign=bottom style=width:18pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:82.5pt><P align=right style='font:10pt Times New Roman;margin:0'>104,785</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:157.5pt><P style='font:10pt Times New Roman;margin:0'>Accumulated amortization</P>
</TD><TD valign=bottom style=width:18pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:80.25pt;border-bottom:0.75pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(31,908)</P>
</TD><TD valign=bottom style=width:18pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:82.5pt;border-bottom:0.75pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(22,291)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:157.5pt><P style='font:10pt Times New Roman;margin:0'>Net book value</P>
</TD><TD valign=bottom style=width:18pt><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:80.25pt;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>92,884</P>
</TD><TD valign=bottom style=width:18pt><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:82.5pt;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>82,494</P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'><B>6. CONVERTIBLE NOTES PAYABLE</B></FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B>Noteholder 1</B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>On January 8, 2014 the Company issued an unsecured convertible note to one accredited investor (as that term is defined under the Securities Act of 1933, as amended) in the aggregate amount of $50,000. This convertible note accrues interest at the rate of 19% per annum and is convertible at $0.0001. The Company secured an initial extension of the convertible note to January 29, 2015 and subsequently obtained a further extension to December 31, 2016. The note has been reduced to $43,500 through the sales of part of the debt to unrelated third parties in prior periods. </P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>During the quarter ending July 31, 2017, the noteholder sold $10,000 of this note to an unrelated party. The $10,000 note was then settled with the issuance of 20,000,000 shares of common stock. This settlement resulted in the recording of a $62,000 loss on settlement of notes payable.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The Company is currently in discussions with the lender to further extend the maturity date and has been verbally extended to be later written. Until such time as that is completed the note is considered past due.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>On April 17, 2015, the Company received $5,000 by way of an unsecured short-term loan from a non-related party for a term of 60 days that was later extended until April 23, 2017. Principal and interest at 8% per annum accrued thereon are due and payable on April 23, 2017 and is further renewable. Also, the lender has the right to convert the principal and accrued interest into shares of the Company&#8217;s common stock at $0.01 cents. The Company is currently in discussions with the lender to further extend the maturity date and has been verbally extended to be later written. Until such time as that is completed the note is considered past due.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><B>Noteholder 2</B></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>On October 2, 2015, the Company received $12,500 by way of an unsecured short-term loan from a non-related party for a term of one year. Principal and interest at 8% per annum accrued thereon are due and payable on October 1, 2016. Also, the lender has the right to convert the principal and accrued interest into shares of the Company&#8217;s common stock. The conversion rate was equal to the fair market value of the Company&#8217;s common stock on the date of issuance. This loan has been extended until October 1, 2017.</P>
<HR style='border:0;height:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'>9</P>
<HR style='page-break-after:always;border:0;height:3pt;background-color:#909090;margin:8pt 0'><P align=justify style='font:10pt Times New Roman;margin:0'><B>Noteholder 3</B></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The Company took on a loan of $52,500, in the form of a convertible note, in November 2016. The note is due and payable twelve months from the issuance date and bear interest at 5% per annum with an original issuance discount of 5%. If the Note is paid off prior to 181 days, the Company is required to pay the face amount plus a penalty of 30% otherwise the investor may convert loan to common shares. Once convertible the conversion rate is equal to 60% of the lowest traded market price during the previous 15 trading days. The holder is limited to converting no more than 20% percent of the previous week&#8217;s dollar volume during any given trading week. </P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The Company reached an agreement on May 4, 2017 with Convertible Noteholder where by half of the note has been repaid in cash and the balance of the loan has been extended for an additional six months up to November 4, 2017 during which time the note is not convertible. The total cash payment of $34,438 is being applied $26,250 to the principle and the remaining to interest and prepayment penalties.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><B>Noteholder 4</B></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The Company took on a further loan of $30,000, in the form of a convertible note on January 31, 2017 with unrelated parties. The note is due and payable twelve months from the issuance date and bears interest at 8% per annum with an original issuance discount of $3,000. If the Note is paid off prior to the due date, the Company is required to pay the face amount plus a scaled penalty ranging from 10% to 35% depending on the repayment date. Also noted, after 181 days from the issuance date, the Note is convertible into the shares of the Company&#8217;s common stock. The conversion rate is equal to 55% of the market price during the previous 10 trading days. The loan is convertible at the end of July 2017. By agreement of both parties, any right of conversion date has been postponed until September 12, 2017.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><B>Noteholder 5</B></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The Company had executed three lending arrangements with a related party, affiliated to the CEO of the company. The effective dates of the loans are November 24, 2015, December 8, 2015 and January 14, 2016. The loan amounts are $3,000, $16,121 and $1,500, respectively, with interest accruing at 5% per annum. Repayment is in one lump sum due and payable on or before December 31, 2018, December 31, 2018 and January 31, 2019, respectively.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The Company has executed two additional notes with the same related party. The effective dates of the additional loans are March 10, 2016 and March 15, 2016. The loan amounts are $2,770 and $2,885, respectively, with interest accruing at 5% per annum. Repayment is in one lump sum due and payable on or before January 31, 2019. All notes are convertible, at the holder&#8217;s request, into shares of the Company&#8217;s common stock at the rate of $9.50 per share.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><B>Noteholder 6</B></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The company took on further loan of $53,000 in the form of a convertible note on May 8, 2017 with unrelated parties and received funds on May 15. The note is due and payable nine months from the issuance date and bears interest at 8% per annum with an original issuance discount of $3,000. If the Note is paid off prior to the due date, the Company is required to pay the face amount plus a scaled penalty ranging from 10% to 35% depending on the repayment date. Also noted, 181 days after funding the, the Note becomes convertible on or about November 15, 2017. Once the conversion terms are effective the note is convertible into shares at the greater of $0.00008 or 61% of the market value as calculated per the agreement.</P>
<HR style='border:0;height:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'>10</P>
<HR style='page-break-after:always;border:0;height:3pt;background-color:#909090;margin:8pt 0'><P align=justify style='font:10pt Times New Roman;margin:0'>The following table summarizes all convertible notes outstanding as of July 31, 2017:</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse><TR style=height:7.2pt><TD valign=bottom style='width:99.9pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>Holder</P>
</TD><TD valign=bottom style='width:59.1pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>Issue Date</P>
</TD><TD valign=bottom style='width:59.1pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>Due Date</P>
</TD><TD valign=top style=width:15.9pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:51.3pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>Principal</P>
</TD><TD valign=top style=width:15.8pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:66.6pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>Unamortized </P>
<P align=center style='font:10pt Times New Roman;margin:0'>Debt </P>
<P align=center style='font:10pt Times New Roman;margin:0'>Discount</P>
</TD><TD valign=top style=width:19.5pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:66.15pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>Carrying </P>
<P align=center style='font:10pt Times New Roman;margin:0'>Value</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style='width:99.9pt;border-top:0.5pt solid #000000'><P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style='width:59.1pt;border-top:0.5pt solid #000000'><P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style='width:59.1pt;border-top:0.5pt solid #000000'><P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=width:15.9pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style='width:51.3pt;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=width:15.8pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style='width:66.6pt;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=width:19.5pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style='width:66.15pt;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:99.9pt><P align=justify style='font:10pt Times New Roman;margin:0'><I>Third Parties</I></P>
</TD><TD valign=top style=width:59.1pt><P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=width:59.1pt><P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=width:15.9pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=width:51.3pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=width:15.8pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=width:66.6pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=width:19.5pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=width:66.15pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:99.9pt><P align=justify style='font:10pt Times New Roman;margin:0'>Noteholder 1a</P>
</TD><TD valign=bottom style=width:59.1pt><P align=right style='font:10pt Times New Roman;margin:0'>1/8/2014</P>
</TD><TD valign=bottom style=width:59.1pt><P align=right style='font:10pt Times New Roman;margin:0'>Past Due</P>
</TD><TD valign=bottom style=width:15.9pt><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:51.3pt><P align=right style='font:10pt Times New Roman;margin:0'> 33,500</P>
</TD><TD valign=bottom style=width:15.8pt><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:66.6pt><P align=right style='font:10pt Times New Roman;margin:0'> -</P>
</TD><TD valign=bottom style=width:19.5pt><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:66.15pt><P align=right style='font:10pt Times New Roman;margin:0'> 33,500</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:99.9pt><P align=justify style='font:10pt Times New Roman;margin:0'>Noteholder 1b</P>
</TD><TD valign=bottom style=width:59.1pt><P align=right style='font:10pt Times New Roman;margin:0'>4/23/15</P>
</TD><TD valign=bottom style=width:59.1pt><P align=right style='font:10pt Times New Roman;margin:0'>Past Due</P>
</TD><TD valign=bottom style=width:15.9pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:51.3pt><P align=right style='font:10pt Times New Roman;margin:0'>5,000</P>
</TD><TD valign=bottom style=width:15.8pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:66.6pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:19.5pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:66.15pt><P align=right style='font:10pt Times New Roman;margin:0'>5,000</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:99.9pt><P align=justify style='font:10pt Times New Roman;margin:0'>Noteholder 2</P>
</TD><TD valign=bottom style=width:59.1pt><P align=right style='font:10pt Times New Roman;margin:0'>10/2/2015</P>
</TD><TD valign=bottom style=width:59.1pt><P align=right style='font:10pt Times New Roman;margin:0'>10/1/2017</P>
</TD><TD valign=bottom style=width:15.9pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:51.3pt><P align=right style='font:10pt Times New Roman;margin:0'>12,500</P>
</TD><TD valign=bottom style=width:15.8pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:66.6pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:19.5pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:66.15pt><P align=right style='font:10pt Times New Roman;margin:0'>12,500</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:99.9pt><P align=justify style='font:10pt Times New Roman;margin:0'>Noteholder 3</P>
</TD><TD valign=bottom style=width:59.1pt><P align=right style='font:10pt Times New Roman;margin:0'>11/1/2016</P>
</TD><TD valign=bottom style=width:59.1pt><P align=right style='font:10pt Times New Roman;margin:0'>11/4/2017</P>
</TD><TD valign=bottom style=width:15.9pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:51.3pt><P align=right style='font:10pt Times New Roman;margin:0'>26,000</P>
</TD><TD valign=bottom style=width:15.8pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:66.6pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:19.5pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:66.15pt><P align=right style='font:10pt Times New Roman;margin:0'>26,000</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:99.9pt><P align=justify style='font:10pt Times New Roman;margin:0'>Noteholder 4</P>
</TD><TD valign=bottom style=width:59.1pt><P align=right style='font:10pt Times New Roman;margin:0'>1/30/2017</P>
</TD><TD valign=bottom style=width:59.1pt><P align=right style='font:10pt Times New Roman;margin:0'>1/30/2018</P>
</TD><TD valign=bottom style=width:15.9pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:51.3pt><P align=right style='font:10pt Times New Roman;margin:0'>30,000</P>
</TD><TD valign=bottom style=width:15.8pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:66.6pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:19.5pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:66.15pt><P align=right style='font:10pt Times New Roman;margin:0'>30,000</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:99.9pt><P align=justify style='font:10pt Times New Roman;margin:0'>Noteholder 6</P>
</TD><TD valign=bottom style=width:59.1pt><P align=right style='font:10pt Times New Roman;margin:0'>5/15/2017</P>
</TD><TD valign=bottom style=width:59.1pt><P align=right style='font:10pt Times New Roman;margin:0'>2/20/2018</P>
</TD><TD valign=bottom style=width:15.9pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:51.3pt><P align=right style='font:10pt Times New Roman;margin:0'>53,000</P>
</TD><TD valign=bottom style=width:15.8pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:66.6pt><P align=right style='font:10pt Times New Roman;margin:0'>2,125</P>
</TD><TD valign=bottom style=width:19.5pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:66.15pt><P align=right style='font:10pt Times New Roman;margin:0'>50,875</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:99.9pt><P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:59.1pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:59.1pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.9pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:51.3pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.8pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:66.6pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:19.5pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:66.15pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:99.9pt><P align=justify style='font:10pt Times New Roman;margin:0'><I>Related Parties</I></P>
</TD><TD valign=bottom style=width:59.1pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:59.1pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.9pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:51.3pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.8pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:66.6pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:19.5pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:66.15pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:99.9pt><P align=justify style='font:10pt Times New Roman;margin:0'>Noteholder 5a</P>
</TD><TD valign=bottom style=width:59.1pt><P align=right style='font:10pt Times New Roman;margin:0'>11/23/2015</P>
</TD><TD valign=bottom style=width:59.1pt><P align=right style='font:10pt Times New Roman;margin:0'>12/31/2018</P>
</TD><TD valign=bottom style=width:15.9pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:51.3pt><P align=right style='font:10pt Times New Roman;margin:0'>3,000</P>
</TD><TD valign=bottom style=width:15.8pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:66.6pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:19.5pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:66.15pt><P align=right style='font:10pt Times New Roman;margin:0'>3,000</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:99.9pt><P align=justify style='font:10pt Times New Roman;margin:0'>Noteholder 5b</P>
</TD><TD valign=bottom style=width:59.1pt><P align=right style='font:10pt Times New Roman;margin:0'>12/8/2015</P>
</TD><TD valign=bottom style=width:59.1pt><P align=right style='font:10pt Times New Roman;margin:0'>12/31/2018</P>
</TD><TD valign=bottom style=width:15.9pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:51.3pt><P align=right style='font:10pt Times New Roman;margin:0'>16,121</P>
</TD><TD valign=bottom style=width:15.8pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:66.6pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:19.5pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:66.15pt><P align=right style='font:10pt Times New Roman;margin:0'>16,121</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:99.9pt><P align=justify style='font:10pt Times New Roman;margin:0'>Noteholder 5c</P>
</TD><TD valign=bottom style=width:59.1pt><P align=right style='font:10pt Times New Roman;margin:0'>1/12/2016</P>
</TD><TD valign=bottom style=width:59.1pt><P align=right style='font:10pt Times New Roman;margin:0'>1/31/2019</P>
</TD><TD valign=bottom style=width:15.9pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:51.3pt><P align=right style='font:10pt Times New Roman;margin:0'>1,500</P>
</TD><TD valign=bottom style=width:15.8pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:66.6pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:19.5pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:66.15pt><P align=right style='font:10pt Times New Roman;margin:0'>1,500</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:99.9pt><P align=justify style='font:10pt Times New Roman;margin:0'>Noteholder 5d</P>
</TD><TD valign=bottom style=width:59.1pt><P align=right style='font:10pt Times New Roman;margin:0'>3/10/2016</P>
</TD><TD valign=bottom style=width:59.1pt><P align=right style='font:10pt Times New Roman;margin:0'>1/31/2019</P>
</TD><TD valign=bottom style=width:15.9pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:51.3pt><P align=right style='font:10pt Times New Roman;margin:0'>2,770</P>
</TD><TD valign=bottom style=width:15.8pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:66.6pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:19.5pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:66.15pt><P align=right style='font:10pt Times New Roman;margin:0'>2,770</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:99.9pt><P align=justify style='font:10pt Times New Roman;margin:0'>Noteholder 5e</P>
</TD><TD valign=bottom style=width:59.1pt><P align=right style='font:10pt Times New Roman;margin:0'>3/15/2016</P>
</TD><TD valign=bottom style=width:59.1pt><P align=right style='font:10pt Times New Roman;margin:0'>1/31/2019</P>
</TD><TD valign=bottom style=width:15.9pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:51.3pt><P align=right style='font:10pt Times New Roman;margin:0'>2,885</P>
</TD><TD valign=bottom style=width:15.8pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:66.6pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:19.5pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:66.15pt><P align=right style='font:10pt Times New Roman;margin:0'>2,885</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:99.9pt><P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:59.1pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:59.1pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.9pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:51.3pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.8pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:66.6pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:19.5pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:66.15pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=top style=width:159pt><P align=justify style='font:10pt Times New Roman;margin:0'>Total Convertible Notes Payable</P>
</TD><TD valign=top style=width:59.1pt><P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.9pt><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:51.3pt><P align=right style='font:10pt Times New Roman;margin:0'> 186,276</P>
</TD><TD valign=bottom style=width:15.8pt><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:66.6pt><P align=right style='font:10pt Times New Roman;margin:0'> 2,125</P>
</TD><TD valign=bottom style=width:19.5pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:66.15pt><P align=right style='font:10pt Times New Roman;margin:0'>184,151</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:99.9pt><P align=justify style='font:10pt Times New Roman;margin:0'>Less: Current Portion</P>
</TD><TD valign=top style=width:59.1pt><P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=width:59.1pt><P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.9pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:51.3pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.8pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:66.6pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:19.5pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:66.15pt><P align=right style='font:10pt Times New Roman;margin:0'>(157,875)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:99.9pt><P align=justify style='font:10pt Times New Roman;margin:0'>Long Term Portion</P>
</TD><TD valign=top style=width:59.1pt><P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=width:59.1pt><P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.9pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:51.3pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.8pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:66.6pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:19.5pt><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:66.15pt><P align=right style='font:10pt Times New Roman;margin:0'> 26,276</P>
</TD></TR>
</TABLE>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'><B>7. NOTES PAYABLE</B></FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><B>Noteholder 1</B></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>On August 12, 2016, we borrowed $26,000 from an Accredited Investor, being a non-convertible note at 5% interest, as a short term loan to facilitate cash flow. The loan will come due December 31, 2017.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>On September 21, 2016, we borrowed $25,909 from an Accredited Investor, being a non-convertible note at 5% interest, as a short term loan to facilitate cash flow. The loan will come due December 31, 2017.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><B>Noteholder 2</B></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>On November 20, 2014, the Company received $5,000 by way of an unsecured short-term loan from a non-related party for a term of nine months at 10% interest due upon repayment. The note payable and accrued interest was scheduled to be repaid on May 21, 2015. The Company was successful in obtaining an extension until December 31, 2015 upon making an interim renewal payment of $400. As of July 31, 2017, we are default under the loan agreement.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><B>Noteholder 3</B></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The Company had executed short-term lending arrangements with a non-related party. The effective dates of the loans are June 22, 2015, June 27, 2015 and September 22, 2015. The loan amounts are $3,000, $2,700 and $1,950, respectively, with interest accruing at 5% per annum. Repayment is in one lump sum due and payable on or before December 4, 2015 through January 31, 2016. The outstanding notes were extended to September and December 2016. The Company is currently in discussions with the lender to further extend the maturity date. Until such time as that is completed the note is considered past due.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><B>Noteholder 4</B></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>One of the trader agreements included monthly compensation and to this end, part of the fees were paid in cash and then part of the fees were offset with a non-convertible note for $7,000 that was payable on or before June of 2017. The note was not paid and is now considered past due.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><B>Noteholder 5</B></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The Company entered into a stock transfer agency agreement dated November 19, 2014 with Pacific Stock Transfer. As part of the agreement, amounts owed to the Company&#8217;s previous stock transfer agent of $7,430 were paid by Pacific Stock Transfer, of which $2,189 is to be repaid to Pacific Stock Transfer by the Company in installments of $250 per month beginning on January 3, 2015. Interest at 5% per annum accrues on the unpaid balance of the loan for each month. As of July 31,2017, we are not in default under this loan agreement as in August 2016 we renegotiated the terms for this loan and interest payment commenced in November 2016.</P>
<HR style='border:0;height:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'>11</P>
<HR style='page-break-after:always;border:0;height:3pt;background-color:#909090;margin:8pt 0'><P align=justify style='font:10pt Times New Roman;margin:0'>The following table summarizes all notes outstanding as of July 31, 2017:</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse><TR style=height:7.2pt><TD valign=bottom style='width:99.9pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>Holder</P>
</TD><TD valign=bottom style='width:59.1pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>Issue Date</P>
</TD><TD valign=bottom style='width:59.1pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>Due Date</P>
</TD><TD valign=top style=width:20.4pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:51.3pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>Principal</P>
</TD><TD valign=top style=width:15.8pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:66.6pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>Unamortized</P>
<P align=center style='font:10pt Times New Roman;margin:0'>Debt</P>
<P align=center style='font:10pt Times New Roman;margin:0'>Discount</P>
</TD><TD valign=top style=width:15.8pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:66.15pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>Carrying</P>
<P align=center style='font:10pt Times New Roman;margin:0'>Value</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style='width:99.9pt;border-top:0.5pt solid #000000'><P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style='width:59.1pt;border-top:0.5pt solid #000000'><P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style='width:59.1pt;border-top:0.5pt solid #000000'><P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=width:20.4pt><P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style='width:51.3pt;border-top:0.5pt solid #000000'><P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=width:15.8pt><P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style='width:66.6pt;border-top:0.5pt solid #000000'><P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=width:15.8pt><P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style='width:66.15pt;border-top:0.5pt solid #000000'><P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:99.9pt><P align=justify style='font:10pt Times New Roman;margin:0'><I>Third Parties</I></P>
</TD><TD valign=top style=width:59.1pt><P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=width:59.1pt><P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=width:20.4pt><P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=width:51.3pt><P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=width:15.8pt><P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=width:66.6pt><P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=width:15.8pt><P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=width:66.15pt><P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:99.9pt><P align=justify style='font:10pt Times New Roman;margin:0'>Noteholder 1a</P>
</TD><TD valign=bottom style=width:59.1pt><P align=right style='font:10pt Times New Roman;margin:0'>8/12/2016</P>
</TD><TD valign=bottom style=width:59.1pt><P align=right style='font:10pt Times New Roman;margin:0'>12/31/17</P>
</TD><TD valign=bottom style=width:20.4pt><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:51.3pt><P align=right style='font:10pt Times New Roman;margin:0'> 26,000</P>
</TD><TD valign=bottom style=width:15.8pt><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:66.6pt><P align=right style='font:10pt Times New Roman;margin:0'> -</P>
</TD><TD valign=bottom style=width:15.8pt><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:66.15pt><P align=right style='font:10pt Times New Roman;margin:0'> 26,000</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:99.9pt><P align=justify style='font:10pt Times New Roman;margin:0'>Noteholder 1b</P>
</TD><TD valign=bottom style=width:59.1pt><P align=right style='font:10pt Times New Roman;margin:0'>9/21/2016</P>
</TD><TD valign=bottom style=width:59.1pt><P align=right style='font:10pt Times New Roman;margin:0'>12/31/17</P>
</TD><TD valign=bottom style=width:20.4pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:51.3pt><P align=right style='font:10pt Times New Roman;margin:0'> 25,909</P>
</TD><TD valign=bottom style=width:15.8pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:66.6pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:15.8pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:66.15pt><P align=right style='font:10pt Times New Roman;margin:0'> 25,909</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:99.9pt><P align=justify style='font:10pt Times New Roman;margin:0'>Noteholder 2</P>
</TD><TD valign=bottom style=width:59.1pt><P align=right style='font:10pt Times New Roman;margin:0'>11/7/2014</P>
</TD><TD valign=bottom style=width:59.1pt><P align=right style='font:10pt Times New Roman;margin:0'>Past Due</P>
</TD><TD valign=bottom style=width:20.4pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:51.3pt><P align=right style='font:10pt Times New Roman;margin:0'>5,000</P>
</TD><TD valign=bottom style=width:15.8pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:66.6pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:15.8pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:66.15pt><P align=right style='font:10pt Times New Roman;margin:0'>5,000</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:99.9pt><P align=justify style='font:10pt Times New Roman;margin:0'>Noteholder 3a</P>
</TD><TD valign=bottom style=width:59.1pt><P align=right style='font:10pt Times New Roman;margin:0'>6/15/2015</P>
</TD><TD valign=bottom style=width:59.1pt><P align=right style='font:10pt Times New Roman;margin:0'>Past Due</P>
</TD><TD valign=bottom style=width:20.4pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:51.3pt><P align=right style='font:10pt Times New Roman;margin:0'>3,000</P>
</TD><TD valign=bottom style=width:15.8pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:66.6pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:15.8pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:66.15pt><P align=right style='font:10pt Times New Roman;margin:0'>3,000</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:99.9pt><P align=justify style='font:10pt Times New Roman;margin:0'>Noteholder 3b</P>
</TD><TD valign=bottom style=width:59.1pt><P align=right style='font:10pt Times New Roman;margin:0'>6/28/2015</P>
</TD><TD valign=bottom style=width:59.1pt><P align=right style='font:10pt Times New Roman;margin:0'>Past Due</P>
</TD><TD valign=bottom style=width:20.4pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:51.3pt><P align=right style='font:10pt Times New Roman;margin:0'>2,700</P>
</TD><TD valign=bottom style=width:15.8pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:66.6pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:15.8pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:66.15pt><P align=right style='font:10pt Times New Roman;margin:0'>2,700</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:99.9pt><P align=justify style='font:10pt Times New Roman;margin:0'>Noteholder 3c</P>
</TD><TD valign=bottom style=width:59.1pt><P align=right style='font:10pt Times New Roman;margin:0'>9/22/2015</P>
</TD><TD valign=bottom style=width:59.1pt><P align=right style='font:10pt Times New Roman;margin:0'>Past Due</P>
</TD><TD valign=bottom style=width:20.4pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:51.3pt><P align=right style='font:10pt Times New Roman;margin:0'>1,950</P>
</TD><TD valign=bottom style=width:15.8pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:66.6pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:15.8pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:66.15pt><P align=right style='font:10pt Times New Roman;margin:0'>1,950</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:99.9pt><P align=justify style='font:10pt Times New Roman;margin:0'>Noteholder 4</P>
</TD><TD valign=bottom style=width:59.1pt><P align=right style='font:10pt Times New Roman;margin:0'>6/15/2016</P>
</TD><TD valign=bottom style=width:59.1pt><P align=right style='font:10pt Times New Roman;margin:0'>Past Due</P>
</TD><TD valign=bottom style=width:20.4pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:51.3pt><P align=right style='font:10pt Times New Roman;margin:0'>7,000</P>
</TD><TD valign=bottom style=width:15.8pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:66.6pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:15.8pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:66.15pt><P align=right style='font:10pt Times New Roman;margin:0'>7,000</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:99.9pt><P align=justify style='font:10pt Times New Roman;margin:0'>Noteholder 5</P>
</TD><TD valign=bottom style=width:59.1pt><P align=right style='font:10pt Times New Roman;margin:0'>8/11/2016</P>
</TD><TD valign=bottom style=width:59.1pt><P align=right style='font:10pt Times New Roman;margin:0'>8/11/18</P>
</TD><TD valign=bottom style=width:20.4pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:51.3pt><P align=right style='font:10pt Times New Roman;margin:0'>3,740</P>
</TD><TD valign=bottom style=width:15.8pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:66.6pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:15.8pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:66.15pt><P align=right style='font:10pt Times New Roman;margin:0'>3,740</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:99.9pt><P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:59.1pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:59.1pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:20.4pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:51.3pt;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.8pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:66.6pt;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.8pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:66.15pt;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=top style=width:159pt><P align=justify style='font:10pt Times New Roman;margin:0'>Total Convertible Notes Payable</P>
</TD><TD valign=top style=width:59.1pt><P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:20.4pt><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:51.3pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'> 75,299</P>
</TD><TD valign=bottom style=width:15.8pt><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:66.6pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'> -</P>
</TD><TD valign=bottom style=width:15.8pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:66.15pt><P align=right style='font:10pt Times New Roman;margin:0'>75,299</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:99.9pt><P align=justify style='font:10pt Times New Roman;margin:0'>Less: Current Portion</P>
</TD><TD valign=top style=width:59.1pt><P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=width:59.1pt><P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:20.4pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:51.3pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.8pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:66.6pt;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.8pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:66.15pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(75,299)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:99.9pt><P align=justify style='font:10pt Times New Roman;margin:0'>Long Term Portion</P>
</TD><TD valign=top style=width:59.1pt><P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=width:59.1pt><P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:20.4pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:51.3pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.8pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:66.6pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.8pt><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:66.15pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'> -</P>
</TD></TR>
</TABLE>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'><B>7. COMMITMENTS AND CONTINGENCIES </B></FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The Company has to file its annual and quarterly financial reports with SEDAR in Canada. Due to delays in filing its financial statements and other possible forms, the Company believes it may be subject to certain potentially significant penalties to be levied by the Alberta Securities Commission (ASC). These fines have now been stated to be CDN$10,120 or approximately US$7,500 as advised and invoiced by the ASC, and have been accrued into the financial statements as of July 31, 2017. The Company is considering engaging its legal counsel to assist in reducing or eliminating these penalties and requests to file. Further correspondence has been delivered to the ASC after filing the 10-K for January 31, 2016. The 10Q ending April 30, 2017 and 10K ending January 31, 2017 were filed with SEDAR and this is ongoing.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The Company had retained TESO Communications as its Investor Relations and Public Relations manager and under the agreement the Company may pay the invoice with cash or by issuing shares against the invoices submitted. The Directors opted to issue shares before the end of the initial agreement period of January 16, 2015 but the same were not yet issued. The agreement represented a cash payment of $25,000 or the issuance of 50,000 restricted common shares at the completion of the agreement which has been extended to May 15, 2016. No invoice has been presented to the Company and no shares have been issued to date. Management has not received any correspondence recently.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'><B>8. STOCKHOLDERS&#8217; DEFICIT</B></FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><B><I>Preferred Shares</I></B></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The Company is authorized to issue 100,000,000 shares of preferred stock, par value $0.001 per share.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>During the quarter ending April 30, 2017, the directors signed a resolution to restructure the preferred shares. The preferred shares were changed to Preferred Series A shares with a par value of $.001 and the Series B preferred shares with a par value of $.001.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The Series A Preferred Stock has 2,000 votes per share and is convertible into shares of the Company&#8217;s common stock at a conversion ratio of 2,000 shares of common stock for each share of preferred stock. The Series A Preferred Stock has a liquidation preference equal to the original issue price. </P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The Series B Preferred Stock bears dividends (interest) at an annual rate of six percent (6%) payable annually and is convertible into shares of the Company&#8217;s common stock at a conversion price of 90% of the average closing sale price for the Company&#8217;s common stock for the two trading days prior to conversion. The shares become convertible one year after issuance. The Series B Preferred Stock may be redeemed by the Company at any time prior to conversion at its face amount plus accrued but unpaid dividends. The Series B Preferred Stock has a liquidation preference equal to the greater of (a) the value of the common shares into which it could be converted or (b) its face amount plus accrued but unpaid dividends. The Series B Preferred Stock is without voting rights except as required by the Delaware General Corporation Law. </P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>During the six months ending July 31, 2017 the Company received proceeds of $52,500 for the issuance of 52,500 shares of Series B Preferred shares.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>For the three and six months ended July 31, 2017, total dividends applicable to Series B Preferred Stock was $609 and $855, respectively. The Company did not declare or pay any dividends in 2017. Although no dividends have been declared, the cumulative total of preferred stock dividends due to these stockholders upon declaration was $855 as of July 31, 2017.</P>
<HR style='border:0;height:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'>12</P>
<HR style='page-break-after:always;border:0;height:3pt;background-color:#909090;margin:8pt 0'><P align=justify style='font:10pt Times New Roman;margin:0'>During the six months ending July 31, 2017 the Company issued 1,000,000 shares of Series A preferred shares to the current board of directors. Each preferred share gets 2,000 votes and is convertible into 2,000 shares of common stock. The preferred shares were valued at $868,654 and recorded as director compensation. The Company&#8217;s CEO, who was issued 920,000 of the Series A preferred shares has agreed to forgo her conversion rights associated with the Series A shares.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'><B><I>Common Shares</I></B></FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>During the quarter ending April 30, 2017, the Company restructured its common shares by increasing authorized shares from 300,000,000 to 750,000,000 common shares with a par value of $.0001. </P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>During the quarter ending April 30, 2017, 11,800,000 shares of common stock were issued in settlement of the $1,180 stock payable.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>During the six months ending July 31, 2017 the Company received proceeds of $52,500 for the issuance of 27,415,965 shares of common stock.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>During the six months ending July 31, 2017 the Company issued 8,832,530 shares of common stock in settlement of $15,000 of accounts payable. In conjunction with this settlement a loss of $11,497 was recognized.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>During the six month ending July 31, 2017 the Company issued 20,000,000 shares of common stock as settlement of a $10,000 note payable. A loss on settlement of $62,000 was recorded in conjunction with the settlement.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><B><I>Stock Options</I></B></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The Company adopted the 2013 Equity Incentive Plan (the &#8220;Plan&#8221;) on January 31, 2012, reserving 5,500,000 shares for future issuances, of which a maximum of 2,500,000 may be issued as incentive stock options. The Plan provides for the issuance of non-statutory stock options or restricted stock to officers and employees, with an exercise price that is at least equal to the fair market value of the Company&#8217;s common stock on the date of grant. Vesting terms and the lives of the options are to be determined by the Board of Directors upon grant. As of July 31, 2017, no options have been issued under this Plan.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'><B>9. SUBSEQUENT EVENTS</B></FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>In August, additional funds were accepted under the private placement noted in Form D filed on July 13, 2017 and we issued additional Common Shares and Series B Preferred Shares. The Company raised an additional $25,000 and issued a further 1,008,065 common shares and 12,500 Series B Preferred shares.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The Company created a new subsidiary on August 4th, Snapt Games, Inc. and obtained a game as part of the agreement with the original developer for shares and cash. The acquired game has been renamed with new graphics and a second game is in development with proceeds be allocated to a charitable foundation. The cost of the first game is $3,500 and the Company will pay marketing costs. </P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The Company entered into an agreement for a new convertible note for $50,000 and the fund have not yet been received by the Company but is anticipated. The note is due and payable twelve months from the issuance date and bears interest at 8% per annum with an original issuance discount of $4,500. If the Note is paid off prior to the due date, the Company is required to pay the face amount plus a scaled penalty ranging from 10% to 35% depending on the repayment date. Also noted, after 181 days from the issuance date, the Note is convertible into the shares of the Company&#8217;s common stock. The conversion rate is equal to 55% of the market price during the previous 10 trading days.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The Company entered into a letter of intent to acquire an active business in June, releasing a press release at that time. The discussions continue as will due diligence. In order to facilitate the funding of acquisitions, the company entered into a formal fund raising agreement with North South Capital, LLC on September 1, 2017. The terms outline the Broker will seek to raise between $1M and $5M dollars for operations for a fee.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The company announced its application to the open source Blockchain initiative, the Enterprise Ethereum Alliance, to support its stated intent to build charts and publish information for cryptocurrency and ICO (Initial Coin Offerings).</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The Company has entered into a non-binding agreement upon signing an LOI to explore possible joint venture for the development and marketing of a payments platform. As part of its commitment, the Company incorporated a subsidiary called RCPS Management, Inc. on September 1, 2017. After additional early stage due diligence is completed, the Company will release further information to the public via a press release.</P>
<HR style='border:0;height:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'>13</P>
<HR style='page-break-after:always;border:0;height:3pt;background-color:#909090;margin:8pt 0'><P align=justify style='font:10pt Times New Roman;margin:0'><B>ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS AND PLAN OF OPERATION</B></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The following discussion of our financial condition and results of operations should be read in conjunction with, and is qualified in its entirety by, the condensed financial statements and notes thereto included in, Item 1 in this Quarterly Report on Form 10-Q. This item contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those indicated in such forward-looking statements.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B>Forward-Looking Statements</B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>This Quarterly Report on Form 10-Q and the documents incorporated herein by reference contain forward-looking statements regarding us, our business, prospects and results of operations that are subject to certain risks and uncertainties posed by many factors and events that could cause our actual business, prospects and results of operations to differ materially from those that may be anticipated by such forward-looking statements. Factors that may affect such forward-looking statements include, without limitation: our ability to successfully develop new products and services for new markets; the impact of competition on our revenues, changes in law or regulatory requirements that adversely affect or preclude clients from using us for certain applications; delays our introduction of new products or services; and our failure to keep pace with our competitors.</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:36pt'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>When used in this discussion, words such as &quot;believes&quot;, &quot;anticipates&quot;, &quot;expects&quot;, &quot;intends&quot; and similar expressions are intended to identify forward-looking statements, but are not the exclusive means of identifying forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this report. We undertake no obligation to revise any forward-looking statements in order to reflect events or circumstances that may subsequently arise. Readers are urged to carefully review and consider the various disclosures made by us in this report and other reports filed with the Securities and Exchange Commission that attempt to advise interested parties of the risks and factors that may affect our business, particularly the Report on Form 10-K, Form 10-Q and any Current Reports on Form 8-K.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B>Overview and History</B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>APT Systems, Inc. was incorporated in the State of Delaware on October 29, 2010. The Company has not as yet generated significant sales revenues as its key products are still under development but our first charting app is likely to be released in the second quarter. Limited start-up operations to date have consisted of the formation of the Company, development of its business plan, identification of its target market, naming its software Intuitrader, and limited research towards the development of its software. However, the company was able to engage in testing trading strategies and products in a limited fashion in 2016. </P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>We have not been subject to any bankruptcy, receivership or similar proceeding.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>APT is a Fintech company that specializes in the creation of innovative equities trading platforms. We are focusing on the mobile device market where we intend to develop and publish custom technical analysis indicators and trading systems both in-house and for third parties. In addition, we intend to develop a user friendly charting tool that displays price action and historic pricing for publicly traded companies. This separate app and the charts that it produces can be configured to the user&#8217;s preferred view such as a line chart or candlestick chart, and the user shall be able to adjust the chart intervals as the user desires. We plan to utilize real time and delayed data networks along with graphic techniques which will provide solutions that can speak to the mobile needs to be demanded by the next generation of equity, currency, futures and commodity traders.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>In order to advance itself, APT Systems can also roll out technical trading tools and publish KenCharts for the hand held market to test its business plans and generate cash flow. We are focusing our early attention on the charting software we own and rewriting the code to provide a native chart only app for both Android and iOS platforms. This charting tool and the charts that it produces can be configured to the user&#8217;s preferred view such as a line chart or candlestick chart, and the user shall be able to adjust the chart intervals as the user desires. We plan to utilize delayed time initially and later real time data networks along with graphic techniques which will provide solutions that can speak to the mobile needs to be demanded by the next generation of equity and commodity traders. However, these tools would be invigorated with leading edge graphics and networking technology to become desirable real-time and interactive trading assistance software.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>As a Fintech company, APT services and products can later extend to include:</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:-18pt;margin-left:36pt'><KBD style='position:absolute;text-indent:0;font:10pt Symbol'>&#61623;</KBD><KBD style=margin-left:18pt></KBD>Financial Software and Analytical Software Development&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:-18pt;margin-left:36pt'><KBD style='position:absolute;text-indent:0;font:10pt Symbol'>&#61623;</KBD><KBD style=margin-left:18pt></KBD>Algorithmic Applied Technology&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:-18pt;margin-left:36pt'><KBD style='position:absolute;text-indent:0;font:10pt Symbol'>&#61623;</KBD><KBD style=margin-left:18pt></KBD>Trading Platform Refinement and Linking to Brokerage Accounts&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:-18pt;margin-left:36pt'><KBD style='position:absolute;text-indent:0;font:10pt Symbol'>&#61623;</KBD><KBD style=margin-left:18pt></KBD>Analytical Charting Software Development&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:-18pt;margin-left:36pt'><KBD style='position:absolute;text-indent:0;font:10pt Symbol'>&#61623;</KBD><KBD style=margin-left:18pt></KBD>Explore plans for upcoming proposed National Banking Charters for Fintech companies&nbsp;</P>
<HR style='border:0;height:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'>14</P>
<HR style='page-break-after:always;border:0;height:3pt;background-color:#909090;margin:8pt 0'><P align=justify style='font:10pt Times New Roman;margin:0'>The steps remaining for us to begin selling our products listed above are to finalize the programming and rewriting of the software used in our products, specifically our dimensional charting tools, begin sales and marketing campaigns, contact prospective licensees, and deliver our products, which we expect to complete in less than 180 days after our initial contact with prospective licensees. Our app would be available to users on a subscription fee plan and we plan to grant licenses in our app to financial companies and brokerage firms for use by their employees and clients. The goal is to have our product used by both handheld (tablet and Smartphone application users) and web based clients.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Our mailing address is in an executive suite facility at 505 Montgomery Street, 11<SUP>th</SUP> Floor, San Francisco, CA 94111 which also provides office services, computer access and meeting space on demand. We consider this current executive office space arrangement adequate for our current operations and will reassess our needs annually based upon the future growth of the Company. Our fiscal year end is January 31<SUP>st</SUP>.</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:36pt'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><B>Needs Assessment</B></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Management believes the principal growth area in the personal computer market today is that of Smartphones and portable tablet devices. These mobile devices usually allow full time internet connectivity which makes them an ideal stage for a mobile equity-trading platform and charting tool. Instead of merely importing existing software to allow on-the-go research and trading, we envision for our future products an information-dense and interactive display of the financial markets. At this time, we believe that the future interactive display will include three dimensional imaging that we intend to use to provide information in new ways that can better assist novice users learning about publicly traded companies and those users who are trading equities in the public markets.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><B>Distribution methods of the products or services </B></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>To facilitate marketing plans, our products and platforms will be available initially in the &#8220;App Store&#8221; managed by Apple Inc. Later, these same products will be available to audiences that prefer using other Smartphones such as Google&#8217;s Android and other platforms. Especially in the case of Apple, these companies will provide marketing infrastructure to help developers reach their users and justify costs charged related to selling products from their app stores. All new marketing options within North America will be fully explored and implemented as it makes sense to do so. We plan to launch beta testing campaigns as well to attract prospective subscribers and garner suggestions for improvements.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><B>Organization</B></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>We are comprised of one corporation and do not have any subsidiaries but do not rule out the future possibility of acquiring or creating subsidiaries. At this time, all of our operations are conducted through this corporation but we are actively researching the requirements and impact of opening a subsidiary office in Nevada.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><B>Competition</B></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The market for financial services software and services is competitive, rapidly evolving and highly sensitive to new product introductions and marketing efforts by industry participants, although high conversion costs can create barriers to adoption of new products or technologies. The market is fragmented by the different offers and served by both large-scale firms as well as firms that target only local markets or specific types of clients such as the millennial crowd. We also face competition from information systems developed and serviced internally by the IT departments of large financial services firms. We believe that we can compete effectively by providing software contained in a mobile application, which provides proprietary buy/sell suggestions, and a platform to enhance trading ability of users, although some of our existing competitors and potential competitors have substantially greater financial, technical, distribution and marketing resources than we have currently and may offer products with different functions or features that are more attractive to potential customers than our offerings. </P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Moreover, it is not our intent to compete with larger financial services firms, but rather to facilitate more trades by better informing our joint clients and providing them with better trading tools. The trading tools such as dimensional charts may be licensed to these same banks and brokers or subscribed to by users, directly in apps. We are broker agnostic and believe that we can work with the banks and brokerage firms who offer online and Smartphone trading access by providing them with the opportunity to generate additional commissions from their existing client base.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<HR style='border:0;height:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'>15</P>
<HR style='page-break-after:always;border:0;height:3pt;background-color:#909090;margin:8pt 0'><P align=justify style='font:10pt Times New Roman;margin:0'><B>Contracted Consultants</B></P>
<P align=justify style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Our directors currently provide their time and undertake duties as directors without compensation for these services. At the time the Company derives sufficient cash flow from operations or financing, the Company will evaluate the ability to compensate our directors.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Effective November 1, 2013, the Company began to accrue a monthly salary of $5,000 per month for the President on an ongoing basis. Accrued officer compensation as of July 31, 2017 and January 31, 2017 was $200,300 and $170,300 respectively. The accrued compensation will only be paid as and when the directors decide the Company has sufficient liquidity to pay some, or all, of the amounts accrued. As resolved, the accrued compensation will only be paid after January 1, 2018 as and when the directors decide the Company has sufficient liquidity to pay some, or all, of the amounts accrued in cash or by issuing shares. The President of the Company can also consider submitting a request to the Board of Directors for permission to convert some, or all, of her accrued compensation into shares of the Company&#8217;s common stock, but only after January 1, 2018. The share price considerations will be either the publicly quoted share price, when such a publicly quoted price is available; or equal to or above the last cash price the Company recorded for the sale of its common shares to third parties.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><B>Intellectual Property Information</B></P>
<P align=justify style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><A name=T0227684318 />Our success and ability to compete will be dependent to a significant degree on our <A name=T1227684318 />intellectual property and any further acquisitions, which may include our operating and trade names such as Intuitrader, proprietary trading platforms and indicators, and visual charting software. We intend to mostly develop our technology internally and we will rely primarily on domain registration, trade secret, trademark, copyright, domain name, patent and contract law to protect our <A name=T2227684318 />intellectual property. It is our intention to enter into confidentiality, <A name=T3227684318 />intellectual property invention assignment and/or non-competition and non-solicitation agreements or restrictions with our employees, independent contractors and business partners, and to control access to and distribution of our <A name=T4227684318 />intellectual property. Currently, we do not have any registered copyrights or patents; however, we may secure such registrations in the future.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><B>Government Regulation</B></P>
<P align=justify style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>We do not expect to be subject to material governmental regulation. However, it is our policy to fully comply with all governmental regulation and regulatory authorities.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><B>Research and Development</B></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>We have spent $0 in the six month periods ended July 31, 2017 and 2016, on research and development of our website and mobile applications. We plan to spend further funds on research and development activities in the future as the development of our software applications continue and we raise the necessary funding required. </P>
<P align=justify style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><B>Environmental Compliance</B></P>
<P align=justify style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>We believe that we are not subject to any material costs for compliance with any environmental laws.</P>
<P align=justify style='font:10pt Times New Roman;margin-top:0pt;margin-bottom:10pt;color:#000000'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><B>Results of Operations</B></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>We have little operating history upon which to evaluate our intended business and sales. In addition, we have a history of losses. Our activities have been directed at developing our business plans as to eventually generate significant revenues. </P>
<HR style='border:0;height:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'>16</P>
<HR style='page-break-after:always;border:0;height:3pt;background-color:#909090;margin:8pt 0'><P align=justify style='font:10pt Times New Roman;margin:0'><B>For the three months ended July 31, 2017 compared to the three months ended July 31, 2016</B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><I>Revenue</I></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The Company generated $0 in consulting revenue in during the three months ended July 31, 2017 and 2016. Revenue from e-books sales were $0 and $27, respectively. As a startup company, we have generated only nominal revenue. </P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><I>Operating Expenses</I></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Operating expenses were $936,560 for the three month period ended July 31, 2017 compared to $114,950 for the three month period ended July 31, 2016, which is an increase of $821,610. The increase in operating expenses for the three months ended July 31, 2017 as compared to the three months ended July 31, 2016 was due primarily to an increase in compensation to officer and directors related to the issuance of Series A Preferred Shares to board members, partially offset by a decrease in general and administrative expenses. </P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><I>Operating Loss</I></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>We incurred an operating loss of $936,560 and $114,923 for the three months ended July 31, 2017 and 2016, respectively. The increase of $821,637 or 715% is due to the factors described above.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><I>Other Income (Expense)</I></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The most significant component of Other Income (Expense) is related to loss recorded on the settlement of notes and accounts payable as well as interest expense related to notes payables. </P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><I>Net Loss</I></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The Company incurred a net loss of $1,028,326 for the three months ended July 31,2017 compared to a net loss of $138,516 for the three months ended July 31,2016, an increase of $889,810 or 642% due to the factors discussed above. </P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><B>For the six months ended July 31, 2017 compared to the six months ended July 31, 2016</B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><I>Revenue</I></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The Company generated $0 in consulting revenue in during the six months ended July 31, 2017 and 2016. Revenue from e-books sales were $11 and $27, respectively. As a startup company, we have generated only nominal revenue. </P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><I>Operating Expenses</I></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Operating expenses were $1,020,608 for the six-month period ended July 31, 2017 compared to $329,765 for the six month period ended July 31, 2016, which is an increase of $690,843. The increase in operating expenses for the six months ended July 31, 2017 as compared to the six months ended July 31, 2016 was due primarily to an increase in compensation to officer and directors related to the issuance of Series A Preferred Shares to board members, partially offset by a decrease in general and administrative expenses.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><I>Operating Loss</I></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>We incurred an operating loss of $1,020,597 and $329,738 for the six months ended July 31, 2017 and 2016, respectively. The increase of $690,859 or 210% is due to the factors described above.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><I>Other Income (Expense)</I></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The most significant component of Other Income (Expense) is related to loss recorded on the settlement of notes and accounts payable as well as interest expense related to notes payables. </P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><I>Net Loss</I></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The Company incurred a net loss of $1,119,043 for the six months ended July 31,2017 compared to a net loss of $356,011 for the six months ended July 31,2016, an increase of $763,032 or 214% due to the factors discussed above. </P>
<P align=justify style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<HR style='border:0;height:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'>17</P>
<HR style='page-break-after:always;border:0;height:3pt;background-color:#909090;margin:8pt 0'><P align=justify style='font:10pt Times New Roman;margin:0'><B>Cash flow information for the six months ended July 31, 2017 is compared to the six months ended July 31, 2016</B></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>As of July 31, 2017, the Company had cash of $25,289, insufficient revenue to meet its ongoing operating expenses, and liabilities of $588,157 accumulated losses of $2,406,460 and a shareholders&#8217; deficit of $507,192.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The unaudited financial statements for the three and six months ended July 31, 2017 have been prepared on a going concern basis which assumes the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. The Company anticipates future losses in the development of its business raising substantial doubt about the Company&#8217;s ability to continue as a going concern. The ability to continue as a going concern is dependent upon the Company generating profitable operations in the future and, or, obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. Management intends to finance operating costs over the next twelve months with existing cash on hand, loans, loans from directors and, or, the sale of common stock. There is no assurance that this series of events will be satisfactorily completed.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Net cash used for operating activities was $84,597 for the six month period ended July 31, 2017. This compares to net cash used for operating activities of $78,926 for the six month period ended July 31, 2016. In both periods our negative cash flow from operations is the result of insufficient revenue and profits to offset ongoing operating expenses.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Cash flows used in investing activities were at $20,007 and $7,196 for the six-month periods ended July 31, 2017 and 2016 arising from software development in the current year and investing in foreign currency trading accounts in the prior year.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Cash flows provided by financing activities were $122,180 for the six-month period ended July 31, 2017 which compares to cash flows provided by financing activities of $86,150 for the six-month period ended July 31, 2016. During the six months ended July 31, 2017 we received $105,000 of cash proceeds from the sale of common and Series B Preferred shares. During the same period we received $50,000 from the issuance of notes payable offset by $32,820 to pay down Notes Payable. By comparison, during the six months ended July 31, 2016, we received $89,805 from the issuance of notes payable offset by $3,655 to pay down Notes Payable. </P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><B>Off-Balance Sheet Arrangements</B></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>We have no off-balance sheet arrangements with any party.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><B>Liquidity and Capital Resources</B></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>As of July 31, 2017, we had cash and cash equivalents of $25,289. As of January 31, 2017, we had cash and cash equivalents of $7,713.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Over the next twelve months we do expect some material capital costs to develop operations. Our estimated operating costs of $355,000 will be used for operations and reporting, but will be used to pay salaries as deemed reasonable by management.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>To date, we have realized only nominal sales revenue. As a result, we expect that we may need to further engage in the private placement of our debt and equity securities in order to continue to fund operations. Our ability to achieve and maintain profitability and positive cash flow is dependent upon our ability to raise an estimated $1.5 million to fully implement our business plan and to successfully develop and market our apps, generate revenues and operate a profitable business.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>In any case, we try to operate with minimal overhead while we undertake to attract participants to help build our products. Our primary activity will be to seek to develop clients for our services and, consequently, our sales. If we succeed in developing clients for our services and generating sufficient sales, we will have the potential to become profitable. We cannot guarantee that this will ever occur. Our plan is to build our company in any manner which will be successful and provide value for our shareholders.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><B>Plan of Operation</B></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Our business plan is to attract additional capital and sufficient product sales, and provide services within our present organizational structure and resources, to become profitable in our operations.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><B>Marketing and Sales Efforts:</B></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Our marketing efforts will primarily be related to assuring our product is easily found in app stores and create a smooth downloading experience. We anticipate allocating seven percent of funds raised for marketing as well as generating product awareness through paid investor relations programs. We believe that there will be sufficient funds available if a suitable advertising or promotional opportunity presents itself. </P>
<HR style='border:0;height:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'>18</P>
<HR style='page-break-after:always;border:0;height:3pt;background-color:#909090;margin:8pt 0'><P align=justify style='font:10pt Times New Roman;margin:0'>Once the app is live and we have had to begin initial Search Engine Optimization (&#8220;SEO&#8221;) work and internet marketing, we believe sales will be initially supported through the Apple store and our website. The website will be set up to record all visitors automatically and billing will be handled by Apple&#8217;s extensive billing backend. This system will allow us to minimize staff, maintain efficient delivery of products, and keep records for both accounting and marketing.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Successful implementation of our business strategy depends on factors specific to the internet, regulations regarding equities trading, app development licenses and the hand held device industry and numerous other factors that may be beyond our control. Adverse changes in the following factors could undermine our business strategy and have a material adverse effect on our business, financial condition, and results of operations and cash flow.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Our marketing efforts will primarily be related to assuring our product is easily found in app stores and create a smooth downloading experience. We anticipate allocating seven percent of funds raised for marketing as well as generating product awareness through paid investor relations programs. We believe that there will be sufficient funds available if a suitable advertising or promotional opportunity presents itself. </P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Once the app is live and we have had to begin initial Search Engine Optimization (&#8220;SEO&#8221;) work and internet marketing, we believe sales will be initially supported through the Apple store and our website. The website will be set up to record all visitors automatically and billing will be handled by Apple&#8217;s extensive billing backend. This system will allow us to minimize staff, maintain efficient delivery of products, and keep records for both accounting and marketing.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Successful implementation of our business strategy depends on factors specific to the internet, regulations regarding equities trading, app development licenses and the hand held device industry and numerous other factors that may be beyond our control. Adverse changes in the following factors could undermine our business strategy and have a material adverse effect on our business, financial condition, and results of operations and cash flow:</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:-18pt;margin-left:36pt'><KBD style='position:absolute;text-indent:0;font:10pt Symbol'>&#61623;</KBD><KBD style=margin-left:18pt></KBD>the competitive environment in the app sector that may force us to reduce prices below the optimal desired pricing level or increase promotional spending;&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:-18pt;margin-left:36pt'><KBD style='position:absolute;text-indent:0;font:10pt Symbol'>&#61623;</KBD><KBD style=margin-left:18pt></KBD>the ability to anticipate changes in consumer preferences and to meet customers&#8217; needs for trading products in a timely cost effective manner; and&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:-18pt;margin-left:36pt'><KBD style='position:absolute;text-indent:0;font:10pt Symbol'>&#61623;</KBD><KBD style=margin-left:18pt></KBD>the ability to establish, maintain and eventually grow market share in a competitive environment.&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>For delivery of our information globally, geopolitical changes, changes in trading regulations, currency fluctuations, natural disasters, pandemics and other factors beyond our control may increase the cost of items we purchase, create communication issues or render product delivery difficult which could have a material adverse effect on our sales and profitability.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>For delivery of our information globally, geopolitical changes, changes in trading regulations, currency fluctuations, natural disasters, pandemics and other factors beyond our control may increase the cost of items we purchase, create communication issues or render product delivery difficult which could have a material adverse effect on our sales and profitability.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><B>Concurrent Developments </B></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Future Trends use E-Books as a method for Training: Future product considerations revolve around enhanced or animated e-books. We believe consumers enjoy e-books because of their convenience and accessibility but they are similar in format to the traditional book. As animation is added to traditional images such as charts, this same technology can be applied to e-books to animate the content to better engage the reader. It is believed customers will soon demand interactive books that provide a much better, more informed educational experience and replace standard training techniques. New E-books with a view to training support will be made available after the sale of apps has commenced. We have successfully tested posting an e-book and the receiving of revenues electronically to our bank account from Apple Inc.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><B>Consulting Services</B></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>During the six months ended July 31, 2017, the Company did not provide technical writing and computer assisted design services to other startups. This revenue source diminished as anticipated and is $0 for the quarter ending July 31, 2017.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><B>Seasonality</B></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>We do not expect our revenues to be impacted by seasonal demands for our services.</P>
<HR style='border:0;height:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'>19</P>
<HR style='page-break-after:always;border:0;height:3pt;background-color:#909090;margin:8pt 0'><P align=justify style='font:10pt Times New Roman;margin:0'><B>ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK</B></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>As a &quot;smaller reporting company&quot; as defined by Item 10 of Regulation S-K, the Company is not required to provide information required by this Item.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B>ITEM 4. CONTROLS AND PROCEDURES </B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><I>Evaluation of Disclosure Controls and Procedures </I></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>An evaluation was performed under the supervision of our management, including our Chief Executive Officer and Chief Financial Officer (principal financial officer), of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act) as of the end of the period covered by this Quarterly Report. Based on that evaluation, our management, including our Chief Executive Officer and Chief Financial Officer, concluded that, as of July 31, 2017, our disclosure controls and procedures were not effective to ensure that information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC&#8217;s rules and forms due to material weaknesses in our internal controls described below.</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><I>Changes in Internal Control Over Financial Reporting</I></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>We have made no change in our internal control over financial reporting during the last fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.</P>
<HR style='border:0;height:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'>20</P>
<HR style='page-break-after:always;border:0;height:3pt;background-color:#909090;margin:8pt 0'><P align=center style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'><B>PART II OTHER INFORMATION</B></FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><B>ITEM 1. LEGAL PROCEEDINGS</B></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>During the Six Month periods ended July 31, 2017 and 2016, there were no legal proceedings, to which we are a party, which could have a material adverse effect on our business, financial condition or operating results and none are threatened or pending to the best of our knowledge.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B>ITEM 1A. RISK FACTORS</B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>As a &quot;smaller reporting company&quot; as defined by Item 10 of Regulation S-K, the Company is not required to provide information required by this Item.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B>ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS</B>.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Common Stock</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>On October 16, 2015, 102,000,000 shares of the Company's common stock were issued at $.0001 per share to management as follows: Jeffrey Jolliffe &#8211; 1,000,000; Carl Hussey, Treasurer &#8211; 2,000,000; Joseph Gagnon, Secretary - 2,000,000; Glenda Dowie, President &amp; CEO &#8211; 97,000,000 valued at $ 10,200. </P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>On December 23, 2015, the Company issued 26,670 shares of its common stock at a fair value of $ 20,000, respectively, for service rendered by unrelated third parties. </P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:36pt'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>On March 18, 2016, the directors approved 100,000 shares of the Company's common stock be issued to Azur Universal Inc and were issued at $.65 per share for a total value of $65,000 as per the agreement signed July 8, 2014 The amount was recorded as deposit on software acquisition under other current assets. As of January 31, 2017, the amount has been recognized as acquisition of software.</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:36pt'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The Company has retained three unrelated parties as Consultants to help develop investor awareness in the Company through varied campaigns that revolve around contacting known sophisticated investors through media outlets, newsletters, emails and direct telephone calls. The consultants are compensated in combination of cash and restricted common shares. In May and June, 2016 the Company issued 4,283,333 shares of its common stock for services rendered by unrelated third parties. This represents payments to invoices totaling $229,182.</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:36pt'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>On July 20, 2016, the directors approved 900,000 of the Company&#8217;s shares (book value of $26,100) be issued to Azur Universal Inc and were issued at $.029 cents per share to acquire the license rights and source code for the Global Trader software. </P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The directors proceeded with purchasing the asset and declined to purchase the company at this time. An 8-K form was filed and a press release was sent out. The shares were issued in August and the license and rights have been acquired.</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:36pt'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The Company was able to partially pay its debt obligations and the balances of the outstanding notes were repaid from conversion of shares. The Company issued 93,027,033 with a total value of $240,704 throughout the year.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>On December 14, 2016, the Company issued 15,000,000 shares of it restricted common stock at the fair value of $57,000 to the CEO, Glenda Dowie, against accrued compensation.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>In January 27 2017, a consultant returned a certificate for 1,500,000 common shares used to secure an agreement with the Company when the parties mutually agreed the services sought were not provided to the full extent both anticipated. The total number of outstanding shares was adjusted accordingly</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The Company raised $70,000 in a private placement with accredited investors where a combination of restricted common shares (20,588,233) and Preferred Series B shares (35,000) were issued (see subsequent events).</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The Company opted to pay consultant&#8217;s invoice by issuing 8,832,500 common shares (see subsequent events).</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The Company raised $70,000 in a private placement with accredited investors where a combination of restricted common shares (20,588,233) and Preferred Series B shares (35,000) were issued. </P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>In August, the Company raised an additional $25,000 and issued a further 1,028,065 common shares and 12,500 Series B Preferred shares (see subsequent events).</P>
<HR style='border:0;height:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'>21</P>
<HR style='page-break-after:always;border:0;height:3pt;background-color:#909090;margin:8pt 0'><P align=justify style='font:10pt Times New Roman;margin:0'><B>Purchases of Equity Securities by the Issuer and Affiliated Purchasers</B></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>During the quarter ended July 31, 2017, there were no purchases of equity securities by the Company and affiliated purchasers. </P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><B>Stock Options</B></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The Company adopted the 2013 Equity Incentive Plan (the &#8220;Plan&#8221;) on January 31, 2012, reserving 5,500,000 shares for future issuances, of which a maximum of 2,500,000 may be issued as incentive stock options. The Plan provides for the issuance of non-statutory stock options or restricted stock to officers and employees, with an exercise price that is at least equal to the fair market value of the Company&#8217;s common stock on the date of grant. Vesting terms and the lives of the options are to be determined by the Board of Directors upon grant. As of January 31, 2017 and 2016, no options have been issued under this Plan.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><B>ITEM 3. DEFAULTS UPON SENIOR SECURITIES</B></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>In November 2014, the Company received $5,000 by way of an unsecured short-term loan from a non-related party for a term of nine months at 10% interest due upon repayment. The note payable and accrued interest was scheduled to be repaid on May 21, 2015. The Company was successful in obtaining an extension until December 31, 2015 upon making an interim renewal payment of $400. As of July 31, 2017, we are in default under the loan agreement. There can be no assurance that we will be able to reach any further agreement to extend or amend the terms of the agreement with this creditor or that we will be able to raise the funding necessary to repay the balances due under this agreement. The initiation of any collection action by any creditor may affect our ability to execute on our business plan.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>On June 17, 2015 and June 28, 2015, the Company received $3,000 and $2,700, respectively, by way of unsecured short-term loans from a non-related party for a term of six months at 5% interest due upon repayment. The loans and accrued interest were scheduled to be repaid on December 31, 2015. The Company was successful in obtaining an extension until September 1, 2016. Currently, these short-term loans are past due, however there are no default penalties associated with these loan agreements. There can be no assurance that we will be able to reach any further agreement to extend or amend the terms of the agreement with this creditor or that we will be able to raise the funding necessary to repay the balances due under this agreement. The initiation of any collection action by any creditor may affect our ability to execute on our business plan. Additional short term loans were provided in September, 2015 in the amount of $1,950, with a maturity date of December 31, 2016. This short-term lending arrangement is also past due, but does not carry any default penalty.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>One of the trader agreements included monthly compensation and to this end, part of the fees were paid in cash and then part of the fees were offset with a non-convertible note for $7,000 that was payable on or before June of 2017. The note was not paid and is now considered past due.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B>ITEM 4. MINE SAFETY DISCLOSURES</B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>Not applicable to our Company.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B>ITEM 5. OTHER INFORMATION</B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>None.</P>
<HR style='border:0;height:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'>22</P>
<HR style='page-break-after:always;border:0;height:3pt;background-color:#909090;margin:8pt 0'><P style='font:10pt Times New Roman;margin:0'><B>ITEM 6. EXHIBITS </B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>EXHIBITS. The following exhibits required by Item 601 to be filed herewith are incorporated by reference to previously filed documents:</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE style=border-collapse:collapse;margin-left:9.9pt><TR style=height:7.2pt><TD valign=bottom style=width:81pt><P align=center style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'><B>Exhibit Number</B></FONT></P>
</TD><TD colspan=2 valign=bottom style=width:436.5pt><P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'><B>Description</B></FONT></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:81pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=top style=width:436.5pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:81pt><P align=center style='font:10pt Times New Roman;margin:0'>3.1*</P>
</TD><TD colspan=2 valign=top style=width:436.5pt><P style='font:10pt Times New Roman;margin:0'>Articles of Incorporation</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:81pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=top style=width:436.5pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:81pt><P align=center style='font:10pt Times New Roman;margin:0'>3.2*</P>
</TD><TD colspan=2 valign=top style=width:436.5pt><P style='font:10pt Times New Roman;margin:0'>Bylaws</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:81pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=top style=width:436.5pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:81pt><P align=center style='font:10pt Times New Roman;margin:0'><A href=f10q073117_ex31z1.htm style=text-decoration:none><FONT style='color:#0563C1;border-bottom:1px solid #0563C1'>31.1</FONT></A></P>
</TD><TD colspan=2 valign=top style=width:436.5pt><P style='font:10pt Times New Roman;margin:0'>Certification of Chief Executive Officer pursuant to Section 302</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:81pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=top style=width:436.5pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:81pt><P align=center style='font:10pt Times New Roman;margin:0'><A href=f10q073117_ex31z2.htm style=text-decoration:none><FONT style='color:#0563C1;border-bottom:1px solid #0563C1'>31.2</FONT></A></P>
</TD><TD colspan=2 valign=top style=width:436.5pt><P style='font:10pt Times New Roman;margin:0'>Certification of Chief Financial Officer pursuant to Section 302 </P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:81pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=top style=width:436.5pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:81pt><P align=center style='font:10pt Times New Roman;margin:0'>31.3</P>
</TD><TD colspan=2 valign=top style=width:436.5pt><P style='font:10pt Times New Roman;margin:0'>Certification of Principal Accounting Officer pursuant to Section 302</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:81pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=top style=width:436.5pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:81pt><P align=center style='font:10pt Times New Roman;margin:0'><A href=f10q073117_ex32z1.htm style=text-decoration:none><FONT style='color:#0563C1;border-bottom:1px solid #0563C1'>32.1</FONT></A></P>
</TD><TD colspan=2 valign=top style=width:436.5pt><P style='font:10pt Times New Roman;margin:0'>Certification of Chief Executive Officer pursuant to Section 906</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:81pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=top style=width:436.5pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:81pt><P align=center style='font:10pt Times New Roman;margin:0'><A href=f10q073117_ex32z2.htm style=text-decoration:none><FONT style='color:#0563C1;border-bottom:1px solid #0563C1'>32.2</FONT></A></P>
</TD><TD colspan=2 valign=top style=width:436.5pt><P style='font:10pt Times New Roman;margin:0'>Certification of Chief Financial Officer pursuant to Section 906</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:81pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=top style=width:436.5pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:81pt><P align=center style='font:10pt Times New Roman;margin:0'>32.3</P>
</TD><TD colspan=2 valign=top style=width:436.5pt><P style='font:10pt Times New Roman;margin:0'>Certification of Principal Accounting Officer pursuant to Section 906</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:81pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=top style=width:436.5pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=top style=width:81.9pt><P style='font:10pt Times New Roman;margin:0'>Exhibit 101.INS</P>
</TD><TD colspan=2 valign=top style=width:437.4pt><P style='font:10pt Times New Roman;margin:0'>XBRL Instance Document (1)</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=top style=width:81.9pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=top style=width:437.4pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=top style=width:81.9pt><P style='font:10pt Times New Roman;margin:0'>Exhibit 101.SCH</P>
</TD><TD colspan=2 valign=top style=width:437.4pt><P style='font:10pt Times New Roman;margin:0'>XBRL Taxonomy Extension Schema Document (1)</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=top style=width:81.9pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=top style=width:437.4pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=top style=width:81.9pt><P style='font:10pt Times New Roman;margin:0'>Exhibit 101.CAL</P>
</TD><TD colspan=2 valign=top style=width:437.4pt><P style='font:10pt Times New Roman;margin:0'>XBRL Taxonomy Extension Calculation Linkbase Document (1)</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=top style=width:81.9pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=top style=width:437.4pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=top style=width:81.9pt><P style='font:10pt Times New Roman;margin:0'>Exhibit 101.DEF</P>
</TD><TD colspan=2 valign=top style=width:437.4pt><P style='font:10pt Times New Roman;margin:0'>XBRL Taxonomy Extension Definition Linkbase Document (1)</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=top style=width:81.9pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=top style=width:437.4pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=top style=width:81.9pt><P style='font:10pt Times New Roman;margin:0'>Exhibit 101.LAB</P>
</TD><TD colspan=2 valign=top style=width:437.4pt><P style='font:10pt Times New Roman;margin:0'>XBRL Taxonomy Extension Label Linkbase Document (1)</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=top style=width:81.9pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=top style=width:437.4pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=top style=width:81.9pt><P style='font:10pt Times New Roman;margin:0'>Exhibit 101.PRE</P>
</TD><TD colspan=2 valign=top style=width:437.4pt><P style='font:10pt Times New Roman;margin:0'>XBRL Taxonomy Extension Presentation Linkbase Document (1)</P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0;margin-left:18pt'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:100%><TR style=height:7.2pt><TD valign=top><P style='font:10pt Times New Roman;margin:0'>(1)</P>
</TD><TD valign=top><P align=justify style='font:10pt Times New Roman;margin:0;margin-left:18pt'>Pursuant to Rule 406T of Regulation S-T, this interactive data file is deemed not filed or part of a registration statement or prospectus for purposes of sections 11 or 12 of the Securities Act of 1933, is deemed not filed for purposes of section 18 of the Securities Exchange Act of 1934, and otherwise is not subject to liability under these sections. </P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'> * Previously filed with Form S-1 Registration Statement, May 23, 2012</P>
<HR style='border:0;height:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'>23</P>
<HR style='page-break-after:always;border:0;height:3pt;background-color:#909090;margin:8pt 0'><P align=center style='font:10pt Times New Roman;margin:0'><B>SIGNATURES</B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>In accordance with Section 12 of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized on September 14, 2017.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0;margin-left:252pt'><B>APT Systems, Inc.</B></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse><TR style=height:7.2pt><TD valign=top style=width:252pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=width:243pt><P align=justify style='font:10pt Times New Roman;margin:0'>By:<I>/s/ Glenda Dowie</I></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:252pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style='width:243pt;border-top:0.5pt solid #000000'><P align=justify style='font:10pt Times New Roman;margin:0;text-indent:12.75pt'>Glenda Dowie,</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:12.75pt'>President and Chief Executive Officer</P>
</TD></TR>
</TABLE>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse><TR style=height:7.2pt><TD valign=top style=width:252.9pt><P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=width:243pt><P align=justify style='font:10pt Times New Roman;margin:0'>By:<I>/s/ Carl Hussey</I></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:252.9pt><P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style='width:243pt;border-top:0.5pt solid #000000'><P align=justify style='font:10pt Times New Roman;margin:0;text-indent:12pt'>Carl Hussey,</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:12pt'>Treasurer and Chief Financial Officer</P>
</TD></TR>
</TABLE>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following person on behalf of the Registrant and in the capacity and on the date indicated.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse><TR style=height:7.2pt><TD valign=top style='width:126pt;border-bottom:0.5pt solid #000000'><P align=justify style='font:10pt Times New Roman;margin:0'><I>/s/ Glenda Dowie</I></P>
</TD><TD valign=top style='width:279pt;border-bottom:0.5pt solid #000000'><P align=justify style='font:10pt Times New Roman;margin:0'>President, Chief Executive Officer and Director</P>
</TD><TD valign=top style='width:123.7pt;border-bottom:0.5pt solid #000000'><P align=justify style='font:10pt Times New Roman;margin:0'>September 14, 2017</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style='width:126pt;border-top:0.5pt solid #000000'><P align=justify style='font:10pt Times New Roman;margin:0'>Glenda Dowie</P>
</TD><TD valign=top style='width:279pt;border-top:0.5pt solid #000000'><P align=justify style='font:10pt Times New Roman;margin:0'>Title</P>
</TD><TD valign=top style='width:123.7pt;border-top:0.5pt solid #000000'><P align=justify style='font:10pt Times New Roman;margin:0'>Date</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:126pt><P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=width:279pt><P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=width:123.7pt><P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style='width:126pt;border-bottom:0.5pt solid #000000'><P align=justify style='font:10pt Times New Roman;margin:0'><I>/s/ Joseph Gagnon</I></P>
</TD><TD valign=top style='width:279pt;border-bottom:0.5pt solid #000000'><P align=justify style='font:10pt Times New Roman;margin:0'>Secretary, Chief Technical Officer and Director</P>
</TD><TD valign=top style='width:123.7pt;border-bottom:0.5pt solid #000000'><P align=justify style='font:10pt Times New Roman;margin:0'>September 14, 2017</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style='width:126pt;border-top:0.5pt solid #000000'><P align=justify style='font:10pt Times New Roman;margin:0'>Joseph Gagnon</P>
</TD><TD valign=top style='width:279pt;border-top:0.5pt solid #000000'><P align=justify style='font:10pt Times New Roman;margin:0'>Title</P>
</TD><TD valign=top style='width:123.7pt;border-top:0.5pt solid #000000'><P align=justify style='font:10pt Times New Roman;margin:0'>Date</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:126pt><P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=width:279pt><P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=width:123.7pt><P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style='width:126pt;border-bottom:0.5pt solid #000000'><P align=justify style='font:10pt Times New Roman;margin:0'><I>/s/ Carl Hussey</I></P>
</TD><TD valign=top style='width:279pt;border-bottom:0.5pt solid #000000'><P align=justify style='font:10pt Times New Roman;margin:0'>Treasurer, Chief Financial Officer and Director</P>
</TD><TD valign=top style='width:123.7pt;border-bottom:0.5pt solid #000000'><P align=justify style='font:10pt Times New Roman;margin:0'>September 14, 2017</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style='width:126pt;border-top:0.5pt solid #000000'><P align=justify style='font:10pt Times New Roman;margin:0'>Carl Hussey</P>
</TD><TD valign=top style='width:279pt;border-top:0.5pt solid #000000'><P align=justify style='font:10pt Times New Roman;margin:0'>Title</P>
</TD><TD valign=top style='width:123.7pt;border-top:0.5pt solid #000000'><P align=justify style='font:10pt Times New Roman;margin:0'>Date</P>
</TD></TR>
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<HR style='border:0;height:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'>24</P>
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<DOCUMENT>
<TYPE>EX-31.1
<SEQUENCE>2
<FILENAME>f10q073117_ex31z1.htm
<DESCRIPTION>EXHIBIT 31.1 SECTION 302 CERTIFICATION
<TEXT>
<HTML>
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<TITLE>Exhibit 31.1 Section 302 Certification</TITLE>
</HEAD>
<BODY>
<DIV style=margin-left:36pt;width:540pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>EXHIBIT 31.1</B></P>
<P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>CERTIFICATION PURSUANT TO SEC Rules 13a-14(a) and 15d-14(a),</P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002</P>
<P style='font:10pt Times New Roman;margin:0;color:#000000'>&#160;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>I, Glenda Dowie, certify that:</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:36pt'>&#160;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>1. &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;I have reviewed this quarterly report on Form 10-Q of APT Systems, Inc.;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:36pt'>&#160;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>2.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:36pt'>&#160;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>3.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;</P>
<P style='font:10pt Times New Roman;margin:0;text-indent:36pt'>&#160;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>4.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:36pt'>&#160;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:36pt'>a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:36pt'>&#160;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:36pt'>b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:36pt'>&#160;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:36pt'>c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:36pt'>&#160;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:36pt'>d) disclosed in this report any change in the registrant&#8217;s internal control over financial reporting that occurred during the registrant&#8217;s most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant&#8217;s internal control over financial reporting; and</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:36pt'>&#160;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>5.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:36pt'>&#160;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:36pt'>a) all deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:36pt'>&#160;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:36pt'>b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.</P>
<P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
<TABLE style=border-collapse:collapse><TR style=height:7.2pt><TD valign=middle style=width:226.5pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:30pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:143.25pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:226.5pt><P style='font:10pt Times New Roman;margin:0'>Date: September 14, 2017</P>
</TD><TD valign=top style=width:30pt><P style='font:10pt Times New Roman;margin:0'>&#160;</P>
</TD><TD valign=top style='width:143.25pt;border-bottom:0.75pt solid #000000'><P style='font:10pt Times New Roman;margin:0'><I>/s/ Glenda Dowie</I></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:226.5pt><P style='font:10pt Times New Roman;margin:0'>&#160;</P>
</TD><TD valign=top style=width:30pt><P style='font:10pt Times New Roman;margin:0'>&#160;</P>
</TD><TD valign=top style=width:143.25pt><P style='font:10pt Times New Roman;margin:0'>Glenda Dowie</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:226.5pt><P style='font:10pt Times New Roman;margin:0'>&#160;</P>
</TD><TD valign=top style=width:30pt><P style='font:10pt Times New Roman;margin:0'>&#160;</P>
</TD><TD valign=top style=width:143.25pt><P style='font:10pt Times New Roman;margin:0'>Chief Executive Officer</P>
</TD></TR>
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<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
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<DOCUMENT>
<TYPE>EX-31.2
<SEQUENCE>3
<FILENAME>f10q073117_ex31z2.htm
<DESCRIPTION>EXHIBIT 31.2 SECTION 302 CERTIFICATION
<TEXT>
<HTML>
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<TITLE>Exhibit 31.2 Section 302 Certification</TITLE>
</HEAD>
<BODY>
<DIV style=margin-left:36pt;width:540pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>EXHIBIT 31.2</B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>CERTIFICATION PURSUANT TO SEC Rules 13a-14(a) and 15d-14(a),</P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002</P>
<P style='font:10pt Times New Roman;margin:0;color:#000000'>&#160;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>I, Carl Hussey, certify that:</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:36pt'>&#160;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>1.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;I have reviewed this quarterly report on Form 10-Q of APT Systems, Inc.;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:36pt'>&#160;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>2.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:36pt'>&#160;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>3.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:36pt'>&#160;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>4.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:36pt'>&#160;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:36pt'>a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:36pt'>&#160;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:36pt'>b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:36pt'>&#160;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:36pt'>c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:36pt'>&#160;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:36pt'>d) disclosed in this report any change in the registrant&#8217;s internal control over financial reporting that occurred during the registrant&#8217;s most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant&#8217;s internal control over financial reporting; and</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:36pt'>&#160;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>5.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:36pt'>&#160;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:36pt'>a) all deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:36pt'>&#160;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:36pt'>b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.</P>
<P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
<TABLE style=border-collapse:collapse><TR style=height:7.2pt><TD valign=top style=width:226.5pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=width:30pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=width:143.25pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:226.5pt><P style='font:10pt Times New Roman;margin:0'>Date: September 14, 2017</P>
</TD><TD valign=top style=width:30pt><P style='font:10pt Times New Roman;margin:0'>&#160;</P>
</TD><TD valign=top style='width:143.25pt;border-bottom:0.75pt solid #000000'><P style='font:10pt Times New Roman;margin:0'><I>/s/ Carl Hussey</I></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:226.5pt><P style='font:10pt Times New Roman;margin:0'>&#160;</P>
</TD><TD valign=top style=width:30pt><P style='font:10pt Times New Roman;margin:0'>&#160;</P>
</TD><TD valign=top style=width:143.25pt><P style='font:10pt Times New Roman;margin:0'>Carl Hussey</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:226.5pt><P style='font:10pt Times New Roman;margin:0'>&#160;</P>
</TD><TD valign=top style=width:30pt><P style='font:10pt Times New Roman;margin:0'>&#160;</P>
</TD><TD valign=top style=width:143.25pt><P style='font:10pt Times New Roman;margin:0'>Chief Financial Officer</P>
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<TYPE>EX-32.1
<SEQUENCE>4
<FILENAME>f10q073117_ex32z1.htm
<DESCRIPTION>EXHIBIT 32.1 SECTION 906 CERTIFICATION
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<TITLE>Exhibit 32.1 Section 906 Certification</TITLE>
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<DIV style=margin-left:36pt;width:540pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>EXHIBIT 32.1</B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>CERTIFICATION PURSUANT TO</P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>18 U.S.C. SECTION 1350,</P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>AS ADOPTED PURSUANT TO</P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002</P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&#160;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:36pt'>In connection with the Quarterly Report on Form 10-Q of APT Systems, Inc. (the &quot;Company&#8221;) for the quarter ended July 31, 2017 as filed with the Securities and Exchange Commission on the date hereof (the &quot;Report&quot;), I, Glenda Dowie, certify, pursuant to 18 U.S.C. ss. 1350, as adopted pursuant to ss. 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:36pt'>&#160;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'>(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:36pt;margin-left:36pt'>&#160;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'>(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:36pt;color:#000000'><KBD style=margin-left:36pt></KBD>A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:36pt;color:#000000'>&#160;</P>
<TABLE style=border-collapse:collapse><TR style=height:7.2pt><TD valign=middle style=width:226.5pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:30pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:143.25pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
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<TR style=height:7.2pt><TD valign=top style=width:226.5pt><P style='font:10pt Times New Roman;margin:0'>Date: September 14, 2017</P>
</TD><TD valign=top style=width:30pt><P style='font:10pt Times New Roman;margin:0'>&#160;</P>
</TD><TD valign=top style='width:143.25pt;border-bottom:0.75pt solid #000000'><P style='font:10pt Times New Roman;margin:0'><I>/s/ Glenda Dowie</I></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:226.5pt><P style='font:10pt Times New Roman;margin:0'>&#160;</P>
</TD><TD valign=top style=width:30pt><P style='font:10pt Times New Roman;margin:0'>&#160;</P>
</TD><TD valign=top style=width:143.25pt><P style='font:10pt Times New Roman;margin:0'>Glenda Dowie</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:226.5pt><P style='font:10pt Times New Roman;margin:0'>&#160;</P>
</TD><TD valign=top style=width:30pt><P style='font:10pt Times New Roman;margin:0'>&#160;</P>
</TD><TD valign=top style=width:143.25pt><P style='font:10pt Times New Roman;margin:0'>Chief Executive Officer</P>
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<P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
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<DOCUMENT>
<TYPE>EX-32.2
<SEQUENCE>5
<FILENAME>f10q073117_ex32z2.htm
<DESCRIPTION>EXHIBIT 32.2 SECTION 906 CERTIFICATION
<TEXT>
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<TITLE>Exhibit 32.2 Section 906 Certification</TITLE>
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<DIV style=margin-left:36pt;width:540pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>EXHIBIT 32.2</B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>CERTIFICATION PURSUANT TO</P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>18 U.S.C. SECTION 1350,</P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>AS ADOPTED PURSUANT TO</P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002</P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&#160;</P>
<P style='font:10pt Times New Roman;margin:0;text-indent:36pt'>&#160;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:36pt'>In connection with the Quarterly Report on Form 10-Q of APT Systems, Inc. (the &quot;Company&#8221;) for the quarter ended July 31, 2017 as filed with the Securities and Exchange Commission on the date hereof (the &quot;Report&quot;), I, Carl Hussey, certify, pursuant to 18 U.S.C. ss. 1350, as adopted pursuant to ss. 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:36pt'>&#160;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'>(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:36pt;margin-left:36pt'>&#160;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'>(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:36pt'>&#160;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><KBD style=margin-left:36pt></KBD>A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:36pt;color:#000000'>&nbsp;</P>
<TABLE style=border-collapse:collapse><TR style=height:7.2pt><TD valign=middle style=width:226.5pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:30pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:143.25pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:226.5pt><P style='font:10pt Times New Roman;margin:0'>Date: September 14, 2017</P>
</TD><TD valign=top style=width:30pt><P style='font:10pt Times New Roman;margin:0'>&#160;</P>
</TD><TD valign=top style='width:143.25pt;border-bottom:0.75pt solid #000000'><P style='font:10pt Times New Roman;margin:0'><I>/s/ Carl Hussey</I></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:226.5pt><P style='font:10pt Times New Roman;margin:0'>&#160;</P>
</TD><TD valign=top style=width:30pt><P style='font:10pt Times New Roman;margin:0'>&#160;</P>
</TD><TD valign=top style=width:143.25pt><P style='font:10pt Times New Roman;margin:0'>Carl Hussey</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:226.5pt><P style='font:10pt Times New Roman;margin:0'>&#160;</P>
</TD><TD valign=top style=width:30pt><P style='font:10pt Times New Roman;margin:0'>&#160;</P>
</TD><TD valign=top style=width:143.25pt><P style='font:10pt Times New Roman;margin:0'>Chief Financial Officer</P>
</TD></TR>
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<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:36pt;color:#000000'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
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