NOTE 10 – SUBSEQUENT EVENTS

On October 1, 2015, the Company entered into an agreement with a financial consultant to introduce the Company to potential equity funding sources. duostech paid a $9,500 fee for them to perform due diligence in preparation for funding discussions with one or more of their funding partners with the objective of receiving a term sheet.  As of the date of this report, a draft term sheet has been received and the Company is in discussions with regard to the terms.

On October 26, 2015 the Company agreed terms with a shareholder for the conversion of an existing note of $20,000. The note was current and not due until July 2017. The shareholder agreed to convert the original principal of $20,000 plus $467 in accrued interest into 68,223 shares of the Company’s common stock. The shares were valued at $0.40 per share based on the quoted trading price for a total of $27,289 resulting in a loss on settlement of debt of $6,822.

On October 26, 2015 the Company agreed terms with a shareholder for the conversion of an existing note of $40,000. The note was current and not due until June 2017. The shareholder agreed to convert the original principal of $40,000 plus $1,096 in accrued interest into 136,986 shares of the Company’s common stock. The shares were valued at $0.40 per share based on the quoted trading price for a total of $54,794 resulting in a loss on settlement of debt of $13,698.

On October 27, 2015 the Company agreed terms with a shareholder for the conversion of four existing notes of $146,250. The notes were current and not due until earliest of June 2017. The shareholder agreed to convert the original total principal of $146,250 plus $3,542 in accrued interest into 499,308 shares of the Company’s common stock. The shares were valued at $0.40 per share based on the quoted trading price for a total of $199,723 resulting in a loss on settlement of debt of $49,931.

On October 28, 2015 the Company agreed terms with a shareholder for the conversion an existing note in the amount of $100,000. The notes were current and due December 15, 2015. The shareholder agreed to convert the original total principal of $100,000 plus $7,627 in accrued interest into 358,758 shares of the Company’s common stock. The shares were valued at $0.40 per share based on the quoted trading price for a total of $143,503 resulting in a loss on settlement of debt of $35,876.

Effective November 1, 2015 the Company agreed with a shareholder and greater than 10% stockholder for a new one-year amortizing note replacing the existing note due on October 31, 2015 (“Replacement Note”). The Replacement Note is in the amount of $320,166, which includes principal of $310,000 and accrued interest as of October 31 2015, and is payable in eleven monthly payments of $27,750 plus one final payment of $27,006.63 (including interest of 6%) beginning on or before December 31, 2015.