RECONCILIATION OF NET LOSS TO
CASH FLOWS FROM OPERATING ACTIVITIES

NET LOSS                                                                         $(3,025,145)        $(1,048,962)

RECONCILING ADJUSTMENTS

   Loss on investments                                                               229,914               -
   Loss from discontinued operations                                                 164,625               -
   Loss on disposal of discontinued operations                                       148,062               -
   Decrease in accounts receivable                                                    39,797               -
   Increase in inventory                                                          (   15,009)              -
   Increase in prepaid professional fees                                          (  210,800)              -
   Decrease in other assets                                                       (    6,755)               120
   Depreciation and amortization                                                      96,313              4,759
   Increase in accounts payable
      and accrued expenses                                                           136,294              4,415
   Stock issued for services                                                       1,618,300            900,000
   Contribution of accrued interest
      to paid-in capital                                                              40,272             44,777
   Other (   47,703)       -

CASH FLOWS FROM OPERATING
   ACTIVITIES$(  831,835)$(   96,051)

NONCASH INVESTING AND FINANCING ACTIVITIES

DECREASE IN ACCRUED INTEREST
   PAYABLE THROUGH CONTRIBUTION
   TO PAID-IN CAPITAL$    40,272$    44,777

ACQUISITION OF BUSINESS ASSETS WITH
   COMMON STOCK AND ADDITIONAL PAID
   IN CAPITAL$ 1,144,042$      -

STOCK ISSUED FOR SERVICES$ 1,407,338$   900,000

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