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SKINVISIBLE INC
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<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Description of business</u> – Skinvisible,
Inc., (referred to as the “Company”) is focused on the development and manufacture of innovative topical, transdermal
and mucosal polymer-based delivery system technologies and formulations incorporating its patent-pending formula/process for combining
hydrophilic and hydrophobic polymer emulsions. The technologies and formulations have broad industry applications within the pharmaceutical,
over-the-counter, personal skincare and cosmetic arenas. Additionally, the Company’s non-dermatological formulations, offer
solutions for a broad spectrum of markets women’s health, pain management, and others. The Company maintains executive and
sales offices in Las Vegas, Nevada.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>History </u>– Skinvisible, Inc. (referred
to as the “Company”) was incorporated in Nevada on March 6, 1998, under the name of Microbial Solutions, Inc. The Company
underwent a name change on February 26, 1999, when it changed its name to Skinvisible, Inc. The Company’s subsidiary’s
name of Manloe Labs, Inc. was also changed to Skinvisible Pharmaceuticals, Inc.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Skinvisible, Inc. together with its subsidiary
shall herein be collectively referred to as the “Company”.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Going concern</u> – The accompanying
financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction
of liabilities in the normal course of business. The Company has incurred cumulative net losses of $23,914,808 since its inception
and requires capital for its contemplated operational and marketing activities to take place. The Company’s ability to raise
additional capital through the future issuances of common stock is unknown. The obtainment of additional financing, the successful
development of the Company’s contemplated plan of operations, and its transition, ultimately, to the attainment of profitable
operations are necessary for the Company to continue operations. The ability to successfully resolve these factors raise substantial
doubt about the Company’s ability to continue as a going concern. The consolidated financial statements of the Company do
not include any adjustments that may result from the outcome of these aforementioned uncertainties.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Principles of consolidation</u> –
The consolidated financial statements include the accounts of the Company and its subsidiary. All significant intercompany balances
and transactions have been eliminated.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Use of estimates</u> – The preparation
of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires
management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent
assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during
the reporting period. Actual results could differ from those estimates.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Cash and cash equivalents</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">For purposes of the statement of cash flows,
the Company considers all highly liquid investments and short-term debt instruments with original maturities of three months or
less to be cash equivalents. There are $513,420 and $450,507 in cash and no cash equivalents as of December 31, 2013 and December
31, 2012, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Fair Value of Financial Instruments</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The carrying amounts reflected in the balance
sheets for cash, accounts payable and accrued expenses approximate the respective fair values due to the short maturities of these
items.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As required by the Fair Value Measurements
and Disclosures Topic of the FASB ASC, fair value is measured based on a three-tier fair value hierarchy, which prioritizes the
inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2)
inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and (Level 3) unobservable
inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The three levels of the fair value hierarchy
are described below:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">Level 1: Unadjusted quoted prices
in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">Level 2: Quoted prices in markets
that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset
or liability;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">Level 3: Prices or valuation techniques
that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market
activity).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Revenue recognition</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"><u>Product sales</u> – Revenues
from the sale of products (Invisicare® polymers) are recognized when title to the products are transferred to the customer
and only when no further contingencies or material performance obligations are warranted, and thereby have earned the right to
receive reasonably assured payments for products sold and delivered.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-right: 0; margin-left: 0.5in"><u>Royalty sales</u>
– The Company also recognizes royalty revenue from licensing its patented product formulations only when earned, when no
further contingencies or material performance obligations are warranted, and thereby have earned the right to receive and retain
reasonably assured payments.</p>
<p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-right: 0; margin-left: 0.5in"><u>Distribution and
license rights sales</u> – The Company also recognizes revenue from distribution and license rights only when earned (and
are amortized over a five year period), when no further contingencies or material performance obligations are warranted, and thereby
have earned the right to receive and retain reasonably assured payments.</p>
<p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-right: 0; margin-left: 0.5in"><u>Costs of Revenue</u>
– Cost of revenue includes raw materials, component parts, and shipping supplies. Shipping and handling costs is not a significant
portion of the cost of revenue.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Accounts Receivable</u> – Accounts
receivable is comprised of uncollateralized customer obligations due under normal trade terms requiring payment within 30 days
from the invoice date. The carrying amount of accounts receivable is reviewed periodically for collectability. If management determines
that collection is unlikely, an allowance that reflects management’s best estimate of the amounts that will not be collected
is recorded. Management reviews each accounts receivable balance that exceeds 30 days from the invoice date and, based on an assessment
of creditworthiness, estimates the portion, if any, of the balance that will not be collected. As of December 31, 2013, the Company
had not recorded a reserve for doubtful accounts. The Company has $1,000,000 in convertible notes payable which are secured by
the accounts receivable of a license agreement the Company has with Women's Choice Pharmaceuticals, LLC on its proprietary prescription
product, ProCort®.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Inventory </u>– Substantially all
inventory consists of finished goods and are valued based upon first-in first-out ("FIFO") cost, not in excess of market. The determination
of whether the carrying amount of inventory requires a write-down is based on an evaluation of inventory.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Goodwill and intangible assets</u> –
The Company follows Financial Accounting Standard Board’s (FASB) Codification Topic 350-10 (“ASC 350-10”), “<i>Intangibles
– Goodwill and Other</i>”. According to this statement, goodwill and intangible assets with indefinite lives are no
longer subject to amortization, but rather an annual assessment of impairment by applying a fair-value based test. Fair value for
goodwill is based on discounted cash flows, market multiples and/or appraised values as appropriate. Under ASC 350-10, the carrying
value of assets are calculated at the lowest level for which there are identifiable cash flows.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Income taxes</u> – The Company accounts
for its income taxes in accordance with FASB Codification Topic ASC 740-10, “<i>Income Taxes</i>”, which requires recognition
of deferred tax assets and liabilities for future tax consequences attributable to differences between the financial statement
carrying amounts of existing assets and liabilities and their respective tax bases and tax credit carry-forwards. Deferred tax
assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary
differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates
is recognized in income in the period that includes the enactment date.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Stock-based compensation</u> – The
Company follows the guidelines in FASB Codification Topic ASC 718-10 “<i>Compensation-Stock Compensation</i>”, which
requires the measurement and recognition of compensation expense for all share-based payment awards made to employees and directors
including employee stock options and employee stock purchases related to a Employee Stock Purchase Plan based on the estimated
fair values.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Stock based compensation expense recognized
under ASC 718-10 for the years ended December 31, 2013 and 2012 totaled $21,200 and $0, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Earnings (loss) per share</u> – The
Company reports earnings (loss) per share in accordance with FASB Codification Topic ASC 260-10 “<i>Earnings Per Share</i>”,
Basic earnings (loss) per share is computed by dividing income (loss) available to common shareholders by the weighted average
number of common shares available. Diluted earnings (loss) per share is computed similar to basic earnings (loss) per share except
that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential
common shares had been issued and if the additional common shares were dilutive. Diluted earnings (loss) per share has not been
presented since the effect of the assumed exercise of options and warrants to purchase common shares (common stock equivalents)
would have an anti-dilutive effect.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Skinvisible, Inc., (referred to as the “Company”) is focused on the development and manufacture of innovative topical,
transdermal and mucosal polymer-based delivery system technologies and formulations incorporating its patent-pending formula/process
for combining hydrophilic and hydrophobic polymer emulsions. The technologies and formulations have broad industry applications
within the pharmaceutical, over-the-counter, personal skincare and cosmetic arenas. Additionally, the Company’s non-dermatological
formulations, offer solutions for a broad spectrum of markets women’s health, pain management, and others. The Company maintains
executive and sales offices in Las Vegas, Nevada.</p>
<p></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Skinvisible, Inc. (referred to as the “Company”)
was incorporated in Nevada on March 6, 1998, under the name of Microbial Solutions, Inc. The Company underwent a name change on
February 26, 1999, when it changed its name to Skinvisible, Inc. The Company’s subsidiary’s name of Manloe Labs, Inc.
was also changed to Skinvisible Pharmaceuticals, Inc.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Skinvisible, Inc. together with its subsidiary
shall herein be collectively referred to as the “Company”.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets
and the satisfaction of liabilities in the normal course of business. The Company has incurred cumulative net losses of $23,914,808
since its inception and requires capital for its contemplated operational and marketing activities to take place. The Company’s
ability to raise additional capital through the future issuances of common stock is unknown. The obtainment of additional financing,
the successful development of the Company’s contemplated plan of operations, and its transition, ultimately, to the attainment
of profitable operations are necessary for the Company to continue operations. The ability to successfully resolve these factors
raise substantial doubt about the Company’s ability to continue as a going concern. The consolidated financial statements
of the Company do not include any adjustments that may result from the outcome of these aforementioned uncertainties.</p>
<p></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The consolidated financial statements include the accounts of the Company and its subsidiary. All significant intercompany balances
and transactions have been eliminated.</p>
<p></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United
States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure
of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and
expenses during the reporting period. Actual results could differ from those estimates.</p>
<p></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">For purposes of the statement of cash flows, the Company considers all highly
liquid investments and short-term debt instruments with original maturities of three months or less to be cash equivalents. There
are $513,420 and $450,507 in cash and no cash equivalents as of December 31, 2013 and December 31, 2012, respectively.</p>
<p></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The carrying amounts reflected in the balance
sheets for cash, accounts payable and accrued expenses approximate the respective fair values due to the short maturities of these
items.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As required by the Fair Value Measurements
and Disclosures Topic of the FASB ASC, fair value is measured based on a three-tier fair value hierarchy, which prioritizes the
inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2)
inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and (Level 3) unobservable
inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The three levels of the fair value hierarchy
are described below:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">Level 1: Unadjusted quoted prices
in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">Level 2: Quoted prices in markets
that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset
or liability;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">Level 3: Prices or valuation techniques
that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market
activity).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"><u>Product sales</u> – Revenues
from the sale of products (Invisicare® polymers) are recognized when title to the products are transferred to the customer
and only when no further contingencies or material performance obligations are warranted, and thereby have earned the right to
receive reasonably assured payments for products sold and delivered.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-right: 0; margin-left: 0.5in"><u>Royalty sales</u>
– The Company also recognizes royalty revenue from licensing its patented product formulations only when earned, when no
further contingencies or material performance obligations are warranted, and thereby have earned the right to receive and retain
reasonably assured payments.</p>
<p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-right: 0; margin-left: 0.5in"><u>Distribution and
license rights sales</u> – The Company also recognizes revenue from distribution and license rights only when earned (and
are amortized over a five year period), when no further contingencies or material performance obligations are warranted, and thereby
have earned the right to receive and retain reasonably assured payments.</p>
<p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-right: 0; margin-left: 0.5in"><u>Costs of Revenue</u>
– Cost of revenue includes raw materials, component parts, and shipping supplies. Shipping and handling costs is not a significant
portion of the cost of revenue.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Accounts receivable is comprised of uncollateralized customer obligations due under normal trade terms requiring payment within
30 days from the invoice date. The carrying amount of accounts receivable is reviewed periodically for collectability. If management
determines that collection is unlikely, an allowance that reflects management’s best estimate of the amounts that will not
be collected is recorded. Management reviews each accounts receivable balance that exceeds 30 days from the invoice date and, based
on an assessment of creditworthiness, estimates the portion, if any, of the balance that will not be collected. As of December
31, 2013, the Company had not recorded a reserve for doubtful accounts. The Company has $1,000,000 in convertible notes payable
which are secured by the accounts receivable of a license agreement the Company has with Women's Choice Pharmaceuticals, LLC on
its proprietary prescription product, ProCort®.</p>
<p></p>
<p><font style="font: 10pt Times New Roman, Times, Serif">Substantially all inventory consists of finished goods and are valued
based upon first-in first-out ("FIFO") cost, not in excess of market. The determination of whether the carrying amount of inventory
requires a write-down is based on an evaluation of inventory.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company follows Financial Accounting Standard
Board’s (FASB) Codification Topic 350-10 (“ASC 350-10”), “<i>Intangibles – Goodwill and Other</i>”.
According to this statement, goodwill and intangible assets with indefinite lives are no longer subject to amortization, but rather
an annual assessment of impairment by applying a fair-value based test. Fair value for goodwill is based on discounted cash flows,
market multiples and/or appraised values as appropriate. Under ASC 350-10, the carrying value of assets are calculated at the lowest
level for which there are identifiable cash flows.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company accounts for its income taxes in
accordance with FASB Codification Topic ASC 740-10, “<i>Income Taxes</i>”, which requires recognition of deferred tax
assets and liabilities for future tax consequences attributable to differences between the financial statement carrying amounts
of existing assets and liabilities and their respective tax bases and tax credit carry-forwards. Deferred tax assets and liabilities
are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are
expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in
income in the period that includes the enactment date.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company follows the guidelines in FASB
Codification Topic ASC 718-10 “<i>Compensation-Stock Compensation</i>”, which requires the measurement and recognition
of compensation expense for all share-based payment awards made to employees and directors including employee stock options and
employee stock purchases related to a Employee Stock Purchase Plan based on the estimated fair values.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Stock based compensation expense recognized
under ASC 718-10 for the years ended December 31, 2013 and 2012 totaled $21,200 and $0, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company reports earnings (loss) per share in accordance with FASB Codification Topic ASC 260-10 “<i>Earnings Per Share</i>”,
Basic earnings (loss) per share is computed by dividing income (loss) available to common shareholders by the weighted average
number of common shares available. Diluted earnings (loss) per share is computed similar to basic earnings (loss) per share except
that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential
common shares had been issued and if the additional common shares were dilutive. Diluted earnings (loss) per share has not been
presented since the effect of the assumed exercise of options and warrants to purchase common shares (common stock equivalents)
would have an anti-dilutive effect.</p>
<p></p>
1998-03-06
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Fixed assets consist of the following as of
December 31, 2013 and December 31, 2012:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" align="center" style="width: 50%; border-collapse: collapse; font-size: 10pt">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center">2013</td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center">2012</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="width: 54%; text-align: justify">Machinery and equipment</td>
<td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td>
<td style="width: 20%; text-align: right">48,163</td>
<td style="width: 1%; text-align: left"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td>
<td style="width: 20%; text-align: right">45,208</td>
<td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify">Furniture and fixtures</td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">113,635</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">113,635</td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="text-align: justify">Computers, equipment and software</td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">38,540</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">38,105</td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify">Leasehold improvements</td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">12,569</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">12,569</td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="padding-bottom: 1pt; text-align: justify">Lab equipment</td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">113,461</td>
<td style="padding-bottom: 1pt; text-align: left"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">113,461</td>
<td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify"> Total</td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">326,368</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">322,978</td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="padding-bottom: 1pt; text-align: justify">Less: accumulated depreciation</td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">(322,813</td>
<td style="padding-bottom: 1pt; text-align: left">)</td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">(318,519</td>
<td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 2.5pt; text-align: justify">Fixed assets, net of accumulated depreciation</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.5pt double; text-align: left">$</td>
<td style="border-bottom: black 2.5pt double; text-align: right">3,555</td>
<td style="padding-bottom: 2.5pt; text-align: left"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.5pt double; text-align: left">$</td>
<td style="border-bottom: black 2.5pt double; text-align: right">4,459</td>
<td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Depreciation expense for the years ended December
31, 2013 and 2012 was $1,339 and $1,257, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<table cellspacing="0" cellpadding="0" align="center" style="width: 50%; border-collapse: collapse; font-size: 10pt">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center">2013</td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center">2012</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="width: 54%; text-align: justify">Machinery and equipment</td>
<td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td>
<td style="width: 20%; text-align: right">48,163</td>
<td style="width: 1%; text-align: left"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td>
<td style="width: 20%; text-align: right">45,208</td>
<td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify">Furniture and fixtures</td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">113,635</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">113,635</td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="text-align: justify">Computers, equipment and software</td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">38,540</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">38,105</td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify">Leasehold improvements</td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">12,569</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">12,569</td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="padding-bottom: 1pt; text-align: justify">Lab equipment</td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">113,461</td>
<td style="padding-bottom: 1pt; text-align: left"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">113,461</td>
<td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify"> Total</td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">326,368</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">322,978</td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="padding-bottom: 1pt; text-align: justify">Less: accumulated depreciation</td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">(322,813</td>
<td style="padding-bottom: 1pt; text-align: left">)</td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">(318,519</td>
<td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 2.5pt; text-align: justify">Fixed assets, net of accumulated depreciation</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.5pt double; text-align: left">$</td>
<td style="border-bottom: black 2.5pt double; text-align: right">3,555</td>
<td style="padding-bottom: 2.5pt; text-align: left"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.5pt double; text-align: left">$</td>
<td style="border-bottom: black 2.5pt double; text-align: right">4,459</td>
<td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
48163
45208
113635
113635
38540
38105
12569
12569
113461
113461
326368
322978
1339
1257
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Patents and trademarks are capitalized at their
historical cost and are amortized over their estimated useful lives. As of December 31, 2013, patents and trademarks total $321,338,
net of $249,064 of accumulated amortization. Amortization expense for the years ended December 31, 2013 and 2012 was $35,859 and
$50,585, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">License and distributor rights (“agreement”)
were acquired by the Company in January 1999 and provide exclusive use distribution of polymers and polymer based products. The
Company has a non-expiring term on the license and distribution rights. Accordingly, the Company annually assesses this license
and distribution rights for impairment and has determined that no impairment write-down is considered necessary as of December
31, 2013.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="margin: 0pt"></p>
321338
249064
35859
50585
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On January 16, 2013, the company terminated its licensing agreement with Panalab
dated January 23, 2008. The agreement provided Panalab the right to distribute, market, sell and promote Skinvisible’s proprietary
formulas made with Invisicare and Adapalene through-out Panalabs assigned territory. Panalab had failed to sell or sub-license
the products in the territory, thereby not fulfilling the conditions as set forth in the agreement and allowing for immediate termination
of the agreement. As a result of this cancelation, unearned revenue of $19,792 has been recognized as revenue during the year ended
December 31, 2013.</p>
<p></p>
<p style="margin: 0pt"></p>
19792
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following is a summary of option activity
during the years ended December 31, 2013 and 2012.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" align="center" style="width: 50%; border-collapse: collapse; font-size: 10pt">
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: center; padding-left: 0.75pt"> </td>
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td style="text-align: center">Number of Shares</td>
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td style="text-align: center; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">Weighted Average Exercise Price</font></td>
<td style="text-align: center"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="width: 54%; text-align: justify; padding-left: 0.75pt">Balance, December 31, 2011</td>
<td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td>
<td style="width: 20%; text-align: right">9,980,000</td>
<td style="width: 1%; text-align: left"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td>
<td style="width: 20%; text-align: right">0.05</td>
<td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify; padding-left: 0.75pt">Options granted and assumed</td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">—  </td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">—  </td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="text-align: justify; padding-left: 0.75pt">Options expired</td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">580,000</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left">$</td>
<td style="text-align: right">0.04</td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify; padding-left: 0.75pt">Options canceled</td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">—  </td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">—  </td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="padding-bottom: 1pt; text-align: justify; padding-left: 0.75pt">Options exercised</td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">—  </td>
<td style="padding-bottom: 1pt; text-align: left"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">—  </td>
<td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; text-align: justify; padding-left: 0.75pt">Balance, December 31, 2012</td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">9,400,000</td>
<td style="padding-bottom: 1pt; text-align: left"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">   $    0 .05</font></td>
<td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="text-align: justify; padding-left: 9pt">Options granted and assumed</td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">300,000</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left">$</td>
<td style="text-align: right">0.03</td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify; padding-left: 9pt">Options expired</td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">400,000</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left">$</td>
<td style="text-align: right">0.04</td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="text-align: justify; padding-left: 9pt">Options canceled</td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">—  </td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">—  </td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; text-align: justify; padding-left: 9pt">Options exercised</td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">—  </td>
<td style="padding-bottom: 1pt; text-align: left"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">—  </td>
<td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="padding-bottom: 2.5pt; text-align: justify; padding-left: 0.75pt">Balance, December 31, 2013</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.5pt double; text-align: left"> </td>
<td style="border-bottom: black 2.5pt double; text-align: right">9,300,000</td>
<td style="padding-bottom: 2.5pt; text-align: left"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.5pt double; text-align: left">$</td>
<td style="border-bottom: black 2.5pt double; text-align: right">0.05</td>
<td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of December 31, 2013, 9,300,000 stock options
are exercisable.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On September 23, 2013, the Company granted
stock options for 300,000 shares of its common stock with a strike price of $0.03. The stock options were exercisable upon
grant and have a life of 5 years. The stock options were valued at $8,400 using the Black-Scholes option pricing model based upon
the following assumptions: term of 5 years,  risk free interest rate of 1.33%, a dividend yield of 0% and volatility
rates of 443%.   The Company recorded an expense of $8,400 for the year ended December 31, 2013.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Stock warrants -</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following is a summary of warrants activity
during the years ended December 31, 2013 and 2012.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" align="center" style="width: 50%; border-collapse: collapse; font-size: 10pt">
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: center; padding-left: 0.75pt"> </td>
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td style="text-align: center">Number of Shares</td>
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td style="text-align: center; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">Weighted Average Exercise Price</font></td>
<td style="text-align: center"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="width: 54%; text-align: justify; padding-left: 0.75pt">Balance, December 31, 2011</td>
<td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td>
<td style="width: 20%; text-align: right">5,762,451</td>
<td style="width: 1%; text-align: left"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td>
<td style="width: 20%; text-align: right">0.10</td>
<td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify; padding-left: 0.75pt">Warrants granted and assumed</td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">2,152,750</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left">$</td>
<td style="text-align: right">0.03</td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="text-align: justify; padding-left: 0.75pt">Warrants expired</td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">1,150,001</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left">$</td>
<td style="text-align: right">0.10</td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify; padding-left: 0.75pt">Warrants canceled</td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">—  </td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">—  </td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="padding-bottom: 1pt; text-align: justify; padding-left: 0.75pt">Warrants exercised</td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">—  </td>
<td style="padding-bottom: 1pt; text-align: left"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">—  </td>
<td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; text-align: justify; padding-left: 0.75pt">Balance, December 31, 2012</td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">6,765,200</td>
<td style="padding-bottom: 1pt; text-align: left"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left">$</td>
<td style="border-bottom: black 1pt solid; text-align: right">0.06</td>
<td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="text-align: justify; padding-left: 9pt">Warrants granted and assumed</td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">471,280</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">0.05</td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify; padding-left: 9pt">Warrants expired</td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">3,417,700</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">0.06</td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="text-align: justify; padding-left: 9pt">Warrants canceled</td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">—  </td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">—  </td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; text-align: justify; padding-left: 9pt">Warrants exercised</td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">—  </td>
<td style="padding-bottom: 1pt; text-align: left"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">—  </td>
<td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="padding-bottom: 2.5pt; text-align: justify; padding-left: 0.75pt">Balance, December 31, 2013</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.5pt double; text-align: left"> </td>
<td style="border-bottom: black 2.5pt double; text-align: right">3,818,780</td>
<td style="padding-bottom: 2.5pt; text-align: left"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.5pt double; text-align: left"> </td>
<td style="border-bottom: black 2.5pt double; text-align: right">0.05</td>
<td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">All warrants outstanding as of December 31,
2013 are exercisable.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As part of a series of convertible notes with
attached warrants 471,280 and 2,152,750 warrants were issued during the years ended 2013 and 2012, respectively. The warrants allow
the holders to purchase one share for every two shares issued upon conversion of debt, at an exercise price ranging from $0.04
to $0.06 cents per share.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On July 2, 2012, the Company issued a warrant
for 125,000 shares of common stock to a Consultant with an exercise price of $0.03. The vesting period on these grants was immediate.
The value of these warrants were estimated by using the Black-Scholes option pricing model with the following assumptions: expected
life of 3 years; risk free interest rate of 0.39%; dividend yield of 0% and expected volatility of 191%. To account for such grants
to non-employees, we recorded the issuance as consulting expense in the amount of $4,578.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On August 20, 2012, the Company issued a warrant
for 100,000 shares of common stock to a Consultant with an exercise price of $0.03. The vesting period on these grants was immediate.
The value of these warrants were estimated by using the Black-Scholes option pricing model with the following assumptions: expected
life of 3 years; risk free interest rate of 0.41%; dividend yield of 0% and expected volatility of 191%. To account for such grants
to non-employees, we recorded the issuance as consulting expense in the amount of $3,660.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On September 4, 2012, the Company issued a
warrant for 200,000 shares of common stock to Retire Happy, LLC for Consulting services. The warrants have an exercise price of
$0.03 and the vesting period on these grants was immediate . The value of these warrants were estimated by using the Black-Scholes
option pricing model with the following assumptions: expected life of 1 years; risk free interest rate of 0.16%; dividend yield
of 0% and expected volatility of 168%. To account for such grants to non-employees, we recorded the issuance as consulting expense
in the amount of $5,235.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On November 20, 2012, the Company issued a
warrant for 425,000 shares of common stock to Retire Happy, LLC for Consulting services. The warrants have an exercise price of
$0.03 and the vesting period on these grants was immediate. The value of these warrants were estimated by using the Black-Scholes
option pricing model with the following assumptions: expected life of 1 years; risk free interest rate of 0.16%; dividend yield
of 0% and expected volatility of 166%. To account for such grants to non-employees, we recorded the issuance as consulting expense
in the amount of $10,718.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On December 10, 2012, the Company issued a
warrant for 150,000 shares of common stock to Retire Happy, LLC for Consulting services. The warrants have an exercise price of
$0.04 and the vesting period on these grants was immediate . The value of these warrants were estimated by using the Black-Scholes
option pricing model with the following assumptions: expected life of 1 years; risk free interest rate of 0.17%; dividend yield
of 0% and expected volatility of 172%. To account for such grants to non-employees, we recorded the issuance as consulting expense
in the amount of $3,668.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On December 20, 2012, the Company issued a
warrant for 425,000 shares of common stock to Retire Happy, LLC for Consulting services. The warrants have an exercise price of
$0.04 and the vesting period on these grants was immediate . The value of these warrants were estimated by using the Black-Scholes
option pricing model with the following assumptions: expected life of 1 years; risk free interest rate of 0.15%; dividend yield
of 0% and expected volatility of 174%. To account for such grants to non-employees, we recorded the issuance as consulting expense
in the amount of $11,147.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On February 11, 2013, the Company issued a
warrant for 180,915 shares of common stock to the note holder with a exercise price of $0.05. The vesting period on these grant
was immediate. The value of these warrants were estimated by using the Black-Scholes option pricing model with the following assumptions:
expected life of 2 years; risk free interest rate of 0.27%; dividend yield of 0% and expected volatility of 178%. To account for
such grants to non-employees, we recorded the issuance as consulting expense in the amount of $1,683.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On February 11, 2013, the Company issued a
warrant for 90,365 shares of common stock to a note holder with a exercise price of $0.05. The vesting period on these grant was
immediate. The value of these warrants were estimated by using the Black-Scholes option pricing model with the following assumptions:
expected life of 2 years; risk free interest rate of 0.27%; dividend yield of 0% and expected volatility of 178%. To account for
such grants to non-employees, we recorded the issuance as consulting expense in the amount of $840.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On May 22, 2013, the Company issued a warrant
for 200,000 shares of common stock to Retire Happy, LLC for Consulting services. The warrants have an exercise price of $0.04 and
the vesting period on these grants was immediate. The value of these warrants were estimated by using the Black-Scholes option
pricing model with the following assumptions: expected life of 1 years; risk free interest rate of 0.11%; dividend yield of 0%
and expected volatility of 167%. To account for such grants to non-employees, we recorded the issuance as consulting expense in
the amount of $3,000.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<table cellspacing="0" cellpadding="0" align="center" style="width: 50%; border-collapse: collapse; font-size: 10pt">
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: center; padding-left: 0.75pt"> </td>
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td style="text-align: center">Number of Shares</td>
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td style="text-align: center; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">Weighted Average Exercise Price</font></td>
<td style="text-align: center"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="width: 54%; text-align: justify; padding-left: 0.75pt">Balance, December 31, 2011</td>
<td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td>
<td style="width: 20%; text-align: right">9,980,000</td>
<td style="width: 1%; text-align: left"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td>
<td style="width: 20%; text-align: right">0.05</td>
<td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify; padding-left: 0.75pt">Options granted and assumed</td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">—  </td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">—  </td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="text-align: justify; padding-left: 0.75pt">Options expired</td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">580,000</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left">$</td>
<td style="text-align: right">0.04</td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify; padding-left: 0.75pt">Options canceled</td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">—  </td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">—  </td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="padding-bottom: 1pt; text-align: justify; padding-left: 0.75pt">Options exercised</td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">—  </td>
<td style="padding-bottom: 1pt; text-align: left"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">—  </td>
<td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; text-align: justify; padding-left: 0.75pt">Balance, December 31, 2012</td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">9,400,000</td>
<td style="padding-bottom: 1pt; text-align: left"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">   $    0 .05</font></td>
<td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="text-align: justify; padding-left: 9pt">Options granted and assumed</td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">300,000</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left">$</td>
<td style="text-align: right">0.03</td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify; padding-left: 9pt">Options expired</td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">400,000</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left">$</td>
<td style="text-align: right">0.04</td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="text-align: justify; padding-left: 9pt">Options canceled</td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">—  </td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">—  </td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; text-align: justify; padding-left: 9pt">Options exercised</td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">—  </td>
<td style="padding-bottom: 1pt; text-align: left"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">—  </td>
<td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="padding-bottom: 2.5pt; text-align: justify; padding-left: 0.75pt">Balance, December 31, 2013</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.5pt double; text-align: left"> </td>
<td style="border-bottom: black 2.5pt double; text-align: right">9,300,000</td>
<td style="padding-bottom: 2.5pt; text-align: left"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.5pt double; text-align: left">$</td>
<td style="border-bottom: black 2.5pt double; text-align: right">0.05</td>
<td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" align="center" style="width: 50%; border-collapse: collapse; font-size: 10pt">
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: center; padding-left: 0.75pt"> </td>
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td style="text-align: center">Number of Shares</td>
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td style="text-align: center; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">Weighted Average Exercise Price</font></td>
<td style="text-align: center"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="width: 54%; text-align: justify; padding-left: 0.75pt">Balance, December 31, 2011</td>
<td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td>
<td style="width: 20%; text-align: right">5,762,451</td>
<td style="width: 1%; text-align: left"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td>
<td style="width: 20%; text-align: right">0.10</td>
<td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify; padding-left: 0.75pt">Warrants granted and assumed</td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">2,152,750</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left">$</td>
<td style="text-align: right">0.03</td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="text-align: justify; padding-left: 0.75pt">Warrants expired</td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">1,150,001</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left">$</td>
<td style="text-align: right">0.10</td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify; padding-left: 0.75pt">Warrants canceled</td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">—  </td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">—  </td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="padding-bottom: 1pt; text-align: justify; padding-left: 0.75pt">Warrants exercised</td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">—  </td>
<td style="padding-bottom: 1pt; text-align: left"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">—  </td>
<td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; text-align: justify; padding-left: 0.75pt">Balance, December 31, 2012</td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">6,765,200</td>
<td style="padding-bottom: 1pt; text-align: left"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left">$</td>
<td style="border-bottom: black 1pt solid; text-align: right">0.06</td>
<td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="text-align: justify; padding-left: 9pt">Warrants granted and assumed</td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">471,280</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">0.05</td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify; padding-left: 9pt">Warrants expired</td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">3,417,700</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">0.06</td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="text-align: justify; padding-left: 9pt">Warrants canceled</td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">—  </td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">—  </td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; text-align: justify; padding-left: 9pt">Warrants exercised</td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">—  </td>
<td style="padding-bottom: 1pt; text-align: left"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">—  </td>
<td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="padding-bottom: 2.5pt; text-align: justify; padding-left: 0.75pt">Balance, December 31, 2013</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.5pt double; text-align: left"> </td>
<td style="border-bottom: black 2.5pt double; text-align: right">3,818,780</td>
<td style="padding-bottom: 2.5pt; text-align: left"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.5pt double; text-align: left"> </td>
<td style="border-bottom: black 2.5pt double; text-align: right">0.05</td>
<td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
9300000
.03
8400
0.0133
0
P5Y
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="margin: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">During the year ended 2013 various officers advanced
funds to support the daily operations of the company. As of December 31, 2013, $1,832 remained due to related parties as repayment
for advanced monies, all related other party notes have been extinguished or re-negotiated as convertible notes. See note 8</font></p>
<p></p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<table cellspacing="0" cellpadding="0" align="center" style="width: 60%; border-collapse: collapse; font-size: 10pt">
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Convertible Notes Payable at consists
of the following:</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">December 31,</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">December 31,</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold; padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="border-bottom: black 1pt solid; font-weight: bold; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">2013</font></td>
<td style="font-weight: bold; padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="border-bottom: black 1pt solid; font-weight: bold; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">2012</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="width: 64%; text-align: justify; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">$52,476
face value,10% unsecured note payable to an investor, note interest and payment are due on demand.  The note could
be converted to option rights for Skinvisible, Inc. shares at ten cents per share ($0.10), these rights expired January 12,
2010. Note is currently in default, no penalties occur due to default.</font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 15%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">36,476</font></td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 15%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">52,476</font></td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">$27,000 face value
10% unsecured notes payable to investors, due October, 2012.  At the written request of the investor’s until
the repayment date, the note may be converted at the investors option to shares of the Company’s common stock at a fixed
price of $0.05 per share along with additional warrants to purchase one share for every two shares issued at the exercise
price of $0.07 per share for two years after the conversion date. The Company has determined the value associated with the
beneficial conversion feature in connection with the notes to be $19,385. The aggregate beneficial conversion feature was
accreted and charged to general and administrative expenses as a financing expense in the amount of $19,385 in the year ending
December 31, 2012.  The beneficial conversion feature is valued under the intrinsic value method.  Interest
due to lender can also be converted at a rate of ($0.05) per share into warrants.  February 11, 2013, the Company
made a $2,000 cash payment to reduce the note balance.</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">10,000</font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">27,000</font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="padding-bottom: 1pt; text-align: justify; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">$1,000,000
face value 9% unsecured notes payable to investors, due in 2015.  At the investor’s option until the repayment
date, the note and related interest may be converted to shares of the Company’s common stock a discount of  90%
of the current share price after the first anniversary of the note. The Notes are secured by the accounts receivable of a
license agreement the Company has with Womens Choice Pharmaceuticals, LLC on its proprietary prescription product, ProCort®.
The Company has determined the value associated with the beneficial conversion feature in connection with the notes and interest
to be $111,110. The aggregate original issue discount feature has been accreted and charged to general and administrative
expenses as a financing expense in the amount of $44,621as of December 31, 2013.  The original issue discount feature
is valued under the intrinsic value method.</font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1,000,000</font></td>
<td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1,000,000</font></td>
<td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify; padding-left: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">Original issue
discount</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">111,110</font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">111,110</font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="padding-bottom: 1pt; text-align: justify; padding-left: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">Unamortized
debt discount</font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(66,490</font></td>
<td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(102,200</font></td>
<td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 2.5pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2.5pt double; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2.5pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1,091,097</font></td>
<td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 2.5pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2.5pt double; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2.5pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1,088,386</font></td>
<td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<table cellspacing="0" cellpadding="0" align="center" style="width: 60%; border-collapse: collapse; font-size: 10pt">
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Convertible Notes Payable at consists of the following:</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">December 31,</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">December 31,</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold; padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="border-bottom: black 1pt solid; font-weight: bold; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">2013</font></td>
<td style="font-weight: bold; padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="border-bottom: black 1pt solid; font-weight: bold; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">2012</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="width: 64%; text-align: justify; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">$52,476 face value,10% unsecured note payable to an investor, note interest and payment are due on demand.  The note could be converted to option rights for Skinvisible, Inc. shares at ten cents per share ($0.10), these rights expired January 12, 2010. Note is currently in default, no penalties occur due to default.</font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 15%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">36,476</font></td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 15%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">52,476</font></td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">$27,000 face value 10% unsecured notes payable to investors, due October, 2012.  At the written request of the investor’s until the repayment date, the note may be converted at the investors option to shares of the Company’s common stock at a fixed price of $0.05 per share along with additional warrants to purchase one share for every two shares issued at the exercise price of $0.07 per share for two years after the conversion date. The Company has determined the value associated with the beneficial conversion feature in connection with the notes to be $19,385. The aggregate beneficial conversion feature was accreted and charged to general and administrative expenses as a financing expense in the amount of $19,385 in the year ending December 31, 2012.  The beneficial conversion feature is valued under the intrinsic value method.  Interest due to lender can also be converted at a rate of ($0.05) per share into warrants.  February 11, 2013, the Company made a $2,000 cash payment to reduce the note balance.</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">10,000</font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">27,000</font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="padding-bottom: 1pt; text-align: justify; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">$1,000,000 face value 9% unsecured notes payable to investors, due in 2015.  At the investor’s option until the repayment date, the note and related interest may be converted to shares of the Company’s common stock a discount of  90% of the current share price after the first anniversary of the note. The Notes are secured by the accounts receivable of a license agreement the Company has with Womens Choice Pharmaceuticals, LLC on its proprietary prescription product, ProCort®. The Company has determined the value associated with the beneficial conversion feature in connection with the notes and interest to be $111,110. The aggregate original issue discount feature has been accreted and charged to general and administrative expenses as a financing expense in the amount of $44,621as of December 31, 2013.  The original issue discount feature is valued under the intrinsic value method.</font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1,000,000</font></td>
<td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1,000,000</font></td>
<td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify; padding-left: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">Original issue discount</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">111,110</font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">111,110</font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="padding-bottom: 1pt; text-align: justify; padding-left: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">Unamortized debt discount</font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(66,490</font></td>
<td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(102,200</font></td>
<td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 2.5pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2.5pt double; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2.5pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1,091,097</font></td>
<td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 2.5pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2.5pt double; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2.5pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1,088,386</font></td>
<td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
52476
27000
1000000
0.1
0.1
0.09
0.05
0.10
0.07
2010-01-12
2000
19385
44621
0.05
0.05
0.9
36476
52476
10000
27000
1000000
1000000
111110
111110
61724
102200
<p style="margin: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">On May 22, 2013 the Company approved a financing
plan to offer accredited investors up to $1,000,000 in secured promissory notes. During the nine months ended September 30, 2013
the Company entered into twenty-four 9% notes payable to investors and received total proceeds of 1,000,000. The notes are due
two years from the anniversary date of execution. The Notes are secured by the US Patent rights granted for the Company's Sunscreen
Products: US patent number #8,128,913: "Sunscreen Composition with Enhanced UV-A Absorber Stability and Methods".</font></p>
<p></p>
2013-05-22
1000000
.09
1000000
P2Y
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company is authorized to issue 200,000,000
shares of $0.001 par value common stock. The Company has 110,909,969 and 109,507,409 issued and outstanding shares of common stock
as of December 31, 2013 and December 31, 2012, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the year ended December 31, 2013, the
Company issued a total of 1,402,560 shares of common stock, with a fair value of $44,554 for the conversion of outstanding debts
of $37,567, related interest of $1,277 and settlement of stock payable $1,800. The Company recorded a gain of $3,910 on extinguishment
of debts.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Lease obligations</u> – The Company
has operating leases for its offices. Future minimum lease payments under the operating leases for the facilities as of December
31, 2013, are as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">2014 33,156</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">2015 5,526</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Rental expense, resulting from operating lease
agreements, approximated $25,349 and $53,708 for the years ended December 31, 2013 and 2012, respectively.</p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
25349
53708
33156
5526
<p style="margin: 0pt"></p>
<p><font style="font: 10pt Times New Roman, Times, Serif">The Company has evaluated events subsequent to the balance sheet through
the issuance date of these financial statements in accordance with FASB ASC 855 and has determined that there are no such events
that would require adjustment to, or disclosure in, the financial statements.</font></p>
4.43
11591
27299
22437
18769
1145
1145
515
515
549108
498235
3555
4459
321388
251553
874051
754247
479622
636314
165197
25264
1000000
1991
1091097
1088386
19792
3611437
2372635
3611437
2372635
110910
109507
21066512
20841670
1800
-23914808
-22571365
-2737386
-1618388
106594
109507
109507
110910
20268176
20841670
20841670
21066512
1800
1800
-21118944
-22571365
-22571365
-23914808
-744174
-1618388
-2737386
874051
754247
66696
270298
2173
4627
64523
265671
786852
1537808
824050
1589650
-759527
-1323979
272
25000
-588098
-173780
3910
14388
.01
.01
110508469
108703907
-1343443
-1452421
-1452421
-1343443
-1452421
-1452421
513420
450507
1218
37198
51842
21200
288671
571844
399528
422
39006
39006
13923
39006
13923
-3668
-3816
15708
-26194
8098
109343
84577
138797
18970
-19792
-210000
-751654
-538904
-106129
-31971
-106129
-37971
6000
-5829
-3736
-55475
1238900
18000
195000
1000000
-20000
920696
1020164
62913
449289
144763
11389
-9719
37567
116145
-1800
1800
2913
1403
113846
45241
1800
-1800
118559
44844
422
613
106592159
109507409
109507409
110909969
2915250
1402560
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<p style="margin-top: 0pt; margin-bottom: 0pt"></p>
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 60%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Convertible Notes Payable Related Party
at consists of the following:</font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">December 31,</font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">December 31,</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif">2013</font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif">2012</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="width: 64%; text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">On
December 31, 2011, the Company re-negotiated accrued salaries and interest for three employees. Under the terms of the agreements,
the notes dated before December 31, 2010, and all salaries not previously converted were converted to promissory notes convertible
into common stock with a warrant feature. The promissory notes are unsecured, due five years from issuance, and bear an interest
rate of 10%. At the investor’s option until the repayment date, the note may be converted to shares of the Company’s
common stock at a fixed price of $0.04 per share along with additional warrants to purchase one share for every two shares
issued at the exercise price of $0.06 per share for three years after the conversion date. The Company has determined the
value associated with the beneficial conversion feature in connection with the notes negotiated on December 31, 2011 to be
$1,123,078. The aggregate beneficial conversion feature has been accreted and charged to general and administrative expenses
as a financing expense in the amount of $166,790 and  $456,296 as of December 31, 2013  and 2012, respectively.  The
beneficial conversion feature is valued under the intrinsic value method.  In the year ending December 2013, the
Company  made a $51,485 in cash payments to reduce the note balance.</font></td><td style="width: 1%; padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="width: 15%; border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1,071,593</font></td><td style="width: 1%; padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="width: 1%; padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="width: 15%; border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1,123,078</font></td><td style="width: 1%; padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1pt; padding-left: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">Unamortized
debt discount</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(499,993</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(666,782</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="text-align: justify; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">On June 30, 2012,
the Company re-negotiated accrued salaries and interest for three employees. Under the terms of the agreements, the notes
dated before July 1, 2011, and all salaries not previously converted were converted to promissory notes convertible into common
stock with a warrant feature. The promissory notes are unsecured, due five years from issuance, and bear an interest rate
of 10%. At the investor’s option until the repayment date, the note may be converted to shares of the Company’s
common stock at a fixed price of $0.04 per share along with additional warrants to purchase one share for every two shares
issued at the exercise price of $0.06 per share for three years after the conversion date. The Company has determined the
value associated with the beneficial conversion feature in connection with the  notes to be $209,809. The aggregate
beneficial conversion feature has been accreted and charged to general and administrative expenses as a financing expense
in the amount of $42,642 and  $21,706 as of December 31, 2013  and 2012, respectively.  The
beneficial conversion feature is valued under the intrinsic value method.  On January 18, 2013, the Company  made
a $3,990 cash payment to reduce the note balance.</font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">321,032</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><p style="margin-top: 0pt; margin-bottom: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">325,022 </font></p></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1pt; padding-left: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">Unamortized
debt discount</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(145,462</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(188,103</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
</table>
<p style="margin-top: 0pt; margin-bottom: 0pt"></p>
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 60%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="text-align: justify; padding-left: 5.4pt; width: 64%"><font style="font: 10pt Times New Roman, Times, Serif">On
December 30 and 31, 2012, the Company re-negotiated accrued salaries and interest for three employees. Under the terms of
the agreements,  $182,083 of related party notes accrued interest and salaries not previously converted were converted
to promissory notes convertible into common stock with a warrant feature. The $182,083 face value promissory notes are unsecured,
due five years from issuance, and bear an interest rate of 10%. At the investor’s option until the repayment date, the
note may be converted to shares of the Company’s common stock at a fixed price of $0.03 per share along with additional
warrants to purchase one share for every two shares issued at the exercise price of $0.04 per share for three years after
the conversion date. The Company has determined the value associated with the beneficial conversion feature in connection
with the notes to be $182,083. The aggregate beneficial conversion feature has been accreted and charged to general and administrative
expenses as a financing expense in the amount of $36,398 and  $13 as of December 31, 2013  and 2012, respectively.
 The beneficial conversion feature is valued under the intrinsic value method.</font></td><td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right; width: 15%"><font style="font: 10pt Times New Roman, Times, Serif">182,083</font></td><td style="text-align: left; width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right; width: 15%"><font style="font: 10pt Times New Roman, Times, Serif">182,083</font></td><td style="text-align: left; width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1pt; padding-left: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">Unamortized
debt discount</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(145,672</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(182,070</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
</table>
<p style="margin-top: 0pt; margin-bottom: 0pt"></p>
<p style="margin-top: 0pt; margin-bottom: 0pt"></p>
<p style="margin-top: 0pt; margin-bottom: 0pt"></p>
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 60%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="text-align: justify; padding-left: 5.4pt; width: 64%"><font style="font: 10pt Times New Roman, Times, Serif">On
June 30, 2013, the Company re-negotiated accrued salaries and interest for two employees. Under the terms of the agreements,  $106,153
of accrued interest and salaries were converted to promissory notes convertible into common stock with a warrant feature.
The $106,153 face value promissory notes are unsecured, due five years from issuance, and bear an interest rate of 10%. At
the investor’s option until the repayment date, the note may be converted to shares of the Company’s common stock
at a fixed price of $0.03 per share along with additional warrants to purchase one share for every two shares issued at the
exercise price of $0.04 per share for three years after the conversion date. The Company has determined the value associated
with the beneficial conversion feature in connection with the notes to be $70,768. The aggregate beneficial conversion feature
has been accreted and charged to general and administrative expenses as a financing expense in the amount of $7,132 for the
year ended December 31, 2013.  The beneficial conversion feature is valued under the intrinsic value method.</font></td><td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right; width: 15%"><font style="font: 10pt Times New Roman, Times, Serif">106,152</font></td><td style="text-align: left; width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right; width: 15%"><font style="font: 10pt Times New Roman, Times, Serif">—  </font></td><td style="text-align: left; width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1pt; padding-left: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">Unamortized
debt discount</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(63,636</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">—  </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="text-align: justify; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">On December 31,
2013, the Company re-negotiated accrued salaries and interest for three employees. Under the terms of the agreements, $142,501
of accrued interest and salaries not previously converted were converted to promissory notes convertible into common stock
with a warrant feature. The $142,501 face value promissory notes are unsecured, due five years from issuance, and bear an
interest rate of 10%. At the investor’s option until the repayment date, the note may be converted to shares of the
Company’s common stock at a fixed price of $0.03 per share along with additional warrants to purchase one share for
every two shares issued at the exercise price of $0.04 per share for three years after the conversion date. The Company has
determined the value associated with the beneficial conversion feature in connection with the notes to be $94,909. The aggregate
beneficial conversion feature will be accreted and charged to general and administrative expenses as a financing expense The
beneficial conversion feature is valued under the intrinsic value method.</font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">142,501</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">—  </font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1pt; padding-left: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">Unamortized
debt discount</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(94,909</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">—  </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="text-align: left; padding-bottom: 2.5pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">873,689</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">593,227</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p>
<p style="margin-top: 0pt; margin-bottom: 0pt"></p>
<p style="margin-top: 0pt; margin-bottom: 0pt"></p>
<p style="margin-top: 0pt; margin-bottom: 0pt"></p>
<p style="margin-top: 0pt; margin-bottom: 0pt"></p>
<p style="margin-top: 0; margin-bottom: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0pt"></p>
9300000
9400000
9980000
.05
.05
.05
300000
.03
400000
580000
.04
.04
3818780
6765200
5762451
.05
.06
.10
471280
2152750
.05
.03
3417700
1150001
.06
.10
.04
.03
.03
.03
.03
.04
.04
.05
.05
.04
2012-07-02
2012-08-20
2012-09-04
2012-11-20
2012-12-10
2012-12-20
2013-02-11
2013-02-11
2013-05-22
8400
.04
0.06
0.06
P3Y
P3Y
P1Y
P1Y
P1Y
P1Y
P2Y
P2Y
P1Y
.39
.41
.16
.16
.17
.15
.27
.27
.11
0
0
0
0
0
0
0
0
0
1.91
1.91
1.68
1.66
1.72
1.74
1.78
1.78
1.67
4578
3660
5235
10718
3668
11147
1683
840
3000
1832
7661
2012-10-01
2015-01-01
<p style="margin: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">On January 16, 2013, the company terminated its
licensing agreement with Panalab dated January 23, 2008. The agreement provided Panalab the right to distribute, market, sell
and promote the Skinvisible’s proprietary formulas made with Invisicare and Adapalene through-out Panalabs assigned territory.
Panalab had failed to sell or sub-license the products in the territory, thereby not fulfilling the conditions as set forth in
the agreement and allowing for immediate termination of the agreement. . As a result of this cancelation the deferred revenue
of $19,792 was recognized as revenue in the in the period ended March 31, 2013.</font></p>
<p></p>
873689
593227
1071593
1123078
-499993
-666782
321032
325022
-145462
-188103
182083
182083
-145672
-182070
106152
-63636
142501
-94909
.04
.04
.03
.03
.03
1
1
1
1
1
.06
.06
.04
.04
.04
1123078
209809
182083
70768
94909
166790
456296
21706
42642
13
36398
7132
51485
3990
.10
.10
.10
.10
.10
P3Y
P3Y
P3Y
P3Y
182083
106153
142501
P5Y
P5Y
P5Y
P5Y
P5Y
1402560
44554
1277
2074877
110909969
471280
2152750
125000
100000
200000
425000
150000
425000
180915
90365
200000
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 60%; font: 10pt Times New Roman, Times, Serif"><tr style="vertical-align: bottom"><td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Convertible Notes Payable Related Party
at consists of the following:</font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">December 31,</font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">December 31,</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif">2013</font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif">2012</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="width: 64%; text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">On
December 31, 2011, the Company re-negotiated accrued salaries and interest for three employees. Under the terms of the agreements,
the notes dated before December 31, 2010, and all salaries not previously converted were converted to promissory notes convertible
into common stock with a warrant feature. The promissory notes are unsecured, due five years from issuance, and bear an interest
rate of 10%. At the investor’s option until the repayment date, the note may be converted to shares of the Company’s
common stock at a fixed price of $0.04 per share along with additional warrants to purchase one share for every two shares
issued at the exercise price of $0.06 per share for three years after the conversion date. The Company has determined the
value associated with the beneficial conversion feature in connection with the notes negotiated on December 31, 2011 to be
$1,123,078. The aggregate beneficial conversion feature has been accreted and charged to general and administrative expenses
as a financing expense in the amount of $166,790 and  $456,296 as of December 31, 2013  and 2012, respectively.  The
beneficial conversion feature is valued under the intrinsic value method.  In the year ending December 2013, the
Company  made a $51,485 in cash payments to reduce the note balance.</font></td><td style="width: 1%; padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="width: 15%; border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1,071,593</font></td><td style="width: 1%; padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="width: 1%; padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="width: 15%; border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1,123,078</font></td><td style="width: 1%; padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1pt; padding-left: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">Unamortized
debt discount</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(499,993</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(666,782</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="text-align: justify; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">On June 30, 2012,
the Company re-negotiated accrued salaries and interest for three employees. Under the terms of the agreements, the notes
dated before July 1, 2011, and all salaries not previously converted were converted to promissory notes convertible into common
stock with a warrant feature. The promissory notes are unsecured, due five years from issuance, and bear an interest rate
of 10%. At the investor’s option until the repayment date, the note may be converted to shares of the Company’s
common stock at a fixed price of $0.04 per share along with additional warrants to purchase one share for every two shares
issued at the exercise price of $0.06 per share for three years after the conversion date. The Company has determined the
value associated with the beneficial conversion feature in connection with the  notes to be $209,809. The aggregate
beneficial conversion feature has been accreted and charged to general and administrative expenses as a financing expense
in the amount of $42,642 and  $21,706 as of December 31, 2013  and 2012, respectively.  The
beneficial conversion feature is valued under the intrinsic value method.  On January 18, 2013, the Company  made
a $3,990 cash payment to reduce the note balance.</font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">321,032</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><p style="margin-top: 0pt; margin-bottom: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">325,022 </font></p></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1pt; padding-left: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">Unamortized
debt discount</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(145,462</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(188,103</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
</table>
<p style="margin-top: 0pt; margin-bottom: 0pt"></p>
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 60%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="text-align: justify; padding-left: 5.4pt; width: 64%"><font style="font: 10pt Times New Roman, Times, Serif">On
December 30 and 31, 2012, the Company re-negotiated accrued salaries and interest for three employees. Under the terms of
the agreements,  $182,083 of related party notes accrued interest and salaries not previously converted were converted
to promissory notes convertible into common stock with a warrant feature. The $182,083 face value promissory notes are unsecured,
due five years from issuance, and bear an interest rate of 10%. At the investor’s option until the repayment date, the
note may be converted to shares of the Company’s common stock at a fixed price of $0.03 per share along with additional
warrants to purchase one share for every two shares issued at the exercise price of $0.04 per share for three years after
the conversion date. The Company has determined the value associated with the beneficial conversion feature in connection
with the notes to be $182,083. The aggregate beneficial conversion feature has been accreted and charged to general and administrative
expenses as a financing expense in the amount of $36,398 and  $13 as of December 31, 2013  and 2012, respectively.
 The beneficial conversion feature is valued under the intrinsic value method.</font></td><td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right; width: 15%"><font style="font: 10pt Times New Roman, Times, Serif">182,083</font></td><td style="text-align: left; width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right; width: 15%"><font style="font: 10pt Times New Roman, Times, Serif">182,083</font></td><td style="text-align: left; width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1pt; padding-left: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">Unamortized
debt discount</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(145,672</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(182,070</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
</table>
<p style="margin-top: 0pt; margin-bottom: 0pt"></p>
<p style="margin-top: 0pt; margin-bottom: 0pt"></p>
<p style="margin-top: 0pt; margin-bottom: 0pt"></p>
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 60%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="text-align: justify; padding-left: 5.4pt; width: 64%"><font style="font: 10pt Times New Roman, Times, Serif">On
June 30, 2013, the Company re-negotiated accrued salaries and interest for two employees. Under the terms of the agreements,  $106,153
of accrued interest and salaries were converted to promissory notes convertible into common stock with a warrant feature.
The $106,153 face value promissory notes are unsecured, due five years from issuance, and bear an interest rate of 10%. At
the investor’s option until the repayment date, the note may be converted to shares of the Company’s common stock
at a fixed price of $0.03 per share along with additional warrants to purchase one share for every two shares issued at the
exercise price of $0.04 per share for three years after the conversion date. The Company has determined the value associated
with the beneficial conversion feature in connection with the notes to be $70,768. The aggregate beneficial conversion feature
has been accreted and charged to general and administrative expenses as a financing expense in the amount of $7,132 for the
year ended December 31, 2013.  The beneficial conversion feature is valued under the intrinsic value method.</font></td><td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right; width: 15%"><font style="font: 10pt Times New Roman, Times, Serif">106,152</font></td><td style="text-align: left; width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right; width: 15%"><font style="font: 10pt Times New Roman, Times, Serif">—  </font></td><td style="text-align: left; width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1pt; padding-left: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">Unamortized
debt discount</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(63,636</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">—  </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="text-align: justify; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">On December 31,
2013, the Company re-negotiated accrued salaries and interest for three employees. Under the terms of the agreements, $142,501
of accrued interest and salaries not previously converted were converted to promissory notes convertible into common stock
with a warrant feature. The $142,501 face value promissory notes are unsecured, due five years from issuance, and bear an
interest rate of 10%. At the investor’s option until the repayment date, the note may be converted to shares of the
Company’s common stock at a fixed price of $0.03 per share along with additional warrants to purchase one share for
every two shares issued at the exercise price of $0.04 per share for three years after the conversion date. The Company has
determined the value associated with the beneficial conversion feature in connection with the notes to be $94,909. The aggregate
beneficial conversion feature will be accreted and charged to general and administrative expenses as a financing expense The
beneficial conversion feature is valued under the intrinsic value method.</font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">142,501</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">—  </font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1pt; padding-left: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">Unamortized
debt discount</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(94,909</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">—  </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
<td style="text-align: left; padding-bottom: 2.5pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">873,689</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">593,227</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p>
<p style="margin-top: 0pt; margin-bottom: 0pt"></p>
<p style="margin-top: 0pt; margin-bottom: 0pt"></p>
<p style="margin-top: 0pt; margin-bottom: 0pt"></p>
<p style="margin-top: 0pt; margin-bottom: 0pt"></p>
6000