0001458581
2017-01-01
2017-03-31
0001458581
2018-03-31
0001458581
2016-12-31
0001458581
2018-01-01
2018-03-31
0001458581
2016-06-20
0001458581
2016-04-20
0001458581
2016-05-16
0001458581
2016-10-18
0001458581
2016-11-01
0001458581
2016-10-27
0001458581
2016-10-31
0001458581
2016-11-30
0001458581
2016-12-06
0001458581
2017-01-31
0001458581
2017-02-28
0001458581
2017-03-15
0001458581
2017-04-15
0001458581
2017-05-15
0001458581
2017-03-03
0001458581
2014-07-28
0001458581
2017-05-12
0001458581
2013-12-05
0001458581
2016-08-12
0001458581
2017-04-02
0001458581
2017-04-04
0001458581
2017-05-08
0001458581
2017-05-14
0001458581
2017-03-30
0001458581
2017-03-31
0001458581
2017-09-12
0001458581
2017-11-08
0001458581
2018-02-13
0001458581
2018-04-12
0001458581
2017-12-31
0001458581
2018-05-02
0001458581
2018-05-10
0001458581
2018-04-04
0001458581
2018-05-21
iso4217:USD
xbrli:shares
iso4217:USD
xbrli:shares
xbrli:pure
Zenosense, Inc.
0001458581
10-Q
2018-03-31
--12-31
No
No
Yes
Smaller Reporting Company
Q1
2018
27031138
0.001
0.001
500000000
500000000
26197424
25397424
26388
28823
26388
28823
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-2249835
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461606
480694
-36949
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17673872
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36949
33462
-132936
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51976
41483
33659
28227
3126
-38810
-27435
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160000
25000
-8810
-2435
26388
10271
1461
28823
5312
17843
53
8161
160000
1389
11624
5600
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
<td style="width: 4%; font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b> 1.  </b></font></td>
<td style="width: 96%; font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Nature of operations</b></font></td></tr>
</table>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">Zenosense, Inc. (the "Company") was incorporated
under the laws of the State of Nevada on August 11, 2008.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Effective December 4, 2013, the Company
entered into a development and exclusive license agreement ("License Agreement") whereby the Company will provide a third
party with capital  for the development of sensory technology for a methicillin resistant Staphylococcus aureus / Staphylococcus
aureus ("MRSA/SA") detection device and a cancer detective device and other improvements and variations to the products
(the "Sgenia Products") to be used in the hospital and health care environments, in exchange for a worldwide, exclusive
license to manufacture, market and sell the resulting products, subject to certain limitations and a royalty arrangement on a revenue
sharing basis. The License Agreement was modified in April 2015 and July 2015 to extend to additional cancer sensory products and
to modify and extend the development schedule and change the research funding budget to accommodate the lung cancer product as
well as MRSA/SA product.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">On June 20, 2016, the Company entered into a joint venture
arrangement by way of a Subscription and Shareholders' Agreement ("MML SSA") with a third party medical detection device
developer ("Partner") utilizing a joint venture vehicle, MIDS Medical Ltd ("MML"), a UK Limited company of which
the Company owns a 40% interest awarded on July 1, 2016, in exchange for its participation and funding to support MML during a
Phase 1 and prospectively during a Phase 2 development of the Partner's MIDS universal immunoassay detection technology platform  ("MIDS").
MML will have the right, under license, to use the MIDS Intellectual Property ("MIDS IP") during the development and the
MIDS IP will be transferred to MML in the event MML concludes a commercial deal for MIDS with a third party.</p>
<div><div style="font: 10pt Times New Roman, Times, serif; text-align: left"> </div>
<div style="font: 10pt Times New Roman, Times, serif; text-align: left">MML is advancing its proof of principle, and it believes that MML has demonstrated that the MIDS technology is able to detect and measure several types of commercially available paramagnetic assay beads believed to be used in troponin tests. Initial data suggests that the limit of detection may be suitable for a high sensitivity troponin assay. MML is continuing its investigations to further develop the electronics and microfluidics to further improve the detection levels at this proof of principle stage, prior to moving into a Phase 2 development to embody a live assay on a test strip.</div></div>
<p style="margin: 0pt"></p>
0.40
0.40
0.40
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
<td style="width: 4%; font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b> 2.  </b></font></td>
<td style="width: 96%; font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Going concern</b></font></td></tr>
</table>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">The financial statements have been prepared in accordance
with generally accepted accounting principles applicable to a going concern, which assumes that the Company will be able to meet
its obligations and continue its operations for 12 months.  Realization values may be substantially different from carrying
values as shown and these financial statements do not give effect to adjustments that would be necessary to the carrying values
and classification of assets and liabilities should the Company be unable to continue as a going concern.  At March 31,
2018, the Company had not yet achieved profitable operations, had accumulated losses of $2,249,835 since its inception and expects
to incur further losses in the development of its business, all of which raises substantial doubt about the Company's ability to
continue as a going concern.  The Company's ability to continue as a going concern is dependent upon its ability to generate
future profitable operations and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising
from normal business operations when they come due.</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">The Company expects to continue to incur substantial losses
as it executes its business plan and does not expect to attain profitability in the near future.  Since its inception,
the Company has funded operations through short-term borrowings, and advances in order to meet its strategic objectives. The Company's
future operations are dependent upon external funding and its ability to execute its business plan, realize sales and control expenses.  Management
believes that sufficient funding will be available from additional borrowings and private placements to meet its business objectives
including anticipated cash needs for working capital, for the next fiscal year.  However, there can be no assurance that
the Company will be able to obtain sufficient funds to continue the development of its business operation, or if obtained, upon
terms favorable to the Company.</p>
<p style="margin: 0pt"></p>
2249835
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
<td style="width: 4%; font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>3.  </b></font></td>
<td style="width: 96%; font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Summary of significant accounting policies</b></font></td></tr>
</table>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><i>Basis of presentation</i></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">The accompanying unaudited interim financial statements have
been prepared in accordance with the rules and regulations of the U.S. Securities and Exchange Commission ("SEC") for interim
financial information. Accordingly, they do not include all the information and footnotes required by accounting principles generally
accepted in the United States of America ("U.S. GAAP"). In our opinion, the accompanying unaudited interim financial statements
include all adjustments, consisting of normal recurring adjustments, which are necessary to present fairly our financial position,
results of operations and cash flows. The balance sheet at December 31, 2017, has been derived from audited financial statements
of the Company as of that date. The interim unaudited results of operations are not necessarily indicative of the results that
may occur for the full fiscal year. Certain information and footnote disclosure normally included in financial statements prepared
in accordance with U.S. GAAP have been omitted pursuant to instructions, rules and regulations prescribed by the SEC. We believe
that the disclosures provided herein are adequate to make the information presented not misleading when these unaudited interim
consolidated financial statements are read in conjunction with the audited financial statements and notes previously included in
the Company's Annual Report on Form 10-K for the year ended December 31, 2017.</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><i>Use of estimates</i></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts
of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><i>Research and development</i></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">Research and development costs are expensed as incurred.</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><i>Income taxes</i></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">Deferred tax assets and liabilities are recognized for the
future tax consequences attributable to differences between their financial statement carrying amounts and their respective tax
bases. 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.</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><i>Loss per common share</i></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">Basic loss per common share is computed by dividing net loss
available to common stockholders by the weighted average number of common shares outstanding. For periods of net loss, diluted
loss per share is calculated similarly to basic loss per share because the impact of all dilutive potential common shares is anti-dilutive.
For the three months ended March 31, 2018 and 2017, potentially dilutive securities included notes convertible to 22,572,556 and
26,363,000 common shares, respectively.</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><i>Equity method accounting for joint venture</i></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">As of March 31, 2018 and December 31, 2017, the Company had
a 40% interest in a joint venture with the Partner by way of subscription and shareholders agreement in a third party medical
detection device developer, MIDS Medical Limited. The investment in MML is accounted for using the equity method.</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><i>Subsequent events</i></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">The Company evaluated all events or transactions that occurred
after March 31, 2018 through the date these financial statements were issued for subsequent event disclosure consideration.</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><i>Recent accounting standards</i></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">The Company does not believe that any new accounting pronouncements
that have been issued would have a material impact on its financial position or results of operations.</p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><i>Use of estimates</i></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts
of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"></p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><i>Research and development</i></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">Research and development costs are expensed as incurred.</p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><i>Income taxes</i></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">Deferred tax assets and liabilities are recognized for the
future tax consequences attributable to differences between their financial statement carrying amounts and their respective tax
bases. 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.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"></p>
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
<td style="width: 4%; font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>4.  </b></font></td>
<td style="width: 96%; font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Equity Method Investment</b></font></td></tr>
</table>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">On June 20, 2016, the Company entered into the MML SSA with
the Partner utilizing a joint venture vehicle, MML of which the Company owns a 40% interest awarded on July 1, 2016, in exchange
for its participation and funding to support MML during a Phase 1 and prospectively during a Phase 2 development of the Partner's
MIDS universal immunoassay detection technology platform. MML will have the right, under license, to use the MIDS IP during the
development and the MIDS IP will be transferred to MML in the event MML concludes a commercial deal for MIDS with a third party.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">For the three months ended March 31, 2018, the Company's
equity share of the net losses in MML was $28,227.  As of March 31, 2018, the Company had a net investment of $435,218 in
MML. The summarized balance sheet of MML as of March 31, 2018 is as follows:</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: right"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Current assets:</b></font></td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="line-height: 107%"> </td>
<td style="white-space: nowrap; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 89%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Cash</font></td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 8%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">79,236</font></td>
<td style="white-space: nowrap; width: 1%; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Prepaid expenses</font></td>
<td style="line-height: 107%"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">11,104</font></td>
<td style="white-space: nowrap; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Total current assets</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">90,340</font></td>
<td style="white-space: nowrap; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Intellectual property</font></td>
<td style="line-height: 107%"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,013,657</font></td>
<td style="white-space: nowrap; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Total assets</b></font></td>
<td style="line-height: 107%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,103,997</font></td>
<td style="white-space: nowrap; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="white-space: nowrap; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Current liabilities:</b></font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="white-space: nowrap; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Accounts payable - trade</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">12,359</font></td>
<td style="white-space: nowrap; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Accrued liabilities</font></td>
<td style="line-height: 107%"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">3,592</font></td>
<td style="white-space: nowrap; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Total current liabilities</b></font></td>
<td style="line-height: 107%"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">15,951</font></td>
<td style="white-space: nowrap; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="white-space: nowrap; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Equity:</b></font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="white-space: nowrap; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: justify; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Share capital</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,625,000</font></td>
<td style="white-space: nowrap; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Other comprehensive income</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">28,934</font></td>
<td style="white-space: nowrap; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: justify; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Accumulated deficit</font></td>
<td style="line-height: 107%"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(565,888</font></td>
<td style="white-space: nowrap; line-height: 107%"><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; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Total equity</b></font></td>
<td style="line-height: 107%"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,088,046</font></td>
<td style="white-space: nowrap; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Total equity and liabilities</b></font></td>
<td style="line-height: 107%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,103,997</font></td>
<td style="white-space: nowrap; line-height: 107%"> </td></tr>
</table>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">The summarized statement of operations for MML for the three
months ended March 31, 2018 and 2017 is as follows:</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: right"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%">
<tr>
<td style="vertical-align: bottom; line-height: 107%"> </td>
<td style="vertical-align: bottom; line-height: 107%"> </td>
<td colspan="2" style="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Three Months Ended March 31, 2018</font></td>
<td style="white-space: nowrap; vertical-align: bottom; line-height: 107%"> </td>
<td colspan="2" style="vertical-align: top; border-bottom: black 1.5pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Three Months Ended March 31, 2017</font></td>
<td style="white-space: nowrap; vertical-align: bottom; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 77%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Revenue</font></td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 9%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">–</font></td>
<td style="white-space: nowrap; width: 1%; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 9%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="white-space: nowrap; width: 1%; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">General and administrative expenses</font></td>
<td style="line-height: 107%"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">70,564</font></td>
<td style="white-space: nowrap; line-height: 107%"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">84,148</font></td>
<td style="white-space: nowrap; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Net loss</font></td>
<td style="line-height: 107%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(70,564</font></td>
<td style="white-space: nowrap; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="border-bottom: black 2.25pt double; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(84,148</font></td>
<td style="white-space: nowrap; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
</table>
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Current assets:</b></font></td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="line-height: 107%"> </td>
<td style="white-space: nowrap; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 89%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Cash</font></td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 8%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">79,236</font></td>
<td style="white-space: nowrap; width: 1%; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Prepaid expenses</font></td>
<td style="line-height: 107%"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">11,104</font></td>
<td style="white-space: nowrap; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Total current assets</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">90,340</font></td>
<td style="white-space: nowrap; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Intellectual property</font></td>
<td style="line-height: 107%"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,013,657</font></td>
<td style="white-space: nowrap; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Total assets</b></font></td>
<td style="line-height: 107%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,103,997</font></td>
<td style="white-space: nowrap; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="white-space: nowrap; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Current liabilities:</b></font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="white-space: nowrap; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Accounts payable - trade</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">12,359</font></td>
<td style="white-space: nowrap; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Accrued liabilities</font></td>
<td style="line-height: 107%"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">3,592</font></td>
<td style="white-space: nowrap; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Total current liabilities</b></font></td>
<td style="line-height: 107%"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">15,951</font></td>
<td style="white-space: nowrap; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="white-space: nowrap; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Equity:</b></font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="white-space: nowrap; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: justify; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Share capital</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,625,000</font></td>
<td style="white-space: nowrap; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Other comprehensive income</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">28,934</font></td>
<td style="white-space: nowrap; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: justify; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Accumulated deficit</font></td>
<td style="line-height: 107%"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(565,888</font></td>
<td style="white-space: nowrap; line-height: 107%"><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; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Total equity</b></font></td>
<td style="line-height: 107%"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,088,046</font></td>
<td style="white-space: nowrap; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Total equity and liabilities</b></font></td>
<td style="line-height: 107%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,103,997</font></td>
<td style="white-space: nowrap; line-height: 107%"> </td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%">
<tr>
<td style="vertical-align: bottom; line-height: 107%"> </td>
<td style="vertical-align: bottom; line-height: 107%"> </td>
<td colspan="2" style="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Three Months Ended March 31, 2018</font></td>
<td style="white-space: nowrap; vertical-align: bottom; line-height: 107%"> </td>
<td colspan="2" style="vertical-align: top; border-bottom: black 1.5pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Three Months Ended March 31, 2017</font></td>
<td style="white-space: nowrap; vertical-align: bottom; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 77%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Revenue</font></td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 9%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">–</font></td>
<td style="white-space: nowrap; width: 1%; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 9%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="white-space: nowrap; width: 1%; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">General and administrative expenses</font></td>
<td style="line-height: 107%"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">70,564</font></td>
<td style="white-space: nowrap; line-height: 107%"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">84,148</font></td>
<td style="white-space: nowrap; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Net loss</font></td>
<td style="line-height: 107%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(70,564</font></td>
<td style="white-space: nowrap; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="border-bottom: black 2.25pt double; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(84,148</font></td>
<td style="white-space: nowrap; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
</table>
0.40
28227
435218
-84148
-70564
-84148
-70564
79236
11104
90340
1013657
1103997
12359
3592
15951
1625000
28934
-565888
1088046
1103997
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
<td style="width: 4%; font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>5.  </b></font></td>
<td style="width: 96%; font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>  Convertible Debt</b></font></td></tr>
</table>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 3pt 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">On April 20, 2016, the Company issued a convertible note
to a third party (the "Noteholder") in a principal amount of $40,000 (the "April Senior Note").  The
note is due on April 19, 2018, cannot be prepaid and bears interest at 5% per annum.  On September 20, 2016, at the noteholder's
discretion, it became convertible into shares of common stock of the Company at a price of $0.007 per share, subject to a blocker
provision that limits the amount of common stock that may be issued at any time to 4.99% of the then outstanding shares of common
stock.  The Company has initially reserved 5,714,286 shares of common stock issuable upon the conversion feature.</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">On May 17, 2016, the Noteholder of four unsecured promissory
notes in the aggregate of $110,000 (the "Prior Notes") agreed to exchange these notes for two new convertible notes, (together
the "May Senior Notes") under two separate Securities Exchange Agreements. One note for the principal amount of $53,197
(the "$53,197 May Senior Note"), and the other for the principal amount of $62,547 (the "$62,547 May Senior Note"),
for a combined aggregate principal amount of $115,744.  The May Senior Notes bear interest at 5% per annum and are due
on May 16, 2018 and may not be prepaid by the Company. The May Senior Notes can be converted into shares of common stock of the
Company at the discretion of the holder, at a price of $0.007 per share, subject to a blocker provision that limits the amount
of common stock that may be issued at any time to 4.99% of the outstanding shares of common stock.  The Company has initially
reserved 16,534,857 shares of common stock issuable upon the conversion feature.</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">On October 18, 2016, the Noteholder entered into a Debt Purchase
and Assignment Agreement (the "Assignment Agreement") with an accredited investor as defined in Rule 501(a) of the 1933
Securities Act (the "Junior holder") to purchase $42,000 (the "Junior Note") of the principal amount of the $62,547
May Senior Note. The Assignment Agreement stipulated that the Junior Note is (a) subordinate to the noteholder's balance of the
$62,547 May Senior Note; and (b) unconvertible unless the trading price of the Company's securities is equal to or greater than
$0.15 per share based on the volume weighted average price ("VWAP") of the preceding five trading days.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">On November 1, 2016, after notice from the Noteholder, the
Company reissued the $62,547 May Senior Note in two notes: (a) the Junior Note in an amount of $42,000 and (b) the balance
of the $62,547 May Senior Note, this being $21,968 to include interest due through November 1, 2016 (the "November Senior Note").
The Junior Note contains terms reflecting the Assignment Agreement stipulations of subordination and VWAP conversion otherwise
the two notes carry forward the same terms of the May Senior Note.</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">On September 29, 2016, the Company issued an unsecured convertible
note in the principal amount of $60,000 to the Noteholder (the "September 2016 Note") which also granted an option to
the Noteholder to provide four unsecured convertible loans (the "Option Loans"): (a) by October 31, 2016, $140,000; (b)
by November 30, 2016, $170,000 (c) by January 31, 2017, $180,000; and (d) by March 30, 2017, $100,000. </p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">On October 27, 2016, under the Option Loans, the Company
issued an unsecured note (the "October 2016 Note") in the principal amount of $140,000, to the Noteholder.</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">On December 6, 2016, the September 2016 Note was amended
(the "Note Amendment") to revise the Option Loans amounts and timing to allow the Noteholder to provide four unsecured
convertible loans to the Company (the "New Option Loans"):  (a) on December 6, 2016, a loan of $30,000; (b) by January
31, 2017, a loan of $180,000; (c) by February 28, 2017, a loan of $140,000; and (d) by March 31, 2017, a loan of $100,000. All
other terms and conditions remained the same. Simultaneously with the Note Amendment, the Company issued a note to the Noteholder
in the principal amount of $30,000 (the "December 2016 Note").</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">On February 1, 2017, the September 2016 Note was further
amended (the "Second Note Amendment") to revise the Option Loans amounts and timing to allow the Noteholder to provide
three unsecured convertible loans to the Company (the "New Option Loans 2"): (a) by March 15, 2017, $160,000; (b) by April
15, 2017, $170,000; and (c) by May 15, 2017, $90,000. All other terms and conditions remained the same.</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">On March 3, 2017, the Company issued an unsecured note (the
"March 2017 Note") in the principal amount of $160,000 to the Noteholder which retained the option to provide the balance
of the New Option Loans 2. On receipt of these funds, a payment of $130,000 was made to MML.</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">On April 2, 2017, the Company issued an unsecured convertible
note (the "April 2017 Note") in the principal amount of $170,000, to the Noteholder in exchange for a loan of $170,000.
The Noteholder retained the option to provide the final amount of $90,000 of the New Option Loans 2. On receipt of these funds,
a payment of $152,500 was made to MML.</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">On April 4, 2017, the Company was notified that the Junior
Holder had sold and assigned an aggregate amount of $22,300 of the $42,000 Junior Note to a new investor (the "Junior Holder
2").  The Company therefore cancelled the Junior Note, and issued a new note in the principal amount of $22,300 to
the Junior Holder 2 (the " Junior Note 2") and a new note in the principal amount of $14,712, which included accrued interest
and a reducing adjustment for a prior conversion by the Junior Note Holder of $5,800 of the principal amount,  to the Junior 
Holder.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">On May 8, 2017, the Company issued an unsecured convertible
note (the "May 2017 Note") in the principal amount of $90,000, to the Noteholder in exchange for a loan of $90,000 (representing
the final balance of the New Option Loans 2). On receipt of these funds, a payment of $75,000 was made to MML.</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">On May 14, 2017, the Company issued an unsecured convertible
note (the "May 14, 2017 Note") in the principal amount of $50,000, to the Noteholder in exchange for a loan of $50,000
for general working capital. The terms and conditions of the  May 14, 2017 Note are essentially the same as the New Loans
(as defined below) with the exception of a conversion price of $0.40 and no option to provide further loans granted.</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">On September 12, 2017, the Company was notified that the
Junior Holder 2 had sold and assigned the entire principal amount of $16,500 of the Junior Note 2 (the Junior Note 2 principal
amount adjusted for a prior conversion of $5,800 of the principal amount), plus accrued interest of $42 to a new investor, ( the
"Junior  Holder 3"), effective April 24, 2017.  The Company therefore cancelled the Junior Note 2, and issued
a new note in the principal amount of $16,542 to the Junior Holder 3 (the "Junior Note 3").</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">On November 8, 2017, the Company issued an unsecured convertible
note (the "November 8, 2017 Note") in the principal amount of $50,000, to the Noteholder in exchange for a loan of $50,000
for general working capital. The terms and conditions of the November 8, 2017 Note are the same as the May 14, 2017 Note with the
exception of a conversion price of $0.23.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">On March 14, 2018, the Company issued an unsecured convertible
note (the "March 14, 2018 Note") in the principal amount of $25,000, to the Noteholder in exchange for a loan of $25,000.
The terms and conditions of the March 14, 2018 Note are the same as the May 14, 2017 Note with the exception of a conversion price
of $0.45.</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">On April 12, 2018, the Company entered into an amendment
to the April Senior Note originally dated April 20, 2016, the $53,197 May Senior Note originally dated May 17, 2016, and the November
Senior Note originally dated November 1, 2016, with the holder thereof, to extend the repayment period until April 11, 2019. 
In all other respects the terms of these notes has remained unchanged.</p>
<div><div><br />
</div>
<div style="font: 10pt Times New Roman, Times, serif; text-align: left">On May 2, 2018 the Company was notified that
the Junior Holder 2 had sold and assigned the entire remaining principal amount of $14,712 of the Junior Note 2 plus $777
of accrued interest to a new investor (the "Junior Note Holder 4"), effective April 25, 2018.  The Company
therefore cancelled the Junior Note 2, and issued a new note in the principal amount of $15,489 (the "Junior Note 4"). 
The terms of the Junior Note 4 are essentially the same as the Junior Note 2 with the exception of a revised maturity
date of November 16, 2018.</div>
<div><br />
</div>
<div style="font: 10pt Times New Roman, Times, serif; text-align: left">On May 10, 2018, the Company was notified that the Junior Holder 3 had sold and assigned the entire principal amount of $8,862 of the Junior Note 3 (the original principal amount adjusted for a prior conversion of the Junior Note 3 of $7,680 of the principal amount) plus $424 of accrued interest, to a new investor (the " Junior Note Holder 5"), effective April 9, 2018.  The Company therefore cancelled the Junior Note 3, and issued a new note in the principal amount of $9,286 (the "Junior Note 5").  The terms of the Junior Note 5 are essentially the same as the Junior Note with the exception of a revised maturity date of August 16, 2018.</div>
<div></div></div>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">The terms and conditions of certain commitment loans (see
note 6 below), the Option Loans, the New Option Loans, and the New Option Loans 2 (collectively the "New Loans") are the
same (conversion and floor prices having been adjusted in line with the terms of the commitment loans at the time of the reverse
stock split completed on August 4, 2016), and bear an interest rate of 10% per annum, based on a 360-day year, and are due four
years from the issuance date. The Company may, at any time prior to the maturity date, prepay any unconverted amount of the New
Loans in full or in part. The Noteholder may, at any time prior to the maturity date convert any or all of the New Loans into shares
of common stock of the Company at either (a) $0.07 per share (subject to adjustment), or (b) a 15% discount to the 10-day Volume
Weighted Average Price per share, provided that any such conversion is not at a price of less than $0.035 per share (subject to
adjustment). In either scenario the total number of shares of common stock issued on conversion may not cause the total beneficial
ownership held by the Investor and its affiliates, or the Noteholder and its affiliates to exceed 4.99% of the outstanding shares
of common stock. On the maturity date of each of the New Loans, any outstanding amount shall automatically and mandatorily convert
into common stock at a price of $0.07 per share (subject to adjustment). The New Loans also contain standard anti-dilution provisions.</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">The Company evaluated the notes to have beneficial conversion
features with an intrinsic value exceeding the principal balances. The intrinsic value is based upon the difference between the
market price of the Company's common stock on the date of issuance and the conversion price of $0.007 and $0.07. The total discount
is being amortized through interest expense using the interest method over the term of the notes. For the three months ended March
31, 2018, the Company recorded amortization of debt discount in the amount of $41,483. In addition, the Company recorded additional
beneficial conversion feature related to the 2018 note issuances, mentioned above, in the amount of $1,389. During the three months
ended March 31, 2018, the Company issued 800,000 common shares for conversion of $5,600 debt at $0.007 per share. The summary of
convertible notes payable activities for the three months ended March 31, 2018 is as follows:</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%">
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 89%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Balance at December 31, 2017</font></td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 8%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">284,450</font></td>
<td style="white-space: nowrap; width: 1%; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Principal of note issued during the three months ended March 31, 2018</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">25,000</font></td>
<td style="white-space: nowrap; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Less conversion of note</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(5,600</font></td>
<td style="white-space: nowrap; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Less discount related to beneficial conversion features</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(1,389</font></td>
<td style="white-space: nowrap; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Add amortization of debt discount</font></td>
<td style="line-height: 107%"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">41,483</font></td>
<td style="white-space: nowrap; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Balance at March 31, 2018</font></td>
<td style="line-height: 107%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">343,944</font></td>
<td style="white-space: nowrap; line-height: 107%"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="margin: 0pt"></p>
25000
1389
41483
343944
40000
0.05
0.007
0.0499
5714286
53197
62547
115744
0.05
0.007
0.0499
16534857
42000
42000
0.15
21968
42000
140000
170000
180000
100000
140000
30000
180000
140000
100000
30000
160000
170000
90000
160000
130000
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 3pt 0">The terms and conditions of certain commitment loans, the Option Loans, the New Option Loans, and the New Option Loans 2 are the same (conversion and floor prices having been adjusted in line with the terms of the commitment loans at the time of the
reverse stock split completed on August 4, 2016), and bear an interest rate of 10% per annum, based on a 360-day year, and are
due four years from the issuance date. The Company may, at any time prior to the maturity date, prepay any unconverted amount
of the New Loans in full or in part. The Noteholder may, at any time prior to the maturity date convert any or all of the New
Loans into shares of common stock of the Company at either (a) $0.07 per share (subject to adjustment), or (b) a 15% discount
to the 10-day Volume Weighted Average Price per share, provided that any such conversion is not at a price of less than $0.035
per share (subject to adjustment). In either scenario the total number of shares of common stock issued on conversion may not
cause the total beneficial ownership held by the Investor and its affiliates, or the Noteholder and its affiliates to exceed 4.99%
of the outstanding shares of common stock. On the maturity date of each of the New Loans, any outstanding amount shall automatically
and mandatorily convert into common stock at a price of $0.07 per share (subject to adjustment). The New Loans also contain standard
anti-dilution provisions.</p>
0.0499
0.007
0.07
1389
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
<td style="width: 4%; font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b> 6.  </b></font></td>
<td style="width: 96%; font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Common stock</b></font></td></tr>
</table>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">On July 28, 2014, the Company entered into a Securities
Purchase Agreement under which the investor committed to purchase an aggregate of 1,370,000 shares of the Company's common stock,
par value $0.001 per share, for an aggregate purchase price of $274,000.  The initial purchase of shares was made on
July 28, 2014 for 357,000 shares for a purchase price of $71,500. Two additional purchase instalments were made in August and
September.  Each instalment was for 337,500 shares at a purchase price of $67,500 per instalment. The shares when issued
are pursuant to an exemption from registration under the federal securities laws. On November 11, 2014, the Company received $67,500
for 337,500 shares of common stock. As of December 31, 2017 and 2016, the shares in connection with the final investment have
not been issued.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">On February 13, 2018, the Company issued 800,000 shares of
common stock for the conversion of $5,600 of the principal amount due under the $53,197 May Senior Note. Consequently, the principal
amount owing on the $53,197 May Senior Note reduced to $5,836 plus accrued interest.</p>
<p style="margin: 0pt"></p>
1370000
0.001
274000
357000
71500
337500
67500
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
<td style="width: 4%; font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>7.  </b></font></td>
<td style="width: 96%; font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Commitments</b></font></td></tr>
</table>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><i><u>MML Funding Arrangement</u></i></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">The Company's funding of MML was limited to an initial committed
aggregate payment of £450,500 (approximately $650,000 at exchange rates prevailing at the time of the MML SSA) for Phase 1,
which was subsequently amended from the pound sterling amount into a U.S. dollar amount of $650,000. This funding has been provided
to MML in full. In addition, the Company may be required to provide an additional payment of up to £45,000 (approximately
$63,000 at March 31, 2018 exchange rate) payable within 20 days after the Company receives written notice from MML. As of
the date of the report, the Company has not received a request for this payment.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><i><u><br />
Sgenia License Agreement</u></i></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">On December 4, 2013, the Company entered into the License
Agreement with Sgenia Industrial S.L. and its subsidiaries, Sgenia Soluciones S.L and ZENON Biosystem S.L (collectively, "Sgenia")
for the development of an MRSA/SA detection device and cancer detective device and other improvements and variations to the devices
(the "Sgenia Products"), to be based on the Sgenia sensory technology. Pursuant to the License Agreement, the Company will
have a worldwide exclusive license to manufacture, market and sell the resulting products, subject to certain limitations and a
royalty arrangement on a revenue sharing basis for funding the development. The Company entered into amendments (the "Sgenia
Amendments") to the License Agreement to modify and extend the Sgenia Products to include a lung cancer product and change
the product development schedule and the research funding budget to accommodate the additional lung cancer product as well as the
continuation of the development of the MRSA product. Additionally, the development stage objectives and milestones were modified
to reflect the current state of development of each of the Sgenia Products.</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">At this time, the Company is not funding development activities
under the License Agreement with Sgenia because certain milestones were not achieved by Sgenia and ZENON.  If Sgenia is able
to re-commence development and testing, then the parties to the License Agreement will have to revise the operating budget and
then the Company will have to re-commence its funding so as to maintain its rights under the License Agreement. We believe that
any future funding will be provided on an advance basis, per month, based on agreed development stages. In return, the Company
will maintain the exclusive right to manufacture, formulate, package, market and sell the Sgenia Products world-wide, for a term
of years, subject to a limitation on the inclusion of Spain in the territory. All intellectual property developed by Sgenia at
any time during the term related to manufacturing, formulating and/or packaging process shall be shared ownership and licensed
to the Company on a royalty-free basis. Sgenia will also supply to the Company, at a negotiated price based on quantity, all of
the requirements for the integrated circuits on microchips that are necessary for the operation of the Sgenia Products. Sgenia
and the Company will also work together to research and develop the Sgenia Products and establish written plans and reviewing committees
for the management of the overall development project and commercialization of the Sgenia Products.</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">The Company's funding of the MRSA product development was limited
to an approved budget joinly determined by Sgenia and the Company.  To date, under the License Agreement with Sgenia,
the Company advanced $769,787 under the terms of the then approved budgets. Under the current terms of the License Agreement, if
development is re-commenced by Sgenia and ZENON, the Company will be required to advance a further amount of approximately EUR
656,000 (approximately $921,000 at March 31, 2018 exchange rates), for research and development  subject to a mutually
agreed current budget, and subject to Sgenia meeting certain milestones. However, if development is re-commenced, it is expected
that the budget will be revised and the funding amounts re-established. The aggregate of the advances paid by the Company are recorded
as research and development expenses. The budget may be changed by mutual agreement from time to time.</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">In addition to providing the development funding, the Company
will also pay royalties for completed sales of the Sgenia Products, payable 60 days after each fiscal quarter of the Company. The
royalties will be 20% of net sales, which is calculated based on gross sales of the device and the installation and training for
the Sgenia Products, less various expenses, including manufacturing, components acquired from Sgenia, commissions, refunds and
discounts and sales taxes. If the Sgenia Products are sold by Sgenia in Spain for original use in Spain, then the royalties on
those sales will be reduced. The Company also has the right to sublicense to other parties throughout the world, except in Spain
if and when, if at all, Sgenia seeks to act as the distributor in that territory.</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">The Company has the option to fund the development of future
proposed products based on the Sgenia intellectual property, and if funded, the Company will obtain the right to manufacture, market
and sell the resulting devices.</p>
<p style="margin: 0pt"></p>
450500
650000
45000
63000
130000
152500
75000
650000
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
<td style="width: 4%; font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>8.  </b></font></td>
<td style="width: 96%; font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Related party transactions</b></font></td></tr>
</table>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">On December 5, 2013, the Company entered into a one-year
service agreement with Mr. Carlos Jose Gil, through his consulting firm, Ksego Engineering S.L., under which the Company will obtain
his services as the Chief Executive Officer of the Company.  Mr. Gil will receive a base salary and additional compensation
equal to 10% of the net sales generated from the License Agreement. On August 12, 2016, the Company amended Mr. Carlos Jose Gil's
service agreement to include additional compensation, if any, to be equal to 10% of the revenue received by Zenosense, Inc. from
MML as a result of any future commercialization of the MIDS project.</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">During the three months ended March 31, 2018, the Company
recorded $19,500 of general and administrative expenses related to amounts paid/owed to Ksego Engineering S.L. for services rendered
by Mr. Gil. As of March 31, 2018, the Company owes Mr. Gil $99,660.  No additional compensation based on net sales has
been earned to date.</p>
<p style="margin: 0pt"></p>
1
.10
0.10
19500
99660
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
<td style="width: 3%; font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>9.  </b></font></td>
<td style="width: 97%; font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Subsequent events</b></font></td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">On April 4, 2018, the Company issued 833,714 common shares
for conversion of $5,836 principal of $53,197 May Senior Note.</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">On April 12, 2018, the Company entered into an amendment
to certain notes. See Note 5.</p>
<p style="margin: 0pt"></p>
170000
90000
152500
90000
75000
false
160000
25000
50000
50000
0.40
5600
800000
0.007
435218
451871
110000
50000
50000
0.23
769787
656000
921000
60
.2
25000
25000
.45
11574
-158157
-53571
-132936
-123149
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><i>Basis of presentation</i></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">The accompanying unaudited interim financial statements have
been prepared in accordance with the rules and regulations of the U.S. Securities and Exchange Commission ("SEC") for interim
financial information. Accordingly, they do not include all the information and footnotes required by accounting principles generally
accepted in the United States of America ("U.S. GAAP"). In our opinion, the accompanying unaudited interim financial statements
include all adjustments, consisting of normal recurring adjustments, which are necessary to present fairly our financial position,
results of operations and cash flows. The balance sheet at December 31, 2017, has been derived from audited financial statements
of the Company as of that date. The interim unaudited results of operations are not necessarily indicative of the results that
may occur for the full fiscal year. Certain information and footnote disclosure normally included in financial statements prepared
in accordance with U.S. GAAP have been omitted pursuant to instructions, rules and regulations prescribed by the SEC. We believe
that the disclosures provided herein are adequate to make the information presented not misleading when these unaudited interim
consolidated financial statements are read in conjunction with the audited financial statements and notes previously included in
the Company's Annual Report on Form 10-K for the year ended December 31, 2017.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><i>Loss per common share</i></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">Basic loss per common share is computed by dividing net loss
available to common stockholders by the weighted average number of common shares outstanding. For periods of net loss, diluted
loss per share is calculated similarly to basic loss per share because the impact of all dilutive potential common shares is anti-dilutive.
For the three months ended March 31, 2018 and 2017, potentially dilutive securities included notes convertible to 22,572,556 and
26,363,000 common shares, respectively.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><i>Equity method accounting for joint venture</i></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">As of March 31, 2018 and December 31, 2017, the Company had
a 40% interest in a joint venture with the Partner by way of subscription and shareholders agreement in a third party medical
detection device developer, MIDS Medical Limited. The investment in MML is accounted for using the equity method.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><i>Subsequent events</i></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">The Company evaluated all events or transactions that occurred
after March 31, 2018 through the date these financial statements were issued for subsequent event disclosure consideration.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><i>Recent accounting standards</i></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">The Company does not believe that any new accounting pronouncements
that have been issued would have a material impact on its financial position or results of operations.</p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%">
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 89%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Balance at December 31, 2017</font></td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 8%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">284,450</font></td>
<td style="white-space: nowrap; width: 1%; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Principal of note issued during the three months ended March 31, 2018</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">25,000</font></td>
<td style="white-space: nowrap; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Less conversion of note</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(5,600</font></td>
<td style="white-space: nowrap; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Less discount related to beneficial conversion features</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(1,389</font></td>
<td style="white-space: nowrap; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Add amortization of debt discount</font></td>
<td style="line-height: 107%"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">41,483</font></td>
<td style="white-space: nowrap; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Balance at March 31, 2018</font></td>
<td style="line-height: 107%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">343,944</font></td>
<td style="white-space: nowrap; line-height: 107%"> </td></tr>
</table>
26363000
22572556
-5600
284450
22300
14712
5800
16500
42
16542
14712
777
15489
8862
7680
424
9286
800000
5600
53197
5386
53197
833714
5836
41483