U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________________________
FORM 10-Q
[X] Quarterly report under Section 13 or 15(d) of the Securities
Exchange Act of 1934 For the quarterly period ended September 30, 2014
[ ] Transition report pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Commission File No. 000-33053
_____________________________________
MIND SOLUTIONS, INC.
(Exact name of registrant as specified in its
charter)
|
|
Nevada
(State or other jurisdiction of
incorporation or organization) |
01-0719410
(I.R.S. Employer Identification Number) |
3525 Del Mar Heights Road, Suite 802
San Diego, California
(Address of principal executive offices) |
92130
(Zip Code) |
(888) 461-3932
(registrant’s telephone number,
including area code) |
Indicate by check mark whether the registrant
(1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding
12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such
filing requirement for the past 90 days. Yes [X] No [ ]
Indicate by check mark whether the registrant
has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted
and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter
period that the registrant was required to submit and post such files). Yes [ X ] No [ ]
Indicate by check mark whether the registrant
is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions
of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule
12b-2 of the Exchange Act (Check One):
Large accelerated filer [ ] |
Accelerated filer [ ] |
Non-accelerated filer [ ] |
Smaller reporting company [X] |
Indicate by check mark whether the registrant
is a shell company (as defined in Rule 12(b)-2 of the Exchange Act). Yes [ ] No [ X ]
Indicate the number of shares outstanding
of each of the registrant’s classes of common stock, as of the latest practicable date. At October 17, 2014, the registrant
had outstanding 1,081,384,647 shares of common stock.
Table of Contents
|
|
PAGE |
PART I - FINANCIAL INFORMATION |
|
Item 1. |
Financial Statements |
3 |
Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations |
19 |
Item 3. |
Quantitative and Qualitative Disclosures About Market Risk |
32 |
Item 4. |
Controls and Procedures |
32 |
Item
4 (T) |
Controls
and Procedures |
33 |
PART II - OTHER INFORMATION |
|
Item 1. |
Legal Proceedings |
33 |
Item 1A. |
Risk Factors |
34 |
Item 2. |
Unregistered Sales of Equity Securities and Use of Proceeds |
34 |
Item 3. |
Defaults Upon Senior Securities |
34 |
Item 4. |
Mining Safety Disclosures |
34 |
Item 5. |
Other Information |
34 |
Item 6. |
Exhibits |
34 |
PART I – FINANCIAL INFORMATION
Item 1. Financial Statements.
MIND SOLUTIONS, INC. |
BALANCE SHEETS |
(Development Stage Registrant) |
| |
| | | |
| | |
| |
| (Unaudited) | | |
| (Audited) | |
| |
| September 30, | | |
| December 31, | |
Assets: | |
| 2014 | | |
| 2013 | |
Current Assets | |
| | | |
| | |
Cash and Cash Equivalents | |
$ | 181,682 | | |
$ | 47,428 | |
Prepaids | |
| 135,520 | | |
| 289,550 | |
Total Current Assets | |
| 317,202 | | |
| 336,978 | |
| |
| | | |
| | |
Fixed Assets | |
| | | |
| | |
Property Plant & Equipment | |
| 89,653 | | |
| 86,717 | |
Accumulated Depreciation | |
| (86,171 | ) | |
| (84,299 | ) |
Total Fixed Assets | |
| 3,482 | | |
| 2,418 | |
| |
| | | |
| | |
Other Assets | |
| | | |
| | |
Marketable Securities: Available-for-Sale | |
| 1,667 | | |
| — | |
Total Other Assets | |
| 1,667 | | |
| — | |
| |
| | | |
| | |
Total Assets | |
$ | 322,351 | | |
$ | 339,396 | |
| |
| | | |
| | |
Liabilities and Stockholders’ Equity: | |
| | | |
| | |
Accounts Payable & Accrued Expenses | |
$ | 378,044 | | |
$ | 394,859 | |
Accounts Payable to Related Parties | |
| 3,500 | | |
| 3,500 | |
Accrued Interest | |
| 314,040 | | |
| 277,560 | |
Notes Payable | |
| 145,000 | | |
| 145,000 | |
Convertible Notes Payable | |
| 691,667 | | |
| 248,358 | |
Derivative Liability | |
| 1,043,967 | | |
| 19,907,242 | |
Total Liabilities | |
| 2,576,218 | | |
| 20,976,519 | |
| |
| | | |
| | |
Stockholders’ Equity: | |
| | | |
| | |
Series A Preferred Stock, $0.001 par value 10,000,000 | |
| | | |
| | |
shares authorized, 10,000,000 shares issued and outstanding | |
| 10,000 | | |
| — | |
Common Stock, $0.001 par value 5,000,000,000 | |
| | | |
| | |
shares authorized, 1,041,355,943 and 36,024,969 shares | |
| | | |
| | |
issued and outstanding | |
| 1,041,356 | | |
| 36,025 | |
Stock Payable | |
| — | | |
| 235,375 | |
Additional Paid-In Capital | |
| 16,933,954 | | |
| 2,807,266 | |
Accumulated Comprehensive Loss | |
| (378,333 | ) | |
| (330,000 | ) |
Deficit Accumulated During the Development Stage | |
| (19,860,844 | ) | |
| (23,385,789 | ) |
Total Stockholders’ Equity (Deficit) | |
| (2,253,867 | ) | |
| (20,637,123 | ) |
| |
| | | |
| | |
Total Liabilities and Stockholders’ Equity | |
$ | 322,351 | | |
$ | 339,396 | |
| |
| | | |
| | |
The accompanying notes are an integral part of these financial statements. |
MIND SOLUTIONS, INC. |
STATEMENTS OF OPERATIONS |
(Development Stage registrant)
(Unaudited)
|
| |
| |
| |
| |
| |
|
| |
| |
| |
| |
| |
From Inception |
| |
For the Three Months Ended | |
For the Nine Months Ended | |
(May 24, 2002) to |
| |
September 30, | |
September 30, | |
September 30, | |
September 30, | |
September 30, |
| |
2014 | |
2013 | |
2014 | |
2013 | |
2014 |
| |
| |
| |
| |
| |
|
Product Revenues | |
$ | 534 | | |
$ | — | | |
$ | 534 | | |
$ | — | | |
$ | 1,697 | |
Service Revenues | |
| — | | |
| — | | |
| 50,000 | | |
| — | | |
| 50,000 | |
Total Revenues | |
| 534 | | |
| — | | |
| 50,534 | | |
| — | | |
| 51,697 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Cost of Sales | |
| 174 | | |
| — | | |
| 174 | | |
| — | | |
| 852 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Gross Profit | |
| 360 | | |
| — | | |
| 50,360 | | |
| — | | |
| 50,845 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Operating expenses: | |
| | | |
| | | |
| | | |
| | | |
| | |
Consulting | |
| 621,871 | | |
| 460,880 | | |
| 1,040,397 | | |
| 1,566,372 | | |
| 3,012,614 | |
Professional Fees | |
| 52,014 | | |
| 58,984 | | |
| 144,439 | | |
| 149,923 | | |
| 373,859 | |
General and Administration | |
| 15,872 | | |
| 4,095 | | |
| 91,251 | | |
| 22,118 | | |
| 1,294,856 | |
Total operating expenses | |
| 689,757 | | |
| 523,959 | | |
| 1,276,087 | | |
| 1,738,413 | | |
| 4,681,329 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Loss from operations | |
| (689,397 | ) | |
| (523,959 | ) | |
| (1,225,727 | ) | |
| (1,738,413 | ) | |
| (4,630,484 | ) |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Other Income and (Expenses): | |
| | | |
| | | |
| | | |
| | | |
| | |
Interest Expense | |
| (16,048 | ) | |
| (10,112 | ) | |
| (50,218 | ) | |
| (33,012 | ) | |
| (105,895 | ) |
Gain/(Loss) on Derivative adjustment | |
| 5,871,123 | | |
| (2,133,379 | ) | |
| 4,800,890 | | |
| (2,268,166 | ) | |
| (15,236,075 | ) |
Forgiveness of Debt | |
| — | | |
| — | | |
| — | | |
| 111,610 | | |
| 111,610 | |
Total Other Income and (Expenses) | |
| 5,855,075 | | |
| (2,143,491 | ) | |
| 4,750,672 | | |
| (2,189,568 | ) | |
| (15,230,360 | ) |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Net Gain (Loss) before taxes | |
| 5,165,678 | | |
| (2,667,450 | ) | |
| 3,524,945 | | |
| (3,927,981 | ) | |
| (19,860,844 | ) |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Tax provisions | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Net Gain (Loss) After Taxes | |
$ | 5,165,678 | | |
$ | (2,667,450 | ) | |
$ | 3,524,945 | | |
$ | (3,927,981 | ) | |
$ | (19,860,844 | ) |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Other Comprehensive Income: | |
| | | |
| | | |
| | | |
| | | |
| | |
Gain (Loss) on Available-for-Sale Securities | |
| (10,833 | ) | |
| — | | |
| (48,333 | ) | |
| 90,000 | | |
| (378,333 | ) |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Other Comprehensive Income (Loss) | |
$ | 5,154,845 | | |
$ | (2,667,450 | ) | |
$ | 3,476,612 | | |
$ | (3,837,981 | ) | |
$ | (20,239,177 | ) |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Basic & diluted loss per share | |
$ | 0.01 | | |
$ | (5.97 | ) | |
$ | 0.01 | | |
$ | (14.06 | ) | |
| | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Weighted average shares outstanding | |
| 769,545,084 | | |
| 446,494 | | |
| 535,689,559 | | |
| 272,914 | | |
| | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
The accompanying notes are an integral part of these financial statements. |
MIND SOLUTIONS, INC. |
STATEMENTS OF CASH FLOWS |
(Development Stage registrant) |
(Unaudited) |
| |
| |
| |
From Inception |
| |
For the Nine Months Ended | |
(May 24, 2002) to |
| |
September 30, | |
September 30, |
| |
2014 | |
2013 | |
2014 |
CASH FLOWS FROM OPERATING ACTIVITIES: | |
| | | |
| | | |
| | |
Net Gain (Loss) for the period | |
$ | 3,524,945 | | |
$ | (3,927,981 | ) | |
$ | (19,860,844 | ) |
Adjustments to reconcile net loss to net cash | |
| | | |
| | | |
| | |
provided by operating activities: | |
| | | |
| | | |
| | |
Stock for services | |
| 647,598 | | |
| 1,039,587 | | |
| 2,891,401 | |
Derivative (gain)/loss adjustment | |
| (4,800,890 | ) | |
| 2,268,166 | | |
| 15,106,352 | |
Available-for-sale securities transferred as compensation | |
| — | | |
| 480,000 | | |
| 480,000 | |
Available-for-sale securities received for service revenues | |
| 50,000 | | |
| — | | |
| 50,000 | |
Forgiveness of debt | |
| — | | |
| (111,610 | ) | |
| (111,610 | ) |
Depreciation | |
| 1,872 | | |
| 1,981 | | |
| 4,532 | |
Changes in Operated Assets and Liabilities: | |
| | | |
| | | |
| — | |
Accounts payable and accrued expenses | |
| 19,665 | | |
| (3,429 | ) | |
| 30,831 | |
Accounts payable to related parties | |
| — | | |
| 45 | | |
| 115,110 | |
Net cash used in operating activities | |
| (556,810 | ) | |
| (253,241 | ) | |
| (1,294,228 | ) |
| |
| | | |
| | | |
| | |
CASH FLOW FROM INVESTING ACTIVITIES: | |
| | | |
| | | |
| | |
Purchase Equipment | |
| (2,936 | ) | |
| — | | |
| (3,620 | ) |
Net cash used by investing activities | |
| (2,936 | ) | |
| — | | |
| (3,620 | ) |
| |
| | | |
| | | |
| | |
CASH FLOWS FROM FINANCING ACTIVITIES: | |
| | | |
| | | |
| | |
Proceeds from sale of stock | |
| — | | |
| — | | |
| 10,000 | |
Proceeds from officer contributions | |
| — | | |
| — | | |
| 61,000 | |
Proceeds from convertible notes | |
| 694,000 | | |
| 248,500 | | |
| 1,119,345 | |
Proceed from convertible note to related party | |
| — | | |
| 48,526 | | |
| 48,526 | |
Payments on convertible note to related party | |
| — | | |
| (38,805 | ) | |
| (38,474 | ) |
Proceeds from notes payable to related parties | |
| — | | |
| — | | |
| 418,769 | |
Payments on notes payable to related parties | |
| — | | |
| — | | |
| (139,636 | ) |
Net cash provided by financing activities | |
| 694,000 | | |
| 258,221 | | |
| 1,479,530 | |
| |
| | | |
| | | |
| | |
Net (Decrease) Increase in Cash | |
| 134,254 | | |
| 4,980 | | |
| 181,682 | |
Cash at Beginning of Period | |
| 47,428 | | |
| 208 | | |
| — | |
Cash at End of Period | |
$ | 181,682 | | |
$ | 5,188 | | |
$ | 181,682 | |
| |
| | | |
| | | |
| | |
Supplemental Disclosures: | |
| | | |
| | | |
| | |
Income Taxes Paid | |
$ | — | | |
$ | — | | |
$ | — | |
Interest Paid | |
$ | — | | |
$ | — | | |
$ | — | |
| |
| | | |
| | | |
| | |
NON-CASH INVESTING AND FINANCING ACTIVITIES: | |
| | | |
| | | |
| | |
Issuance of common stock in payment of non related | |
| | | |
| | | |
| | |
party convertible debt | |
$ | 314,050 | | |
$ | 317,520 | | |
$ | 777,234 | |
| |
| | | |
| | | |
| | |
Issuance of common stock in payment of related party debt | |
$ | — | | |
$ | 51,000 | | |
$ | 51,000 | |
| |
| | | |
| | | |
| | |
Issuance of convertible note for consulting services | |
$ | 200,000 | | |
$ | — | | |
$ | 200,000 | |
| |
| | | |
| | | |
| | |
Consulting fees paid with available-for-sale securities | |
| | | |
| | | |
| | |
asset | |
$ | — | | |
$ | 480,000 | | |
$ | 480,000 | |
| |
| | | |
| | | |
| | |
Stock issued for assets | |
$ | — | | |
$ | 90,000 | | |
$ | 90,000 | |
| |
| | | |
| | | |
| | |
The accompanying notes are an integral part of these financial statements. | |
MIND SOLUTIONS, INC.
(A Development Stage registrant)
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2014, AND DECEMBER 31,
2013
NOTE 1-ORGANIZATION
AND DESCRIPTION
OF BUSINESS
Mind Solutions, Inc. (the “registrant”)
was initially incorporated in the state of Delaware on May 19, 2000 as Medical Records by Net, Inc. On October 17, 2000, the
registrant changed its name to Lifelink Online, Inc. In January 2001, its name was changed to MedStrong Corporation, and on March
9, 2001, the registrant name was changed to MedStrong International Corporation. On March 30, 2007, the registrant’s name
was changed to VOIS, Inc. and the domicile was changed to the State of Florida. On October 19, 2012, the registrant executed a
merger agreement with Mind Solutions, Inc. whereas Mind Solutions, Inc. became a wholly owned subsidiary of the registrant. Mind
Solutions, Inc. was incorporated under the laws of Nevada on May 24, 2002, under the name Red Meteor Media, Inc. The registrant
changed its name to Prize Entertainment, Inc. in November 2003, and then again to Mind Solutions, Inc. in January 2011. On October
28, 2013, the registrant changed its name from VOIS, Inc. to Mind Solutions, Inc. as well as changing its domicile from Florida
to Nevada.
On October 28, 2013, the registrant closed
an Agreement and Plan of Merger with Mind Solutions, Inc. For accounting purposes this agreement was treated as a reverse merger.
The operations of the registrant became those solely of Mind Solutions, Inc. In connection with the merger agreement, the registrant
changed its fiscal year end to coincide with that of Mind Solutions, Inc., which is December 31. Pursuant to the Plan of Merger
with Mind Solutions, Inc., the holders of stock in VOIS, Inc. received one share of common stock, $0.001 par value per share, in
Mind Solutions, Inc. for every 2,000 shares of common stock in VOIS, Inc. (in effect, a one for 2,000 reverse split). As a result,
the then current common stockholders of VOIS, Inc. held all of the issued and outstanding shares of common stock in the surviving
corporation Mind Solutions, Inc.
The registrant has developed
software
applications which are compatible with
EEG headsets on the market. The registrant is working with the most advanced electronics manufacturing
companies to develop the most advanced EEG headset on the market. This BCI headset will allow users to operate thought-controlled
applications on their mobile phone devices as well as on traditional PC computers. The registrant has completed a working
prototype which has been successfully tested on several Android devices. EEG headset can read
brainwaves and allow
for interaction with
a computer.
The registrant develops software for
thought controlled technologies, allowing the user to interact with the computer and other machines through the power of the mind.
The technology involves the use of a wireless headset, which detects brainwaves on both the conscious and non-conscious level.
This revolutionary neural processing technology makes it possible for computers to interact directly with the human brain. The
registrant has created three applications currently available through the registrant’s website and is developing a micro
EEG headset that is compatible with mobile smart phones and other devices.
NOTE 2 - PREPARATION OF FINANCIAL STATEMENTS
Basis of presentation
The registrant’s financial statements
have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).
The accompanying unaudited quarterly
financial statements have been prepared on a basis consistent with generally accepted accounting principles in the United States
(“GAAP”) for interim financial information and pursuant to the rules of the Securities and Exchange Commission (“SEC”).
In the opinion of management, the accompanying unaudited financial statements reflect all adjustments, consisting of only normal
and recurring adjustments, necessary for a fair presentation of the results of operations, financial position and cash flows for
the periods presented. The results of operations for the periods are not necessarily indicative of the results expected for the
full year or any future period. These statements should be read in conjunction with the registrant’s Annual Report on Form
10-K for the year ended December 31, 2013, as filed with the SEC on April 14, 2014, as amended by the registrant’s Form 10-K/A,
Amendment No. 1, filed May 14, 2014, and the registrant’s Form 10-K/A, Amendment No. 2, filed August 1, 2014 (the “2013
Annual Report”).
Development Stage registrant
The registrant is currently a development
stage enterprise reporting under the provisions of FASB ASC Topic 915, Development Stage Entity. The accompanying financial
statements have been prepared in accordance with accounting principles generally accepted in the United States of America.
Restated Financial Statements
Certain amounts in the prior period financial
statements have been adjusted to conform to the one for 2,000 reverse stock split on October 15, 2013.
Prior Year Financial Statement Presentation
The prior year financial statements were
prepared to show the effect of the reverse merger and to show the mark to market adjustment as other comprehensive income for comparative
purposes in the prior year financial statements.
NOTE 3-SUMMARY
OF SIGNIFICANT
ACCOUNTING
POLICIES
The
registrant considers
all cash on hand
and in banks,
including
accounts in book overdraft
positions, certificates of
deposit and
other highly-liquid
investments with maturities
of three months
or less, when
purchased,
to be cash and equivalents.
Fixed assets are recorded at cost.
Major renewals and improvements
are capitalized, while maintenance
and repairs are expensed
when incurred.
Expenditures for major additions and betterments are capitalized in amounts greater or equal to $500. Depreciation of equipment
is computed by the straight-line method (after taking into account their respective estimated residual values) over the assets
estimated useful life of three, five (5), or seven (7) years. Upon sale or retirement of equipment, the related cost and accumulated
depreciation are removed from the accounts and any gain or loss is reflected in statements of operations.
C. Advertising
expenses
Advertising
and marketing expenses
are charged
to operations
as incurred.
For the nine months ended
September 30, 2014, and year ended December 31, 2013, advertising
and marketing
expense
were $0, respectively.
D. Revenue recognition
The registrant follows paragraph 605-10-S99-1
of the FASB Accounting Standards Codification for revenue recognition. The registrant will recognize revenue when it is
realized or realizable and earned. The registrant considers revenue realized or realizable and earned when all of the following
criteria are met: (i) persuasive evidence of an arrangement exists, (ii) the product has been shipped or the services have been
rendered to the customer, (iii) the sales price is fixed or determinable, and (iv) collectability is reasonably assured.
E. Stock-based
compensation
We record share based payments
under the provisions of FASB ASC Topic 718, Compensation - Stock Compensation. Under FASB ASC 718, companies
are required to measure the compensation costs of share-based compensation arrangements based on the grant-date fair value
and recognize the costs in the financial statements over the period during which employees are required to provide services.
Share-based compensation arrangements include stock options, restricted share plans, performance-based awards, share
appreciation rights and employee share purchase plans. In March 2005, the SEC issued Staff Accounting Bulletin No. 107, or
“SAB 107,” SAB 107 expresses views of the staff regarding the interaction between FASB ASC 718 and certain SEC
rules and regulations and provides the staff’s views regarding the valuation of share-based payment arrangements for
public companies. FASB ASC 718 permitted public companies to adopt its requirements using one of two methods. On
April 14, 2005, the SEC adopted a new rule amending the compliance dates for FASB ASC 718. Companies may elect to apply
this statement either prospectively, or on a modified version of retrospective application under which financial statements
for prior periods are adjusted on a basis consistent with the pro forma disclosures required for those periods under SFAS
123. Effective with its fiscal 2006 year, the registrant adopted the provisions of FASB ASC 718 and related interpretations
as provided by SAB 107 prospectively. As such, compensation cost is measured on the date of grant as its fair value. Such
compensation amounts are amortized over the respective vesting periods of the options granted.
F. Income
Taxes
The registrant adopted FASB ASC Topic
740, Income Taxes, at its inception. Under FASB ASC Topic 740, the deferred tax provision is determined under the liability
method. Under this method, deferred tax assets and liabilities are recognized based on the differences between the financial statement
carrying amounts and the tax bases of assets and liabilities using presently enacted tax rates.
G. Earnings
(loss) per share
The registrant adopted FASB ASC Topic
260, Earnings Per Share. Basic earnings per share is based on the weighted effect of all common shares issued and outstanding
and is calculated by dividing net income (loss) available to common stockholders by the weighted average shares outstanding during
the period. Diluted earnings per share is calculated by dividing net income available to common stockholders by the weighted average
number of common shares used in the basic earnings per share calculation plus the number of common shares, if any, that would be
issued assuming conversion of all potentially dilutive securities outstanding. For all periods diluted earnings per share is not
presented, as potentially issuable securities are anti-dilutive.
There are approximately 319,029,426 potentially
dilutive post reverse stock-split shares of common stock outstanding as of September 30, 2014, which are derived from the outstanding
convertible promissory notes. The registrant also has 10,000,000 shares of Series A Preferred Stock outstanding, each share of
which can be converted into 100 shares of the registrant’s common stock.
H. Use of estimates
The preparation of financial statements
in conformity with accounting principles generally accepted in the United States of America requires management to make estimates
and assumptions that affect certain reported amounts and disclosures. Significant estimates for the periods reported include certain
assumptions used in deriving the fair value of share-based compensation recognized, the useful life of tangible assets and the
future value of our website development costs. Assumptions and estimates used in these areas are material to our reported financial
condition and results of our operations. Actual results will differ from those estimates.
I. Fair value of financial instruments measured on a recurring
basis
The registrant follows paragraph 825-10-50-10
of the FASB Accounting Standards Codification for disclosures about fair value of its financial instruments and paragraph 820-10-35-37
of the FASB Accounting Standards Codification (“Paragraph 820-10-35-37”) to measure the fair value of its financial
instruments. Paragraph 820-10-35-37 establishes a framework for measuring fair value in accounting principles generally accepted
in the United States of America (U.S. GAAP), and expands disclosures about fair value measurements. To increase consistency and
comparability in fair value measurements and related disclosures, Paragraph 820-10-35-37 establishes a fair value hierarchy which
prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The fair value hierarchy gives
the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority
to unobservable inputs. The three levels of fair value hierarchy defined by Paragraph 820-10-35-37 are described below:
Level 1 |
|
Quoted market prices available in active markets for identical assets or liabilities as of the reporting date. |
|
|
|
Level 2 |
|
Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. |
|
|
|
Level 3 |
|
Pricing inputs that are generally observable inputs and not corroborated by market data. |
Financial assets are considered Level
3 when their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least
one significant model assumption or input is unobservable.
The fair value hierarchy gives the highest
priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable
inputs. If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the
categorization is based on the lowest level input that is significant to the fair value measurement of the instrument.
The carrying amount of the registrant’s
financial assets and liabilities, such as cash, prepaid expenses and accrued expenses approximate their fair value because of the
short maturity of those instruments. The registrant’s line of credit and notes payable approximate the fair value of such
instruments based upon management’s best estimate of interest rates that would be available to the registrant for similar
financial arrangements at September 30, 2014, and December 31, 2013.
Transactions involving related parties
cannot be presumed to be carried out on an arm’s-length basis, as the requisite conditions of competitive, free-market dealings
may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions
were consummated on terms equivalent to those that prevail in arm’s-length transactions unless such representations can be
substantiated.
It is not, however, practical to determine
the fair value of advances from stockholders due to their related party nature.
J. Commitments and contingencies
The registrant follows subtopic 450-20
of the FASB Accounting Standards Codification to report accounting for contingencies. Certain conditions may exist as of
the date the consolidated financial statements are issued, which may result in a loss to the registrant but which will only be
resolved when one or more future events occur or fail to occur. The registrant assesses such contingent liabilities, and such assessment
inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against
the registrant or un-asserted claims that may result in such proceedings, the registrant evaluates the perceived merits of any
legal proceedings or un-asserted claims as well as the perceived merits of the amount of relief sought or expected to be sought
therein.
If the assessment of a contingency indicates
that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated
liability would be accrued in the registrant’s consolidated financial statements. If the assessment indicates that a potential
material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of
the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed.
Loss contingencies considered remote
are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Management does not
believe, based upon information available at this time, that these matters will have a material adverse effect on the registrant’s
consolidated financial position, results of operations or cash flows. However, there is no assurance that such matters will not
materially and adversely affect the registrant’s business, financial position, and results of operations or cash flows.
K. Related parties
The registrant follows subtopic 850-10
of the FASB Accounting Standards Codification for the identification of related parties and disclosure of related party
transactions.
Pursuant to Section 850-10-20 the
Related parties include (a) affiliates of the registrant; (b) Entities for which investments in their equity securities would
be required, absent the election of the fair value option under the Fair Value Option Subsection of Section
825–10–15, to be accounted for by the equity method by the investing entity; (c) trusts for the benefit of
employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management; (d)
principal owners of the registrant; (e) management of the registrant; (f) other parties with which the registrant may deal if
one party controls or can significantly influence the management or operating policies of the other to an extent that one of
the transacting parties might be prevented from fully pursuing its own separate interests; and (g) Other parties that can
significantly influence the management or operating policies of the transacting parties or that have an ownership interest in
one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting
parties might be prevented from fully pursuing its own separate interests.
The financial statements shall include
disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar
items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of consolidated
or combined financial statements is not required in those statements. The disclosures shall include: (a) the nature of the relationship(s)
involved; (b) description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for
each of the periods for which income statements are presented, and such other information deemed necessary to an understanding
of the effects of the transactions on the financial statements; (c) the dollar amounts of transactions for each of the periods
for which income statements are presented and the effects of any change in the method of establishing the terms from that used
in the preceding period; and (d) amounts due from or to related parties as of the date of each balance sheet presented and, if
not otherwise apparent, the terms and manner of settlement.
L. Cash flows reporting
The registrant adopted paragraph 230-10-45-24
of the FASB Accounting Standards Codification for cash flows reporting, classifies cash receipts and payments according
to whether they stem from operating, investing, or financing activities and provides definitions of each category, and uses the
indirect or reconciliation method (“Indirect method”) as defined by paragraph 230-10-45-25 of the FASB Accounting Standards
Codification to report net cash flow from operating activities by adjusting net income to reconcile it to net cash flow from operating
activities by removing the effects of (a) all deferrals of past operating cash receipts and payments and all accruals of expected
future operating cash receipts and payments and (b) all items that are included in net income that do not affect operating cash
receipts and payments. The registrant reports the reporting currency equivalent of foreign currency cash flows, using the current
exchange rate at the time of the cash flows and the effect of exchange rate changes on cash held in foreign currencies is reported
as a separate item in the reconciliation of beginning and ending balances of cash and cash equivalents and separately provides
information about investing and financing activities not resulting in cash receipts or payments in the period pursuant to paragraph
830-230-45-1 of the FASB Accounting Standards Codification.
M. Subsequent events
The registrant follows the guidance in
Section 855-10-50 of the FASB Accounting Standards Codification for the disclosure of subsequent events. The registrant
will evaluate subsequent events through the date when the financial statements were issued. Pursuant to ASU 2010-09 of the
FASB Accounting Standards Codification, the registrant as an SEC filer considers its financial statements issued when they are
widely distributed to users, such as through filing them on EDGAR.
Recently Issued Accounting Standards
The registrant has adopted all accounting
pronouncements issued since December 31, 2007, none of which had a material impact on the registrant’s financial statements.
NOTE 4 –GOING CONCERN
The accompanying financial statements
have been prepared assuming that the registrant will continue as a going concern, which contemplates continuity of operations,
realization of assets, and liquidation of liabilities in the normal course of business.
As of September 30, 2014, the registrant
had an accumulated deficit during development stage of $19,860,844. Also, during the nine months ended September 30, 2014, the
registrant used net cash of $556,810 for operating activities. These factors raise substantial doubt about the registrant’s
ability to continue as a going concern.
While the registrant is attempting to
commence operations and generate revenues, the registrant’s cash position may not be significant enough to support the registrant’s
daily operations. Management intends to raise additional funds by way of a public or private offering. Management believes that
the actions presently being taken to further implement its business plan and generate revenues provide the opportunity for the
registrant to continue as a going concern. While the registrant believes in the viability of its strategy to generate revenues
and in its ability to raise additional funds, there can be no assurances to that effect. The ability of the registrant to continue
as a going concern is dependent upon the registrant’s ability to further implement its business plan and generate revenues.
The financial statements do not include
any adjustments that might be necessary if the registrant is unable to continue as a going concern.
NOTE 5– PREPAIDS
The prepaid asset recorded at September
30, 2014, was the result of:
| a.) | The registrant executing a one year consulting contract with its chief executive officer on December 25, 2013, whereby the
registrant issued 120,000,000 post reverse-split shares of common stock for one year of executive services. The 120,000,000 shares
were valued at the closing price of $0.0022 on the date of the agreement which will result in the registrant recording officer
compensation of $264,000 over the life of the contract. |
| b.) | The registrant executing a three month consulting agreement on August 20, 2014, whereby the registrant issued 30,000,000 free
trading S-8 shares to Brent Fouch. The consultant will coordinate with Design Catapult Inc. to provide sensor and EEG technology
assistance. The 30,000,000 shares were valued at the closing price of $0.0012 on the date of the agreement which will result in
the registrant recording consulting expense of $36,000 over the life of the contract. |
| c.) | The registrant executing a six month consulting agreement on September 2, 2014, whereby the registrant issued 30,000,000 free
trading S-8 shares to Noah Fouch to provide weekly marketing services through social media platforms. The 30,000,000 shares were
valued at the closing price of $0.0016 on the date of the agreement which will result in the registrant recording consulting expense
of $48,000 over the life of the contract. |
| d.) | The registrant executing a one year service agreement on September 12, 2014, whereby the registrant issued 5,000,000 shares
of Series A Preferred Stock to its CEO, Kerry Driscoll. The 5,000,000 shares were valued at par $0.001 which will result in the
registrant recording officer compensation expense of $5,000 over the life of the contract. |
| e.) | The registrant executing a (1) year service agreement on September 12, 2014, whereby the registrant issued 5,000,000 shares
of Series A Preferred Stock to a former officer of the registrant. The 5,000,000 shares were valued at par $0.001 which will result
in the registrant recording officer compensation expense of $5,000 over the life of the contract. |
As of September 30, 2014, and December
31, 2013, the registrant had a prepaid balance of $135,520 and $289,550 which are derived from the uncompleted portion of the consulting
agreements with the registrant.
NOTE 6– PROPERTY PLANT &
EQUIPMENT
| |
September 30, 2014 | |
December 31, 2013 |
| |
| | | |
| | |
Equipment | |
$ | 85,467 | | |
$ | 82,531 | |
Furniture | |
| 4,186 | | |
| 4,186 | |
Total | |
| 89,653 | | |
| 86,717 | |
Less accumulated Depreciation | |
| (86,171 | ) | |
| (84,299 | ) |
Property and equipment, net | |
$ | 3,482 | | |
$ | 2,418 | |
Furniture
and Equipment
consisted of the
following:
- On April 30, 2013, the registrant acquired all the assets of Mind Technologies,
Inc. through an executed Asset Purchase Agreement (Described in Note 9).
- Depreciation expense
for the nine months ended September 30,
2014, and 2013 was $1,872 and $1,981.
NOTE 7 –
RELATED PARTY TRANSACTIONS
Convertible note payable to related party
On January 2, 2014, the registrant entered
into a convertible promissory note with Brent Fouch, in the amount of $61,096, bearing no interest, convertible at the closing
market price on the date of conversion. On January 5, 2014, Brent Fouch entered into an assignment agreement with Magna Group,
LLC, whereby Brent Fouch assigned his convertible promissory note dated January 2, 2014, in the amount of $61,096.
Consulting agreement(s) with CEO
The registrant executed a consulting
agreement on December 25, 2013, with its current Chief Executive Officer whereby the registrant issued 120,000,000 post reverse-split
shares of common stock for one year of executive services. The 120,000,000 shares were valued at the closing price of $0.0022 on
the date of the agreement which will result in the registrant recording officer compensation of $264,000 over the life of the contract.
The registrant executed a service agreement
on September 12, 2014, with its current Chief Executive Officer, Kerry Driscoll, whereby the registrant issued 5,000,000 shares
of Series A Preferred Stock for one year of services such as compliance, guidance, infrastructure and business strategy. The 5,000,000
shares were valued at par $0.001which resulted in the registrant recording officer compensation of $5,000 over the life of the
contract.
Service Agreement with Former Officer
The registrant executed a service agreement
on September 12, 2014, with a former officer, whereby the registrant issued 5,000,000 shares of Series A Preferred Stock for one
year services to facilitate the development of BCI software compatibility with the registrant’s micro BCI headset. The 5,000,000
shares were valued at par $0.001which resulted in the registrant recording officer compensation of $5,000 over the life of the
contract.
Asset Purchase Agreement
On
April 30, 2013, the registrant executed an asset purchase agreement with Mind Technologies, Inc., (MTEK), whereby the registrant
purchased all the assets of MTEK for 15,000 post reverse-split common shares. The assets purchased include those previously licensed
from MTEK, described in Note 9.
Free office space provided by chief executive officer
The registrant has been provided office
space by its chief executive officer Kerry Driscoll at no cost. Management has determined that such cost is nominal and did not
recognize the rent expense in its financial statements.
NOTE 8– AVAILABLE-FOR-SALE
SECURITIES
Other Comprehensive Income/Loss
On February 12, 2014, the registrant
entered into a consulting agreement with Monster Arts, Inc. (“Monster”), whereby the registrant will provide Monster
with thought controlled software development services over a one year term. The registrant will be paid four quarterly payments
of $50,000 in restricted common stock of Monster. As of September 30, 2014, the registrant has only received its first payment
of 8,333,333 common shares of Monster Arts Inc. worth approximately $50,000, based on the closing stock price of $0.006 on February
12, 2014, which was recorded as an available-for-sale security asset with the credit to deferred revenues. The registrant revalued
the 8,333,333 shares on September 30, 2014, which resulted in an unrealized loss on available-for-sale securities of $48,333 as
the stock price of Monster decreased to $0.0002.
As of September 30, 2014, and December
31, 2013, the registrant had available for sale securities balance of $1,667 and $0.
NOTE 9 –
LICENSED PRODUCTS & ASSET PURCHASE
On
December 18, 2012, the registrant signed a licensing agreement with Mind Technologies, Inc., (MTEK), for the right to use, develop,
improve, manufacture, and sale the licensed software application which uses wireless headsets
to read brainwaves
and allow interaction
with a computer.
The registrant issued 3,500 post reverse-split common shares to MTEK as consideration
for the licensing agreement. The shares were valued at the amortized holding cost of the related party. The amortized holding cost
was $-0- at September 30, 2013, and December 31, 2012, respectively.
On
April 30, 2013, the registrant executed an asset purchase agreement with MTEK, whereby the registrant purchased all the assets
of MTEK for 15,000 post reverse-split common shares. The assets purchased were previously licensed from MTEK as described previously.
The cost basis of the assets acquired is $86,033, with accumulated depreciation of $81,638, which resulted in a net asset balance
of $4,395. The registrant recorded the excess consideration as additional paid in capital inasmuch as it was a related party transaction.
The former CEO of Mind Solutions, Inc. is also the former CEO of Mind Technologies, Inc. The registrant acquired all the assets
involved with the former operations of MTEK which include three thought-controlled software applications named Mind Mouse,
Master Mind and Think-Tac-Toe. These purchased assets constitute neural processing software for thought-controlled technologies,
allowing the user to interact with computers, gaming devices, and other machines through the power of the mind. Included in the
purchase are all Mind Technologies’ inventory, fixed assets, intellectual property, and an assignment of rights and assumption
of obligations under Mind Technologies’ existing contracts.
NOTE 10 –
CONVERTIBLE NOTES PAYABLE
In the nine months ended September 30,
2014, the registrant entered into eighteen convertible note agreements. As of September 30, 2014,
and December 31, 2013, the registrant has $691,667 and $248,358 in outstanding convertible notes payable with eight non-related
entities.
On January 2, 2014, the registrant entered
into a convertible promissory note with Brent Fouch, a related party to the registrant, in the amount of $61,096, bearing no interest,
convertible at the closing market price on the date of conversion. On January 5, 2014, Brent Fouch entered into an assignment agreement
with Magna Group, LLC, whereby Brent Fouch assigned his convertible promissory note dated January 2, 2014, in the amount of $61,096.
On February 4, 2014, the
registrant entered into a Convertible Note Agreement with GEL Properties LLC. The registrant issued a $25,000 convertible
note with interest of 10% per annum, unsecured, and due February 4, 2015. The note is convertible into common shares of the
registrant at any time from the date of issuance at a conversion rate of 55% of the market price, calculated as the lowest
trading price in the previous 10 days leading up to the date of conversion. As of September 30, 2014, GEL Properties LLC
converted the entire principle balance of $25,000 into 48,017,966 shares of common stock.
On February 4, 2014, the registrant entered
into a Convertible Note Agreement with LG Capital Funding LLC whereby there is a front end and a back end note with the same terms.
On February 4, 2014, the registrant issued a $25,000 front end convertible note with interest of 10% per annum, unsecured, and
due February 4, 2015. The note is convertible into common shares of the registrant at any time from the date of issuance at a conversion
rate of 55% of the market price, calculated as the lowest trading price in the previous 10 days leading up to the date of conversion.
On August 7, 2014, the registrant issued a back end note of $25,000 with the same terms. As of September 30, 2014, LG Capital Funding
LLC converted the entire principle balance of the front end note, $25,000, and $1,312 of accrued interest into 47,864,258 shares
of our common stock. As of September 30, 2014, the registrant has an outstanding convertible note balance to LG Capital Funding
LLC which pertains to the back end note dated February 4, 2014.
On February 6, 2014, the registrant entered
into a Securities Purchase Agreement with Asher Enterprises Inc. for a $37,500 convertible note payable due interest at 8% per
annum, unsecured, and due November 10, 2014. The note is convertible into common shares of the registrant at any time from the
date of issuance at a conversion rate of 58% of the market price, calculated as the average of the three lowest trading prices
in the previous 30 days leading up to the date of conversion. As of September 30, 2014, Asher converted the entire principle balance
of $37,500 and $4,500 of accrued interest into 99,765,528 shares of common stock.
On February 25, 2014, the registrant
entered into a Convertible Note Agreement with Iconic Holdings, LLC. The registrant issued a $27,500 convertible note with interest
of 10% per annum, unsecured, and due February 25, 2015. The note is convertible into common shares of the registrant at any time
from the date of issuance at a conversion rate of 55% of the market price, calculated as the lowest trading price in the previous
10 days leading up to the date of conversion. As of September 30, 2014, Iconic Holdings, LLC converted the entire principle balance
of $27,500 into 68,750,000 shares of common stock.
On March 25, 2014, the registrant entered
into a Convertible Note Agreement with LG Capital Funding LLC. The registrant issued a $40,000 convertible note with interest of
10% per annum, unsecured, and due March 25, 2015. The note is convertible into common shares of the registrant at any time from
the date of issuance at a conversion rate of 55% of the market price, calculated as the lowest trading price in the previous 10
days leading up to the date of conversion. As of September 30, 2014, LG Capital Funding LLC converted the entire principle balance
of $40,000 and $171 of accrued interest into 77,224,305 shares of common stock.
On April 15, 2014, the registrant entered
into a Convertible Note Agreement with Caesar Capital Group, LLC. The registrant issued a $50,000 convertible note with interest
of 8% per annum, unsecured, and due April 15, 2015. The note is convertible into common shares of the registrant at any time from
the date of issuance at a conversion rate of 55% of the market price, calculated as the lowest trading price in the previous 10
days leading up to the date of conversion. As of September 30, 2014, Caesar Capital Group, LLC has not converted any principle
on this note.
On April 30, 2014, the registrant entered
into a Convertible Note Agreement with ARRG, Corp. The registrant issued a $50,000 convertible note with interest of 8% per annum,
unsecured, and due April 30, 2015. The note is convertible into common shares of the registrant at any time from the date of issuance
at a conversion rate of 55% of the market price, calculated as the lowest trading price in the previous 10 days leading up to the
date of conversion. As of September 30, 2014, ARRG Corp has not converted any principle on this note.
On May 8, 2014, the registrant entered
into a Securities Purchase Agreement with KBM Worldwide, Inc. for a $42,500 convertible note payable due interest at 8% per annum,
unsecured, and due February 12, 2014. The note is convertible into common shares of the registrant at any time from the date of
issuance at a conversion rate of 51% of the market price, calculated as the average of the three lowest trading prices in the previous
30 days leading up to the date of conversion. As of September 30, 2014, KBM Worldwide, Inc. has not converted any principle on
this note.
On May 12, 2014, we executed a Consulting
Agreement with Cicero Consulting Group, LLC and convertible promissory note in the amount of $200,000 due May 12, 2015. Cicero
Consulting Group, LLC will provide management consulting and business advisory services to Mind Solutions over a one year term.
We have compensated Cicero Consulting Group, LLC with a $200,000 convertible promissory note which is considered earned in full
as of May 12, 2014. The convertible note issued pursuant to the Consulting Agreement may be converted into shares of our common
stock after six months from the date of the executed note at a 10 percent discount to market based on the lowest trading price
during the 10 trading days prior to the conversion date. As of the date hereof, $200,000 of the Cicero Consulting Group, LLC note
remains unpaid.
On May 30, 2014, the registrant entered
into a Convertible Note Agreement with WHC Capital, LLC. The registrant issued a $60,000 convertible note with interest of 12%
per annum, unsecured, and due May 30, 2015. The note is convertible into common shares of the registrant at any time from the date
of issuance at a conversion rate of 50% discount to the market price, calculated as the lowest trading price in the previous 10
trading days leading up to the date of conversion. As of September 30, 2014, WHC Capital, LLC has not converted any principle on
this note.
On May 15, 2013, the registrant executed
a convertible promissory note with JMJ Financial in an amount up to $250,000 bearing interest on the unpaid balance at the rate
of 12 percent. While the note was in the original principal amount up to $250,000, it was only partially funded. On May 15, 2013,
the registrant received $30,000 pursuant to this convertible promissory note with JMJ Financial. On August 14, 2013, the registrant
received $20,000 pursuant to this convertible promissory note with JMJ Financial. On December 4, 2013, the registrant received
$25,000 pursuant to this convertible promissory note with JMJ Financial. On April 16, 2014, the registrant received $40,000 pursuant
to this convertible promissory note with JMJ Financial. On June 23, 2014, the registrant received $60,000 pursuant to this convertible
promissory note with JMJ Financial. The note is interest free for the first 180 days after which it accrues interest of 12% per
annum. The note is convertible after 180 days into common shares of the registrant at a conversion rate of 60% of the market price,
calculated as the lowest trade price in the 25 trading days previous to conversion. As of September 30, 2014, JMJ Financial converted
$93,333 in principle into 121,371,111 shares of common stock.
On July 22, 2014, the registrant entered
into a Securities Purchase Agreement (SPA) with KBM Worldwide, Inc. The registrant issued a $27,500 convertible note in connection
with the SPA which has interest of 8% per annum, unsecured, and due July 22, 2015. The note is convertible into common shares of
the registrant at any time from the date of issuance at a conversion rate of 51% of the market price, calculated as the average
of the three lowest trading prices in the previous 10 days leading up to the date of conversion. As of September 30, 2014, KBM
Worldwide, Inc. has not converted any principle on this note.
On August 28, 2014, the registrant entered
into a Convertible Note Agreement with GEL Properties LLC. The registrant issued a $25,000 convertible note with interest of 10%
per annum, unsecured, and due August 28, 2015. The note is convertible into common shares of the registrant at any time from the
date of issuance at a conversion rate of 55% of the market price, calculated as the lowest trading price in the previous 10 trading
days leading up to the date of conversion. As of September 30, 2014, GEL Properties LLC converted the entire principle balance
of $25,000 into 56,818,182 shares of common stock.
On September 4, 2014, the registrant
entered into a Convertible Note Agreement with LG Capital Funding LLC. The registrant issued a $31,500 convertible note with interest
of 10% per annum, unsecured, and due September 4, 2015. The note is convertible into common shares of the registrant at any time
from the date of issuance at a conversion rate of 55% of the market price, calculated as the lowest trading price in the previous
10 days leading up to the date of conversion. As of September 30, 2014, LG Capital Funding LLC has not converted any principle
on this note.
On September 22, 2014, the registrant
entered into a Convertible Note Agreement with JSJ Investments Inc. The registrant issued a $100,000 convertible note with interest
of 12% per annum, unsecured, and due March 22, 2015. The note is convertible into common shares of the registrant at any time from
the date of issuance at a conversion rate of 48% discount to the market price, calculated as the average of the three lowest trading
prices in the previous 20 trading days leading up to the date of conversion. As of September 30, 2014, JSJ Investments Inc. has
not converted any principle on this note.
On September 25, 2014, the
registrant entered into a Convertible Note Agreement with Iconic Holdings, LLC. The registrant issued a $27,500 convertible
note with interest of 10% per annum, unsecured, and due September 25, 2015. The note is convertible into common shares of the
registrant at any time from the date of issuance at a conversion rate of 55% of the market price, calculated as the lowest
trading price in the previous 10 days leading up to the date of conversion. As of September 30, 2014, Iconic Holdings, LLC
has not converted any principle on this note.
Conversion of convertible debt.
In the nine months ended September 30,
2014, Asher Enterprises converted 85,200 of convertible debt and $4,500 of accrued interest into 104,613,454 post reverse-split
shares of common stock, Magna Group, LLC converted $37,000 of convertible debt into 4,510,292 post reverse-split shares of common
stock, Hanover Holdings converted $94,500 of convertible debt into 106,789,630 post reverse-split shares of common stock, JMJ Financial
converted $93,333 into 121,371,111 post reverse-split shares of commons stock, GEL Properties, LLC converted $50,000 of convertible
debt into 104,836,148 post reverse-split shares of common stock, LG Capital Funding LLC converted $69,000 of convertible debt into
125,088,563 post reverse-split shares of common stock, Iconic Holdings, LLC converted $27,500 of convertible debt into 68,750,000
post reverse-split shares of common stock and IBC Funds LLC converted $61,085 of convertible debt and $2,030 of accrued interest
into 73,876,000 post reverse-split shares of common stock.
The following table summarizes the total
outstanding principle on convertible notes payable:
| |
September 30, 2014 | |
December 31, 2013 |
| |
| | | |
| | |
Convertible Notes Payable- Asher Enterprises, Inc. | |
$ | — | | |
$ | 47,700 | |
Convertible Notes Payable- Magna Group, LLC | |
| — | | |
| 37,000 | |
Convertible Notes payable - Hanover Holdings, LLC | |
| — | | |
| 33,404 | |
Convertible Notes Payable - JMJ Financial, LLC | |
| 81,667 | | |
| 69,168 | |
Convertible Notes Payable - IBC Funds LLC | |
| — | | |
| 61,086 | |
Convertible Notes Payable - LG Capital Funding LLC | |
| 52,500 | | |
| — | |
Convertible Notes Payable - Iconic Holdings | |
| 27,500 | | |
| — | |
Convertible Notes Payable - KBM Worldwide, Inc. | |
| 70,000 | | |
| — | |
Convertible Notes Payable - Ceasar Capital Group, LLC | |
| 50,000 | | |
| — | |
Convertible Notes Payable - WHC Capital, LLC | |
| 60,000 | | |
| — | |
Convertible Notes Payable - ARRG Corp. | |
| 50,000 | | |
| — | |
Convertible Notes Payable - Cicero Consulting Group, LLC | |
| 200,000 | | |
| — | |
Convertible Notes Payable - JSJ Investments Inc. | |
| 100,000 | | |
| — | |
Total | |
$ | 691,667 | | |
$ | 248,358 | |
In the nine months ended September 30,
2014, and 2013, the registrant recorded interest expense relating to the outstanding convertible notes payable in the amounts of
$23,414 and $6,478.
Derivative liability.
At September 30, 2014 and December 31,
2013, the Company had $1,043,967 and $19,907,242 in derivative liability. In the nine months ended September 30, 2014, the Company
reduced its derivative liability by $18,863,275 of which $14,062,385 was credited to additional paid in capital due to the conversion
of the convertible notes payable and $4,800,890 was credited as an Other Income Item- Gain on Derivative Adjustment due to the
change in derivative liability calculated by the Black Scholes Model pertaining to the outstanding convertible notes payable.
We calculate the derivative liability
using the Black Scholes Model which factors in the Company’s stock price volatility as well as the convertible terms applicable
to the outstanding convertible notes. The following is the range of variables used in revaluing the derivative liabilities at September
30, 2014 and December 31, 2013:
| |
| September
30, 2014 | | |
| December
31, 2013 | |
Annual dividend yield | |
| 0 | | |
| 0 | |
Expected life (years) of | |
| 0.01 – .85 | | |
| 0.01 – .90 | |
Risk-free interest rate | |
| 10 | % | |
| 10 | % |
Expected volatility | |
| 475.6 | % | |
| 372.2 | % |
NOTE 11–
NOTES PAYABLE
The total amount due on notes payable
and related interest and penalty is as follows:
| |
September 30, 2014 | |
December 31, 2013 |
| |
| |
|
Notes Payable | |
$ | 145,000 | | |
$ | 145,000 | |
| |
| | | |
| | |
Total | |
$ | 145,000 | | |
$ | 145,000 | |
The registrant has outstanding notes
due to a former director in the aggregate amount of $145,000. The notes are unsecured and accrue interest and penalty of 15% inasmuch
as they are past due. The former director elected not to participate with the holders of other promissory notes, including our
then executive officers, in the exchange of those notes for equity which occurred during January 2009. At September 30, 2014, and
December 31, 2013, total accrued interest and penalty pertaining to the outstanding $145,000 in notes payable is $272,772 and $251,019.
NOTE 12–
REVERSE STOCK SPLIT
On October 15, 2013, the registrant executed
a Plan of Merger with Mind Solutions, Inc. whereby the holders of stock in VOIS, Inc. received one share of common stock, $0.001
par value per share, in Mind Solutions, Inc. for every 2,000 shares of common stock in VOIS, Inc. (in effect, a one for 2,000 reverse
split). As a result, the then current common stockholders of VOIS, Inc. held all of the issued and outstanding shares of common
stock in the surviving corporation Mind Solutions, Inc. The registrant has adjusted the equity statement and equity portion of
the balance sheet to retroactively account for the reverse stock split as if it occurred at inception.
NOTE 13–
STOCKHOLDERS’
EQUITY
Authorized Common Stock
On May 17, 2013, the registrant’s
board voted to authorize an amendment to the registrant’s articles of incorporation to increase its authorized shares of
common stock from 1,000,000,000 to 3,000,000,000. On August 23, 2013, the registrant’s board authorized an amendment to the
registrant’s articles of incorporation to increase its authorized shares of common stock from 3,000,000,000 to 5,000,000,000.
Authorized Preferred Stock
The registrant is authorized to issue
10,000,000 shares of Series A Preferred Stock.
The board of directors passed a resolution
designating certain preferential liquidity, dividend, voting and other relative rights to Shares of Series A Preferred Stock. Each
share of Series A Preferred Stock may at the option of the holder be converted into 100 fully paid and non-assessable shares of
common stock.
Issued Preferred Stock
On September 12, 2014, the
registrant issued 5,000,000 Preferred A Shares to its chief executive officer, Kerry Driscoll, for one year of services to be
rendered to the registrant. The 5,000,000 shares were valued at par $0.001 which resulted in the registrant recording officer
compensation of $5,000 over the life of the contract.
On September 12, 2014, the
registrant issued 5,000,000 Preferred A Shares to a former officer of the registrant for one year of services to be rendered
to the registrant. The 5,000,000 shares were valued at par $0.001 which resulted in the registrant recording a consulting
expense of $5,000 over the life of the contract.
Issued Common Stock
In the year ended December 31, 2013,
the registrant issued 35,894,503 post reverse-split shares of common stock. Of the 35,894,503 post reverse-split shares issued,
22,088,000 post reverse-split shares were to consultants for services, 15,000 (post reverse-split) shares were issued in an asset
purchase agreement, 10,625 (post reverse-split) shares were issued to a related party for the reduction of $51,000 in related party
convertible debt, and 13,777,673 post reverse-split shares were issued to non-related convertible note holders for the reduction
of $469,346 in convertible debt. Of the 22,088,000 shares to consultants, 20,000,000 were issued to our chief executive officer
pursuant to a one year consulting agreement dated December 25, 2013. We recorded the portion of the contract not yet completed
as prepaid expense. The 22,088,000 shares issued for services rendered were valued at the closing price on the dates of their respective
agreements which resulted in the registrant recording a consideration of $1,467,703. Of the other 2,088,000 shares for services,
238,000 were to the Secretary of the registrant for consulting services provided over the past two years. The other 1,850,000 were
to unrelated third party consultants for investor related services completed by December 31, 2013.
In the nine months ended September 30,
2014, the registrant issued 1,005,330,974 post reverse-split shares of common stock, of which 252,895,776 shares were issued for
services and 752,435,198 shares were issued for the reduction of $513,801 in convertible notes payable debt and $11,723 of accrued
interest. The 252,897,776 shares issued for services rendered were valued at the closing price on the dates of their respective
agreements which resulted in the registrant recording a consulting expense of $447,598.
NOTE 14–
COMMITMENTS
We were a defendant in two actions, each
entitled 951 Yamato Acquisition registrant, LLC vs. VOIS, Inc., both as filed in December 2009 in the Circuit Court of the
15th Judicial Circuit in and for Palm Beach County, Florida under case numbers 502010CA040121XXXXMB and 502010CC19027XXXXBBRS,
which are related to the lease agreements for our former office space. A combined summary judgment was entered in April, 2010 against
VOIS, Inc. in the amount of $106,231. At September 30, 2014, and December 31, 2013, our liabilities as reported in our financial
statements contained elsewhere in this report reflect the principal amount of the judgment together with $44,617 and $39,837 in
accrued interest, respectively.
NOTE 15-
SUBSEQUENT EVENTS
Management has evaluated subsequent events
pursuant to the requirements of ASC Topic 855 and has determined that no other material subsequent events exist.
| 1. | In October, the registrant issued 40,028,704 shares of common stock for the conversion of $41,600
in principle convertible debt. |
Item 2. Management’s Discussion and Analysis
of Financial Condition and Results of Operations.
THE FOLLOWING DISCUSSION SHOULD BE READ
TOGETHER WITH THE INFORMATION CONTAINED IN THE FINANCIAL STATEMENTS AND RELATED NOTES INCLUDED ELSEWHERE IN THIS REPORT ON FORM
10-Q.
The following discussion reflects our
plan of operation. This discussion should be read in conjunction with the financial statements which are included in this Report.
This discussion contains forward-looking statements, including statements regarding our expected financial position, business and
financing plans. These statements involve risks and uncertainties. Our actual results could differ materially from the results
described in or implied by these forward-looking statements as a result of various factors, including those discussed below and
elsewhere in this Report.
Unless the context otherwise suggests,
“we,” “our,” “us,” and similar terms, as well as references to “VOIS” and “Mind
Solutions,” all refer to Mind Solutions as of the date of this report.
Mind Solutions has successfully developed
software applications described below that run on Emotive EEG headsets. We have experienced minimal sales of our software applications.
It was decided by management that to better position Mind Solutions in the market, we should develop our own unique EEG headset
that would allow us to have more market strength. We have invested a significant amount of money and time into developing a prototype
EEG headset. We have completed a prototype which has been successfully tested on several Android devices and tablets.
On August 1, 2012, Dr. Gordon Chiu, our
chief scientific adviser, filed an International Patent Application No. PCT/US2012/049135. Generally, the proprietary technology
we are using consists of a “Portable Brain Activity Monitor.” On February 12, 2011, Mind Technology, Inc., one of our
predecessors, and Dr. Gordon Chiu, our chief science advisor, granted us a license to use the technology covered by his patent
application. Through the series of mergers described in this report, Mind Solutions acquired the license granted to Mind Technology,
Inc. For the period, that Mind Technology, Inc. (now Mind Solutions) exists and funds the development and progress of the covered
invention, Dr. Chiu agreed to license the use of the technology to Mind Solutions. If Mind Solutions fails to support the launch,
progress and/or funding of the production of the invention, then the license may be terminated. The agreement provided that Dr.
Chiu will receive a non-refundable, non-dilatable cash royalty payment equal to 20% of the gross proceeds received by Mind Solutions
from the use of the covered technology. In addition, Brent Fouch, the former president of Mind Technology, and one of our advisors,
will receive a non-refundable, non-dilatable cash royalty payment equal to 5% of the gross proceeds received by Mind Solutions
from the use of the covered technology. See “Business – Patents and Intellectual Property.”
We believe a minimum of $350,000 is still
needed to complete the EEG device, which will cover costs associated with the SDK (operating system), the design work to create
a sleek, consumer-friendly final product and updates on the hardware including Bluetooth wireless updates. We have announced our
desire to partner with a larger technology firm to invest in the completion of the EEG headset in return for a negotiated interest
in the product. If successful, we will not need to raise this capital to complete the project. If we are not successful in attracting
a financial partner to assist in the completion of the EEG headset, we plans to raise funds by means of an equity offering to raise
the necessary capital to complete the project.
Mind Solutions currently has a need of
approximately $45,000 per month to sustain operations until sales of the software and anticipated sales of the EEG headset increase.
Going Concern
As of September 30, 2014, the registrant
had an accumulated deficit during development stage of $19,860,844. During the nine months ended September 30, 2014, the registrant
used net cash of $556,810 for operating activities. These factors raise substantial doubt about the registrant’s ability
to continue as a going concern.
While the registrant is attempting
to commence operations and generate revenues, the registrant’s cash position may not be significant enough to support
the registrant’s daily operations. Management intends to raise additional funds by way of a public or private offering.
Management believes that the actions presently being taken to further implement its business plan and generate revenues
provide the opportunity for the registrant to continue as a going concern. While the registrant believes in the viability of
its strategy to generate revenues and in its ability to raise additional funds, there can be no assurances to that effect.
The ability of the registrant to continue as a going concern is dependent upon the registrant’s ability to further
implement its business plan and generate revenues.
Three Months Ended September 30, 2014, Compared to
Three Months Ended September 30, 2013.
Revenues. During the three months
ended September 30, 2014, and 2013, the registrant recognized $534 and $0 of revenues. The $534 of product revenues recognized
were from the registrant’s sales of its software. We are aggressively looking for ways to leverage our technology to develop
revenue streams.
General and Administrative Expenses.
Consulting Fees. During the three
months ended September 30, 2014, consulting expense increased to $421,871 as compared to $460,880 from the prior three months ended
September 30, 2013. The increase was primarily the result of more stock and convertible notes being issued to consultants for services
rendered to the registrant.
Professional Fees. During the
three months ended September 30, 2014, professional fees decreased to $52,014 as compared to $58,984 from the prior three months
ended September 30, 2013. Professional fees decreased primarily from the legal and accounting services needed to draft a Form S-1
registration statement in 2013.
Selling, General and Administrative
Expense. During the three months ended September 30, 2014, selling, general and administrative expenses increased to $15,872
as compared to $4,095 from the prior three months ended September 30, 2013. The increase was due primarily to more travel, meals
& entertainment, and marketing expenses.
Interest Expense. During the three
months ended September 30, 2014, interest expense increased to $16,048 as compared to $10,112 from the prior three months ended
September 30, 2013. The increase was due to additional interest expense accrued pertaining to the outstanding notes payable.
Derivative Adjustment. During
the three months ended September 30, 2014, gain on derivative adjustment was $5,871,123 as compared to a loss on derivative adjustment
of $2,133,379 for the prior three months ended September 30, 2013. The change was due to the derivative liability calculated using
the Black Scholes Model regarding the outstanding convertible debentures.
Net Loss from Operations. Our
net loss from operations decreased to $489,397 for the three months ended September 30, 2014, and $523,959 for the three months
ended September 30, 2013.
Nine Months Ended September 30, 2014, Compared to Nine
Months Ended September 30, 2013.
Revenues. During the nine months
ended September 30, 2014, and 2013, the registrant recognized $50,534 and $0 of revenues. The $50,000 of service revenues recognized
was from the registrant receiving stock in a costumer as payment for consulting services. The customer is a publically traded company
on the OTCQB. We are aggressively looking for ways to leverage our technology to develop revenue streams.
Consulting Fees. During the nine
months ended September 30, 2014, consulting expense decreased to $1,040,397 as compared to $1,566,372 from the prior nine months
ended September 30, 2013. The decrease was primarily the result of less stock being issued to consultants for services rendered
to the registrant.
Professional Fees. During the
nine months ended September 30, 2014, professional fees decreased to $144,439 as compared to $149,923 from the prior nine months
ended September 30, 2013. Professional fees increased primarily from the legal and accounting services needed to draft a Form S-1
registration statement in 2013.
Selling, General and Administrative
Expense. During the nine months ended September 30, 2014, selling, general administrative expenses increased to $91,251 as
compared to $22,118 from the prior nine months ended September 30, 2013. The increase was due primarily to more travel, meals &
entertainment, and marketing expenses.
Interest Expense. During the nine
months ended September 30, 2014, interest expense increased to $50,218 as compared to $33,012 from the prior nine months ended
September 30, 2013. The increase was due to additional interest expense accrued pertaining to the outstanding notes payable.
Derivative Adjustment. During
the nine months ended September 30, 2014, gain on derivative adjustment was $4,800,890 as compared to $2,268,166 from the prior
nine months ended September 30, 2013. The change in derivative adjustment was due to the change in derivative liability calculated
using the Black Scholes Model regarding the newly issued convertible debentures.
Forgiveness of debt. During the
nine months ended September 30, 2014, forgiveness of debt was $0 as compared to $111,610 for the nine months ended September 30,
2013. The decrease was due to the dissolution of an affiliated entity to the registrant’s which was recorded as an accounts
payable to related parties
Net Loss from Operations. Our
net loss from operations decreased to $1,225,727 for the nine months ended September 30, 2014, and $1,738,413 for the nine months
ended September 30, 2013.
Liquidity and Capital Resources
Liquidity is the ability of a company
to generate adequate amounts of cash to meet its needs for cash. The following table provides certain selected balance sheet comparisons
between September 30, 2014, and December 31, 2013:
|
|
September 30, |
|
December 31, |
|
$ |
|
% |
2014 |
2013 |
Change |
Change |
|
|
|
|
|
|
|
|
|
Working Capital |
|
$ (2,259,016) |
|
$ (20,639,541) |
|
$ 10, 380,525 |
|
89.1% |
Cash |
|
181,682 |
|
47,428 |
|
134,254 |
|
Over 100% |
Total current assets |
|
317,202 |
|
336,978 |
|
(19,776) |
|
(5.9)% |
Total assets |
|
322,351 |
|
339,396 |
|
(17,045) |
|
(5.0)% |
Accounts payable and accrued liabilities |
|
378,044 |
|
398,359 |
|
(20,315) |
|
(5.1)% |
Notes payable and accrued interest |
|
1,150,707 |
|
670,918 |
|
479,789 |
|
71.5 % |
Total current liabilities |
|
2,576,218 |
|
20,976,519 |
|
(18,800,301) |
|
(87.7) % |
Total liabilities |
|
2,576,218 |
|
20,976,519 |
|
(18,800,301) |
|
(87.7)% |
At September 30, 2014, our working capital
deficit decreased as compared to December 31, 2013, primarily as a result of a decrease in derivative liability of $18,863,275.
Operating activities
Net cash used for continuing operating
activities during the nine months ended September 30, 2014, was $556,810 as compared to $253,241 for the nine months ended September
30, 2013. Non-cash items totaling approximately $4,281,755 contributing to the net cash used in continuing operating activities
for the nine months ended September 30, 2014, include:
|
|
$647,598 representing the value of shares and convertible notes
payable issued to consultants and officers,
$4,800,890 decrease in derivative liability,
$50,000 in service revenues from available-for-sale securities, |
|
|
$1,872 of depreciation,
$19,665 increase in accounts payable and accrued expenses |
Net cash used for continuing operating
activities for the nine months ended September 30, 2013, was $253,241. Non-cash items totaling approximately $3,674,740 contributing
to the net cash used in continuing operating activities for the nine months ended September 30, 2013, include:
|
$1,039,587 representing the value of shares issued for consulting
services,
$2,268,166 of derivative expense from outstanding convertible notes
payable,
$480,000 in available for sale securities compensation,
$111,610 in forgiveness of debt, |
|
$1,981 of depreciation,
$3,429 in accounts payable and accrued expenses,
$45 in accounts payable to related parties, |
Investing activities
Net cash used in investing activities
was $2,936 and $0 for the nine months ended September 30, 2014, and 2013.
Financing Activities
Net cash provided by financing activities
was $694,000 for the nine months ended September 30, 2014. This included $694,000 from proceeds from convertible notes.
Net cash provided by financing activities
was $258,221 for the nine months ended September 30, 2013. During the nine months ended September 30, 2013, we generated $248,500
from the issuance of convertible notes payable, $48,526 in notes to related parties, and paid $38,805 on notes to related parties.
IBC Funds, LLC. Financing
On November 21, 2013,
IBC Funds, LLC, a Nevada limited liability company, acquired by assignment, debts owed by Mind Solutions to four creditors in the
amount of $82,845.63. Likewise, on November 21, 2013, IBC Funds and Mind Solutions executed that certain Settlement Agreement and
Stipulation, whereby Mind Solutions agreed to settle the debt of $82,845.63, and to pay the debt by the issuance of shares pursuant
to Section 3(a)(10) of the Securities Act, which provides that the issuance of shares are exempt from the registration requirement
of Section 5 of the Securities Act. In relevant part, Section 3(a)(10) of the Securities Act provides an exemption from the registration
requirement for securities: (i) which are issued in exchange for a bona fide claim, (ii) where the terms of the issuance and exchange
are found by a court to be fair to those receiving shares, (iii) notice of the hearing is provided to those to receive shares and
they are afforded the opportunity to be heard, (iv) the issuer must advise the court prior to its hearing that it intends to rely
on the exemption provided in Section 3(a)(10) of the Securities Act, and (v) there cannot be any impediments to the appearance
of interested parties at the hearing.
On November 22, 2013,
in a court proceeding styled IBC Funds, LLC, a Nevada limited Liability registrant, Plaintiff vs. Mind Solutions, Inc., a Nevada
corporation, Defendant, bearing Civil Action No. 2013 CA 008370 NC, in the Circuit Court in the Twelfth Judicial Circuit in and
for Sarasota County, Florida, after due notice, the court entered an order approving the Settlement Agreement and Stipulation.
In satisfaction of the debt, we agreed to issue shares of our common stock in one or more tranches to IBC Funds in the manner contemplated
in the Settlement Agreement and Stipulation at a conversion price of $0.0045 per share. In accordance with the terms of the Settlement
Agreement and Stipulation, the court was advised of our intention to rely upon the exception to registration set forth in Section
3(a)(l0) of the Securities Act to support the issuance of the shares.
As set forth in the
order, the court found that the terms and conditions of the exchange were fair to Mind Solutions and IBC Funds within the meaning
of Section 3(a)(10) of the Securities Act, and that the exchange of the debt for our securities was not made under Title 11 of
the United States Code.
As permitted by the court order and the
Settlement Agreement and Stipulation, we issued 77,298,674 post reverse split shares of our common stock to IBC Funds, LLC. The
shares were issued free of any restrictions as permitted by Section 3(a)(10) of the Securities Act.
Hanover Holdings I, LLC Financing
In 2013, we executed various Securities
Purchase Agreements with Hanover Holdings I, LLC, whereby we issued convertible promissory notes to Hanover Holdings I, LLC bearing
interest on the unpaid balance at the rate of 10 percent, as follows:
| · | Convertible promissory note dated February 4, 2013, in the original principal amount of $16,500. As a result of a conversion
of the note, we issued 159,659 shares of our common stock to Hanover Holdings I, LLC. As of the date hereof, the note is paid in
full. |
| · | Convertible promissory note dated March 7, 2013, in the original principal amount of $16,500. As a result of a conversion of
the note, we issued 304,379 shares of our common stock to Hanover Holdings I, LLC. As of the date hereof, the note is paid in full. |
| · | Convertible promissory note dated September 5, 2013, in the original principal amount of $41,500. As a result of a conversion
of the note, we issued 58,085,830 shares of our common stock to Hanover Holdings I, LLC. As of the date hereof, the note is paid
in full. |
| · | Convertible promissory note dated August 7, 2013, in the original principal amount of $26,500. As a result of a conversion
of the note, we issued 17,084,482 shares of our common stock to Hanover Holdings I, LLC. As of the date hereof, the note is paid
in full. |
| · | Convertible promissory note dated November 23, 2013, in the original principal amount of $26,500. As of the date hereof, the
note is paid in full. |
Each of the notes was convertible
into shares of our common stock by dividing the Conversion Amount (as defined below) by the applicable Conversion Price then in
effect on the date specified in the notice of conversion. The term “Conversion Amount” means, with respect to any
conversion of a note, the sum of (1) the principal amount of the note to be converted in such conversion plus (2) at Hanover Holdings
I, LLC’s option, accrued and unpaid interest, if any, on such principal amount at the interest rates provided in the note
to the Conversion Date; provided, however, that Mind Solutions shall have the right to pay any or all interest in cash plus (3)
at our option, Default Interest, if any, on the amounts referred to in the immediately preceding clauses (1) and/or (2) plus (4)
at Hanover Holdings I, LLC’s option, any amounts owed to Hanover Holdings I, LLC under the note.
The conversion price (the “Conversion
Price”) shall be the Variable Conversion Price (subject to equitable adjustments for stock splits, stock dividends or rights
offerings by Mind Solutions relating to our securities or the securities of any subsidiary of Mind Solutions, combinations, recapitalization,
reclassifications, extraordinary distributions and similar events). The “Variable Conversion Price” shall mean 55%
multiplied by the Market Price (as defined in the note) but in no event shall the Conversion Price be less than $0.00004. “Market
Price” means the lowest Trading Price (as defined below) for our common stock during the ten (10) Trading Day period ending
on the latest complete Trading Day prior to the Conversion Date. “Trading Price” means, for any security as of any
date, the lowest trading price on the Over-the-Counter Bulletin Board, or applicable trading market (the “OTCBB”) as
reported by a reliable reporting service (“Reporting Service”) mutually acceptable to Mind Solutions and Hanover Holdings
I, LLC (i.e., Bloomberg). If the Trading Price cannot be calculated for such security on such date in the manner provided
above, the Trading Price shall be the fair market value as mutually determined by Mind Solutions and the holders of a majority
in interest of the notes being converted for which the calculation of the Trading Price is required in order to determine the Conversion
Price of such notes.
“Trading Day” shall mean
any day on which our common stock is traded for any period on the OTCBB, or on the principal securities exchange or other securities
market on which our common stock is then being traded. If our common stock is chilled for deposit at DTC and/or becomes chilled
at any point while the note remains outstanding, an additional 8% discount will be attributed to the Conversion Price defined in
the note. If Mind Solutions is unable to issue any shares under this provision due to the fact that there is an insufficient number
of authorized and unissued shares available, Hanover Holdings I, LLC promises not to force Mind Solutions to issue these shares
or trigger an Event of Default, provided that Mind Solutions takes immediate steps required to get the appropriate level of approval
from stockholders or the board of directors, where applicable to raise the number of authorized shares to satisfy the Notice of
Conversion.
All shares of our common stock issued
to Hanover Holdings I, LLC were restricted in their transfer, pursuant to the Securities Act. In addition, all shares of our common
stock which were issued to Hanover Holdings I, LLC have been adjusted to take into account the one for 2,000 reverse split of the
shares of our common stock which occurred on October 31, 2013.
The note further provides for anti-dilution
adjustments in favor of Hanover Holdings I, LLC, in the event we offer additional shares of our common stock.
Copies of the Securities
Purchase Agreements and convertible notes in favor of Hanover Holdings I, LLC were filed as exhibits with the SEC.
Asher Enterprises, Inc. Financing
In 2012, 2013, and 2014, we executed
various Securities Purchase Agreements with Asher Enterprises, Inc., whereby we issued convertible promissory notes to Asher Enterprises,
Inc. bearing interest on the unpaid balance at the rate of eight percent, as follows:
| · | Convertible promissory note dated December 26, 2012, in the original principal amount of $32,500. As a result of a conversion
of the note, we issued 44,402 shares of our common stock to Asher Enterprises, Inc. As of the date hereof, the note is paid in
full. |
| · | Convertible promissory note dated March 1, 2013, in the original principal amount of $32,500. As a result of a conversion of
the note, we issued 583,992 shares of our common stock to Asher Enterprises, Inc. As of the date hereof, the note is paid in full. |
| · | Convertible promissory note dated April 18, 2013, in the original principal amount of $32,500. As a result of a conversion
of the note, we issued 10,836,925 shares of our common stock to Asher Enterprises, Inc. As of the date hereof, the note is paid
in full. |
| · | Convertible promissory note dated November 7, 2013, in the original principal amount of $42,500. As of the date hereof, the
note is paid in full.
|
| · | Convertible promissory note dated February 6, 2014, in the original principal amount of $37,500. As of the date hereof, the
note is paid in full. |
Each of the notes was convertible into
shares of our common stock by dividing the Conversion Amount (as defined below) by the applicable Conversion Price then in effect
on the date specified in the notice of conversion. The term “Conversion Amount” means, with respect to any conversion
of a note, the sum of (1) the principal amount of the note to be converted in such conversion plus (2) at Asher Enterprises, Inc.’s
option, accrued and unpaid interest, if any, on such principal amount at the interest rates provided in the note to the Conversion
Date; provided, however, that Mind Solutions shall have the right to pay any or all interest in cash plus (3) at our option, Default
Interest, if any, on the amounts referred to in the immediately preceding clauses (1) and/or (2) plus (4) at Asher Enterprises,
Inc.’s option, any amounts owed to Asher Enterprises, Inc. under the note.
The conversion price (the “Conversion
Price”) shall be the Variable Conversion Price (subject to equitable adjustments for stock splits, stock dividends or rights
offerings by Mind Solutions relating to our securities or the securities of any subsidiary of Mind Solutions, combinations, recapitalization,
reclassifications, extraordinary distributions and similar events). The “Variable Conversion Price” shall mean 55%
multiplied by the Market Price (as defined in the note) but in no event shall the Conversion Price be less than $0.00004. “Market
Price” means the lowest Trading Price (as defined below) for our common stock during the ten (10) Trading Day period ending
on the latest complete Trading Day prior to the Conversion Date. “Trading Price” means, for any security as of any
date, the lowest trading price on the Over-the-Counter Bulletin Board, or applicable trading market (the “OTCBB”) as
reported by a reliable reporting service (“Reporting Service”) mutually acceptable to Mind Solutions and Asher Enterprises,
Inc. (i.e., Bloomberg). If the Trading Price cannot be calculated for such security on such date in the manner provided
above, the Trading Price shall be the fair market value as mutually determined by Mind Solutions and the holders of a majority
in interest of the notes being converted for which the calculation of the Trading Price is required in order to determine the Conversion
Price of such notes.
“Trading Day” shall mean
any day on which our common stock is traded for any period on the OTCBB, or on the principal securities exchange or other securities
market on which our common stock is then being traded. If our common stock is chilled for deposit at DTC and/or becomes chilled
at any point while the note remains outstanding, an additional 8% discount will be attributed to the Conversion Price defined in
the note. If Mind Solutions is unable to issue any shares under this provision due to the fact that there is an insufficient number
of authorized and unissued shares available, Asher Enterprises, Inc. promises not to force Mind Solutions to issue these shares
or trigger an Event of Default, provided that Mind Solutions takes immediate steps required to get the appropriate level of approval
from stockholders or the board of directors, where applicable to raise the number of authorized shares to satisfy the Notice of
Conversion.
All shares of our common stock issued
to Asher Enterprises, Inc. were restricted in their transfer, pursuant to the Securities Act. In addition, all shares of our common
stock which were issued to Asher Enterprises, Inc. have been adjusted to take into account the one for 2,000 reverse split of the
shares of our common stock which occurred on October 31, 2013.
The note further provides for anti-dilution
adjustments in favor of Asher Enterprises, Inc., in the event we offer additional shares of our common stock.
Copies of the Securities
Purchase Agreements and convertible notes in favor of Asher Enterprises, Inc. were filed as exhibits with the SEC.
JMJ Financial Financing
On May 15, 2013, we issued
to JMJ Financial our convertible promissory in the amount up to $250,000. As a result of partial conversions of the note, we issued
75,022,674 shares of our common stock to JMJ Financial. On May 15, 2013, we executed a convertible promissory note in favor of
JMJ Financial in the amount up to $250,000 bearing interest on the unpaid balance at the rate of 12 percent. While the note was
in the original principal amount of $250,000, it was only partially funded on May 15, 2013, over six months ago, in the amount
of $30,000.00, plus pro-rated original issue discount and pro-rated interest in the amount of $7,333.33, on August 14, 2013, over
six months ago, in the amount of $20,000.00, on December 9, 2013, less than six months ago, in the amount of $25,000.00, on April
16, 2014, less than six months ago, in the amount of $40,000 and on September 23, 2014, in the amount of $60,000. After allowing
for conversions, approximately $60,067 of the principle on the convertible notes is outstanding on the date of this report.
The Conversion Price of
the note is 60% of the lowest trade price in the 25 trading days previous to the conversion (In the case that conversion shares
are not deliverable by DWAC an additional 10% discount will apply; and if the shares are ineligible for deposit into the DTC system
and only eligible for)(clearing deposit an additional 5% discount shall apply; in the case of both an additional cumulative 15%
discount shall apply). Unless otherwise agreed in writing by both parties, at no time will JMJ Financial convert any amount of
the note into common stock that would result in JMJ Financial owning more than 4.99% of the common stock outstanding of the registrant.
JMJ Financial has the
right, at any time after 180 days from the effective date of the note, at its election, to convert all or part of the outstanding
and unpaid principal sum and accrued interest (and any other fees) into shares of fully paid and non-assessable shares of common
stock of the registrant as per this conversion formula: Number of shares receivable upon conversion equals the dollar conversion
amount divided by the Conversion Price.
As of the date hereof,
$60,067 of the JMJ Financial note remains unpaid.
All shares of our common stock issued
to JMJ Financial were restricted in their transfer, pursuant to the Securities Act. In addition, all shares of our common stock
which were issued to JMJ Financial have been adjusted to take into account the one for 2,000 reverse split of the shares of our
common stock which occurred on October 31, 2013.
The note further provides for anti-dilution
adjustments in favor of JMJ Financial, in the event we offer additional shares of our common stock.
LG Capital Funding, LLC Financing
On February 4, 2014, we executed a Securities
Purchase Agreement with LG Capital Funding, LLC, whereby we issued convertible promissory notes in an aggregate amount of $25,000
to LG Capital Funding, LLC bearing interest on the unpaid balance at the rate of 10 percent, as follows:
| · | On February 4, 2014, the registrant entered into a Convertible Note Agreement with LG Capital
Funding LLC whereby there is a front end and a back end note with the same terms. On February 4, 2014, the registrant issued a
$25,000 front end convertible note with interest of 10% per annum, unsecured, and due February 4, 2015. The note is convertible
into common shares of the registrant at any time from the date of issuance at a conversion rate of 55% of the market price, calculated
as the lowest trading price in the previous 10 days leading up to the date of conversion. On August 7, 2014, the registrant issued
a back end note of $25,000 with the same terms. As of September 30, 2014, LG Capital Funding LLC converted the entire principle
balance of the front end note, $25,000, and $1,312 of accrued interest into 47,864,258 shares of our common stock. As of September
30, 2014, the registrant has an outstanding convertible note balance to LG Capital Funding LLC which pertains to the back end note
dated February 4, 2014.
|
| · | On March 25, 2014, we executed a Securities Purchase Agreement with LG Capital Funding, LLC, whereby we issued a convertible
promissory note in the amount of $40,000 to LG Capital Funding, LLC bearing interest on the unpaid balance at the rate of 10 percent.
On March 25, 2014, we issued a $40,000 convertible note unsecured and due February 25, 2015. The note is convertible into shares
of our common stock at any time from the date of issuance at a conversion rate of 55 percent of the market price, calculated as
the lowest trading price in the previous 10 days leading up to the date of conversion. |
On September 4, 2014, we executed a Securities
Purchase Agreement with LG Capital Funding, LLC whereby LG Capital agreed to purchase two of our 10% convertible notes in the forms
attached to the Securities Purchase Agreement as Exhibits A and B in the aggregate principal amount of $63,000 (with the first
note being in the amount of $31,500 and the second note being in the amount of $31,500 (together with any note(s) issued in replacement
thereof or as a dividend thereon or otherwise with respect thereto in accordance with the terms thereof, the “Note”),
convertible into shares of our common stock, $0.001 par value per share, upon the terms and subject to the limitations and conditions
set forth in such Note. The first of the two notes (the “First Note”) shall be paid for by LG Capital as set forth
the Securities Purchase Agreement. The second note (the “Second Note”) shall initially be paid for by the issuance
of an offsetting $31,500 secured note issued to the registrant by LG Capital (“Buyer Note”), provided that prior to
conversion of the Second Note, LG Capital must have paid off the First Note in cash such that the Second Note may not be converted
until it has been paid for in cash. Subject to the terms of the Note, LG Capital shall have the right, at LG Capital’s option,
to convert the outstanding principal amount and interest under the Note in whole or in part.
As of the date hereof, $52,500 of the
LG Capital LLC notes remains unpaid.
Copies of the Securities Purchase Agreements
and the convertible promissory notes in favor of LG Capital Funding, LLC were filed as exhibits with the SEC.
GEL Properties, LLC Financing
On February 4, 2014, we issued a convertible
promissory note to GEL Properties, LLC bearing interest on the unpaid balance at the rate of 10 percent, in the original principal
amount of $25,000. The note is unsecured, and due February 4, 2015, and is convertible into shares of our common stock at any time
from the date of issuance at a conversion rate of 55 percent of the market price, calculated as the lowest trading price in the
previous 10 days leading up to the date of conversion. As of the date hereof, the note is paid in full.
On August 28, 2014, we issued a convertible
promissory note to GEL Properties, LLC bearing interest on the unpaid balance at the rate of 10 percent, in the original principal
amount of $25,000. The note is unsecured, and due August 28, 2015, and is convertible into shares of our common stock at any time
from the date of issuance at a conversion rate of 55 percent of the market price, calculated as the lowest trading price in the
previous 10 days leading up to the date of conversion. As of the date hereof, the note is paid in full.
Copies of the convertible promissory
notes in favor of GEL Properties, LLC were filed as exhibits with the SEC.
Premier Venture Partners, LLC Financing
On March 11, 2013, Mind Solutions and
Premier Venture Partners, LLC, a California Limited Partnership executed that certain Equity Purchase Agreement with respect to
the resale of up to 200,000,000 shares of our common stock by Premier pursuant to a “put right.” The Equity Purchase
Agreement permitted us to “put” up to $1,000,000 in shares of our common stock to Premier. Moreover, we also agreed
to register the resale by Premier of an additional 12,765,957 shares of our common stock issued as Initial Commitment Shares in
connection with the Equity Purchase Agreement. We were not receive any proceeds from the sale of the shares of our common stock
offered by Premier. However, we were to receive proceeds from the sale of securities pursuant to our exercise of the put right
described in the Equity Purchase Agreement. We agreed to bear all costs associated with the registration.
We filed with the SEC a current report
on Form 8-K with respect to the Premier Equity Purchase Agreement on March 26, 2014.
On June 27, 2014, we filed a registration
statement on Form S-1 in connection with the Premier Equity Purchase Agreement. However, on July 17, 2014, pursuant to Rule 477
of Regulation C promulgated under the Securities Act, we withdrew our registration statement, inasmuch as we received notice from
the Securities and Exchange Commission on July 3, 2014, that the Commission’s preliminary review of the registration statement
indicated that we were not entitled to file the registration statement for our equity line financing, inasmuch as the shares of
our common stock are quoted for sale on the OTCPK operated by OTC Market Group, Inc. No securities were sold in connection with
the registration statement. On September 10, 2014, we filed a Form 8-K/A announcing that we had terminated the Premier Equity Purchase
Agreement.
Caesar Capital Group LLC Financing
On April 15, 2014, the registrant entered
into a securities purchase agreement and convertible promissory note in the amount of $50,000 with Caesar Capital Group LLC with
8% interest per annum, due April 15, 2015. The note holder has the right to convert the note into common shares of the registrant
after 6 months from the date of the executed note at a discount to market of 45% based on the lowest trading price ten days prior
to conversion.
As of the date hereof, $50,000 of the
Caesar Capital Group LLC note remains unpaid.
A copy of the Securities Purchase Agreement
and the convertible promissory note in favor of Caesar Capital Group LLC was filed as an exhibit with the SEC.
AARG Corp. Financing
On April 30, 2014, the registrant entered
into a securities purchase agreement and convertible promissory note in the amount of $50,000 with ARRG Corp. with 8% interest
per annum, due April 30, 2015. The note holder has the right to convert the note into common shares of the registrant after 6 months
from the date of the executed note at a discount to market of 45% based on the lowest trading price ten days prior to conversion.
As of the date hereof, $50,000 of the
ARRG Corp. note remains unpaid.
A copy of the Securities Purchase Agreement
and the convertible promissory note in favor of ARRG Corp. was filed as an exhibit with the SEC.
Cicero Consulting Group, LLC Financing
On May 12, 2014, we executed a Consulting
Agreement with Cicero Consulting Group, LLC and convertible promissory note in the amount of $200,000 whereby Cicero Consulting
Group, LLC will provide management consulting and business advisory services to Mind Solutions over a one year term. We have compensated
Cicero Consulting Group, LLC with a $200,000 convertible promissory note which is considered earned in full as of May 12, 2014.
The convertible note issued pursuant to the Consulting Agreement may be converted into shares of our common stock after six months
from the date of the executed note at a 10 percent discount to market based on the lowest trading price during the 10 trading days
prior to the conversion date.
As of the date hereof, $200,000 of the
Cicero Consulting Group, LLC note remains unpaid.
A copy of the Consulting Agreement and
the convertible promissory note in favor of Cicero Consulting Group, LLC was filed as an exhibit with the SEC.
KBM Worldwide, Inc. Financing
On May 8, 2014, we executed a Securities
Purchase Agreement with KBM Worldwide, Inc., whereby we issued a convertible promissory note dated May 8, 2014, to KBM Worldwide,
Inc. bearing interest on the unpaid balance at the rate of eight percent, in the original principal amount of $42,500.
The note is convertible into
shares of our common stock by dividing the Conversion Amount (as defined below) by the applicable Conversion Price then in
effect on the date specified in the notice of conversion. The term “Conversion Amount” means, with respect to any
conversion of a note, the sum of (1) the principal amount of the note to be converted in such conversion plus (2) at KBM
Worldwide, Inc.’s option, accrued and unpaid interest, if any, on such principal amount at the interest rates provided
in the note to the Conversion Date; provided, however, that Mind Solutions shall have the right to pay any or all interest in
cash plus (3) at our option, Default Interest, if any, on the amounts referred to in the immediately preceding clauses (1)
and/or (2) plus (4) at KBM Worldwide, Inc.’s option, any amounts owed to KBM Worldwide, Inc. under the note.
The conversion price (the “Conversion
Price”) shall be the Variable Conversion Price (subject to equitable adjustments for stock splits, stock dividends or rights
offerings by Mind Solutions relating to our securities or the securities of any subsidiary of Mind Solutions, combinations, recapitalization,
reclassifications, extraordinary distributions and similar events). The “Variable Conversion Price” shall mean 51 percent
multiplied by the Market Price (as defined in the note). “Market Price" means the average of the lowest three Trading
Prices (as defined below) for our common stock during the 30 Trading Day period ending on the latest complete Trading Day prior
to the Conversion Date. “Trading Price” means, for any security as of any date, the lowest trading price on the Over-the-Counter
Bulletin Board, or applicable trading market (the “OTCBB”) as reported by a reliable reporting service (“Reporting
Service”) mutually acceptable to Mind Solutions and KBM Worldwide, Inc. (i.e., Bloomberg). If the Trading Price cannot
be calculated for such security on such date in the manner provided above, the Trading Price shall be the fair market value as
mutually determined by Mind Solutions and the holders of a majority in interest of the note being converted for which the calculation
of the Trading Price is required in order to determine the Conversion Price of such note.
“Trading Day” shall mean
any day on which shares of our common stock are tradable for any period on the OTC, or on the principal securities exchange or
other securities market on which shares of our common stock are then being traded.
All shares of our common stock to be
issued to KBM Worldwide, Inc. are to be issued free of any restrictions pursuant to Rule 144 under the Securities Act.
The note further provides for anti-dilution
adjustments in favor of KBM Worldwide, Inc., in the event we offer additional shares of our common stock.
Copies of the Securities Purchase Agreement
and convertible note in favor of KBM Worldwide, Inc. were filed as exhibits with the SEC.
Additional KBM Worldwide, Inc. Financing
On July 22, 2014, we executed a Securities
Purchase Agreement with KBM Worldwide, Inc., whereby we issued a convertible promissory note dated July 22, 2014, to KBM Worldwide,
Inc. bearing interest on the unpaid balance at the rate of eight percent, in the original principal amount of $27,500.
The note is convertible into shares of
our common stock by dividing the Conversion Amount (as defined below) by the applicable Conversion Price then in effect on the
date specified in the notice of conversion. The term “Conversion Amount” means, with respect to any conversion of a
note, the sum of (1) the principal amount of the note to be converted in such conversion plus (2) at KBM Worldwide, Inc.’s
option, accrued and unpaid interest, if any, on such principal amount at the interest rates provided in the note to the Conversion
Date; provided, however, that Mind Solutions shall have the right to pay any or all interest in cash plus (3) at our option, Default
Interest, if any, on the amounts referred to in the immediately preceding clauses (1) and/or (2) plus (4) at KBM Worldwide, Inc.’s
option, any amounts owed to KBM Worldwide, Inc. under the note.
The conversion price (the “Conversion
Price”) shall be the Variable Conversion Price (subject to equitable adjustments for stock splits, stock dividends or rights
offerings by Mind Solutions relating to our securities or the securities of any subsidiary of Mind Solutions, combinations, recapitalization,
reclassifications, extraordinary distributions and similar events). The “Variable Conversion Price” shall mean 51
percent multiplied by the Market Price (as defined in the note). “Market Price" means the average of the lowest three
Trading Prices (as defined below) for our common stock during the 30 Trading Day period ending on the latest complete Trading
Day prior to the Conversion Date. “Trading Price” means, for any security as of any date, the closing bid price on
the Over-the-Counter Bulletin Board, Pink Sheets electronic quotation system or applicable trading market (the “OTC”)
as reported by a reliable reporting service (“Reporting Service”) designated by the Holder (i.e. Bloomberg)
or, if the OTC is not the principal trading market for such security, the closing bid price of such security on the principal
securities exchange or trading market where such security is listed or traded or, if no closing bid price of such security is
available in any of the foregoing manners, the average of the closing bid prices of any market makers for such security that are
listed in the “pink sheets.” If the Trading Price cannot be calculated for such security on such date in the manner
provided above, the Trading Price shall be the fair market value as mutually determined by Mind Solutions and the holders of a
majority in interest of the note being converted for which the calculation of the Trading Price is required in order to determine
the Conversion Price of such note.
“Trading Day” shall mean
any day on which shares of our common stock are tradable for any period on the OTC, or on the principal securities exchange or
other securities market on which shares of our common stock are then being traded.
All shares of our common stock to be
issued to KBM Worldwide, Inc. are to be issued free of any restrictions pursuant to Rule 144 under the Securities Act.
The note further provides for anti-dilution
adjustments in favor of KBM Worldwide, Inc., in the event we offer additional shares of our common stock.
As of the date of this report, $70,000
of the notes to KBM Worldwide, Inc. remain unpaid. There have been no conversions of the note.
Copies of the Securities Purchase Agreement
and convertible note in favor of KBM Worldwide, Inc. were filed as exhibits with the SEC.
WHC Capital, LLC Financing
On May 30, 2014, we executed a Securities
Purchase Agreement and convertible promissory note in the amount of $60,000 with WHC Capital, LLC with 12 percent interest per
annum, due May 30, 2015. The note holder has the right to convert the note into shares of our common stock after six months from
the date of the executed note at a discount to market of 50 percent based on the lowest trading price 10 days prior to conversion.
All shares of our common stock to be
issued to WHC Capital, LLC upon conversion of the note will be free of any restrictions pursuant to Rule 144 under the Securities
Act.
As of the date of this report, $60,000
of the WHC Capital, LLC note remains unpaid.
Copies of the Securities Purchase Agreement
and convertible note in favor of WHC Capital, LLC are filed as exhibits to this report.
Iconic Holdings, LLC Financing
On February 18, 2014, we executed a Note
Purchase Agreement with Iconic Holdings, LLC, whereby we issued a convertible promissory note dated February 18, 2014, to Iconic
Holdings, LLC bearing interest on the unpaid balance at the rate of 10 percent, in the original principal amount of $220,000.
The initial Purchase Price was $27,500
of consideration upon execution of the Note Purchase Agreement and all supporting documentation. On September 25, 2014, the registrant
received another $27,500 pursuant to the Note Purchase Agreement. The sum of $50,000 was delivered to Mind Solutions in the nine
months ended September 30, 2014, and $5,000 was retained by Iconic Holdings through an original issue discount for due diligence
and legal bills related to this note.
Iconic reserves the right to pay additional
consideration on the note at any time and in any amount it desires, at its sole discretion. Mind Solutions is not responsible to
repay any unfunded portion of the note. The note may not be prepaid in whole or in part except as otherwise provided therein.
Conversion Right. Subject to the
terms of the note, Iconic shall have the right, at Iconic’s option, at any time to convert the outstanding principal amount
and interest under the note in whole or in part.
Stock Certificates or DWAC.
Mind Solutions will deliver to Iconic, or Iconic’s authorized designee, no later than two Trading Days after the
Conversion Date, a certificate or certificates (which certificate(s) shall be free of restrictive legends and trading
restrictions) representing the number of shares of common stock being acquired upon the conversion of the note. In lieu of
delivering physical certificates representing the shares of common stock issuable upon conversion of the note, provided Mind
Solutions’ transfer agent is participating in the DTC Fast Automated Securities Transfer (“FAST”) program,
upon request of Iconic, Mind Solutions shall use commercially reasonable efforts to cause its transfer agent to
electronically transmit such shares issuable upon conversion to Iconic (or its designee), by crediting the account of
Iconic’s (or such designee’s) prime broker with DTC through its Deposits and Withdrawal at Custodian (DWAC)
program (provided that the same time periods herein as for stock certificates shall apply).
Reservation and Issuance of Underlying
Securities. Mind Solutions covenants that it will at all times reserve and keep available out of its authorized and unissued
common stock solely for the purpose of issuance upon conversion of the note (including repayments in stock), free from preemptive
rights or any other actual contingent purchase rights of persons other than Iconic, not less than three times (3x) the number of
shares of common stock as shall be issuable (taking into account the adjustments under the note but without regard to any ownership
limitations contained therein) upon the conversion of the note into common stock. These shares shall be reserved in proportion
with the Consideration actually received by Mind Solutions and the total reserve will be increased with future payments of consideration
by Iconic. Mind Solutions covenants that all shares of common stock that shall be issuable will, upon issue, be duly authorized,
validly issued, fully-paid, non-assessable and freely-tradable. Mind Solutions agrees that this is a material term of the note.
Conversion Limitation. Iconic
will not submit a conversion to Mind Solutions that would result in Iconic owning more than 9.99% of the total outstanding shares
of Mind Solutions.
As of the date of this report, $27,500
of the note remains unpaid. There have been $27,500 in total conversions of the notes.
Copies of the Note Purchase Agreement
and convertible note in favor of Iconic were filed as exhibits with the SEC.
JSJ Investments, Inc. Financing
On September 22, 2014, the registrant
entered into a Convertible Note Agreement with JSJ Investments Inc. The registrant issued a $100,000 convertible note with interest
of 12% per annum, unsecured, and due March 22, 2015. The note is convertible into common shares of the registrant at any time from
the date of issuance at a conversion rate of 48% discount to the market price, calculated as the average of the three lowest trading
prices in the previous 20 trading days leading up to the date of conversion. As of September 30, 2014, JSJ Investments Inc. has
not converted any principle on this note.
All shares of our common stock to be
issued to JSJ Investments Inc. upon conversion of the note will be free of any restrictions pursuant to Rule 144 under the Securities
Act.
As of the date of this report, $100,000
of the JSJ Investments Inc. note remains unpaid.
Copies of the Securities Purchase Agreement
and convertible note in favor of JSJ Investments Inc. were filed as exhibits with the SEC.
Seasonality
We do not anticipate that our business
will be affected by seasonal factors. The only expected impact would be increased retail sales of our software applications during
the Christmas season.
Impact of Inflation
General inflation in the economy has
driven the operating expenses of many businesses higher. We will continuously seek methods of reducing costs and streamlining operations
while maximizing efficiency through improved internal operating procedures and controls. While we are subject to inflation as described
above, our management believes that inflation currently does not have a material effect on our operating results. However, inflation
may become a factor in the future.
Critical Accounting Policies
Our financial statements and accompanying
notes are prepared in accordance with generally accepted accounting principles in the United States. Preparing financial statements
requires management to make estimates and assumptions that impact the reported amounts of assets, liabilities, revenue, and expenses.
These estimates and assumptions are affected by management’s application of accounting policies. Critical accounting policies
include revenue recognition and impairment of long-lived assets.
We recognize revenue in accordance with
Staff Accounting Bulletin No. 101, “Revenue Recognition in Financial Statements.” Sales are recorded when products
are shipped to customers. Provisions for discounts and rebates to customers, estimated returns and allowances and other adjustments
are provided for in the same period the related sales are recorded.
We evaluate our long-lived assets for
financial impairment on a regular basis in accordance with Statement of Financial Accounting Standards No. 144, “Accounting
for the Impairment or Disposal of Long-Lived Assets” which evaluates the recoverability of long-lived assets not held for
sale by measuring the carrying amount of the assets against the estimated discounted future cash flows associated with them. At
the time such evaluations indicate that the future discounted cash flows of certain long-lived assets are not sufficient to recover
the carrying value of such assets, the assets are adjusted to their fair values.
Quantitative and Qualitative Disclosures
About Market Risk
We conduct all of our transactions, including
those with foreign suppliers and customers, in U.S. dollars. We are therefore not directly subject to the risks of foreign currency
fluctuations and do not hedge or otherwise deal in currency instruments in an attempt to minimize such risks. Demand from foreign
customers and the ability or willingness of foreign suppliers to perform their obligations to us may be affected by the relative
change in value of such customer or supplier’s domestic currency to the value of the U.S. dollar. Furthermore, changes in
the relative value of the U.S. dollar may change the price of our products relative to the prices of our foreign competitors.
Stock-Based Compensation
We recognize compensation cost for stock-based
awards based on the estimated fair value of the award on date of grant. We measure compensation cost at the grant date based on
the fair value of the award and recognize compensation cost upon the probable attainment of a specified performance condition or
over a service period.
Recently Issued Accounting Pronouncements
The registrant has adopted all accounting
pronouncements issued since December 31, 2007, none of which had a material impact on the registrant’s financial statements.
Off-Balance Sheet Arrangements
We do not have any off-balance sheet
arrangements.
Item 3. Quantitative and Qualitative Disclosures about
Market Risk.
There has been no material change in
our market risks since the end of the fiscal year 2013.
Item 4. Controls and Procedures.
See Item 4(T) below.
Item 4(T). Controls and Procedures.
The term disclosure controls and
procedures means controls and other procedures of an issuer that are designed to ensure that information required to be
disclosed by the issuer in the reports that it files or submits under the Exchange Act (15 U.S.C. 78a, et seq. ) is
recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms.
Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information
required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and
communicated to the issuer’s management, including its principal executive and principal financial officers, or persons
performing similar functions, as appropriate to allow timely decisions regarding required disclosure.
The term internal control over financial
reporting is defined as a process designed by, or under the supervision of, the issuer’s principal executive and principal
financial officers, or persons performing similar functions, and effected by the issuer’s board of directors, management
and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with generally accepted accounting principles and includes those policies and procedures
that:
| · | Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the
transactions and dispositions of the assets of the issuer; |
| · | Provide reasonable assurance that transactions are recorded as necessary to permit preparation
of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the
issuer are being made only in accordance with authorizations of management and directors of the issuer; and |
| · | Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition,
use or disposition of the issuer’s assets that could have a material effect on the financial statements. |
Our management, including our chief
executive officer and chief financial officer, does not expect that our disclosure controls and procedures or our internal controls
over financial reporting will prevent all error and all fraud. A control system, no matter how well conceived and operated, can
provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control
system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to
their costs. Because of inherent limitations in all control systems, internal control over financial reporting may not prevent
or detect misstatements, and no evaluation of controls can provide absolute assurance that all control issues and instances of
fraud, if any, within the registrant have been detected. Also, projections of any evaluation of effectiveness to future periods
are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance
with the policies or procedures may deteriorate.
Evaluation of Disclosure and Controls
and Procedures. Our management is responsible for establishing and maintaining adequate internal control over financial reporting
as defined in Rule 13a-15(f) under the Exchange Act. Our internal control over financial reporting is a process designed to provide
reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external
purposes in accordance with accounting principles generally accepted in the United States. We carried out an evaluation, under
the supervision and with the participation of our management, including our chief executive officer and chief financial officer,
of the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered
by this report. The evaluation was undertaken in consultation with our accounting personnel. Based on that evaluation, our chief
executive officer and chief financial officer concluded that our disclosure controls and procedures were not effective at September
30, 2013, due to the lack of accounting personnel. We intend to hire additional employees when we obtain sufficient capital.
Changes in Internal Controls over
Financial Reporting. There were no changes in the internal controls over our financial reporting that occurred during the period
covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over
financial reporting.
PART II – OTHER INFORMATION
Item 1. Legal Proceedings.
Mind Solutions is not engaged in any
litigation at the present time, and management is unaware of any claims or complaints that could result in future litigation. Management
will seek to minimize disputes with its customers but recognizes the inevitability of legal action in today’s business environment
as an unfortunate price of conducting business.
Item 1A. Risk Factors.
Not applicable.
Item 2. Unregistered Sales of Equity Securities and
Use of Proceeds.
None that have not already been reported.
Item 3. Defaults Upon Senior Securities.
Not applicable.
Item 4. Mine Safety Disclosures.
Not applicable.
Item 5. Other Information.
None.
Item 6. Exhibits.
Exhibit No. |
Identification of Exhibit |
2.1** |
Plan and Agreement of Merger Between VOIS, Inc. (a Florida Corporation) and Mind Solutions, Inc. (a Nevada corporation) dated October 15, 2013, filed as an exhibit to the registrant’s Definitive Schedule 14C on October 23, 2013, Commission File Number 000-33053. |
2.2** |
Agreement and Plan of Merger dated October 19, 2012, by and among VOIS, Inc., Mind Solutions, Inc., a Nevada corporation, Mind Solutions, Inc., an Ontario corporation and Mind Solutions Acquisition Corp., a Nevada corporation filed as Exhibit 2.1 to the registrant’s Form 8-K on October 23, 2012, Commission File Number 000-33053. |
3.1** |
Delaware Certificate of Incorporation of Medical Records by Net, Inc., dated May 19, 2000, filed as Exhibit 2(a) to the registrant’s Registration Statement on Form SB-1 on March 22, 2001, Commission File Number 333-57468 |
|
Delaware Certificate of Amendment to the Certificate of Incorporation of Medical Records by Net, Inc. changing the its corporate name to Lifelink Online, Inc., dated October 17, 2000, filed as Exhibit 2(a) to the registrant’s Registration Statement on Form SB-1 on March 22, 2001, Commission File Number 333-57468. |
|
Delaware Certificate of Amendment to the Certificate of Incorporation of Lifelink Online, Inc. changing the its corporate name to MedStrong Corporation, dated January 17, 2001, filed as Exhibit 2(a) to the registrant’s Registration Statement on Form SB-1 on March 22, 2001, Commission File Number 333-57468. |
|
Delaware Certificate of Amendment to the Certificate of Incorporation of MedStrong Corporation changing the its corporate name to MedStrong International Corporation, dated March 9, 2001, filed as Exhibit 2(a) to the registrant’s Registration Statement on Form SB-1 on March 22, 2001, Commission File Number 333-57468. |
3.2** |
Certificate of Amendment to the Certificate of Incorporation of MedStrong International Corporation dated August 2006, filed as Exhibit 3.1(a) to the registrant’s Report on Form 10-QSB on August 21, 2006, Commission File Number 333-57468. |
|
Form of Restated Certificate of Incorporation of MedStrong International Corporation dated May 19, 2000, filed as Exhibit 3.1(b) to the registrant’s Report on Form 10-QSB on August 21, 2006, Commission File Number 333-57468. |
3.3** |
Certificate of Amendment to the Certificate of Incorporation of MedStrong International Corporation dated October 24, 2006, filed as Exhibit 3.1(c) to the registrant’s Report on Form 10-KSB on March 30, 2007, Commission File Number 333-57468. |
Exhibit No. |
Identification of Exhibit |
3.4** |
Certificate of Amendment to the Certificate of Incorporation of MedStrong International Corporation changing its name to VOIS, Inc. dated March 26, 2007, filed as Exhibit 3.1(e) to the registrant’s Report on Form 10-QSB on May 15, 2007, Commission File Number 333-57468. |
3.5** |
Bylaws of Lifelink Online, Inc. filed as Exhibit 2(b) to the registrant’s Registration Statement on Form SB-1 on March 23, 2001, Commission File Number 333-57468. |
3.6** |
Certificate of Domestication and Articles of Incorporation of VOIS, Inc. filed with the Secretary of State of Florida on March 18, 2009, filed as Exhibit 3.10 to the registrant’s Report on Form 8-K on March 24, 2009, Commission File Number 000-33035. |
3.7** |
Articles of Amendment to the Articles of Incorporation of VOIS, Inc. as filed with the Secretary of State of Florida on November 4, 2010, filed as Exhibit 3.13 to the registrant’s Current Report on Form 8-K on November 22, 2010, Commission File Number 000-33053. |
3.8** |
Articles of Amendment to the Articles of Incorporation of VOIS, Inc. filed with the Florida Secretary of State on December 2, 2011, filed as Exhibit 3.8 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
3.9** |
Articles of Merger between Mind Solutions, Inc. and Mind Solutions Acquisition Corp. filed with the State of Nevada on October 23, 2012, filed as Exhibit 3.9 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
3.10** |
Articles of Amendment to the Articles of Incorporation of VOIS, Inc. filed with the Florida Secretary of State on May 17, 2013, filed as Exhibit 3.10 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
3.11** |
Articles of Amendment to the Articles of Incorporation of VOIS, Inc. filed with the Florida Secretary of State on August 28, 2013, filed as Exhibit 3.1 to the registrant’s Current Report on Form 8-K on August 30, 2013, Commission File Number 000-33053. |
3.12** |
Amended and Restated Articles of Incorporation of Mind Solutions, Inc. on October 28, 2013, filed as an exhibit to the registrant’s Definitive Schedule 14C on October 23, 2013, Commission File Number 000-33053. |
3.13** |
Amended and Restated Bylaws of Mind Solutions, Inc. on October 28, 2013, filed as an exhibit to the registrant’s Definitive Schedule 14C on October 23, 2013, Commission File Number 000-33053. |
3.14** |
Articles of Merger between Mind Solutions, Inc. and VOIS, Inc. filed with the State of Florida on October 28, 2013, filed as Exhibit 3.14 to the registrant’s Annual Report on Form 10-K on April 14, 2014, Commission File Number 000-33053. |
3.15** |
Articles of Merger between Mind Solutions, Inc. and VOIS, Inc. filed with the State of Nevada on October 28, 2013, filed as Exhibit 3.15 to the registrant’s Annual Report on Form 10-K on April 14, 2014, Commission File Number 000-33053. |
3.16** |
Amendment to the Articles of Incorporation of VOIS, Inc. filed with the State of Florida on August 28, 2013, filed as Exhibit 3.16 to the registrant’s Annual Report on Form 10-K on April 14, 2014, Commission File Number 000-33053. |
3.17** |
Articles of Incorporation of Red Meteor, Inc. filed with the Secretary of State of Nevada on May 24, 2002, filed as Exhibit 3.17 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
3.18** |
Certificate of Amendment to the Articles of Incorporation of Red Meteor, Inc. changing its name to Prize Entertainment, Inc. filed with the Secretary of State of Nevada on November 13, 2003, filed as Exhibit 3.18 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
3.19** |
Certificate of Amendment to the Articles of Incorporation of Prize Entertainment, Inc. changing its name to Mind Solutions, Inc. filed with the Secretary of State of Nevada on November 20, 2009, filed as Exhibit 3.19 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
3.20** |
Bylaws of Red Meteor, Inc. filed as Exhibit 3.20 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
4.1** |
Certificate of Designation for Series A Preferred Stock filed with the Secretary of State of Nevada on September 10, 2014, filed as Exhibit 4.1 to the registrant’s Form 8-K/A on September 10, 2014, Commission File Number 000-33053. |
Exhibit No. |
Identification of Exhibit |
10.1** |
Asset Purchase Agreement dated April 30, 2013, by and between Mind Technologies, Inc., a Nevada corporation, and VOIS, Inc. filed as Exhibit 10.1 to the registrant’s Current Report on Form 8-K on May 7, 2013, Commission File Number 000-33053. |
|
10.2** |
Equity Purchase Agreement, dated March 11, 2014, between Mind Solutions, Inc. and Premier Venture Partners, LLC filed as Exhibit 10.1 to the registrant’s Current Report on Form 8-K on March 26, 2014, Commission File Number 000-33053. |
|
10.3** |
Securities Purchase Agreement, dated March 11, 2014, between Mind Solutions, Inc. and Premier Venture Partners, LLC filed as Exhibit 10.2 to the registrant’s Current Report on Form 8-K on March 26, 2014, Commission File Number 000-33053. |
|
10.4** |
Convertible Promissory Note in the original principal amount of $10,000 executed by Mind Solutions, Inc. in favor of Premier Venture Partners, LLC filed as Exhibit 10.3 to the registrant’s Current Report on Form 8-K on March 26, 2014, Commission File Number 000-33053. |
|
10.5** |
Registration Rights Agreement, dated March 11, 2014, between Mind Solutions, Inc. and Premier Venture Partners, LLC filed as Exhibit 10.4 to the registrant’s Current Report on Form 8-K on March 26, 2014, Commission File Number 000-33053. |
|
10.6** |
Charter of the Audit Committee of Mind Solutions, Inc. filed as Exhibit 10.6 to the registrant’s Annual Report on Form 10-K on April 14, 2014, Commission File Number 000-33053. |
10.7** |
Code of Business Conduct of Mind Solutions, Inc. filed as Exhibit 10.7 to the registrant’s Annual Report on Form 10-K on April 14, 2014, Commission File Number 000-33053. |
10.8** |
Amended Code of Ethics for Senior Executive Officers and Senior Financial Officers of Mind Solutions, Inc. filed as Exhibit 10.8 to the registrant’s Annual Report on Form 10-K on April 14, 2014, Commission File Number 000-33053. |
10.9** |
Charter of the Compensation Committee of Mind Solutions, Inc. filed as Exhibit 10.9 to the registrant’s Annual Report on Form 10-K on April 14, 2014, Commission File Number 000-33053. |
10.10** |
Corporate Governance Principles of the Board of Directors of Mind Solutions, Inc. filed as Exhibit 10.10 to the registrant’s Annual Report on Form 10-K on April 14, 2014, Commission File Number 000-33053. |
10.11** |
Charter of the Executive Committee of the Board of Directors of Mind Solutions, Inc. filed as Exhibit 10.11 to the registrant’s Annual Report on Form 10-K on April 14, 2014, Commission File Number 000-33053. |
10.12** |
Charter of the Finance Committee of Mind Solutions, Inc. filed as Exhibit 10.12 to the registrant’s Annual Report on Form 10-K on April 14, 2014, Commission File Number 000-33053. |
10.13** |
Charter of the Governance and Nominating Committee of Mind Solutions, Inc. filed as Exhibit 10.13 to the registrant’s Annual Report on Form 10-K on April 14, 2014, Commission File Number 000-33053. |
10.14** |
Royalty, Ownership and Inventor’s Agreement, dated February 12, 2011, by and between Dr. Gordon Chiu, Brent Fouch, and Mind Technologies, Inc. filed as Exhibit 10.14 to the registrant’s Annual Report on Form 10-K on April 14, 2014, Commission File Number 000-33053. |
|
10.15** |
Consulting Agreement dated December 25, 2013, by and between Kerry Driscoll and the registrant filed as Exhibit 10.15 to the registrant’s Annual Report on Form 10-K on April 14, 2014, Commission File Number 000-33053. |
|
10.16** |
Officer Agreement dated August 20, 2013, by and between Jeff Dashefsky and VOIS, Inc. filed as Exhibit 10.16 to the registrant’s Annual Report on Form 10-K on April 14, 2014, Commission File Number 000-33053. |
|
10.17** |
Settlement Agreement and Stipulation dated November 21, 2013, by and between IBC Funds, LLC and the registrant filed as Exhibit 10.17 to the registrant’s Annual Report on Form 10-K on April 14, 2014, Commission File Number 000-33053. |
|
10.18** |
Order Granting Approval of Settlement Agreement and Stipulation between IBC Funds, LLC and the registrant dated November 22, 2013, filed as Exhibit 10.18 to the registrant’s Annual Report on Form 10-K on April 14, 2014, Commission File Number 000-33053. |
|
Exhibit No. |
Identification of Exhibit |
10.19** |
Securities Purchase Agreement dated February 5, 2013, between Hanover Holdings I, LLC and the registrant with respect to the issuance of a Convertible Promissory Note in the amount of $16,500 filed as Exhibit 10.19 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.20** |
Convertible Promissory Note dated February 5, 2013, issued by the registrant in favor of Hanover Holdings I, LLC, in the amount of $16,500 filed as Exhibit 10.20 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.21** |
Securities Purchase Agreement dated March 7, 2013, between Hanover Holdings I, LLC and the registrant with respect to the issuance of a Convertible Promissory Note in the amount of $16,500 filed as Exhibit 10.21 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.22** |
Convertible Promissory Note dated March 7, 2013, issued by the registrant in favor of Hanover Holdings I, LLC, in the amount of $16,500 filed as Exhibit 10.22 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.23** |
Securities Purchase Agreement dated June 5, 2013, between Hanover Holdings I, LLC and the registrant with respect to the issuance of a Convertible Promissory Note in the amount of $41,500 filed as Exhibit 10.23 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.24** |
Convertible Promissory Note dated June 5, 2013, issued by the registrant in favor of Hanover Holdings I, LLC, in the amount of $41,500 filed as Exhibit 10.24 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.25** |
Securities Purchase Agreement dated August 7, 2013, between Hanover Holdings I, LLC and the registrant with respect to the issuance of a Convertible Promissory Note in the amount of $26,500 filed as Exhibit 10.25 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.26** |
Convertible Promissory Note dated August 7, 2013, issued by the registrant in favor of Hanover Holdings I, LLC, in the amount of $26,500 filed as Exhibit 10.26 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.27** |
Securities Purchase Agreement dated November 23, 2013, between Hanover Holdings I, LLC and the registrant with respect to the issuance of a Convertible Promissory Note in the amount of $26,500 filed as Exhibit 10.27 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.28** |
Convertible Promissory Note dated November 23, 2013, issued by the registrant in favor of Hanover Holdings I, LLC, in the amount of $26,500 filed as Exhibit 10.28 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.29** |
Securities Purchase Agreement dated December 26, 2012, between Asher Enterprises, Inc. and the registrant with respect to the issuance of a Convertible Promissory Note in the amount of $32,500 filed as Exhibit 10.29 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.30** |
Convertible Promissory Note dated December 26, 2012, issued by the registrant in favor of Asher Enterprises, Inc., in the amount of $32,500 filed as Exhibit 10.30 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.31** |
Securities Purchase Agreement dated March 1, 2013, between Asher Enterprises, Inc. and the registrant with respect to the issuance of a Convertible Promissory Note in the amount of $32,500 filed as Exhibit 10.31 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.32** |
Convertible Promissory Note dated March 1, 2013, issued by the registrant in favor of Asher Enterprises, Inc., in the amount of $32,500 filed as Exhibit 10.32 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.33** |
Securities Purchase Agreement dated April 18, 2013, between Asher Enterprises, Inc. and the registrant with respect to the issuance of a Convertible Promissory Note in the amount of $32,500 filed as Exhibit 10.33 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.34** |
Convertible Promissory Note dated April 18, 2013, issued by the registrant in favor of Asher Enterprises, Inc., in the amount of $32,500 filed as Exhibit 10.34 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
Exhibit No. |
Identification of Exhibit |
10.35** |
Securities Purchase Agreement dated November 7, 2013, between Asher Enterprises, Inc. and the registrant with respect to the issuance of a Convertible Promissory Note in the amount of $42,500 filed as Exhibit 10.35 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.36** |
Convertible Promissory Note dated November 7, 2013, issued by the registrant in favor of Asher Enterprises, Inc., in the amount of $42,500 filed as Exhibit 10.36 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.37** |
Securities Purchase Agreement dated February 6, 2014, between Asher Enterprises, Inc. and the registrant with respect to the issuance of a Convertible Promissory Note in the amount of $37,500 filed as Exhibit 10.37 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.38** |
Convertible Promissory Note dated February 6, 2014, issued by the registrant in favor of Asher Enterprises, Inc., in the amount of $37,500 filed as Exhibit 10.38 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.39** |
Convertible Promissory Note dated December 31, 2010, issued by Mind Solutions, Inc. in favor of Brent Fouch, in the amount of $157,324.06 filed as Exhibit 10.39 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.40** |
Assignment Agreement dated June 5, 2013, by and between Brent Fouch, as assignor, Magna Group, LLC, as assignee, and VOIS, Inc. assigning $106,324 of the Convertible Promissory Note dated December 31, 2010, issued by Mind Solutions, Inc. in favor of Brent Fouch, in the amount of $157,324.06 filed as Exhibit 10.40 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.41** |
Debt Conversion Agreement dated April 4, 2013, by and between Brent Fouch and VOIS, Inc. converting $51,000 of the Convertible Promissory Note dated December 31, 2010, issued by Mind Solutions, Inc. in favor of Brent Fouch, in the amount of $157,324.06 into 21,250,000 shares of the registrant filed as Exhibit 10.41 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.42** |
Convertible Promissory Note dated December 31, 2011, issued by Mind Solutions, Inc. in favor of Brent Fouch, in the amount of $33,674.05 filed as Exhibit 10.42 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.43** |
Convertible Promissory Note dated June 30, 2012, issued by Mind Solutions, Inc. in favor of Brent Fouch, in the amount of $50,435 filed as Exhibit 10.43 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.44** |
Assignment Agreement dated February 5, 2013, by and between Brent Fouch, as assignor, Magna Group, LLC, as assignee, and VOIS, Inc. assigning $40,000 of the Convertible Promissory Note dated June 30, 2012, issued by Mind Solutions, Inc. in favor of Brent Fouch, in the amount of $50,435 filed as Exhibit 10.44 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.45** |
Convertible Promissory Note dated January 3, 2014, issued by Mind Solutions, Inc. in favor of Brent Fouch, in the amount of $61,096. |
10.46** |
Assignment Agreement dated June 5, 2014, by and between Brent Fouch, as assignor, Magna Group, LLC, as assignee, and VOIS, Inc. assigning the Convertible Promissory Note dated January 3, 2014, issued by Mind Solutions, Inc. in favor of Brent Fouch, in the amount of $61,096. |
10.47** |
Convertible Promissory Note dated April 3, 2013, issued by Mind Solutions, Inc. in favor of Brent Fouch, in the amount of $48,872 filed as Exhibit 10.47 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.48** |
Assignment Agreement dated November 11, 2013, by and between Brent Fouch, as assignor, Magna Group, LLC, as assignee, and VOIS, Inc. assigning the Convertible Promissory Note dated April 3, 2013, issued by Mind Solutions, Inc. in favor of Brent Fouch, in the amount of $48,872 filed as Exhibit 10.48 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.49** |
Convertible Promissory Note dated May 15, 2013, issued by the registrant in favor of JMJ Financial, in the amount of $250,000 filed as Exhibit 10.49 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
Exhibit No. |
Identification of Exhibit |
10.50** |
Consulting Agreement dated January 2, 2014, by and between Brent Fouch and the registrant filed as Exhibit 10.50 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.51** |
Consulting Agreement dated February 12, 2014, by and between Monster Arts, Inc. and the registrant filed as Exhibit 10.51 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.52** |
Consulting Agreement dated March 18, 2014, by and between Bret Cusick and the registrant filed as Exhibit 10.52 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.53** |
Consulting Agreement dated March 19, 2014, by and between Noah Fouch and the registrant filed as Exhibit 10.53 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.54** |
Consulting Agreement dated May 11, 2014, by and between IN2NE Corp. and the registrant filed as Exhibit 10.54 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.55** |
Securities Purchase Agreement dated May 8, 2014, between KBM Worldwide, Inc. and the registrant with respect to the issuance of a Convertible Promissory Note in the amount of $42,500 filed as Exhibit 10.54 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.56** |
Convertible Promissory Note dated May 8, 2014, issued by the registrant in favor of KBM Worldwide, Inc., in the amount of $42,500 filed as Exhibit 10.56 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.57** |
License Agreement as of December 18, 2012, by and among VOIS, Inc., a Florida corporation (“Licensee”), and Mind Technologies, Inc., a Nevada corporation (“Licensor”) filed as Exhibit 10.1 to the registrant’s Form 8-K on December 20, 2012, Commission File Number 000-33053. |
10.58** |
Consulting Agreement dated May 2, 2014, by and between Brent Fouch and the registrant filed as Exhibit 10.58 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.59** |
Securities Purchase Agreement dated May 8, 2014, between Asher Enterprises, Inc. and the registrant with respect to the issuance of a Convertible Promissory Note in the amount of $42,500 filed as Exhibit 10.59 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.60** |
Convertible Promissory Note dated May 8, 2014, issued by the registrant in favor of Asher Enterprises, Inc., in the amount of $42,500 filed as Exhibit 10.60 to the registrant’s Annual Report on Form 10-K/A on May 14, 2014, Commission File Number 000-33053. |
10.61** |
Convertible Promissory Note dated February 4, 2014, issued by the registrant in favor of GEL Properties, LLC in the amount of $25,000 filed as Exhibit 10.61 to the registrant’s Quarterly Report on Form 10-Q on May 15, 2014, Commission File Number 000-33053. |
10.62** |
Securities Purchase Agreement dated February 4, 2014, between LG Capital Funding, LLC and the registrant with respect to the issuance of two Convertible Promissory Notes in the aggregate amount of $50,000 filed as Exhibit 10.62 to the registrant’s Quarterly Report on Form 10-Q on May 15, 2014, Commission File Number 000-33053. |
10.63** |
Convertible Promissory Note dated February 4, 2014, issued by the registrant in favor of LG Capital Funding, LLC in the amount of $25,000 filed as Exhibit 10.63 to the registrant’s Quarterly Report on Form 10-Q on May 15, 2014, Commission File Number 000-33053. |
10.64** |
Convertible Promissory Note dated February 4, 2014, issued by the registrant in favor of LG Capital Funding, LLC in the amount of $25,000 filed as Exhibit 10.64 to the registrant’s Quarterly Report on Form 10-Q on May 15, 2014, Commission File Number 000-33053. |
10.65** |
Securities Purchase Agreement dated March 25, 2014, between LG Capital Funding, LLC and the registrant with respect to the issuance of a Convertible Promissory Note in the amount of $40,000 filed as Exhibit 10.65 to the registrant’s Quarterly Report on Form 10-Q on May 15, 2014, Commission File Number 000-33053. |
10.66** |
Convertible Promissory Note dated March 25, 2014, issued by the registrant in favor of LG Capital Funding, LLC in the amount of $40,000 filed as Exhibit 10.66 to the registrant’s Quarterly Report on Form 10-Q on May 15, 2014, Commission File Number 000-33053. |
Exhibit No. |
Identification of Exhibit |
10.67** |
Securities Purchase Agreement dated April 15, 2014, between Caesar Capital Group, LLC and the registrant with respect to the issuance of a Convertible Promissory Note in the amount of $50,000 filed as Exhibit 10.67 to the registrant’s Quarterly Report on Form 10-Q on May 15, 2014, Commission File Number 000-33053. |
10.68** |
Convertible Promissory Note dated April 15, 2014, issued by the registrant in favor of Caesar Capital Group, LLC in the amount of $50,000 filed as Exhibit 10.68 to the registrant’s Quarterly Report on Form 10-Q on May 15, 2014, Commission File Number 000-33053. |
10.69** |
Consulting Agreement dated May 12, 2014, by and between Cicero Consulting Group, LLC and the registrant filed as Exhibit 10.69 to the registrant’s Quarterly Report on Form 10-Q on May 15, 2014, Commission File Number 000-33053. |
10.70** |
Convertible Promissory Note dated May 12, 2014, issued by the registrant in favor of Cicero Consulting Group, LLC in the amount of $200,000 filed as Exhibit 10.70 to the registrant’s Quarterly Report on Form 10-Q on May 15, 2014, Commission File Number 000-33053. |
10.71** |
Securities Purchase Agreement dated April 30, 2014, between AARG Corp. and the registrant with respect to the issuance of a Convertible Promissory Note in the amount of $50,000 filed as Exhibit 10.71 to the registrant’s Quarterly Report on Form 10-Q on May 15, 2014, Commission File Number 000-33053. |
10.72** |
Convertible Promissory Note dated April 30, 2014, issued by the registrant in favor of AARG Corp. in the amount of $50,000 filed as Exhibit 10.72 to the registrant’s Quarterly Report on Form 10-Q on May 15, 2014, Commission File Number 000-33053. |
10.73** |
Consulting Agreement dated October 24, 2012, by and between Brent Fouch and the registrant filed as Exhibit 10.73 to the registrant’s Annual Report on Form 10-K/A on August 1, 2014, Commission File Number 000-33053. |
10.74** |
Consulting Agreement dated December 18, 2012, by and between Brent Fouch and the registrant filed as Exhibit 10.74 to the registrant’s Annual Report on Form 10-K/A on August 1, 2014, Commission File Number 000-33053. |
10.75** |
Consulting Agreement dated January 30, 2013, by and between Brent Fouch and the registrant filed as Exhibit 10.75 to the registrant’s Annual Report on Form 10-K/A on August 1, 2014, Commission File Number 000-33053. |
10.76** |
Consulting Agreement dated February 20, 2013, by and between Brent Fouch and the registrant filed as Exhibit 10.76 to the registrant’s Annual Report on Form 10-K/A on August 1, 2014, Commission File Number 000-33053. |
10.77** |
Consulting Agreement dated September 2, 2013, by and between Brent Fouch and the registrant filed as Exhibit 10.77 to the registrant’s Annual Report on Form 10-K/A on August 1, 2014, Commission File Number 000-33053. |
10.78** |
Consulting Agreement dated September 26, 2013, by and between Brent Fouch and the registrant filed as Exhibit 10.78 to the registrant’s Annual Report on Form 10-K/A on August 1, 2014, Commission File Number 000-33053. |
10.79** |
Consulting Agreement dated May 1, 2013, by and between Brent Fouch and the registrant filed as Exhibit 10.79 to the registrant’s Annual Report on Form 10-K/A on August 1, 2014, Commission File Number 000-33053. |
10.80** |
Consulting Agreement dated July 19, 2013, by and between Brent Fouch and the registrant filed as Exhibit 10.80 to the registrant’s Annual Report on Form 10-K/A on August 1, 2014, Commission File Number 000-33053. |
10.81** |
Securities Purchase Agreement dated May 30, 2014, between WHC Capital, LLC and the registrant with respect to the issuance of a Convertible Promissory Note in the amount of $60,000 filed as Exhibit 10.81 to the registrant’s Annual Report on Form 10-K/A on August 1, 2014, Commission File Number 000-33053. |
10.82** |
Convertible Promissory Note dated May 30, 2014, issued by the registrant in favor of WHC Capital, LLC in the amount of $60,000 filed as Exhibit 10.82 to the registrant’s Annual Report on Form 10-K/A on August 1, 2014, Commission File Number 000-33053. |
10.83** |
Consulting Agreement dated March 18, 2013, by and between Christian Hansen and the registrant filed as Exhibit 10.83 to the registrant’s Annual Report on Form 10-K/A on August 1, 2014, Commission File Number 000-33053. |
10.84* |
Consulting Agreement dated March 20, 2013, by and between Larry Simon and the registrant filed as Exhibit 10.84 to the registrant’s Annual Report on Form 10-K/A on August 1, 2014, Commission File Number 000-33053. |
Exhibit No. |
Identification of Exhibit |
10.85** |
Consulting Agreement dated March 20, 2013, by and between Relaunch Consulting Group and the registrant filed as Exhibit 10.85 to the registrant’s Annual Report on Form 10-K/A on August 1, 2014, Commission File Number 000-33053. |
10.86** |
Consulting Agreement dated November 11, 2013, by and between Mirador Consulting LLC and the registrant filed as Exhibit 10.86 to the registrant’s Annual Report on Form 10-K/A on August 1, 2014, Commission File Number 000-33053. |
10.87** |
Consulting Agreement dated November 11, 2013, by and between First Swiss Capital, Inc. and the registrant filed as Exhibit 10.87 to the registrant’s Annual Report on Form 10-K/A on August 1, 2014, Commission File Number 000-33053. |
10.88** |
Amendment to Equity Purchase Agreement, dated June 19, 2014, between Mind Solutions, Inc. and Premier Venture Partners, LLC date March 11, 2014, filed as Exhibit 10.88 to the registrant’s Annual Report on Form 10-K/A on August 1, 2014, Commission File Number 000-33053. |
10.89** |
Securities Purchase Agreement dated July 22, 2014, between KBM Worldwide, Inc. and the registrant with respect to the issuance of a Convertible Promissory Note in the amount of $27,500 filed as Exhibit 10.1 to the registrant’s Current Report on Form 8-K on July 31, 2014, Commission File Number 000-33053. |
10.90** |
Convertible Promissory Note dated July 22, 2014, issued by the registrant in favor of KBM Worldwide, Inc., in the amount of $27,500 filed as Exhibit 10.2 to the registrant’s Current Report on Form 8-K on July 31, 2014, Commission File Number 000-33053. |
10.91** |
Note Purchase Agreement dated February 18, 2014, between Iconic Holdings, LLC and the registrant with respect to the issuance of a Convertible Promissory Note in the amount of $220,000 filed as Exhibit 10.1 to the registrant’s Current Report on Form 8-K on July 31, 2014, Commission File Number 000-33053. |
10.92** |
Convertible Promissory Note dated February 18, 2014, issued by the registrant in favor of Iconic Holdings, LLC, in the amount of $220,000 filed as Exhibit 10.2 to the registrant’s Current Report on Form 8-K on July 31, 2014, Commission File Number 000-33053. |
10.93** |
Securities Purchase Agreement dated September 4, 2014, between LG Capital Funding, LLC and the registrant with respect to the issuance of convertible promissory note in the aggregate amount of $63,000, filed as Exhibit 10.1 to the registrant’s Form 8-K/A on September 10, 2014, Commission File Number 000-33053. |
|
10.94** |
10% Convertible Redeemable Note dated September 4, 2014, issued by the registrant in favor of LG Capital, in the amount of $31,500, filed as Exhibit 10.2 to the registrant’s Form 8-K/A on September 10, 2014, Commission File Number 000-33053. |
|
10.95** |
Collateralized Secured Promissory Note dated September 4, 2014, issued by the registrant in favor of LG Capital, in the amount of $31,500, filed as Exhibit 10.3 to the registrant’s Form 8-K/A on September 10, 2014, Commission File Number 000-33053. |
|
10.96** |
Convertible Promissory Note dated September 22, 2014, issued by the registrant in favor of JSJ Investments, Inc., in the amount of $100,000, filed as Exhibit 10.1 to the registrant’s Form 8-K on October 8, 2014, Commission File Number 000-33053. |
|
31.1* |
Certification of Kerry Driscoll, Chief Executive Officer of Mind Solutions, Inc., pursuant to 18 U.S.C. §1350, as adopted pursuant to §302 of the Sarbanes-Oxley Act of 2002. |
|
31.2* |
Certification of Kerry Driscoll, Chief Financial Officer and Principal Accounting Officer of Mind Solutions, Inc., pursuant to 18 U.S.C. §1350, as adopted pursuant to §302 of the Sarbanes-Oxley Act of 2002. |
|
32.1* |
Certification of Kerry Driscoll, Chief Executive Officer of Mind Solutions, Inc., pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002. |
|
32.2* |
Certification of Kerry Driscoll, Chief Financial Officer and Principal Accounting Officer of Mind Solutions, Inc., pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002. |
|
____________
* Filed herewith.
** Previously filed.
SIGNATURES
In accordance with Section 13 or 15(d)
of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
MIND SOLUTIONS, INC.
Date: October 27, 2014.
By /s/ Kerry Driscoll
Kerry Driscoll,
Chief Executive Officer
By /s/ Kerry Driscoll
Kerry Driscoll, Chief Financial Officer and
Principal Accounting Officer
Exhibit 31.1
CERTIFICATION OF CHIEF EXECUTIVE OFFICER
AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, Kerry Driscoll, certify that:
1. I have reviewed this Form 10-Q
of Mind Solutions, Inc.;
2. Based on my knowledge, this report
does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made,
in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this
report;
3. Based on my knowledge, the financial
statements, and other financial information included in this report, fairly present in all material respects the financial condition,
results of operations and cash flows of the registrant as of, and for, the periods present in this report;
4. The registrant’s other certifying
officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act
Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13-a-15(f) and 15d-15(f))
for the registrant and have:
(a) Designed such disclosure controls
and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material
information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities,
particularly during the period in which this report is being prepared;
(b) Designed such internal control
over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide
reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting principals;
(c) Evaluated the effectiveness of
the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness
of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d) Disclosed in this report any
change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent
fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or
is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5. The registrant’s other certifying
officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s
auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies
and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to
adversely affect the registrant’s ability to record, process, summarize and report financial information; and
(b) Any fraud, whether or not material,
that involved management or other employees who have a significant role in the registrant’s internal control over financial
reporting.
Date: October 27, 2014.
/s/ Kerry Driscoll
Kerry Driscoll, Chief Executive Officer
Exhibit 31.2
CERTIFICATION OF CHIEF FINANCIAL OFFICER
AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, Kerry Driscoll, certify that:
1. I have reviewed this Form 10-Q
of Mind Solutions, Inc.;
2. Based on my knowledge, this report
does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made,
in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this
report;
3. Based on my knowledge, the financial
statements, and other financial information included in this report, fairly present in all material respects the financial condition,
results of operations and cash flows of the registrant as of, and for, the periods present in this report;
4. The registrant’s other certifying
officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act
Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13-a-15(f) and 15d-15(f))
for the registrant and have:
(a) Designed such disclosure controls
and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material
information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities,
particularly during the period in which this report is being prepared;
(b) Designed such internal control
over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide
reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting principals;
(c) Evaluated the effectiveness of
the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness
of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d ) Disclosed in this report any
change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent
fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or
is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5. The registrant’s other certifying
officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s
auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies
and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to
adversely affect the registrant’s ability to record, process, summarize and report financial information; and
(b) Any fraud, whether or not material,
that involved management or other employees who have a significant role in the registrant’s internal control over financial
reporting.
Date: October 27, 2014.
/s/ Kerry Driscoll
Kerry Driscoll, Chief Financial Officer
and Principal Accounting Officer
Exhibit 32.1
CERTIFICATION OF CHIEF EXECUTIVE OFFICER
PURSUANT TO 18 U.S.C. SECTION 1350
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY
ACT OF 2002
In connection with the accompanying
Quarterly Report on Form 10-Q of Mind Solutions, Inc. for the fiscal quarter ending September 30, 2014, I, Kerry Driscoll, Chief
Executive Officer of Mind Solutions, Inc., hereby certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906
of the Sarbanes-Oxley Act of 2002, to the best of my knowledge and belief, that:
1. Such Quarterly Report on Form
10-Q for the fiscal quarter ending September 30, 2014, fully complies with the requirements of section 13(a) or 15(d) of the Securities
Exchange Act of 1934; and
2. The information contained in such
Quarterly Report on Form 10-Q for the fiscal quarter ending September 30, 2014, fairly presents, in all material respects, the
financial condition and results of operations of Mind Solutions, Inc.
Date October 27, 2014.
/s/ Kerry Driscoll
Kerry Driscoll, Chief Executive
Officer
Exhibit 32.2
CERTIFICATION OF CHIEF FINANCIAL OFFICER
PURSUANT TO 18 U.S.C. SECTION 1350
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY
ACT OF 2002
In connection with the accompanying
Quarterly Report on Form 10-Q of Mind Solutions, Inc. for the fiscal quarter ending September 30, 2014, I, Kerry Driscoll, Chief
Financial Officer of Mind Solutions, Inc., hereby certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906
of the Sarbanes-Oxley Act of 2002, to the best of my knowledge and belief, that:
1. Such Quarterly Report on Form
10-Q for the fiscal quarter ending September 30, 2014, fully complies with the requirements of section 13(a) or 15(d) of the Securities
Exchange Act of 1934; and
2. The information contained in such
Quarterly Report on Form 10-Q for the fiscal quarter ending September 30, 2014, fairly presents, in all material respects, the
financial condition and results of operations of Mind Solutions, Inc.
Date: October 27, 2014.
/s/ Kerry Driscoll
Kerry Driscoll, Chief Financial
Officer and Principal Accounting Officer
Mind Solutions (CE) (USOTC:VOIS)
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