UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-K
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended September 30, 2017

Commission File Number   000-55177

THE GO ECO GROUP
(Formally Liberated Energy, Inc.)
(Exact name of registrant as specified in its charter)

Nevada
 
27-4715504
(State or other jurisdiction of incorporation or organization)
 
I.R.S. Employer Identification No.

15 Elvis Boulevard
Chester, New York
 
10918
(Address of principal executive offices)
 
(Zip Code)

Issuer's telephone number:  (845) 610-3817

Securities registered pursuant to Section 12(b) of the Act: None
Securities registered pursuant to Section 12(g) of the Act: Common Stock

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.  Yes o No

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.  Yes x No

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 requirements 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 if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of Registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.

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
(Do not check if a smaller reporting company)
   

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act.)  Yes o   No

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [   ]

State the aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold, or the average bid and asked price of such common equity, as of the last business day of the registrants most recently completed second quarter. $201,265.
As of January 12, 2018 the registrant had 21,070,394 shares of common stock outstanding.
 

 

 

THE GO ECO GROUP, INC
(formally Liberated Energy, Inc.)
TABLE OF CONTENTS

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Description
 
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PART I

ITEM 1 – BUSINESS.

History

The Go Eco Group, Inc. is a Nevada corporation formed on September 14, 2011.  We were incorporated as Mega World Food Holding Company for the purpose of selling frozen vegetable products in all areas of the world except China.

GUARDLITE

On January 19, 2013, pursuant to a Common Stock Purchase Agreement, dated January 7, 2013, Perpetual Wind Power Corporation, a privately held corporation formed under the laws of the State of Delaware on July 1, 2010, acquired 24,500,000 non-registered shares of the Company from its shareholders, thereby owning 24,500,000 out of a total of 25,000,000 issued and outstanding shares of the Company. Thereafter, the Company acquired from Perpetual Wind Power Corporation its patented wind and solar powered turbine technology for 2,500,000 newly issued shares of the Company which were distributed in a dividend to its shareholders and Perpetual Wind Power Corporation returned to treasury its 24,500,000 shares it acquired from the Company's shareholders. As a result of this transaction, the Company had on January 19, 2013, 3,000,000 shares issued and outstanding. On February 14, 2013, the Company changed its name from Mega World Food Holding Company to The Go Eco Group, Inc. and underwent a 24 for 1 stock split, whereby the Company's outstanding shares increased from 3,000,000 to 72,000,000.

Services and Products

On January 19, 2013, the Company disposed of its wholly-owned subsidiary, Mega World Food Limited (HK).  Mega World Food Limited (HK) was incorporated on June 24, 2010 and was in the business of selling frozen vegetables in all areas of the world except China.  From inception, Mega World Food Limited (HK) only incurred setting up, formation or organization activities.  Upon disposal, the Company ceased these operations and accordingly, the Company's financial statements have been prepared with the net assets, results of operations, and cash flows of this business displayed separately as "discontinued operations."

On January 23, 2013, we acquired from Perpetual Wind Power Corporation the rights to their wind and solar powered turbine technology for which it has a patent pending with the United States Patent and Trademark office, U.S. Patent Application Serial No. 61/257,578 as submitted on November 3, 2009.

In November 2013, we built and successfully tested an alternative energy LED lighting and security system that is now available to the market. The Guard Lite™ security lighting system is designed to deter trespassers from homes and/or properties without electricity costs. The Company has moved towards patent protection of this new device.  It is anticipated that the Guard Lite™ security lighting system will only require a portion of the energy it generates so the excess energy will be able to be used for other applications.

On July 6, 2016, the Company adopted a 1-for-3,500 reverse split of the Company's common stock.

On September 14, 2016, the Company entered into an agreement with Ron Knori (Kroni) Owner of EcoCab Portland, LLC by which the Company was to acquire all outstanding ECGLLC membership interest for a 20% non-dilutive interest of the outstanding shares of the Company with the first closing of the agreement. On March 6, 2017, the Company terminated the agreements with Ron Knori and EcoCab based upon breach of contract, fraud, fraudulent inducement, fraud in the factum, negligent misrepresentation, misrepresentation, contractual interference, breach of fiduciary duty, negligence, and conversion, all of which were perpetrated by Ron Knori, individually, and in his capacity as manager of EcoCab.

On January 27, 2017, the Company reduced the authorized shares of common stock from 10,000,000,000 to 2,000,000,000 and changed the name from The Go Eco Group, Inc to The Go Eco Group.
- 3 -


On August 15, 2017, we entered into an agreement (the "Agreement") with Medsite Services, Inc., a Nevada corporation ("MDST") wherein we agreed to acquire from MDST, all of MDST's right, title and interest in and to Integro Health Systems, Inc., a Nevada corporation ("Integro").  MDST has represented to us that it owns 100% of the outstanding securities of Integro and Integro is a wholly owned subsidiary corporation of MDST.  We closed this transaction on August 28, 2017 and accordingly, Integro became wholly owned by us.  In consideration of the foregoing, we issued 1,170,005 restricted shares of our Series B Preferred Stock to certain shareholders of MDST as disclosed in the Agreement.  As part of the consideration for the foregoing transaction, we and our president, Brian Conway cancelled 9,000,000 shares of our Series A Preferred Stock owned by Mr. Conway and amend the Series A Preferred Stock designation to reflect each share of Series A Preferred Stock has 10,000 votes per share and votes with the common on certain matters.  The amended designation of the Series A Preferred Stock has been filed with the Nevada Secretary of State.  Likewise, the designation for the Series B Preferred Stock has been filed with the Nevada Secretary of State.

On December 21, 2017 the company formed a joint venture with Bravatek Solutions, Inc a Colorado corporation. Under the terms of the agreement the Company will own 65% of the joint venture and contribute $100 plus a nonexclusive license of the intellectual property necessary to develop the Light Guard System with Bravatek contributing $25,000 plus the sale of software to the JV for $65,000.

Additional Information

We are a public company and file annual, quarterly, and special reports and other information with the SEC. We are not required to, and do not intend to, deliver an annual report to security holders. You may read and copy any document we file at the SEC's public reference room at 100 F Street, N.E., Washington, D.C. 20549. You can request copies of these documents by writing to the SEC and paying a fee for the copying cost. Please call the SEC at 1-800-SEC-0330 for more information about the operation of the public reference room. Our filings are also available, at no charge, to the public at http://www.sec.gov .

ITEM 1A – RISK FACTORS.

We are a smaller reporting Company and are not required to include disclosures under this item.

ITEM 1B – UNRESOLVED STAFF COMMENTS.

We are a smaller reporting company and are not required to include disclosure under this item.

ITEM 2 – PROPERTIES.

Our principal executive offices are located at 2 Colman Court, Southampton, New Jersey 08099.  The office space is provided to us by our former Chief Executive Officer free of charge.

ITEM 3 – LEGAL PROCEEDINGS.

On September 15, 2016, LG Capital, LLC filed a lawsuit against the Company in the County of Kings, in the Supreme Court of the State of New York (index number 516298/2016). The filing alleges that the Company has defaulted on a number of unpaid loans from LG Capital to the Company with the total owing and due including principal and interest of $279,730.56. The Company has not counter claimed but believes that LG Capital unlawfully attempted to convert some of the loans to common stock of the Company has filed an injunction against the Company transfer agent to block LG Capital from such a conversion. In addition, the Company negotiated in good faith with LG Capital to settle the debt but to no avail.

ITEM 4 – MINE SAFETY DISCLOSURES.

Not Applicable
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PART II

ITEM 5 – MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.

(a)                  Market Information.

Our common stock is quoted on the OTC Markets- Pink Sheet.  We obtained our trading symbol which is LIBE.OB on February 15, 2013.  For the periods indicated, the following table sets forth the high and low bid prices per share of common stock. These prices represent inter-dealer quotations without retail markup, markdown, or commission and may not necessarily represent actual transactions.

   
HIGH
   
LOW
 
             
FISCAL YEAR ENDED SEPTEMBER 30, 2016
           
             
First Quarter
 
$
0.3448
   
$
0.0034
 
Second Quarter
 
$
0.6897
   
$
0.3448
 
Third Quarter
 
$
0.3448
   
$
0.34485
 
Fourth Quarter
 
$
0.3448
   
$
0.06001
 

   
HIGH
   
LOW
 
             
FISCAL YEAR ENDED SEPTEMBER 30, 2017
           
             
First Quarter
 
$
0.177
   
$
0.044
 
Second Quarter
 
$
0.1800
   
$
0.0358
 
Third Quarter
 
$
0.0389
   
$
0.0159
 
Fourth Quarter
 
$
0.0647
   
$
0.0247
 

(b)                  Holders.

As of January __, 2018, there were approximately 46 record holders of shares of the Company's common stock.

(c)                  Dividend Policy .

We have not declared or paid any cash dividends on our common stock and we do not intend to declare or pay any cash dividend in the foreseeable future.  The payment of dividends, if any, is within the discretion of our Board of Directors and will depend on our earnings, if any, our capital requirements and financial condition and such other factors as our Board of Directors may consider.

(d)                  Securities Authorized for Issuance Under Equity Compensation Plans .

We do not have equity compensation plans.

(e)                  Recent Sales of Unregistered Securities .

None

ITEM 6 – SELECTED FINANCIAL DATA.

Not Applicable

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ITEM 7 – MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION.

FORWARD-LOOKING STATEMENTS

This annual report on Form 10-K contains forward-looking statements within the meaning of the federal securities laws. These forwarding-looking statements include without limitation statements regarding our expectations and beliefs about the market and industry, our goals, plans, and expectations regarding our results, our intentions and strategies regarding future operations and transactions, our beliefs regarding the future success of our business, our expectations and beliefs regarding competition, competitors, the basis of competition and our ability to compete, our beliefs and expectations regarding our ability to hire and retain personnel, our ability to expand into new geographic markets and music genres, our ability to acquire other operators and venues, our beliefs regarding period to period results of operations, our expectations regarding revenues, our expectations regarding future growth and financial performance, our beliefs and expectations regarding the adequacy of our facilities, and our beliefs and expectations regarding our financial position, ability to finance operations and growth and the amount of financing necessary to support operations.  These statements are subject to risks and uncertainties that could cause actual results and events to differ materially.  See "Item 1A. Risk Factors" for a discussion of certain risks.  We undertake no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this annual report on Form 10-K.

As used in this annual report on Form 10-K, unless the context otherwise requires, the terms "we," "us," "the Company," and "Liberated" refer to The Go Eco Group, a Nevada Corporation.

ORGANIZTION AND BASIS OF PRESENTATION

The following discussion and analysis is based on the audited financial statements for the years ended September 30, 2017 and 2016 of The Go Eco Group, Inc., a Nevada corporation ("Liberated" the "Company," "our," or "we"). All significant inter-company amounts have been eliminated. In the opinion of management, the audited financial statements presented herein reflect all adjustments (consisting only of normal recurring adjustments) necessary for fair presentation. Interim results are not necessary indicative of results to be expected for the entire year.

We prepare our financial statements in accordance with generally accepted accounting principles (GAAP), which require that management make estimates and assumptions that affect reported amounts. Actual results could differ from these estimates.

Certain of the statements contained below are forward-looking statements (rather than historical facts) that are subject to risks and uncertainties that could cause actual results to differ materially from such forward-looking statements.

CRITICAL ACCOUNTING POLICIES & ESTIMATES

The preparation of financial statements and related disclosures in conformity with accounting principles generally accepted in the United States of America requires management to make judgments, assumptions and estimates that affect the amounts reported in our consolidated financial statements and accompanying notes. We base our estimates and judgments on historical experience and on various other assumptions that we believe are reasonable under the circumstances. However, future events are subject to change, and the best estimates and judgments routinely require adjustment. The amounts of assets and liabilities reported in our balance sheet, and the amounts of revenues and expenses reported for each of our fiscal periods, are affected by estimates and assumptions which are used for, but not limited to, the accounting for allowance for doubtful accounts, goodwill and intangible asset impairments, restructurings, inventory, and income taxes. Actual results could differ from these estimates. The following critical accounting policies are significantly affected by judgments, assumptions and estimates used in the preparation of our consolidated financial statements.


- 6 -


Use of Estimates

It is important to note that when preparing the financial statements in conformity with U.S. generally accepted accounting principles, management is required to make certain estimates and assumptions that affect the amounts reported and disclosed in the financial statements and related notes.  Actual results could differ if those estimates and assumptions approve to be incorrect.

On an ongoing basis, we evaluate our estimates, including those related to estimated customer life, used to determine the appropriate amortization period for deferred revenue and deferred costs associated with licensing fees, the useful lives of property and equipment and our estimates of the value of common stock for the purpose of determining stock-based compensation. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities.

Revenue Recognition Policies

The Company recognizes revenues in accordance with the Securities and Exchange Commission Staff Accounting Bulletin (SAB) number 104, "Revenue Recognition." SAB 104 clarifies application of U. S. generally accepted accounting principles to revenue transactions. As of the year ended September 30, 2017, there was no deferred revenue. The Company derives its primary revenue from the sources described below, which includes sale of alternative energy devices.

Off- Balance Sheet Arrangements

We did not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures, or capital resources that is material to investors.

Cash and Cash Equivalents

For purposes of the statement of cash flows, the Company considers all highly liquid debt instruments purchased with a maturity of 90 days or less to be cash equivalents to the extent the funds are not being held for investment purposes.

Results of Operations

Year Ended September 30, 2017 Compared to Year Ended September 30, 2016

Revenue and Cost of Sales

Our revenues and cost of sales were $48,990 and $14,000, respectively, for the year ended September 30, 2017. For the year ended September 30, 2016 we did not have revenues or cost of sales.

General and Administrative Expenses

General and administrative costs for the year ended September 30, 2017 was $1,377,609 compared to $285,367 for the year ended September 30, 2016.  The higher cost in 2017 was attributed mostly to stock based compensation of $844,164 versus $10,000 in 2016.

Other Income (Expense )

Other expense was $121,503 for the year ended September 30, 2017 compared to $33,068 for the year ended September30, 2016. The higher amount in 2017 is directly attributed to debt settlement gain of $29,503 offset by interest expense of $151,010.
- 7 -


Net Loss

The Company incurred a net loss of $1,464,122 for the year ended September 30, 2017 compared to a net loss of $318,436 for the year ended September 30, 2016. Higher general and administrative expense plus increased other expenses attributed to the higher loss in 2017 over 2016.

Financial Condition

Cash, Cash Flows, and Working Capital

The Company had a cash balance of $67,353 and a working capital deficit of $1,025,703 at September 30. 2017 as compared to a net cash balance of $1,804 and a working capital deficit of $565,365 at September 30, 2016. The decrease in working capital is primarily attributable loss in 2017 plus increase in current liabilities through short term debt borrowings of $455,350 plus an increase in accrued interest of $70,537.

Operations used $446,127 of cash during 2017 as compared to $287,085 used during 2016. The change in operating cash flows during 2016 was principally attributable to increased losses in 2017 over 2016.

Cash used in investing activity during the years ended September 30, 2017 was $43,324 which consisted of loans to Eco Cab of $197,520 offset by repayments of $ 154,196 verse none in 2016. As of September 30, 2017, the Company impaired the balance of $43,324 as it is uncollectible.

Cash flows provided by financing activities provided cash flows of $555,000 during 2017 as compared to $271,968 during 2016.  Cash flows provided by financing activities during the 2017 period related to debt financing of $555,000. Cash provided in financing activities in 2016 is attributed to borrowings on debt of $271,968.

Liquidity and Capital Resources

Our principal requirements for capital are to fund our day-to-day operations and to satisfy our contractual obligations, primarily for the repayment of debt.

We believe that we will be required to either improve profitability and operating cash flow or to borrow additional funds or otherwise secure additional financing, or both, to support our operations going forward.  Except as described below regarding our line of credit, we do not presently have any commitments to provide financing, if needed, to support our operations.

Equity

During the year ended September 30, 2016 the Company issued 1,100,000 shares of common stock to two parties for service with a value of $80,000.

During the year ended September 30, 2016 the Company issued 208,428 shares of common stock for convertible debt with a value of $39,769

During the year ended September 30, 2017 the Company issued 5,880,000 shares of commons stock with a value of $844,165 for services.

During the year ended September 30, 2017 the Company issued 6,699,471 shares of common stock with a value of $145,619 for convertible debt.

- 8 -


Convertible Notes

LG Capital Funding

On July 13, 2015, the Company issued a Convertible Note to LG CAPITAL FUNDING, LLC ("LG Capital"), to replace the $41,400 convertible note issued to Eastmore Capital The note matures on July 13, 2016.  The note is convertible by the holder at a discount of 55% of the lowest trading price of the Company's stock for the 15 days prior to the conversion

On August 11, 2015, LG Capital's lawsuit claims the Company issued a Convertible Note to LG CAPITAL FUNDING, LLC ("LG Capital") for a principle amount of $27,500 with an interest rate of 8% per annum. The note matures on August 11, 2016.  The note is convertible by the holder at a discount of 55% of the lowest trading price of the Company's stock for the 15 days prior to the conversion.  Per the Company the note was not funded but the Company has accrued the note and interest, totaling $31,843.

On September 8, 2015, the Company issued a Convertible Note to LG CAPITAL FUNDING, LLC ("LG Capital") for a principle amount of $27,000 with an interest rate of 8% per annum. The note matures on September 8, 2016, 2016.  The note is convertible by the holder at a discount of 55% of the lowest trading price of the Company's stock for the 15 days prior to the conversion.

On March 14, 2016, the Company issued a Convertible Note to LG Capital Funding, LP for a principle amount of $18,000 with an interest rate of 12% per annum. The note matures on March 14, 2017.  The note is convertible by the holder at a discount of 45% of the lowest trading price of the Company's stock for the 20 days prior to the conversion.

On May 26, 2016, the Company issued a Convertible Note to LG Capital Funding, LP for a principle amount of $17,000 with an interest rate of 12% per annum. The note matures on March 14, 2017.  The note is convertible by the holder at a discount of 50% of the lowest trading price of the Company's stock for the 20 days prior to the conversion. Net proceeds to the Company are $15,000 after deduction of legal fees of $2,000. As of September 30, 2016, the outstanding balance of the note was $17,000 in principal plus interest of $428 for a total of $17,428.

On September 15, 2017, LG Capital, LLC filed a lawsuit against the Company. The filing alleges that the Company has defaulted on several unpaid loans from LG Capital to the Company with the total claim against the Company of $279,730.56. The Company negotiated in good faith with LG Capital to settle the debt but to no avail. After reviewing the claim filed by LG Capital, it is the opinion of Company Management that the Company's outstanding liability to LG Capital has been fully recognized and accounted for in the financial statements of the Company. (See Note 9- Legal).

Carebourn Capital

On November 5, 2015, the Company issued a Convertible Note to Carebourn Capital, LP for a principle amount of $28,000 with an interest rate of 12% per annum. The note matures on August 5, 2016.  The note is convertible by the holder at a discount of 50% of the lowest trading price of the Company's stock for the 20 days prior to the conversion.

On December 21, 2015, the Company issued a Convertible Note to Carebourn Capital, LP for a principle amount of $21,000 with an interest rate of 12% per annum. The note matures on September 16, 2016.  The note is convertible by the holder at a discount of 50% of the lowest trading price of the Company's stock for the 20 days prior to the conversion.

On March 11, 2016, the Company issued a Convertible Note to Carebourn Capital, LP for a principle amount of $18,000 with net proceeds of $15,000 and with an interest rate of 12% per annum. The note matures on December 11, 2016.  The note is convertible by the holder at a discount of 50% of the lowest trading price of the Company's stock for the 20 days prior to the conversion.
- 9 -


On July 25, 2016, the Company issued a Convertible Note to Carebourn Capital, LP for a principle amount of $23,000 with an interest rate of 12% per annum. The note matures on July 25, 20172017.  The note is convertible by the holder at a discount of 45% of the lowest three trading price of the Company's stock for the 20 days prior to the conversion.

On September 7, 2016, the Company issued a Convertible Note to Carebourn Capital, LP for a principle amount of $197,363,70 less legal fees of $8,000 with an interest rate of 12% per annum. The note matures on September 7, 20172017.  The note is convertible by the holder at a discount of 50% of the lowest three trading price of the Company's stock for the 20 days prior to the conversion.

On October 13, 2016, the Company issued a Convertible Note to Carebourn Capital, LP for a principle amount of $237,475 less an original discount of $30,975 plus transaction fees of $6,500 for a net advanced of $200,000.  The note bears an interest rate of 12% per annum. The note matures on October 3, 2017.  The note is convertible by the holder at a discount of 45% of the lowest three trading price of the Company's stock for the 20 days prior to the conversion. On September 15, 2016 $85,000 was returned to Carebourn reducing the principal balance to $115,114.

On December 13, 2016, the Company issued a Convertible Note to Carebourn Capital, LP for a principle amount of $98,325 less an original discount of $12,825 for a net advanced of $80,000.  The note bears an interest rate of 12% per annum. The note matures on December 13, 2018.  The note is convertible by the holder at a discount of 45% of the lowest three trading price of the Company's stock for the 20 days prior to the conversion.

 As of September 30, 2017, the Company owed Carebourn capital $522,510 in principal and interest of $77,877 for a total of $600,387.

Power Up Lending

On December 13, 2016, the Company issued a Convertible Note to Power Up Lending Group Ltd for a principle amount of $77,000 less legal fees of $2,000 with an interest rate of 8% per annum with a default interest rate of 22%. The note matures on September 28, 2017.  The note is convertible by the holder at a discount of 48% of the lowest three trading price of the Company's stock for the 10 days prior to the conversion.

On February 28, 2017, the Company issued a Convertible Note to Power Up Lending Group Ltd for a principle amount of $33,000 with an interest rate of 8% per annum with a default interest rate of 22%. The note matures on December 5, 2017.  The note is convertible by the holder at a discount of 48% of the lowest three trading price of the Company's stock for the 10 days prior to the conversion.

As of September 30, 2017, the Company owed Power Up lending $152,460 in principal and $2,733 in interest for a total of $155,193.

Crown Bridge Partners

On August 21, 2017, the Company issued a Convertible Note to Crown Bridge Partners for a principle amount of $33,000 with an interest rate of 8% per annum with a default interest rate of 22%. The note matures on December 5, 2017.  The note is convertible by the holder at a discount of 48% of the lowest three trading price of the Company's stock for the 10 days prior to the conversion

As of September 30, 2017, the Company owed Crown Bridge Partners $40,000 in principal and $316 in interest for a total of $40,316.

Management has reviewed the terms of the convertible instruments to determine their fair value. After reviewing the characteristic and the value of the conversion, Management has determined based on note conversion history that the conversion value is equal or less than par value of the shares used for conversion thus determining that the fair value of the notes is equal to their face value.

- 10 -


ITEM 7A – QUANTITIVE AND QUALITIVE DISCLOSURES ABOUT MARKET RISK.

We are a smaller reporting Company and are not required to include disclosures under this item

ITEM 8 – FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.

Our financial statements are audited and appear immediately after the signature page of this report.  See "Index to Financial Statements" on page F-1 of this report.

ITEM 9 – CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUTING AND FINANCIAL DISCLOSURE.

From September 14, 2010 through May 9, 2017, Enterprise CPAs, Ltd. ("Enterprise") was the independent registered public accounting firm of The Go Eco Group (the "Company"). On or about May 9, 2017, Enterprise informed Brian Conway, the Company's chief executive officer and a member of the Company's Board of Directors (the "Board"), that Enterprise would discontinue as the Company's independent registered public accounting firm effective on May 9, 2017.

None of our previous audit reports, in particular the audit reports for the fiscal years ended September 30, 2016 and September 30, 2015, contained any adverse opinion or disclaimer of opinion, nor were qualified or modified as to uncertainty, audit scope, or accounting principles, except for a going concern qualification on the Company's financial statements for the fiscal years ended September 30, 2016 and September 30, 2015.

During the Company's two most recent fiscal years, the subsequent interim periods thereto, and through May 9, 2017, there were no disagreements (as defined in Item 304 of Regulation S-K) with the Enterprise on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of Enterprise would have caused it to make reference in connection with its opinion to the subject matter of the disagreement. Further, during the Company's two most recent fiscal years, the subsequent interim periods thereto, and through May 9, 2017, there were no reportable events (as defined in Item 304(a)(1)(v) of Regulation S-K).

We furnished Enterprise with a copy of this disclosure on May 16, 2017 providing Enterprise with the opportunity to furnish the Company with a letter addressed to the Commission stating whether he agrees with the statements made by the Company herein in response to Item 304(a) of Regulation S-K and, if not, stating the respect in which he does not agree.  A copy of Enterprise's response is filed as Exhibit 16.1 to this Report.

New independent registered public accounting firm

On May 10, 2017, we engaged De Leon & Company, P.A., Certified Public Accountants and Consultants, 510 NW 159 th Lane, Pembroke Pines, Florida 33028, telephone (954) 445-6478, an independent registered accounting firm, as our principal independent accountant with the approval of our board of directors.

During the fiscal years ended September 30, 2016 and September 30, 2015, and the subsequent interim periods through May 9, 2017, neither the Company nor anyone acting on its behalf consulted the De Leon & Company, P.A. with respect to (i) the application of accounting principles to a specified transaction, either completed or proposed, or the type of audit opinion that might be rendered on the Company's financial statements, and neither a written report nor oral advice was provided to the Company that De Leon & Company, P.A. concluded was an important factor considered by the Company in reaching a decision as to the accounting, auditing or financial reporting issues; or (ii) any matter that was the subject of a disagreement or a reportable event set forth in Item 304(a)(1)(iv) and (v), respectively, of Regulation S-K.

- 11 -


ITEM 9A – CONTROLS AND PROCEDURES.

Evaluation of Disclosure Controls and Procedures

Under the supervision and the participation of our management, including our principal executive officer who also serves as our principal financial officer, we conducted an evaluation as of September 30, 2017, of the effectiveness of the design and operation of our disclosure controls and procedures, as such term is defined under Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934, as amended. Based on this evaluation, our principal executive officer and our principal financial officer concluded that our disclosure controls and procedures were not effective as of September 30, 2017.

Management's Report on Internal Control over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting as that term is defined in Exchange Act Rule 13a-15(f). Our internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of our financial statements for external reporting purposes in accordance with generally accepted accounting principles ("GAAP"). Our internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect our transactions and dispositions of our assets; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of our financial statements in accordance with GAAP, and that our receipts and expenditures are being made only in accordance with authorizations of our management and directors; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on our financial statements.

Internal control over financial reporting cannot provide absolute assurance of achieving financial reporting objectives because of its inherent limitations.  Internal control over financial reporting is a process that involves human diligence and compliance and is subject to lapses in judgment and breakdowns resulting from human failures. Internal control over financial reporting also can be circumvented by collusion or improper management override. Because of such limitations, there is a risk that material misstatements may not be prevented or detected on a timely basis by internal control over financial reporting. However, these inherent limitations are known features of the financial reporting process. Therefore, it is possible to design into the process safeguards to reduce, though not eliminate, this risk.  In addition, 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.

In order to evaluate the effectiveness of our internal control over financial reporting as of September 30, 2017, as required by Section 404 of the Sarbanes-Oxley Act of 2002, our management conducted an assessment, including testing, based on the criteria set forth in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (the "COSO Framework").  A material weakness is a control deficiency, or a combination of control deficiencies, that results in more than a remote likelihood that a material misstatement of our annual or interim financial statements will not be prevented or detected.

Based on the evaluation performed, management concluded that our internal control over financial reporting was not effective as of September 30, 2017.  In arriving at that conclusion, management identified as materials weaknesses in our internal control over financial reporting: (1) the lack of accounting proficiency of our chief executive officer who is our sole officer and our principal accounting officer which has resulted in a reliance on part-time outside consultants to perform substantially all of our accounting functions, (2) a lack of adequate segregation of duties and necessary corporate accounting resources in our financial reporting process and accounting function, and (3) lack of control procedures that include multiple levels of review, also arising from our chief executive officer's lack of accounting training and service in multiple roles as well as our limited financial resources to support hiring of personnel and implementation of accounting systems.
- 12 -


This annual report does not include an attestation report of our registered public accounting firm regarding internal control over financial reporting.  Management's report was not subject to attestation by our registered public accounting firm pursuant to rules of the Securities and Exchange Commission that permit smaller reporting companies to provide only management's report in this annual report.

Changes in Internal Control over Financial Reporting

No change in our internal control over financial reporting (as defined in Rule 13a-15(f) under the Securities Exchange Act of 1934) occurred during the fourth quarter of fiscal 2017 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
 
ITEM 9B – OTHER INFORMA TION.
PART III
 
ITEM 10 – DIRECTORS, E XECUTIVE OFFICERS AND CORPORATE GOVERNANCE.

The following table sets forth the names and ages of our current directors, executive officers and key consultants as well as the principal offices and positions held by each person. We are managed by our Board of Directors. Currently, the Board has two members. Our executive officers serve at the discretion of the Board of Directors. There are no family relationships between any of the directors and executive officers. In addition, there was no arrangement or understanding between any executive officer and any other person pursuant to which any person was selected an executive officer.

Name
 
Age
 
Position with Liberated
 
Year First Became
a Director
Brian Conway (1)
 
 47
 
Chief Executive Offices, Chief Financial Officer and Director
 
2014
Jay Silverstein (2)
 
 65
 
Director
 
2014
Kim O'Brien (3)
 
60
 
Director
 
2014

(1)
Chief Executive Officer, Chief Financial Officer and Director effective October 1, 2014, Mr. Conway was paid $12,000 per month as a consultant and received 5,000,000 shares of common stock.
(2)
Director as of October 1, 2014
(3)
Director as of October 1, 2014

Biographies

Brian P. Conway, the Chief Executive Officer, Chief Financial Officer, and Chairman of the Board brings 20 years of proven success in marketing and business development for both private and publically traded companies. Starting off in database management and sales for Venture Direct on Madison Avenue, he crossed over to Wall Street first as a co-founder of Waypoint Capital Partners. During this time, he has overseen national sales, marketing, business and product development, national account customers, and new business relations with international and US companies while creating awareness for public companies with many of the nation's top public relations firms. Mr. Conway has been involved with The Go Eco Group for the past year and is responsible for its current joint ventures and for bringing its flagship product the Guard Lite to the marketplace.  His relationships with investment bankers, non-dilutive financing, and public relations will be instrumental in moving The Go Eco Group forward in the upcoming months.

Jay Silverman , our Director, has more than 35 years of experience in the professional services industry.  The positions that he has held included Mid-Continent Operations Manager of a worldwide seismic service company, Vice President of Operations for a privately held environmental drilling service company, then Vice President of Field Operations for a NYSE listed oil service firm where he founded a new wholly owned subsidiary, the first
- 13 -


onshore 3D seismic data acquisition company in the world, which he eventually took public in a successful IPO as its President, CEO, and Director.  Mr. Silverman also co-founded iSafe Imaging in 2002, a paper to digital knowledge preservation and information management company for which he was CEO until it was sold in 2010.

Kim Thorne O'Brien, our Director, graduated from Ursinis College in 1980 with a B.S. in Health and Physical Education, minor in Biology, graduated from Temple University with an M.S. Ed in Exercise Physiology in 1981 and completed all Ph.D. work except dissertation in Cardiovascular Physiology, a University Fellow.  From 1986 to 1995, Ms. O'Brien was Division Manager at Genentech, Inc.  From October 1995 to 2001, she was Regional Business Director, Northeast Region of MedImmune, Inc.  From 2001 to 2004, she was Vice President, Business Development & Marketing of AdvancedTraces, a company engaged in the development of supersensitive detection of biowarfare agents.  Since 2004, Ms. O'Brien has been President of Independence, Inc., a firm engaged in providing consulting services to start-up biotechnology companies (Diasome, Get Better Health, LifeCell Dx).

  Code of Ethics

We do not currently have a Code of Ethics.

Compliance with Section 16(a) of the Exchange Act

None of the officers, directors or owners own 10% or more of our common stock have filed reports required by section 16(a) of the Securities and Exchange Act of 1934, as amended.

ITEM 11 – EXEC UTIVE COMPENSATION.

EXECUTIVE COMPENSATION

The following table provides summary information for the years ended September 30, 2015, 2016, and 2017 concerning cash and non-cash compensation paid or accrued by us to or on behalf of our officers and directors.

DIRECTORS AND OFFICERS COMPENSATION
Name and
Principal Position
 
Annual compensation
Long-term compensation
 
Year
Salary
($)
Bonus
($)
Other annual
compensation
($)
Awards
Payouts
All other
Compensation
($) (1)
 
Restricted
stock
award(s)
($)
Securities
underlying
options/
SARs
(#)
LTIP
Payouts
($)
Total
Compensation
Brian Conway, Executive Officer (1)
2017
2016
2015
111,500
118,696
129,700
-
-
-
-
-
-
-
--
60,000
-
-
-
-
-
-
--
--
--
111,500
118,696
189,700
Jay Silverman, Director (2)
2017
2016
2015
--
---
--
-
-
-
-
-
-
--
25,000
25,000
-
-
-
-
-
-
-
-
-
--
25,000
25,000
Kim O'Brien, Director (3)
2017
2016
2015
--
--
--
-
-
-
-
-
-
--
21,250
21,250
-
-
-
-
-
-
-
-
-
--
21,250
21,250

(1)
Chief Executive Officer, Chief Financial Officer and Director effective October 1, 2014, Mr. Conway is to be paid $111,500 in 2017 as a consultant and received 12,000,000 shares of common stock and 10,000,000 preferred shares in 2016.
(2)
Director as of October 1, 2014
(3)
Director as of October 1, 2014

- 14 -


COMPENSATION AGREEMENTS

We have no compensation arrangements (such as fees for retainer, committee service, service as chairman of the board or a committee, and meeting attendance) with directors.

DIRECTOR COMPENSATION

Members of our Board of Directors do not normally receive cash compensation for their services as Directors, although some Directors are reimbursed for reasonable expenses incurred in attending Board or committee meetings. All corporate actions are conducted by unanimous written consent of the Board of Directors.

STOCK OPTION PLAN

The Company has no outstanding stock option.

ITEM 12 – SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS.

The following table sets forth, as of January 13, 2018 certain information concerning the beneficial ownership of our common stock, by (i) each person known by us to own beneficially five per cent (5%) or more of the outstanding shares of each class, (ii) each of our directors and executive officers, and (iii) all of our executive officers and directors as a group.

The number of shares beneficially owned by each 5% stockholder, director or executive officer is determined under the rules of the Securities and Exchange Commission, or SEC, and the information is not necessarily indicative of beneficial ownership for any other purpose. Under those rules, beneficial ownership includes any shares as to which the individual or entity has sole or shared voting power or investment power and any shares that the individual or entity has the right to acquire within 60 days after September 30, 2017 through the exercise of any stock option, warrant or other right, or the conversion of any security.  Unless otherwise indicated, each person or entity has sole voting and investment power (or shares such power with his or her spouse) with respect to the shares set forth in the following table. The inclusion in the table below of any shares deemed beneficially owned does not constitute an admission of beneficial ownership of those shares.

Name and Address (1)
Shares of Common Stock
Beneficially Owned
Percent of
Common Stock
Brian Conway
1,429
0.01
Jay Silverman
 714
0.00
Kim O' Brien
 714
0.00
All directors and officers as a group
2,857
0.01

(1)        Denotes officer or director.

PREFERRED STOCK

Our board of directors is authorized to issue 10,000,000 shares of Preferred Stock, with a par value of $0.001. On February 2, 2016, the Company issued 10,000,000 shares of Series A Preferred Stock to an officer and director of the Company. Each share of series A preferred has 10,000 votes for all shareholder matters compared to 1 vote for each share of common stock.

RELATED PARTY TRANACTIONS

On February 2, 2016, the Company issued to an officer and director of the Company 10,000,000 shares with a value of $10,000 of series A preferred stock for service. Each share has 10,000 votes on all matters of the Company in which the shareholders can vote.
- 15 -


In March 2016 an officer and director of the Company advanced the Company $4,000 for payment of accounts payable.  The advance is non-interest bearing and is due on demand.

ITEM 13 – CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE.

Director Independence

Our board of directors has determined that we do not have a board member that qualifies as "independent" as the term is used in Item 7(d)(3)(iv)(B) of Schedule 14A under the Securities Exchange Act of 1934, as amended, and as defined by Rule 4200(a)(15) of the NASDAQ Marketplace Rules.

ITEM 14 – PRIN CIPAL ACCOUNTANT FEES AND SERVICES.

Aggregate fees billed by the Company's principal accountants, Enterprise CPA, for audit services related to the most recent two fiscal years, and for other professional services billed in the most recent two fiscal years, were as follows:

 
FISCAL YEAR 2017
 
FISCAL YEAR 2016
 
Audit Fees (1)
 
$
17,000
   
$
17,000
 
Tax Fees (2)
 
$None
   
$None
 
All Other Fees
None
 
None
 

ITEM 15 – EXHIBITS.

EXHIBIT INDEX

       
Incorporated by
       
Reference
           
Filing Date/
Exhibit
         
Period End
Number
 
Exhibit Description
 
Form
 
Date
             
             
         
             
         
             
101.INS*
 
XBRL Instance Document
       
             
101.SCH*
 
XBRL Taxonomy Extension Schema
       
             
101.CAL*
 
XBRL Taxonomy Extension Calculation Linkbase
       
             
101.DEF*
 
XBRL Taxonomy Extension Definition Linkbase
       
             
101.LAB*
 
XBRL Taxonomy Extension Label Linkbase
       
             
101.PRE*
 
Taxonomy Extension Presentation Linkbase
       
             

* Filed with this Form 10-K.
- 16 -


SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

   
 
THE GO ECO GROUP, INC.
Date: January 12, 2018
   
 
By:
/s/ BRIAN CONWAY
   
Brian Conway
   
President, Director, Chief Financial Officer & Chief Executive Officer
   
(Principal Executive Officer)
 
(Principal Financial Officer and Principal Accounting Officer)

Pursuant to the requirements of the Securities Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.


Signature
 
Title
 
Date
         
/s/ BRIAN CONWAY
 
President, Director, Secretary, Chief Financial Officer and Chief Executive Officer
 
Date: January 12, 2018
Brian Conway
 
(Principal Executive Officer)
   
   
(Principal Financial Officer and Principal Accounting Officer)
   
         
/s/ JAY SILVERMAN
     
Date: January 12, 2018
Jay Silverman
 
Director
   
         
/s/ KIM O'BRIEN
     
Date: January 12, 2018
Kim O'Brien
 
Director
   




- 17 -









 
TABLE OF CONTENTS

   
F-1
 
         
   
F-2
 
         
   
F-3
 
         
   
F-4
 
         
   
F-5
 
         
   
F-6
 

 
 
 
 
 
 
 
 
 
 





- 18 -







Independent Registered Public Accounting Firm's Auditor's Report on the Consolidated Financial Statements

Board of Directors and Shareholders
The Go Eco Group, Inc

We have audited the accompanying balance sheets of The Go Eco Group, Inc. (the "Company"), as of September 30, 2016, and 2015, and the related statements of operation, shareholders' equity, and cash flows for year ended September 30, 2016 and the cumulative period from January 19, 2015 (date of inception of development stage) through September 30, 2016. These financial statements are the responsibility of the Company's management.  Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with standards of the Public Company Accounting Oversight Board (United States).  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to in the first paragraph above, present fairly, in all material respects, the financial position of The Go Eco Group, Inc. as of September 30, 2016, 2015, and the results of its operations and their cash flows for years ended September 30, 2016 and 2015, in conformity with accounting principles generally accepted in the United States of America.

The Company's lack of operating history and financial resources raise substantial doubt about its ability to continue as a going concern.  The financial statements do not include adjustments that might result from the outcome of this uncertainty and if the Company is unable to generate significant revenue or secure financing, then the Company may be required to cease or curtail its operations.

/s/ Enterprise CPAs, Ltd

Enterprise CPAs, Ltd.
Chicago, IL
January 17, 2017








- 19 -







REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


To the Board of Directors of The Go Eco Group

We have audited the accompanying balance sheet of the Go Eco Group as of September 30, 2017 and the related statements of operations, shareholders' equity and cash flows for the year then ended. The Go Eco Group's management is responsible for these financial statements. Our responsibility is to express an opinion on these financial statements based on our audit. We were not engaged to examine management's assertion about the effectiveness of The Go Eco Group's internal control over financial reporting as of September 30, 2017.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of The Go Eco Group as of September 30, 2017, and the results of its operations and its cash for the year then ended in conformity with accounting principles generally accepted in the United States of America.

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 3 to the financial statements, the Company's ability to raise additional capital through debt and/or equity financing is unknown and the Company has incurred accumulated losses and negative cash flows from operations, which raises substantial doubt about its ability to continue as a going concern. Management's plan in regard to these matters are also described in Note 3. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.



De Leon & Company, P.A.
Pembroke Pines, Florida
January 8, 2018







- 20 -

THE GO ECO GROUP
(Formally Liberated Energy, Inc.)
BALANCE SHEET

   
September 30,
 
   
2017
   
2016
 
ASSETS
           
             
CURRENT ASSETS:
           
     Cash and Cash Equivalents
 
$
67,353
   
$
1,804
 
                 
              Total Current Assets
   
67,353
     
1,804
 
                 
OTHER ASSESTS:
               
                 
     TOTAL ASSETS
 
$
67,353
   
$
1,804
 
                 
LIABILITIES AND STOCKHOLDERS' EQUITY
               
                 
CURRENT LIABILITIES
               
     Accounts payable and accrued expenses
 
$
133,970
   
$
49,433
 
     Convertible note payable
   
973,086
     
517,736
 
               Total Current Liabilities
   
1,107,056
     
567,169
 
                 
     TOTAL LIABILITIES
 
$
1,107,056
   
$
567,169
 
                 
STOCKHOLDERS EQUITY
               
     Preferred Stock:
               
     10,000,000 shares authorized par value $0.001 per share; 10,000,000 and none issued and outstanding, respectively
   
10,000
     
10,000
 
      Common Stock:
               
      10,000,000,000 shares authorized par value $0.001 per share;
               
      issued and outstanding, 14,468,303 at September 30, 2017 and
               
1,888,832 at September 30, 2016
   
14,468
     
1,888
 
Additional paid-in-capital
   
1,801,619
     
824,414
 
     Accumulated deficit
   
(2,865,790
)
   
(1,401,668
)
       TOTAL STOCKHOLDERS' DEFICIT
 
$
(1,039,702
)
 
$
(565,365
)
                 
       TOTAL LIABILITIES AND EQUITY
 
$
67,353
   
$
1,804
 

The accompanying notes are an integral part of these statements.

F-2
- 21 -


THE GO ECO GROUP, INC.
(Formally Liberated Energy, Inc)
STATEMENT OF OPERATIONS


   
2017
   
2016
 
Sales
           
  Sales
 
$
48,900
       
 Cost of sales
   
14,000
       
 Gross profit
   
34,990
       
               
Operating Expenses
             
General and Administrative Expenses
   
1,377,609
   
$
285,367
 
                 
Operating loss
   
(1,342,619
)
   
(285,367
)
                 
Other Income (Expense):
               
Interest income
   
4
     
--
 
Interest expenses
   
(151,010
)
   
(64,345
)
Debt settlement
   
29,503
     
47,510
 
Impairment of assets
   
--
     
(16,234
)
Total other expense
   
(121,503
)
   
(33,068
)
                 
                 
Net loss
 
$
(1,464,122
)
 
$
(318,436
)
                 
Loss per Share, Basic & Dilutive
 
$
(0.36
)
 
$
(0.43
)
                 
                 
Weighted Average Shares Outstanding
   
4,089,611
     
798,545
 

The accompanying notes are an integral part of these statements.

F-3
- 22 -


THE GO ECO GROUP, INC.
 (Formally Liberated Energy, Inc)
STATEMENT OF SHAREHOLDERS DEFICIT
FOR YEARS ENDED SEPTEMBER 30, 2017 AND 2016



   
Common Stock
   
Preferred Stock
   
Additional
Paid-In
   
Accumulated
   
Total
Stockholders'
 
   
Shares
   
Amount
   
Shares
   
Amount
   
Capital
   
Deficit
   
Deficit
 
                                           
Balance at September, 2015
   
2,029,651,437
     
2,029,652
     
10,000,000
     
10,000
     
(1,323,118
)
   
(1,083,232
)
   
(366,698
)
Common stock issued for debt
   
729,504,288
     
729,504
     
--
     
--
     
(698,735
)
   
--
     
39,769
 
Common stock issued for service
   
1,100,000
     
1,100
     
--
     
--
     
78,900
     
--
     
80,000
 
Reverse of common stock 1:3,500
   
(2,758,367,395
)
   
(2,758,367
)
   
--
     
--
     
2,758,367
     
--
     
--
 
Rounding on reverse of common stock
   
502
     
--
     
--
     
--
     
--
     
--
     
--
 
                                                         
Net loss
   
--
     
--
     
--
     
--
     
--
     
(318,436
)
   
(318,436
)
                                                         
Balance at September, 2016
   
1,888,832
   
$
1,889
     
10,000,000
   
$
10,000
   
$
824,414
   
$
(1,401,668
)
 
$
(565,365
)
Common stock issued for debt
   
6,699,471
     
6,699
     
--
     
--
     
138,920
     
--
     
145,619
 
Common stock issued for service
   
5,880,000
     
5,880
     
--
             
838,285
     
--
     
844,165
 
     
--
     
--
     
--
     
--
     
--
     
--
     
--
 
Net loss
   
--
     
--
     
--
     
--
     
--
     
(1,464,122
)
   
(1,464,122
)
     
--
     
--
     
--
     
--
     
--
     
--
     
--
 
Balance at September 30, 2017
   
14,468,303
   
$
14,468
     
10,000,000
   
$
10,000
   
$
1,801,619
   
$
(2,865,790
)
   
(1,039,703
)



The accompanying notes are an integral part of these statements.














F-4
- 23 -


THE GO ECO GROUP, INC
(Formally Liberated Energy, Inc.)
STATEMENTS OF CASH FLOWS
FOR YEARS ENDED SEPTEMBER 30 ,

   
2017
   
2016
 
OPERATING ACTIVITIES:
           
Net Loss
 
$
(1,464,122
)
 
$
(318,436
)
Adjustments to reconcile net loss to net cash used in operating activities
               
Stock issued for service expense
   
844,164
     
10,000
 
 Debt settlement
   
--
     
(30,000
)
 Impairment of assets
   
43,324
     
--
 
Amortization of debt discount and finance charges
   
45,970
     
--
 
Changes in operating assets and liabilities
               
Inventory
   
--
     
23,880
 
Prepaid expenses
   
--
     
--
 
Deferred revenue
   
--
     
--
 
Accounts payable and accrued expense
   
84,537
     
(27,471
)
Net cash used in operating activities
   
(446,127
)
   
(287,085
)
                 
INVESTING ACTIVITY
               
Loans to Eco Cab
   
(197,520
)
   
--
 
Repayment from Eco Cab
   
154,196
     
--
 
  Net cash used in investing activities
   
(43,324
)
       
                 
FINANCING ACTIVITIES:
               
Proceeds from issuance of convertible note
   
555,000
     
271,968
 
Net cash provided by financing activities -
   
555,000
     
271,968
 
                 
Net increase (decrease) in cash and cash equivalents
   
65,549
     
(15,117
)
Cash and cash equivalents at Beginning of the Period
   
1,804
     
16,921
 
Cash and cash equivalents at End of Period
 
$
67,353
   
$
1,804
 
                 
                 
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
               
                 
Stock issued for convertible debt
 
$
145,620
   
$
29,769
 
Stock issued for settlement of notes payable
 
$
--
   
$
20,000
 
Stock issued for stock payable
 
$
--
   
$
50,000
 

The accompanying notes are an integral part of these statements.

F-5
- 24 -


THE GO ECO GROUP, INC.
(Formally Liberated Energy, Inc)
N OTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED SEPTEMBER 30, 2017 AND 2016

NOTE 1 - NATURE OF OPERATIONS

Organization

The Go Eco Group, Inc. (formally Liberated Energy, Inc) (the "Company"), formerly known as Mega World Food Holdings Company is a Nevada corporation formed on September 14, 2010.

On January 19, 2013, pursuant to a Common Stock Purchase Agreement, dated January 7, 2013, Perpetual Wind Power Corporation, a privately held corporation formed under the laws of the State of Delaware on July 1, 2010, acquired 24,500,000 non-registered shares of the Company from its shareholders, thereby owning 24,500,000 out of a total of 25,000,000 issued and outstanding shares of the Company. Thereafter, the Company acquired from Perpetual Wind Power Corporation its patented wind and solar powered turbine technology for 2,500,000 newly issued shares of the Company which were distributed in a dividend to its shareholders and Perpetual Wind Power Corporation returned to treasury its 24,500,000 shares it acquired from the Company's shareholders. As a result of this transaction, the Company had on January 19, 2013, 3,000,000 shares issued and outstanding. On February 14, 2013, the Company changed its name from Mega World Food Holding Company to The Go Eco Group, Inc. and underwent a 24 for 1 stock split, whereby the Company's outstanding shares increased from 3,000,000 to 72,000,000.

On January 19, 2013, the Company disposed of its wholly-owned subsidiary, Mega World Food Limited (HK).  Mega World Food Limited (HK) was incorporated on June 24, 2010 and was in the business of selling frozen vegetables in all areas of the world except China.  From inception, Mega World Food Limited (HK) only incurred setting up, formation or organization activities.  Upon disposal, the Company ceased these operations and accordingly, the Company's financial statements have been prepared with the net assets, results of operations, and cash flows of this business displayed separately as "discontinued operations."

On February 4, 2015, the Company increased their number of authorized preferred shares from 10,000,000 to 100,000,000 and authorized common shares from 250,000,000 to 900,000,000.

On December 31, 2015, the Company amended the preferred shares voting rights increasing the voting of each preferred share from 100 to 10,000 votes on any action voted on by the common stock holders

On July 6, 2016, the Company adopted a 1-for-3,500 reverse split of the Company's common stock that as of June 30, 2016, was not yet effective.

On September 14, 2016, the Company entered into an agreement with Ron Knori (Kroni) Owner of EcoCab Portland, LLC by which the Company will acquire all outstanding ECGLLC membership interest for a 20% non-dilutive interest of the outstanding shares of the Company with the first closing of the agreement. The foregoing agreement was amended on October 11, 2016 and the Company also entered into an Addendum to the amended agreement.   The foregoing agreement and transaction described therein has not been completed as of the date of this report and there is no assurance that the transaction will ever be completed, and the Company is contemplating rescinding the agreement and initiating suit against Knori.

On January 27, 2017, the Company reduced the authorized shares of common stock from 10,000,000,000 to 2,000,000,000 and changed the name from The Go Eco Group, Inc to The Go Eco Group.

On March 6, 2017, the Company terminated the agreements with Ron Knori and EcoCab based upon breach of contract, fraud, fraudulent inducement, fraud in the factum, negligent misrepresentation, misrepresentation, contractual interference, breach of fiduciary duty, negligence, and conversion, all of which were perpetrated by Ron Knori, individually, and in his capacity as manager of EcoCab.
- 25 -


NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Accounting

The Company maintains its books and records on the accrual basis of accounting.  The accompanying financial statements have been prepared on that basis, in which revenues and gains are recognized when earned and expenses and losses are recognized when incurred.

Use of Estimates

The presentation of financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.

Cash and Cash Equivalents

For the purpose of the statement of cash flows, cash and cash equivalents include all cash balances, which are not subject to withdrawal restrictions or penalties, and highly liquid investments and debt instruments with a maturity of three months or less from the date of purchase.

  Fair Value of Financial Instruments

Our short-term financial instruments, including cash, other assets and accounts payable and accrued expenses consist primarily of instruments without extended maturities, the fair value of which, based on management's estimates, reasonably approximate their book value. The fair value of our notes and advances payable is based on management estimates and reasonably approximates their book value based on their current maturity.

Net Loss per Common Share

The Company computes per share amounts in accordance with Statement of Financial Accounting Standards (SFAS) ASC 260, Earnings per Share (EPS). ASC 260 requires presentation of basic and diluted EPS. Basic EPS is computed by dividing the income (loss) available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted EPS is based on the weighted-average number of shares of common stock and common stock equivalents outstanding during the periods.

Property, Equipment, and Intangible Assets

Property and equipment are carried at cost, less accumulated depreciation. Additions are capitalized and maintenance and repairs are charged to expense as incurred. Intangible assets consist of acquired customer and vendor databases and are carried at cost, less accumulated amortization.

Depreciation and amortization is provided principally on the straight-line basis method over the estimated useful lives of the assets.

Stock-Based Compensation

The Company accounts for stock-based compensation to employees and non-employees in accordance with ASC 718 requiring employee equity awards to be accounted for under the fair value method. Accordingly, share-based compensation is measured at grant date, based on the fair value of the award and is recognized as expense over the requisite employee service period. The Company accounts for stock-based compensation to other than employees in accordance with FASB ASC 505-50. Equity instruments issued to other than employees are valued at the earlier of a commitment date or upon completion of the services, based on the fair value of the equity instruments and is
- 26 -


recognized as expense over the service period. The Company estimates the fair value of share-based payments using the Black-Scholes option-pricing model for common stock options and the closing price of the company's common stock for common share issuances.

Inventory

Inventories are stated at the cost of goods. There was zero inventory in stock in September 30, 2017 and 2016 respectively.

Revenue and Cost Recognition

It is the Company's policy that revenue from product sales or services will be recognized in accordance with ASC 605 "Revenue Recognition". Four basic criteria must be met before revenue can be recognized: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) the selling price is fixed and determinable; and (4) collectability is reasonably assured. Determination of criteria (3) and (4) are based on management's judgments regarding the fixed nature of the selling prices of the products delivered and the collectability of those amounts. 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. The Company will defer any revenue for which the product was not delivered or is subject to refund until such time that the Company and the customer jointly determine that the product has been delivered or no refund will be required.

Income Taxes

The Company utilizes ASC 740 "Income Taxes" which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each year-end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Temporary differences between taxable income reported for financial reporting purposes and income tax purposes primarily relate to the recognition of debt costs and stock based compensation expense. The adoption of ASC 740-10 did not have a material impact on the Company's results of operations or financial condition.

NOTE 3 – GOING CONCERN MATTERS

As shown in the accompanying financial statements, the Company has a net loss of $1,464,122 for the year ended September 30, 2017.  As of September 30, 2017, the Company reported an accumulated deficit of $2,865,790. The Company's ability to generate continued positive cash flows is dependent on the ability to grow its operating entity as well as the ability to raise additional capital.  Management is following strategic plans to accomplish these objectives, but success is not guaranteed. These factors raise substantial doubt about the Company's ability to continue as a going concern. The financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the outcome of this uncertainty.

NOTE 4 – FAIR VALUE MEASUREMENTS

As defined in (Financial Accounting Standards Board ASC 820), fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The Company utilized the market data of similar entities in its industry or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated, or generally unobservable. The Company classifies fair value balances based on the observability of those inputs. FASB ASC 820 establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement) and the lowest priority to unobservable inputs (level 3 measurement).
- 27 -


The three levels of the fair value hierarchy are as follows:

Level 1    –
Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 1 primarily consists of financial instruments such as exchange-traded derivatives, marketable securities and listed equities.

Level 2     –
Pricing inputs are other than quoted prices in active markets included in level 1, which are either directly or indirectly observable as of the reported date and includes those financial instruments that are valued using models or other valuation methodologies. These models are primarily industry-standard models that consider various assumptions, including quoted forward prices for commodities, time value, volatility factors, and current market and contractual prices for the underlying instruments, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace throughout the full term of the instrument, can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace. Instruments in this category generally include non-exchange-traded derivatives such as commodity swaps, interest rate swaps, options and collars.

Level 3     –
Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally developed methodologies that result in management's best estimate of fair value.

Management has determined based on note conversion history that the conversion value is equal or less than par value of the shares used for conversion thus determining   that the fair value of the notes is equal to their face value.

NOTE 4 – RELATED PARTY

On February 4, 2015, the Company issued to an officer and director of the Company 10,000,000 shares with a value of $10,000 of series A preferred stock for service. Each share has 10 votes on all matters of the Company in which the shareholders can vote.

During the year ended September 30, 2017, the Company paid the CEO $111,500 in consulting fees along with expenses.

NOTE 5 – EQUITY

During the year ended September 30, 2016, the Company issued 1,100,000 shares of common stock to two parties for service with a value of $80,000.

During the year ended September 30, 2016, the Company issued 208,428 shares of common stock for convertible debt with a value of $39,769.

During the year ended September 30, 2017, the Company issued 5,880,000 shares of commons stock with a value of $844,165 for services.

During the year ended September 30, 2017, the Company issued 6,699,471 shares of common stock with a value of $145,619 for convertible debt.


- 28 -


NOTE 6 - CONVERTIBLE NOTES

LG Capital Funding

On July 13, 2015, the Company issued a Convertible Note to LG CAPITAL FUNDING, LLC ("LG Capital"), to replace the $41,400 convertible note issued to Eastmore Capital The note matures on July 13, 2016.  The note is convertible by the holder at a discount of 55% of the lowest trading price of the Company's stock for the 15 days prior to the conversion

On August 11, 2015, LG Capital's lawsuit claims the Company issued a Convertible Note to LG CAPITAL FUNDING, LLC ("LG Capital") for a principle amount of $27,500 with an interest rate of 8% per annum. The note matures on August 11, 2016.  The note is convertible by the holder at a discount of 55% of the lowest trading price of the Company's stock for the 15 days prior to the conversion.  Per the Company the note was not funded but the Company has accrued the note and interest, totaling $31,843.

On September 8, 2015, the Company issued a Convertible Note to LG CAPITAL FUNDING, LLC ("LG Capital") for a principle amount of $27,000 with an interest rate of 8% per annum. The note matures on September 8, 2016, 2016.  The note is convertible by the holder at a discount of 55% of the lowest trading price of the Company's stock for the 15 days prior to the conversion.

On March 14, 2016, the Company issued a Convertible Note to LG Capital Funding, LP for a principle amount of $18,000 with an interest rate of 12% per annum. The note matures on March 14, 2017.  The note is convertible by the holder at a discount of 45% of the lowest trading price of the Company's stock for the 20 days prior to the conversion.

On May 26, 2016, the Company issued a Convertible Note to LG Capital Funding, LP for a principle amount of $17,000 with an interest rate of 12% per annum. The note matures on March 14, 2017.  The note is convertible by the holder at a discount of 50% of the lowest trading price of the Company's stock for the 20 days prior to the conversion. Net proceeds to the Company are $15,000 after deduction of legal fees of $2,000. As of September 30, 2016, the outstanding balance of the note was $17,000 in principal plus interest of $428 for a total of $17,428.

On September 15, 2017, LG Capital, LLC filed a lawsuit against the Company. The filing alleges that the Company has defaulted on several unpaid loans from LG Capital to the Company with the total claim against the Company of $279,730.56. The Company negotiated in good faith with LG Capital to settle the debt but to no avail. After reviewing the claim filed by LG Capital, it is the opinion of Company Management that the Company's outstanding liability to LG Capital has been fully recognized and accounted for in the financial statements of the Company. (See Note 9- Legal).

Carebourn Capital

On November 5, 2015, the Company issued a Convertible Note to Carebourn Capital, LP for a principle amount of $28,000 with an interest rate of 12% per annum. The note matures on August 5, 2016.  The note is convertible by the holder at a discount of 50% of the lowest trading price of the Company's stock for the 20 days prior to the conversion.

On December 21, 2015, the Company issued a Convertible Note to Carebourn Capital, LP for a principle amount of $21,000 with an interest rate of 12% per annum. The note matures on September 16, 2016.  The note is convertible by the holder at a discount of 50% of the lowest trading price of the Company's stock for the 20 days prior to the conversion.

On March 11, 2016, the Company issued a Convertible Note to Carebourn Capital, LP for a principle amount of $18,000 with net proceeds of $15,000 and with an interest rate of 12% per annum. The note matures on December 11, 2016.  The note is convertible by the holder at a discount of 50% of the lowest trading price of the Company's stock for the 20 days prior to the conversion.
- 29 -


On July 25, 2016, the Company issued a Convertible Note to Carebourn Capital, LP for a principle amount of $23,000 with an interest rate of 12% per annum. The note matures on July 25, 20172017.  The note is convertible by the holder at a discount of 45% of the lowest three trading price of the Company's stock for the 20 days prior to the conversion.

On September 7, 2016, the Company issued a Convertible Note to Carebourn Capital, LP for a principle amount of $197,363,70 less legal fees of $8,000 with an interest rate of 12% per annum. The note matures on September 7, 20172017.  The note is convertible by the holder at a discount of 50% of the lowest three trading price of the Company's stock for the 20 days prior to the conversion.

On October 13, 2016, the Company issued a Convertible Note to Carebourn Capital, LP for a principle amount of $237,475 less an original discount of $30,975 plus transaction fees of $6,500 for a net advanced of $200,000.  The note bears an interest rate of 12% per annum. The note matures on October 3, 2017.  The note is convertible by the holder at a discount of 45% of the lowest three trading price of the Company's stock for the 20 days prior to the conversion. On September 15, 2016 $85,000 was returned to Carebourn reducing the principal balance to $115,114.

On December 13, 2016, the Company issued a Convertible Note to Carebourn Capital, LP for a principle amount of $98,325 less an original discount of $12,825 for a net advanced of $80,000.  The note bears an interest rate of 12% per annum. The note matures on December 13, 2018.  The note is convertible by the holder at a discount of 45% of the lowest three trading price of the Company's stock for the 20 days prior to the conversion.

 As of September 30, 2017, the Company owed Carebourn capital $522,510 in principal and interest of $77,877 for a total of $600,387.

Power Up Lending

On December 13, 2016, the Company issued a Convertible Note to Power Up Lending Group Ltd for a principle amount of $77,000 less legal fees of $2,000 with an interest rate of 8% per annum with a default interest rate of 22%. The note matures on September 28, 2017.  The note is convertible by the holder at a discount of 48% of the lowest three trading price of the Company's stock for the 10 days prior to the conversion.

On February 28, 2017, the Company issued a Convertible Note to Power Up Lending Group Ltd for a principle amount of $33,000 with an interest rate of 8% per annum with a default interest rate of 22%. The note matures on December 5, 2017.  The note is convertible by the holder at a discount of 48% of the lowest three trading price of the Company's stock for the 10 days prior to the conversion.

As of September 30, 2017, the Company owed Power Up lending $152,460 in principal and $2,733 in interest for a total of $155,193.

Crown Bridge Partners

On August 21, 2017, the Company issued a Convertible Note to Crown Bridge Partners for a principle amount of $33,000 with an interest rate of 8% per annum with a default interest rate of 22%. The note matures on December 5, 2017.  The note is convertible by the holder at a discount of 48% of the lowest three trading price of the Company's stock for the 10 days prior to the conversion

As of September 30, 2017, the Company owed Crown Bridge Partners $40,000 in principal and $316 in interest for a total of $40,316.

Management has reviewed the terms of the convertible instruments to determine their fair value. After reviewing the characteristic and the value of the conversion, Management has determined based on note conversion history that the conversion value is equal or less than par value of the shares used for conversion thus determining that the fair value of the notes is equal to their face value.

- 30 -


NOTE 7 - INCOME TAXES

The Company follows Accounting Standards Codification 740, Accounting for Income Taxes.

The Company did not have taxable income for the years ended September 30, 2017 or 2016.The Company's deferred tax assets consisted of the following as of September 30, 2017, and 2016:

   
2017
   
2016
 
Total deferred tax asset
   
1,112,570
     
495,658
 
Valuation allowance
   
(1,112,570
)
   
(495,658
)
Net deferred tax asset
 
$
-
   
$
-
 

The Company had a net loss of $1,464,122 for the year ended September 30, 2017 and $318,436 for the same period in 2016.  As of September 30, 2016, the Company's net operating loss carry forward was $1,112,570 that will begin to expire in the year 2034.

NOTE 8 – LEGAL

On September 15, 2016, LG Capital, LLC filed a lawsuit against the Company in the County of Kings, in the Supreme Court of the State of New York (index number 516298/2016). The filing alleges that the Company has defaulted on several unpaid loans from LG Capital to the Company with the total owing and due including principal and interest of $279,730.56. The Company has not counter claimed but believes that LG Capital unlawfully attempted to convert some of the loans to common stock of the Company has filed an injunction against the Company transfer agent to block LG Capital from such a conversion. In addition, the Company negotiated in good faith with LG Capital to settle the debt but to no avail. After reviewing the claim made by LG Capital, is the opinion of management that the outstanding liability to LG Capital has been fully recognized and accounted for in the financial statements of the Company. (See Note 6-Convertible Notes).

NOTE 9 – COMMITMENTS AND CONTINGENCIES

On October 11, 2016, the Company completed an agreement with Ron Knori (Kroni) Owner of EcoCab Portland, LLC by which the Company will required all outstanding ECGLLC membership interest for a 20% non-dilutive interest of the outstanding shares of the Company with the first closing of the agreement. The Company's name will be changed to EcoCab, USA, Inc as soon as practical after closing. Subsequent closing through January 31. 2017 will take place and during the period from first closing to January 31, 2017,

·
The Company will not attempt to change the current management or operations of ECPLLC without the consent of Knori, but the Company will have the right to oversee ECPLLC's revenue and payments out on a daily and monthly basis,
·
The Company will use commercially reasonable efforts to finance the growth of EPCLLC's revenues, but at a minimum, the Company will provide at least $400,000 in working capital funds to ECPLLC,
·
all LIBE convertible notes held by Carebourn Capital L.P. are retired (or Carebourn Capital L.P. consents to the issuance to Knori of the Preferred Shares they hold as collateral), and
·
and that the Company has not closed or entered into a binding agreement to merge with, acquire, or become acquired by, another company of equal or greater fair value (private or public) to ECPLLC. If the Preferred Shares Condition is fulfilled, Knori will be issued the Preferred Shares at a Subsequent Closing. "

Second closing conditions" requires that ECPLLC has audited financial statements available to the Company. If the Second Tranche Condition is met, The Company will issue the additional Common Shares to SELLER at a Subsequent Closing.

- 31 -


Third closing conditions requires ECPLLC:

·      made audited financials available to the Company within 71 days of the First Closing Date, and
·      has positive earnings before interest, tax and depreciation and amortization (" EBITDA ") under GAAP for the month of January 2017.

If the third closing Conditions are met, the Company will issue the third closing Common Shares to Knori at a Subsequent Closing. The number of third closing Common Shares will be calculated so that Knori's resulting percentage of the Company is equitable based on the fair value of ECPLLC relative to the other assets of the Company, but in no event, will Knori be required to transfer or cancel shares to reduce Knori's percentage of the outstanding common stock to below 30%. If the parties cannot agree to an equitable number of shares to issue Knori, the matter will be submitted to binding arbitration. On November 1, 2016 the Company issued 360,000 shares of common stock for the acquisition.

On March 6, 2017, the Company terminated the agreements with Ron Knori and EcoCab based upon breach of contract, fraud, fraudulent inducement, fraud in the factum, negligent misrepresentation, misrepresentation, contractual interference, breach of fiduciary duty, negligence, and conversion, all of which were perpetrated by Ron Knori, individually, and in his capacity as manager of EcoCab.

NOTE 10 – IMPAIRMENT OF ASSET

The Company had advanced Eco Cab $197,520 as part of the acquisition agreement dated October 11, 2016. As the closing has not occurred, due to the failure of EcoCab meeting the agreement requirements, the Company has treated the advances as receivables due the Company.

During year ended September 30, 2017 the Company received payments of $ 154,196 leaving a balance due the Company as of June 30, 2017 of $43,324. As of September 30, 2017, the Company determined the receivable was uncollectible and impaired the asset.

NOTE 11 - SUBSEQUENT EVENTS

On November 11, 2017 the Company issued 661,642 shares of common stock for the conversion of $6,616 of convertible debt.

On November 22, 20917 the Company issued 719,512 shares of common stock for the conversion of $2,950 of convertible debt.

On December 20, 2017 the Company issued 720,313 shares of common stock for the conversion of $2,305 of convertible debt.

On December 20,2017 the Company issued 721,429 shares of common stock for the conversion of $1,515 of convertible debt.

On December 28, 2017 the Company issued 720,690 shares of common stock for the conversion of $2,090 of convertible debt.

On December 28, 2017 the Company issued 700,000 shares of common stock with a value of $4,620 to one individual for service.

On January 2, 2018 the Company issued 1,546,588 shares of common stock for the conversion of $2,941 of convertible debt and $500 interest payment.

On January 9, 2018 the Company issued 811,917 shares of common stock for the conversion of $1,624 of convertible debt.
- 32 -


On December 21, 2017 the company formed a joint venture with Bravatek Solutions, Inc a Colorado corporation. Under the terms of the agreement the Company will own 65% of the joint venture and contribute $100 plus a nonexclusive license of the intellectual property necessary to develop the Light Guard System with Bravatek contributing $25,000 plus the sale of software to the JV for $65,000.









- 33 -