UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, ~~2014~~2015

Commission File Number: 000-55091

SOUL & VIBE INTERACTIVE INC.

(Exact name of registrant as specified in its charter)

Nevada	38-3829642
(State or Other Jurisdiction of Incorporation)	(I.R.S. Employer Identification Number)

~~1660~~6548 South ~~Hwy~~Big ~~100~~Cottonwood Canyon Road, Suite ~~500~~200, ~~St.~~Salt ~~Louis~~Lake ~~Park~~City, MNUtah, ~~55416~~84121 (Address of principal executive offices) (Zip Code)

Registrant’s Telephone Number, including area code: (763) 400-8040

Securities registered pursuant to Section 12(b) of the Exchange Act: None

Securities registered pursuant to Section 12(g) of the Exchange Act: Common Stock, par value $0.001 per share.

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

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 ¨ No x

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 (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of the 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. x

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.

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 12b-2 of the Exchange Act). Yes ¨ No x

The aggregate market value of the voting ~~stock~~ stock held by non-affiliates of the issuer on June 30, ~~2014~~2015, based upon the $0.~~157~~128 ~~per share~~ closing price of such stock on that date, was $2325,~~542,947~~385.

There were 48237,~~744~~642,~~973~~126 shares of common ~~stock~~ stock outstanding as of March 2425, ~~2015~~2016.

Documents incorporated by reference: None

TABLE OF CONTENTS

		Page
PART I
Item 1.	Business.	1
Item 1A.	Risk Factors.	910
Item 1B.	Unresolved Staff Comments.	1416
Item 2.	Properties.	1516
Item 3.	Legal Proceedings.	1516
Item 4.	Mine Safety Disclosures	1516
PART II
Item 5.	Market for Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.	1517
Item 6.	Selected Financial Data.	1617
Item 7.	Management’s Discussion and Analysis of Financial Condition and Plan of Operations.	1617
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk.	2226
Item 8.	Financial Statements and Supplementary Data.	2227
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.	2244
Item 9A.	Controls and Procedures.	2344
Item 9B.	Other Information.	2345
PART III
Item 10.	Directors, Executive Officers, and Corporate Governance.	2446
Item 11.	Executive Compensation.	2547
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.	2648
Item 13.	Certain Relationships and Related Transactions, and Director Independence.	2749
Item 14.	Principal Accounting Fees and Services.	2749
PART IV
Item 15.	Exhibits, Financial Statement Schedules.	2850

FORWARD-LOOKING INFORMATION

This Annual Report on Form 10-K contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements relate to future events or our future financial performance. We have attempted to identify forward-looking statements by terminology including “anticipates,” “believes,” “expects,” “can,” “continue,” “could,” “estimates,” “expects,” “intends,” “may,” “plans,” “potential,” “predict,” “should” or “will” or the negative of these terms or other comparable terminology. These statements are only predictions; uncertainties and other factors may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels or activity, performance or achievements expressed or implied by these forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Our expectations are as of the date this Form 10-K is filed, and we do not intend to update any of the forward-looking statements after the date this Annual Report on Form 10-K is filed to confirm these statements to actual results, unless required by law.

PART I

ITEM 1.

BUSINESS.

As used in this Annual Report on Form 10-K, all references to “we”, “our” and “us” for periods prior to the closing of the Exchange refer to Soul and Vibe Entertainment, Inc., a Nevada corporation (“Soul”) as a privately owned company, and for periods subsequent to the closing of the Exchange, refer to the Company and its subsidiaries (including Soul). All share figures in this Annual Report reflect the effectuation of the Reverse Split discussed below.

Background

Exchange Agreement. On February 5, 2013, Soul and Vibe Interactive Inc., a Nevada corporation (the “Company”) entered into a Share Exchange Agreement (the “Agreement”) by and among the Company, Soul and the sole shareholder of Soul (the “Shareholder”). Pursuant to the Agreement, Soul became a wholly owned subsidiary of the Company (the “Exchange”). As consideration for the Exchange, the Shareholder exchanged an aggregate of 6150,000~~,000~~ shares of common stock of Soul, constituting all shares of capital stock of Soul issued and outstanding (the “Soul Shares”) for an aggregate of 12308,333~~,334~~ shares of the Company’s common stock (the “Common Stock”). The Agreement contained customary terms and conditions for a transaction of this type, including representations, warranties and covenants, as well as provisions describing the consideration exchanged, the process of exchanging the consideration and the effect of the Exchange. The closing of the Exchange took place on February 6, 2013. There were no rights to acquire any equity interests of Soul prior to the closing of the Exchange. Subsequent to the consummation of the Exchange, the Company had 36908,333~~,334~~ shares of Common Stock issued and outstanding.

Changes Resulting from the Exchange. We intend to carry on Soul’s business as our primary line of business. Soul is headquartered in ~~Minneapolis~~Salt Lake City, MNUT, and is ~~focused~~ focused on developing, publishing, and digitally distributing interactive entertainment for video game consoles, personal computers, ~~and~~ and mobile devices, as well as interactive books (also known as “e-books” or “interactive storybooks”) and downloadable/streamable music. As of March 8, 2013, we discontinued entirely the business of Victory LG, Inc.

~~Changes~~Reverse toSplit. ~~the~~On ~~Board~~June of25, ~~Directors~~2015, ~~and~~the ~~Executive~~holder ~~Officers.~~of ~~Upon~~a majority of the ~~closing~~shares of ~~the~~Common ~~Exchange,~~Stock ~~Pauline~~approved ~~Carson~~a ~~resigned~~reverse ~~from~~split ~~her~~of ~~positions~~such asshares ~~Chief~~by ~~Executive~~a ~~Officer,~~ratio of 1 for 40 (the “Reverse ~~President~~Split”). ~~and~~The aCompany ~~member~~filed the certificate of amendment (the “Certificate”) to its ~~Board~~articles of ~~Directors~~incorporation with the State of Nevada effectuating the ~~Company~~Reverse Split on August 20, ~~but~~2015. ~~was~~The ~~appointed~~Reverse asSplit abecame ~~Vice~~effective ~~President~~in the State of Nevada ~~the~~on ~~Company~~August 25, 2015. ~~Simultaneously with~~The ~~the~~Reverse ~~effectiveness~~Split ofbecame effective on the ~~Exchange~~OTC QB on August 25, ~~Peter~~2015, ~~Anthony~~having ~~Chiodo~~been approved by the Financial Industry Regulatory Authority, ~~who~~Inc. ~~has~~(“FINRA”) ~~served~~on asAugust 25, 2015. As a ~~member~~result of the ~~Board~~Reverse ofSplit, ~~Directors~~each forty (40) shares of ~~the~~Common ~~Company~~ Stock issued and asoutstanding ~~its~~prior ~~Vice~~to ~~President,~~the ~~was~~2015 ~~appointed~~Reverse asSplit ~~the~~were ~~Company’s~~converted ~~Chief~~into ~~Executive~~one ~~Officer~~(1) share of Common Stock, and ~~President~~all options, ~~Treasurer~~warrants, and ~~Secretary~~any other similar instruments convertible into, or exchangeable or exercisable for, shares of Common Stock have been proportionally adjusted. All references to common stock have been retroactively restated.

Return to Treasury Agreement. On July 28, 2013, the Company entered into the Return to Treasury Agreement with its sole director and chief executive officer as well as the majority shareholder (the “Holder”) of its shares of Common Stock pursuant to which it agreed to issue to the Holder 130,000 shares of its newly created Series B Preferred Stock, par value $.001 per share (the “Series B Preferred Stock”), in exchange for the surrender by the Holder of 21,486,431 of his shares of Common Stock once such shares of Series B Preferred Stock have been designated. The shares of Series B Preferred Stock were issued to the Holder effective July 28, 2013.

Reverse Split. On August 1, 2013, the holder of a majority of the shares of Common Stock approved a reverse split of such shares by a ratio of 1 for 3 (the “Reverse Split”). The Company filed the certificate of amendment (the “Certificate”) to its articles of incorporation with the State of Nevada effectuating the Reverse Split on August 7, 2013. The Reverse Split became effective in the State of Nevada on August 12, 2013. The Reverse Split became effective on the OTC Bulletin Board (the “OTC BB”) on August 12, 2013, having been approved by the Financial Industry Regulatory Authority, Inc. (“FINRA”) on August 9, 2013. As a result of the Reverse Split, each three (3) shares of Common Stock issued and outstanding prior to the Reverse Split were converted into one (1) share of Common Stock, and all options, warrants, and any other similar instruments convertible into, or exchangeable or exercisable for, shares of Common Stock have been proportionally adjusted. All references to common stock have been retroactively restated.

Overview

Soul and Vibe Interactive Inc. is a ~~video~~publisher of games, interactive books, and ~~computer~~downloadable/streamable ~~games~~music ~~company~~for digital devices. We develop, publish, and digitally distribute interactive entertainment (games and interactive books) for video game consoles, mobile and augmented reality/wearable tech devices, personal computers, and ~~personal~~social-media ~~computers~~platforms. We develop, publish, and digitally distribute music for play on digital devices through downloadable/streamable channels that include, but are not limited to, the likes of: Apple Music, iTunes, Spotify, Google Play, Amazon, Rdio, Deezer, Tidal, YouTube Music, Beats/MediaNet, and Microsoft Groove. The music service Shazam, also, recognizes Soul and Vibe Music products. Since our Company’s inception, we have generated a degree of revenue. Revenue generation began in the 1st quarter of 2014 with the release of our first video game product. The release was Timeless Gems, an innovative "match-3" game that features board game elements. Timeless Gems was released, worldwide, on Facebook, Google's Google Play, and Apple's App Store (for iPhone, iPad, and iPod Touch) in February and March 2014. In addition to the development and release of the Timeless Gems product, two packages of expansion content for Timeless Gems were developed and released during fiscal year 2014. A third package of expansion content for Timeless Gems was developed during fiscal year 2014 ~~but this package has not yet been released~~. ItThis ~~is anticipated that this~~ third ~~expansion~~ package ~~will be released during fiscal year 2015. In June~~ ~~2014~~of ~~the~~expansion ~~company~~content ~~released a second product, Striker Rush: Champion Edition. Striker Rush: Champion Edition~~ was released, ~~worldwide, through~~in ~~Apple’s~~December ~~App Store (for iPhone, iPad, and iPod Touch mobile devices), and through Google Play and Amazon~~2015.~~com (for Android devices.)~~

~~During~~In ~~fiscal~~June ~~year~~ 2014, ~~the~~day ~~Company licensed Timeless Gems~~ and ~~Striker~~date ~~Rush:~~with ~~Champion Edition to Tanjarine, a subsidiary of TouchTunes,~~ the ~~largest~~opening game ~~provider~~ of ~~in-venue music and entertainment throughout North America. Tanjarine is~~ the ~~first~~2014 ~~integrated~~World ~~tabletop~~Cup ~~ordering~~Soccer tournament, ~~entertainment and pay-at-~~the~~-table solution~~ tocompany ~~combine~~released ~~10"~~a ~~proprietary~~second ~~tabletop~~video ~~tablets~~game ~~with server handhelds~~product, ~~which~~Striker ~~expedite~~Rush: ~~service,~~Champion ~~payment, and second screen televisions~~Edition. Striker ~~The~~Rush: ~~platform~~Champion ~~provides~~Edition ~~guests~~was ~~with~~released, ~~menu and entertainment options~~worldwide, ~~portability~~through ~~that~~Apple’s ~~eliminates~~App ~~the~~Store ~~constraints~~(for ofiPhone, ~~one-tablet-per-table installations~~iPad, and ~~other~~iPod ~~innovations~~Touch ~~that help increase restaurant efficiency and average check size. Customizable for bars and~~mobile ~~restaurants~~devices), ~~Tanjarine’s catalog of entertainment offers games, music~~ and ~~content~~through ~~that~~Google's ~~targets~~Google ~~everyone~~Play ~~from families to sports fans to couples~~ and ~~more~~Amazon.com ~~Many~~(for ofAndroid ~~the~~devices) ~~games~~in ~~also~~concert ~~enable guests to play~~ with aits ~~friend~~development ~~or connect the tabletop tablets to second screen televisions located throughout a venue~~partner, ~~creating~~1DER ~~a more interactive gaming experience~~Entertainment. ~~It is anticipated that the Company will receive licensing revenue from Tanjarine as Tanjarine purchases product installs of the Company’s products for play on their proprietary hardware.~~

During fiscal year 2014, the Company ~~also~~licensed ~~continued~~Timeless ~~the~~Gems ~~development~~and ofStriker ~~additional~~Rush: ~~products~~Champion ~~that~~Edition to Tanjarine, asa subsidiary of TouchTunes, the ~~date~~largest provider of ~~this~~in-venue ~~Annual~~music and ~~Report,~~entertainment ~~have~~throughout ~~not~~North ~~been~~America. ~~publicly~~Tanjarine ~~announced.~~was the first integrated tabletop ordering, entertainment and pay-at-the-table Itsolution isto ~~anticipated~~combine ~~that~~10" ~~these~~proprietary ~~products~~tabletop ~~will~~tablets bewith ~~released~~server ~~into~~handhelds, ~~the~~which ~~market~~expedited ~~late~~service, inpayments, ~~the~~and cross-marketed products and services with in-venue second ~~quarter~~screen oftelevisions. ~~2015~~The onplatform ~~the~~provided ~~following~~guests ~~hardware platforms:~~with ~~Facebook~~menu and entertainment options, portability ~~through~~that ~~Apple’s~~eliminated ~~App~~the ~~Store~~constraints ~~(for~~of ~~iPhone,~~one-tablet-per-table ~~iPad~~installations, and ~~iPod~~other ~~Touch~~innovations ~~mobile~~that ~~devices),~~helped ~~through~~increase ~~Google~~restaurant efficiency ~~Play~~ and ~~Amazon~~ average check size.~~com~~ (Customizable for ~~Android~~bars ~~devices)~~and restaurants, Tanjarine’s catalog of entertainment offered games, music and oncontent targeted everyone from families to sports fans to couples and more. Many of the ~~Windows~~games ~~Mobile~~also ~~Platform~~enabled guests to play with a friend or connect the tabletop tablets to second screen televisions located throughout a venue, which created a more interactive gaming experience. The Company anticipated ~~support~~it ~~for~~would ~~Xbox~~continue ~~Live~~to receive licensing revenue from Tanjarine through 2015 and beyond, as Tanjarine purchased product installs of the Company’s products for play on their proprietary hardware. In April of 2015, a ~~feature~~third ~~set~~party acquired TouchTunes. Unfortunately, as part of the acquisition, TouchTunes terminated their subsidiary, Tanjarine, as well as all pre-existing contractual (licensing) agreements.

~~These~~During ~~aforementioned~~the ~~releases~~fourth ~~have~~quarter ~~begun~~of 2013, the Company toentered ~~generate~~into a ~~degree~~development/publishing ofagreement ~~revenue~~with 1DER Entertainment for SirVival, an interactive game. As a part of the development/publishing agreement, the Company acquired the SirVival IP from 1DER Entertainment. ~~Our~~Through ~~operations~~fiscal toyear ~~date~~2014 ~~have~~and ~~been~~the ~~financed~~first bytwo ~~Mr.~~quarters ~~Chiodo~~of 2015, ~~our~~the ~~sole~~Company ~~officer~~continued the development of SirVival; the game was released, worldwide, on Facebook, Google's Google Play, and ~~independent~~Apple's ~~accredited~~App ~~investors~~Store ~~who~~(for ~~have~~iPhone, iPad, and iPod Touch) during the third quarter of 2015. In addition to the development and release of the SirVival video game product, one package of expansion content for SirVival entered ~~into~~development ~~private~~during ~~finance~~the ~~transactions~~fourth ~~with~~quarter of us2014, but this package has not yet been released. The Company will formally announce the targeted release date of this expansion pack at a later date.

~~The~~In ~~Company~~June ~~intends~~2015, tothe ~~focus~~Company ~~its~~announced ~~operational~~a new (second) ~~strategy~~publishing onlabel, ~~the~~Soul ~~development~~and ofVibe ~~product~~Music. ~~for~~Soul and Vibe Music is a ~~variety~~proprietary ofmusic-publishing ~~hardware~~label ~~platforms:~~that ~~video~~publishes ~~game~~music ~~consoles~~content through ~~(for~~downloadable/streamable ~~example:~~distribution ~~Xbox~~channels ~~360~~that ~~and~~include, ~~PlayStation 3)~~but are not limited to, ~~mobile~~the ~~(for~~likes ~~example~~of: Apple ~~iOS~~Music, ~~Android~~iTunes, Spotify, ~~devices~~Google Play, ~~and~~Amazon, ~~Windows~~Rdio, ~~Phones)~~Deezer, ~~augmented~~Tidal, ~~reality~~YouTube Music Key, Beats/~~wearable~~MediaNet, ~~tech~~and ~~devices~~Microsoft ~~(for~~Groove. ~~example:~~The Company aims to ~~HTC~~leverage ~~Vive~~its existing, ~~Vuzix-branded~~and ~~hardware~~to develop new, music assets that are associated with its licensed-brands and ~~Oculus~~internally ~~Rift),~~generated intellectual properties as stand-alone “premium” music soundtrack and ~~personal~~single-track ~~computers~~and/or ~~(for~~multi-track ~~example:~~music PCsingle product releases. It is the Company’s intent that these music soundtrack and ~~Mac~~single-track and/or ~~browser~~multi-track ~~applications~~music ~~such~~single product releases will double as ~~Facebook).~~potential ~~Our~~revenue-generating ~~products~~cross-promotional ~~are~~marketing ~~also~~vehicles ~~anticipated~~for tothe beCompany’s ~~released~~video games and entertainment apps based on ~~portable~~licensed-brands ~~video~~and ~~game~~internally ~~consoles~~generated ~~(for~~intellectual ~~example:~~properties. ~~PlayStation~~As ~~Vita)~~of December 31, 2015, Soul and Vibe Music has ~~which~~released ~~can~~one befull-length ~~defined~~soundtrack, as“Songs ~~residing~~of inSirVival,” ~~both~~and ~~the~~four ~~video~~multi-track ~~game~~music ~~console~~singles, “SirVival and ~~mobile~~Tantrum,” “Who ~~hardware~~Is ~~platform~~Gurk ~~categories.~~Burkle?,” ~~Products~~“Smorgon ~~will~~Magma, beThe ~~designed~~Black Rider,” and “Spellbound.” The development ~~for~~of ~~specific~~a ~~hardware~~fifth ~~platforms;~~multi-track ~~not~~music ~~all~~single, ~~products~~“Bugaboo, ~~will~~A beBump ~~released~~In onThe ~~all~~Night,” ~~hardware~~commenced ~~platforms~~during the fourth quarter of 2015, but it was neither formally announced nor released until February 2016.

~~Most~~As of the ~~Company’s~~Soul ~~products~~and ~~are~~Vibe Music label grows, the ~~expected~~Company intends to bepursue ~~digitally~~the ~~distributed~~licensing ~~(via~~of ~~download~~music for (i) ~~through~~inclusion ain ~~“First~~its ~~Party”~~games ~~distribution~~and ~~store~~apps and (~~for~~ii) ~~example:~~to ~~Facebook~~release, ~~Microsoft~~ ~~Corporation’s~~via ~~Marketplace~~downloadable/streamable distribution channels, ~~Apple~~as ~~Inc.’s~~“premium” ~~App~~stand-alone ~~Store,~~and/or ~~Google’s~~compilation ~~Google~~music ~~Play,~~product ~~etc~~releases.). ~~Some~~The ofCompany ~~the~~also ~~Company’s~~anticipates ~~products~~it ~~may~~will ~~bear~~contract ~~licensed-brands~~music ~~through~~industry ~~which~~subject ~~there~~matter isexperts ~~potential~~as ~~for~~consultants ~~exploitation~~to ~~via~~help ~~merchandising,~~broaden ~~cross-promotion~~the ~~and/or~~label’s ~~publicity tie-ins~~product ~~with~~mix. ~~its~~The ~~licensor,~~Company anticipates asthat ~~well~~a asbroadened ~~within~~product ~~social~~mix ~~media~~for ~~communities.~~the ~~Other~~Soul ~~Company~~and ~~products~~Vibe Music label will beincrease ~~based~~consumer onawareness, ~~our~~build ~~internally~~IPs, ~~generated~~create ~~and~~cross-promotional ~~wholly~~opportunities ~~owned~~across ~~intellectual~~its ~~properties~~growing product portfolio, and drive revenue.

~~The~~To ~~Company’s products are focused within three core areas: Licensed-brand games~~date, ~~internally-generated~~all ~~intellectual~~music ~~property~~content ~~(“IP”)~~published ~~based~~by ~~games,~~ Soul and ~~so-called “Pick-Ups.”~~Vibe ~~Pick-ups~~Music are ~~games~~copyrighted ~~developed~~assets ~~(and~~of ~~financed) by independent software developers located throughout~~ the ~~world~~Company. ~~Oftentimes,~~ ~~these~~Each ~~independent~~individual ~~software~~music ~~developers~~track ~~are~~is ~~looking for~~ a ~~publishing~~unique ~~partner~~asset ~~such~~that asis ~~the~~identifiable ~~Company as they tend to: (i)~~through ~~lack the marketing/publicity infrastructure and relationships to properly bring~~ a ~~game~~proprietary toISRC ~~market,~~code. ~~(ii)~~EPs ~~need~~are toidentifiable ~~partner~~through ~~with~~ a ~~company in~~proprietary ~~possession~~UPC ~~of platform-specific publishing licenses, and/or (iii) require some additional capital to complete the development cycle~~code. The ~~Company~~music ~~can~~content ~~acquire~~that ~~the~~comprises ~~games~~Soul ~~created~~and byVibe ~~these independent software developers for either a flat fee or a combination~~Music ofreleases aare ~~flat~~each ~~fee~~recognized ~~and~~by ~~a small “back-end” royalty that is payable once~~ the ~~Company~~music ~~recoups~~identification ~~its~~service, ~~costs~~Shazam. ~~Pick-ups~~The ~~could~~music ~~be beneficial~~content ~~for the Company as they represent products~~ that ~~can~~comprises ~~often~~Soul ~~be quickly brought to market~~ and ~~subsequently~~Vibe ~~fill in the~~Music ~~gaps between the~~ releases as of ~~the~~December ~~“bigger”~~31, ~~Licensed-Brand~~2015 ~~and~~are, ~~internally-generated~~also, IPcross-~~based~~promoted ~~games. This allows the Company to establish a recurring release calendar that:~~ (i)on ~~distributes revenues across a fiscal year and (ii~~iTunes) ~~provides~~via athe ~~steady~~Options ~~stream of~~Menu ~~content for our users and games industry media to talk about, thus reinforcing our Soul and Vibe brand as a publishing label. It is anticipated that a large portion~~ of the Company’s ~~product~~SirVival ~~portfolio in fiscal year 2015 onward may be comprised of~~video ~~pick-up opportunities~~game.

In August 2015, the Company announced a new (third) publishing label, Soul and Vibe Books. Soul and Vibe Books is a proprietary publishing label that specializes in the development and launch of digitally distributed electronic books (“e-2books” and “interactive storybooks.”) The Company aims to leverage its licensed-brands and internally generated intellectual properties as stand-alone “premium” entertainment app e-books. It is the Company’s intent that these e-books will double as potential revenue-generating cross-promotional marketing vehicles for the Company’s video games and entertainment apps based on licensed-brands and internally generated intellectual properties. During the twelve months ended December 31, 2015, the Company continued the development of a four-product line of e-books based on the Company’s John Deere licensed brand. The first product in the four-product line was Johnny Tractor and Friends: County Fair. Johnny Tractor and Friends: County Fair was launched on Apple’s App Store for iPhone, iPad, and iPod Touch in September 2015 and on Google’s Google Play and Amazon (for Android devices) in October 2015. The Company launched a second e-book, Johnny Tractor and Friends: Snow Day, in December 2015. During the fourth quarter, the Company continued development on a third e-book. The Company anticipates it will formally announce, and release, this third e-book during the 1st quarter of 2016. The Company anticipates the fourth e-book in the series will be formally announced, and released, during the second quarter of 2016. Ultimately, it is the Company’s intent to localize all four e-books in the line into a variety of languages including, but not limited to, French, German, Spanish, and Italian. The Company anticipates that localized versions of its e-books will be released, albeit on a staggered release schedule, throughout fiscal year 2016; the localized versions of its e-books will be released as title updates via Apple’s App Store, Google’s Google Play, and Amazon.

We- have sustained losses from operations in each fiscal year since our inception, and we expect these losses to continue for the indefinite future, due to our substantial investment in research and development, attorneys’ fees and expenses, and consultants’ fees. During the twelve months ended December 31, 2014, the Company realized a net loss of $2,121,633 compared with a net loss of $2,270,453 for year ended December 31, 2013. As of December 31, 2014, the Company had a working capital deficiency of $1,629,760 and a shareholder’s deficit of $1,238,127.-

~~Games~~On November 30, 2015, the Company ~~intends~~announced its toline ~~develop~~of John Deere-branded Johnny Tractor and Friends e-books will be cross-promoted with TOMY International (“TOMY”) toys that are also based on the Johnny Tractor and Friends IP. Commencing in December 2015, and continuing through 2016, TOMY’s line of John Deere-branded Johnny Tractor and Friends toys will feature, within the packaging, a two-sided pack-in poster. The Company’s Johnny Tractor and Friends series of e-books is highlighted on one side of the poster, and a robust selection from TOMY’s ~~concepts~~diverse line of Johnny Tractor and ~~publish~~Friends astoys ~~final~~is highlighted on the other. In addition, each of the Company’s Johnny Tractor and Friends interactive storybooks cross-promotes TOMY’s toys via a color full-screen image that appears at the end of each e-book. TOMY’s line of Johnny Tractor and Friends toys are available at Target, Walmart, Toys”R”Us, Amazon, and many other fine retail and online merchants. The Company anticipates that the cross-promotional relationship with TOMY will increase consumer awareness for the Soul and Vibe Books label and its line of e-book products.

~~Our~~As ~~projected~~the ~~portfolio~~Soul ~~consists of games~~ and ~~apps~~Vibe ~~based~~Books onlabel grows, the Company ~~marks~~intends ofto ~~our~~expand ~~licensed~~its e-~~brand~~book ~~partners~~product ~~(General~~mix ~~Mills~~to ~~and~~feature ~~the~~additional ~~John~~lines ~~Deere~~based on both the Company)’s ~~and~~proprietary ~~internally-generated~~IPs ~~Soul~~ and ~~Vibe~~other IPlicensed-~~based~~brands. ~~games,~~The ~~such~~Company asalso ~~“Bugaboo,”~~anticipates it will pursue a ~~virtual-pet~~broadening ~~game~~of ~~that~~the ~~may~~supported ~~bear~~hardware aplatforms ~~licensed~~on which its e-~~brand,~~books “can be read. The ~~Dragon Wars,”~~Company ~~“Grimwhiskers,”~~anticipates ~~and~~that ~~“Last~~expanded ~~Day~~platform Onsupport, ~~Earth”~~and ~~(L.D.O.E.).~~a ~~The~~broadened ~~products~~product ~~that~~mix ~~comprise~~for the ~~portfolio~~Soul and Vibe ~~are~~Books inlabel, ~~pre-production.~~will ~~Specifically:~~increase consumer awareness, build IPs, and drive revenue.

~~The~~These ~~Wheaties~~aforementioned ~~Challenge.~~releases, ~~The~~across ~~Wheaties~~the games, ~~Challenge~~interactive isbooks, anand ~~adrenaline-charged~~downloadable/streamable ~~arcade~~music ~~sports~~product ~~compilation~~categories, ~~for~~have ~~console,~~begun ~~mobile,~~to ~~and~~generate ~~PC/Mac.~~a ~~The~~degree ~~game~~of ~~promotes~~revenue ~~family~~for ~~health~~the ~~and~~Company. ~~wellness,~~Our isoperations ~~sponsored~~to date have been financed by ~~General~~Mr. ~~Mills~~Chiodo, our sole officer, and ~~features~~independent ~~Wheaties~~accredited asinvestors ~~its~~who ~~signature~~have ~~brand~~entered into private finance transactions with us.

The ~~Wheaties~~Company ~~Challenge~~intends ~~has~~to afocus ~~projected~~its operational ~~development~~strategy ~~schedule~~on the development of 12digitally ~~months.~~distributed ~~(The~~video ~~externally~~game, ~~contracted~~interactive ~~software~~book, ~~development~~and ~~team~~downloadable/streamable ~~selected~~music product for a ~~this~~variety ~~sports-themed~~of hardware platforms that include: Video game ~~can hire~~consoles ~~contingent~~(for ~~staff~~example: toXbox ~~increase~~360 ~~development~~and ~~capacity~~PlayStation ~~should~~3), itmobile be(for ~~deemed~~example: Apple ~~appropriate~~iOS, toAndroid, doand ~~so.~~Windows hand-held/portable devices), ~~The~~augmented ~~game~~reality/wearable ~~has~~tech adevices ~~conceptual~~(for ~~treatment~~example: HTC Vive, Vuzix-branded ~~that~~hardware, ~~was~~and ~~presented~~Oculus toRift), ~~Microsoft~~personal ~~Corporation~~computers (~~“Microsoft”~~such as PC and Mac), and ~~Sony~~browser-based social media platforms, such as ~~part~~Facebook. Our ofvideo ~~the~~game ~~process~~products ~~for~~are ~~securing~~also ~~our~~anticipated ~~publishing licenses.~~to ~~Contingent~~be ~~upon~~released ~~the~~on ~~timing~~portable ofvideo ~~financing~~game consoles (for example: Nintendo 3DS and PlayStation Vita), ~~the~~which ~~Company~~can ~~presently~~be ~~anticipates~~defined ~~launching~~as ~~this~~residing ~~sports-themed~~in both the video game inconsole ~~2016~~and mobile hardware platform categories. ~~The~~ ~~marketing~~Our ofmusic ~~the~~products are ~~title~~also ~~would~~anticipated to be ~~rolled~~accessible ~~out~~on ~~across~~internet-enabled avideo ~~pre-launch,~~game ~~launch,~~consoles ~~and~~(for ~~post-launch~~example: ~~window.~~Spotify ~~Each~~via ~~window~~the isPlayStation ~~approximately~~Network ~~three~~and (3Microsoft Groove via Xbox Live on Xbox One.) ~~months;~~The ~~the~~Company ~~timing~~wishes ofto ~~these~~emphasize: ~~windows~~Individual ~~are~~products ~~contingent~~will ~~upon~~be ~~financing~~designed for specific hardware platforms and, ~~based~~that onnot ~~the~~all ~~timing~~products ofwill ~~that~~be ~~financing,~~ultimately ~~the~~released ~~associated product~~on ~~development~~all ~~schedule~~hardware platforms.

~~The~~Most ~~Wheaties~~of ~~Challenge~~the ~~has~~Company’s ~~had~~products ~~high-level~~are expected ~~feature/content~~to ~~scope~~be ~~reviews~~digitally ~~with~~distributed ~~independently~~(via ~~owned-operated~~download) ~~software~~through ~~development~~a ~~teams~~“First ~~located~~Party” ~~all~~distribution ~~over~~store ~~the~~(for ~~world.~~example: ~~Based~~Facebook, onMicrosoft ~~the~~Corporation’s ~~high-level~~Marketplace, ~~feature/content~~Apple ~~scope~~Inc.’s ~~reviews~~App ~~that~~Store, ~~have~~Google’s ~~been~~Google ~~conducted~~Play, ~~with~~Amazon, etc.). Some of the Company’s products ~~prospective~~may ~~development~~bear ~~partners~~ licensed-brands through which there is potential for ~~the~~exploitation ~~product~~via merchandising, itcross-promotion isand/or ~~estimated~~publicity tie-ins towith ~~cost~~its ~~approximately~~licensor, ~~$1.2M~~as towell $1as within social media communities.5M ~~(on~~Other ~~average)~~Company toproducts ~~develop~~will ~~and~~be ~~bring~~based ~~this~~on ~~sports-themed~~our ~~game~~internally generated toand ~~market~~wholly owned intellectual properties.

The Company’s products are focused within three core areas: Licensed-brand games and Apps (inclusive of e-books), internally-generated intellectual property (“IP”) based games, e-books, and music, and so-called “Pick-Ups.” Pick-ups are products developed (and financed) by independent software/content developers located throughout the world. Oftentimes, these independent software/content developers are looking for a publishing partner such as the Company as they tend to: (i) lack the marketing/publicity infrastructure and relationships to properly bring a game to market, (ii) need to partner with a company in possession of platform-specific publishing licenses, and/or (iii) require some additional capital to complete the development cycle. The Company can acquire the products created by these independent software/content developers for either a flat fee or a combination of a flat fee and a small “back-end” royalty that is payable once the Company recoups its costs. Pick-ups could be beneficial for the Company as they represent products that can often be quickly brought to market and subsequently fill in the gaps between the releases of the “bigger” licensed-brand and internally-generated IP-based products. This allows the Company to establish a recurring release calendar that: (i) more-evenly distributes revenues across a fiscal year and (ii) provides a steady stream of content for our users and games industry media to talk about, thus reinforcing our Soul and Vibe brand as a publishing label. It is anticipated that a large portion of the Company’s product portfolio in fiscal year 2016 onward may be comprised of pick-up opportunities.

We have sustained losses from operations in each fiscal year since our inception, and we expect these losses to continue for the indefinite future, due to our substantial investment in research and development, attorneys’ fees and expenses, and consultants’ fees. During the twelve months ended December 31, 2015, the Company realized a net loss of $2,160,946 compared with a net loss of $2,121,633 for year ended December 31, 2014. As of December 31, 2015, the Company had a working capital deficiency of $2,396,130 and a shareholder’s deficit of $1,998,993.

- 3-

Video games the Company intends to develop from concepts and publish as final products

Our projected video game product portfolio consists of games and Apps based on the marks of our licensed-brand partner, the John Deere Company, and internally-generated Soul and Vibe IP-based games, such as “Bugaboo,” a virtual-pet game that may bear a licensed-brand, “The Dragon Wars,” “Grimwhiskers,” and “Last Day On Earth” (L.D.O.E.).

The products that comprise the Company’s video game and interactive book product portfolio are in pre-production. Specifically:

John Deere. The Company’s line of John Deere-branded video games and entertainment Apps will continue to be based on our licensor’s extensive line of agriculture, construction, forestry, and personal vehicle products.

As of December 31, 2015, the Company has released two e-book products based on John Deere’s proprietary character set, Johnny Tractor and Friends. Two more Johnny Tractor and Friends e-book products are currently in active development; it is anticipated these two additional John Deere-branded e-books will be formally announced, and launched, in the first and second quarters of 2016. The Company’s John Deere-branded e-books have been published under the Soul and Vibe Books label via Apple’s App Store, Google’s Google Play, and Amazon.

The Company is, also, developing a John Deere-branded video game product, John Deere: Pocket Farm, that it anticipates it will formally release during the third quarter of 2016. It is anticipated that the Company’s forthcoming John Deere-branded video game will be released for play on iOS and Android platform mobile devices, Apple TV, and social media platforms.

Bugaboo. Bugaboo is an action-puzzle game for consoles, mobile devices, and personal computers. The core play mechanic is Shadow Weaving: Shape and/or sneak through pockets of darkness, pilfer the property of others through a combination of movement, gadgets, and stealth, and escape the scene of the crime under the pressure of time.

~~The~~Bugaboo ~~Company’s~~is ~~projected~~an ~~line~~internally-generated ofSoul ~~John~~and ~~Deere-branded~~Vibe ~~titles~~IP ~~will~~whose beprimary ~~based~~character set and backstory were introduced to users in its action-platform/runner game, SirVival. SirVival launched on ~~our~~Facebook, ~~licensor~~Apple’s ~~extensive~~App ~~line~~Store, and Google’s Google Play during the third quarter of ~~agriculture,~~2015. ~~construction~~(Subsequently, in ~~forestry~~the first quarter of 2016, the Company’s Soul and ~~personal~~Vibe Music label published a multi-track music single that was branded by the Company’s Bugaboo IP as a potential revenue-generating marketing vehicle ~~products~~for both the currently available SirVival and forthcoming Bugaboo video games.) The ~~Company~~formal isBugaboo ~~currently~~video ~~reviewing~~game ~~product~~project ~~concept~~has ~~and~~a ~~scope~~projected ~~treatment~~development ~~with~~schedule ~~independent~~of 16 months. The externally contracted software development team selected for the Bugaboo project can hire contingent staff to increase development ~~partners~~capacity should it be deemed appropriate to do so. ItBugaboo ishas ~~anticipated~~a conceptual treatment that was presented to Microsoft and Sony as part of the process for securing our publishing licenses. Contingent upon the timing of financing, the Company’s ~~projected~~presently ~~line~~intends to launch “Bugaboo” in 2017. The marketing of ~~John~~the ~~Deere~~title would be rolled out across a pre-~~branded~~launch, ~~titles~~launch, ~~will~~and bepost-launch window. ~~released~~Each onwindow ~~mobile~~is approximately three (3) months; the timing of these windows are contingent upon financing and, based on ~~social~~the ~~media~~timing ~~platforms~~of that financing, the associated product development schedule.

Bugaboo ishas anhad ~~internally~~high-~~generated~~level ~~Soul~~feature/content ~~and~~scope ~~Vibe~~reviews IPwith ~~whose~~independently ~~primary~~owned-operated ~~character~~software ~~set~~development ~~and~~teams ~~backstory~~located isall ~~anticipated~~over tothe beworld. ~~introduced~~Based ~~to users in a companion app~~ on ~~mobile~~the ~~platforms~~high-level ~~and~~feature/content ~~Facebook~~scope reviews that ishave ~~slated~~been ~~for~~conducted ~~release~~with in the ~~second~~Company’s ~~quarter~~prospective ~~of 2015. The formal Bugaboo project has a projected~~ development ~~schedule of~~partners ~~16 months. The externally contracted software development team selected~~ for the ~~Bugaboo project can hire contingent staff to~~product, ~~increase development capacity should~~ it beis ~~deemed~~estimated ~~appropriate~~ to docost soapproximately $1.2M ~~Bugaboo~~to ~~has~~develop aand ~~conceptual~~bring ~~treatment~~Bugaboo ~~that was presented~~ to ~~Microsoft~~ ~~and~~market. ~~Sony~~As ~~as part~~ of the ~~process~~fourth ~~for~~quarter ~~securing our publishing licenses. Contingent upon the timing of financing~~2015, the ~~Company presently intends to launch “~~Bugaboo~~” in 2016. The marketing of the title would be rolled out across a pre-launch,~~ ~~launch,~~project ~~and~~has ~~post-launch~~been ~~window.~~revised ~~Each~~to ~~window~~include issupport ~~approximately~~for ~~three~~mobile ~~(3)~~devices ~~months; the timing of these windows are contingent upon financing~~ and, ~~based~~Apple ~~on the timing of that financing, the associated product development schedule~~TV.

Bugaboo has had high-level feature/content scope reviews with independently owned-operated software development teams located all over the world. Based on the high-level feature/content scope reviews that have been conducted with the Company’s prospective development partners for the product, it is estimated to cost approximately $1.2M to develop and bring Bugaboo to market.

Virtual-Pet Game. A virtual-pet game that stars man’s best friend. It appeals to dog fans of all ages, both casual and enthusiastic. The Company is pursuing a licensed brand for this title. The Company will disclose the licensed-brand partner once it has been signed.

The Virtual-Pet Game has a projected development schedule of 12 months. Contingent upon the timing of financing and working off of a staggered development calendar, the Company anticipates a release in late ~~2016~~2017. The Virtual-Pet Game has a conceptual treatment that was presented to Microsoft and to Sony as part of the process for securing our publishing licenses. The marketing of the title would be rolled out across a pre-launch, launch, and post-launch window. Each window is approximately three (3) months; the timing of these windows are contingent upon financing and, based on the timing of that financing, the associated product development schedule.

-3-

The Virtual-Pet Game has had high-level feature/content scope reviews with independently owned-operated software development teams located all over the world. Based on the high-level feature/content scope reviews that have been conducted with the Company’s prospective development partners for the product, it is estimated to cost approximately $800K to 1.2M (on average) to develop and bring The Virtual-Pet Game to market.

The Dragon Wars. A band of heroic ~~warriors~~ warriors and a mob of monstrous villains battle it out in the skies and on the ground for the ultimate control of a fantastical world in “The Dragon Wars” (which is a working title), a character-driven battle game for consoles, mobile devices, and personal computers. Stylistically, it combines over-the-top characters reminiscent of ~~the~~ classic 1980s 6” action figure-based toy lines with The Lord of the Rings-esque dynamic ground battles.

~~The Dragon Wars is an internally~~-~~generated Soul~~ and Vibe IP. Contingent upon the timing of financing and working off of a staggered development calendar, the Company anticipates a release in 2017. The Dragon Wars has a conceptual treatment that was presented to Microsoft and Sony as part of the process for securing our publishing licenses. The marketing of the title would be rolled out across a pre4-launch, launch, and post-launch window. Each window is approximately three (3) months; the timing of these windows is each contingent upon financing and, based on the timing of that financing, the associated product development schedule.

The Dragon Wars is an internally-generated Soul and Vibe IP. Contingent upon the timing of financing and working off of a staggered development calendar, the Company anticipates a release in 2018. The Dragon Wars has a conceptual treatment that was presented to Microsoft and Sony as part of the process for securing our publishing licenses. The marketing of the title would be rolled out across a pre-launch, launch, and post-launch window. Each window is approximately three (3) months; the timing of these windows is each contingent upon financing and, based on the timing of that financing, the associated product development schedule.

The Dragon Wars has had high-level feature/content scope reviews with independently owned-operated software development teams located all over the world. Based on the high-level feature/content scope reviews that have been conducted with the Company’s prospective development partners for the product, it is estimated to cost approximately $1.5M (on average) to develop and bring The Dragon Wars to market.

Larva Game Studios. In July 2013, ~~the~~ the Company announced a development relationship with the Mexico-based software development company, Larva Game Studios (“Larva.”) Larva is the formally announced developer of two games ~~and~~for ~~has been working with~~ Soul and Vibe ~~on the pre-production of both~~.

Grimwhiskers. A band of ne’er-do-well pirates is on a quest to recover their most prized possession, their ship, from a diabolical and seemingly smarter enemy in Grimwhiskers (which is a working title) a side scrolling, action game for consoles, mobile devices, and personal computers.

Grimwhiskers is an internally-generated ~~Soul~~ Soul and Vibe IP with a projected development schedule of 14 months. Contingent upon financing and based on a staggered release, we we anticipate a release in ~~2016~~2017. Larva, as an externally contracted software development team can hire contingent staff to increase development capacity should it be deemed appropriate to do so.) Grimwhiskers has a conceptual treatment that was presented to Microsoft and Sony as part of the process for securing our publishing licenses. Contingent upon the timing of financing, the Company presently intends to launch “Grimwhiskers” in ~~2016~~2017. The marketing of the title would be rolled out across a pre-launch, launch, and post-launch window. Each window is approximately three (3) months; the timing of these windows is each contingent upon financing and, based on the timing of that financing, the associated product development schedule. As of the fourth quarter 2015, the Grimwhiskers project has been revised to include support for mobile devices and Apple TV.

Last Day on Earth. The Earth as a whole faces a looming catastrophe, as an alien race called The Hive has successfully breached every developed nation's defenses and is now systematically attempting to destroy all of mankind. It's up to the remaining survivors to protect the last bastion on Earth, the island of Utopia. Last Day on Earth blends the gripping action of a third-person shooter with the strategic building and defending gameplay of a tower defense game.

ToLast ~~view~~Day ~~the~~on ~~game’s~~Earth ~~teaser~~is ~~please~~an internally-generated ~~visit:~~Larva ~~www~~Game Studios IP with a projected development schedule of 12 months.~~ldoegame~~ We anticipate a release in 2017.~~com~~ orLarva, ~~http://www~~as an externally contracted software development team can hire contingent staff to increase development capacity should it be deemed appropriate to do so.~~youtube~~ Contingent upon the timing of financing, the Company presently intends to launch “Last Day on Earth” in 2017.~~com/soulandvibe~~ The marketing of the title would be rolled out across a pre-launch, launch, and post-launch window. Each window is approximately three (3) months; the timing of these windows is each contingent upon financing and, based on the timing of that financing, the associated product development schedule.

Both Grimwhiskers and Last Day on Earth ~~is an internally-generated~~were ~~Larva~~originally ~~Game~~slated ~~Studios~~to IPbe ~~with~~developed afor ~~projected~~the ~~development~~Company ~~schedule~~as part of 12an ~~months.~~incentive Wedriven ~~anticipate~~finance aprogram ~~release~~for inthe ~~2016.~~motion ~~Larva,~~picture asand ~~an externally~~video ~~contracted~~and ~~software~~computer ~~development~~games ~~team~~industries ~~can~~offered ~~hire~~by ~~contingent~~the ~~staff~~Mexican togovernment. ~~increase~~Larva ~~development~~has ~~capacity~~attracted ~~should~~an itinvestment beof ~~deemed~~$1M ~~appropriate to~~from dothe soMexican government program. ~~Contingent~~Following ~~upon~~a ~~the~~potential ~~timing~~$1M ofmatch ~~financing,~~from ~~the~~Soul ~~Company~~and ~~presently~~Vibe, ~~intends~~both toGrimwhiskers ~~launch~~and “Last Day on Earth” inwill ~~2016.~~be developed; the cumulative ~~The~~price ~~marketing~~for ofboth ~~the~~games ~~title~~is ~~would~~cheaper bethan ~~rolled~~the ~~out~~cost ~~across~~of aboth ~~pre-launch,~~games ~~launch,~~being ~~and~~developed ~~post-launch~~separately ~~window~~elsewhere in the world. ~~Each~~In ~~window~~addition isto ~~approximately~~significant ~~three~~development ~~(3)~~cost ~~months;~~savings for the ~~timing~~Company, ofthe ~~these~~relationship ~~windows~~with isLarva ~~each~~represents ~~contingent~~a ~~upon~~strategic ~~financing~~advantage ~~and,~~for ~~based~~the onCompany. The relationship for Larva paves the ~~timing~~way offor ~~that~~new ~~financing,~~relationship within the ~~associated~~ ~~product~~emerging ~~development~~Latin ~~schedule~~American market with developers, distributors, and marketing/publicity channels.

Both Grimwhiskers and Last Day on Earth will be developed as part of an incentive driven finance program for the motion picture and video and computer games industries that is offered by the Mexican government. Larva has attracted an investment of $1M from the Mexican government program. With a $1M match from Soul and Vibe, both Grimwhiskers and Last Day on Earth will be developed; the cumulative price for both games is cheaper than the cost of both games being developed separately elsewhere in the world. In addition to significant development cost savings for the Company, the relationship with Larva represents a strategic advantage for the Company. The relationship for Larva paves the way for new relationship within the emerging Latin American market with developers, distributors, and marketing/publicity channels.

Publishing

Our business is primarily focused on developing, publishing, and marketing ~~interactive~~video games and entertainment ~~software~~Apps, interactive books, and downloadable/streamable music for multiple hardware platform categories: Console, mobile and augmented reality/wearable tech devices, ~~and~~ personal computers, and browser-based social media networks. In regards to console publishing, we have entered into publishing agreements with hardware platform manufacturers such as Microsoft Corporation, ~~and~~ Sony (through Sony Computer Entertainment of America, LLC)., and, most recently, Nintendo of America. Our publishing agreements with these entities are for non-exclusive licenses, both for the rights to publish and to develop titles for their respective hardware platforms. These agreements form a foundation for our business. We must maintain a license to develop and publish titles for each console platform. Each license specifies the territory to which it applies, and licenses range from multi-national distribution to approval on a title-by-title basis. Our existing hardware platform licenses are with Microsoft (for the Xbox 360, Windows 8, Windows Live, and Windows Phone), ~~and~~ with Sony (for the PlayStation 3 and PlayStation Vita), and with Nintendo of America for the Nintendo 3DS™ system and the Wii U™ system. Our publishing licenses with Microsoft ~~and~~, Sony, and Nintendo require that we obtain approval for publication of new titles on a title-by-title basis. As a result, the number of titles we are able to publish for these hardware platforms and our ability to time the release of titles is dependent upon decisions made by by third party hardware manufacturers.

-4 5-

Effective August 8, 2012, the Company became an approved developer and publisher of games and games-related content for the Microsoft hardware platforms that include: Xbox 360 (and the associated Xbox Live), Windows Live, Windows 8, and the Windows Phone.

Effective August 8, 2012, we entered into a publisher license agreement with Microsoft to develop and/or publish software products running on the Xbox 360 video game and entertainment system, Windows 8, Windows Live, and Windows Phone and license proprietary materials from Microsoft (the “Microsoft Agreement”). Effective May 8, 2013, we entered into a new publisher license agreement with Microsoft (the “New Microsoft Agreement”). The New Microsoft Agreement was disclosed as part of an official filing. The Company has obtained confidential treatment for certain terms of the New Microsoft Agreement.

In September 2012, the Company became an approved developer and publisher of games and games-related content for the Sony platforms that include: PlayStation3, PlayStation Vita, and the PlayStation Network.

On September 27, 2012, we entered into a licensed publisher agreement (the “SCEA Agreement”) with Sony Computer Entertainment America LLC (“SCEA”). Under the SCEA Agreement, SCEA granted us a non-exclusive license to publish, develop, have manufactured, market, distribute and sell software for Sony's PlayStation 3, in the United States and Canada. The term of the SCEA Agreement was until March 31, 2013, but automatically extends for additional one-year terms thereafter, unless either party provides the other with written notice of its election not to so extend on or before January 31 of the applicable year. The SCEA Agreement was disclosed as part of an official filing.

In July 2015, the Company became an approved developer and publisher of games for the Nintendo platforms that include: 3DS and Wii U.

On July 29, 2015, we entered into a licensed publisher agreement (the “Nintendo Agreement”) with Nintendo of America (“Nintendo”). Under the Nintendo Agreement, Nintendo granted us a non-exclusive license to develop and publish, through digital distribution channels, and sell software for the Nintendo 3DS™ system and the Wii U™ system from Nintendo, in the United States and Canada.

Licensing

Effective September 2011, Soul entered ~~into~~ into a trademark license agreement with Gcom Enterprises, Inc., an affiliate of General Mills, which ~~expires~~was scheduled to expire on December 31, 2015, and was subject to extension (the “GM Agreement”). Under the terms of the GM Agreement, the Company iswas able to develop and publish sports-themed “Wheaties” branded video and computer games as well as games-related content based on General Mills breakfast cereal and food-product mascot intellectual properties (“IP”). A minimum guarantee iswas due to General Mills in installments; this minimum guarantee ~~will~~was to be offset against the royalties in the mid-single digits payable by the Company to General Mills on the sale of the Company's “Wheaties” branded, and General Mills IP associated, games and games-related content. The foregoing is a summary of the material terms of the GM Agreement and does not purport to be complete. The GM Agreement was disclosed as part of an official filing. The Company has obtained confidential treatment for certain terms of the GM Agreement.

OnAs ~~May~~of 15December 31, ~~2014~~2015, neither the Company ~~announced the~~ ~~signing~~nor ofGcom aEnterprises, ~~multi-year~~Inc., ~~licensing~~expressed ~~agreement~~interest toin ~~develop~~the ~~and~~two ~~publish~~parties ~~new~~extending ~~video~~the ~~games,~~license ~~entertainment~~agreement ~~apps,~~beyond ~~and~~its ~~digitally-distributed~~contractual expiration ~~content~~date. ~~based~~Unfortunately, onGcom ~~the~~Enterprises, ~~John Deere brand~~Inc. ~~Under~~brands ~~the~~did ~~agreement,~~not attract the ~~Company~~appropriate ~~will~~capital ~~develop~~investment and ~~publish~~consumer ~~games~~interest ~~and entertainment apps based~~to onwarrant ~~John~~the ~~Deere’s~~continued ~~extensive~~development ~~line~~ of ~~agricultural~~previously ~~and~~announced ~~construction~~mass-market ~~equipment,~~General ~~and~~Mills ~~more,~~products; ~~for~~shifting ~~consoles,~~areas ~~mobile~~of ~~devices,~~focus ~~personal~~within General ~~computers,~~Mills ~~and~~eclipsed ~~social~~the ~~media~~continuance ~~platforms~~of ~~such~~the aslicensor ~~Facebook.~~relationship ~~The~~with the Company. ~~also~~Because ~~has~~of the ~~rights~~expiration toof ~~develop~~the ~~and~~license ~~publish~~agreement with ~~John~~Gcom ~~Deere-branded virtual~~Enterprises, ~~apparel~~the ~~and~~previously ~~digital~~announced ~~items~~video ~~for~~game ~~Avatars~~project, asThe ~~well~~Wheaties asChallenge, ~~other~~has ~~digitally-distributed~~been ~~content~~subsequently cancelled.

On May 15, 2014 the Company announced the signing of a multi-year licensing agreement to develop and publish new video games, entertainment apps, and digitally-distributed content based on the John Deere brand. Under the agreement, the Company will develop and publish games and entertainment apps based on John Deere’s extensive line of agriculture, construction, forestry, and personal vehicle products/equipment for consoles, mobile devices, personal computers, and social media platforms such as Facebook. The Company also has the rights to develop and publish John Deere-branded virtual apparel and digital items for Avatars, as well as other digitally-distributed content.

- 6-

Market and Industry

Historically, gaming has meant playing ~~retail~~ retail purchased physical media (such as DVD/Blu-Ray, Cartridge, SD Card, or UMD) on personal computers and television based and ~~portable~~ portable video game consoles. The markets and games for the various platforms have often times been as unique as the hardware on which the games were played. But ~~now~~over the last several years, the markets, media, and distribution channels for games ~~are~~have ~~changing~~changed.

Starting with the release of what was then identified as the “next-generation” video game consoles (2005), users were given the opportunity to not only interact with players all over the world via the internet, they were empowered to access music, movie, television program, and game content “on demand” from the comfort of their own homes. Personal computer and video game console users also began to experience a convergence of game types. Game genres that historically were played on a dedicated platform began to become platform agnostic, widening the market.

Thanks to the rapid proliferation of “smart-phones” in recent years, mobile devices that once were used only for communication now play host to myriad features. Surf the Internet, communicate via email, text, chat via audio or video, and access, “on demand,” diverse entertainment content choices (including games) while on the go. “Smart phones” have rapidly encroached on the portable video game market that was established by Nintendo’s Game Boy in 1989. This is significantly expanding the number of hardware platforms on which games are played as well as the consumer base who plays them.

Currently, ideas about how game console and mobile products might be able to “talk to one another” are taking shape and being put into practice. The execution of these ideas are expanding play experiences and creating new marketing vehicles and cross-5-promotional revenue generating mechanisms for games as an entertainment category.

Currently, ideas about how game console and mobile products might be able to “talk to one another” are taking shape. The execution of these ideas are expanding play experiences and creating new marketing vehicles and revenue generating mechanisms for games as an entertainment category.

General Market Analysis

The video and computer games industry is very mature when it comes to distributing and marketing content at retail since it is more than 30 years old. However, it is in its infancy when it comes to digitally distributing and marketing the same content.

Snapshot: Video Game Consoles: In 2005, Microsoft launched the Xbox 360 video game console. Leading up to its release, Microsoft claimed that the gaming device would be “online, all the time” thanks to the annual subscription based service, Xbox Live. ~~Eight~~Ten+ years into its life cycle, the console now plays host to an installed base of over 80100 million users (world-wide) who readily purchase both retail and digitally distributed game content. Users can purchase DVD based titles at retail for prices ranging (on average) from $39.99 to $59.99. Best yet, a title’s “shelf life” can be extended via a digital distribution mechanism on Xbox Live. Smaller scope offerings can be downloaded directly to a user’s console for $4.99, $10.99, $14.99, or $19.99. Users can purchase “experience expanding” content packages for retail and digitally distributed games via download as well. Sony (with the PlayStation 3) and Nintendo (with the television-based Wii and Wii U and the portable video game consoles such as DS and 3DS) have subsequently followed suit (2006) with similar content release strategies. In general, the practice of purchasing (with real-world currency) “consumables” (in game items that are used, or consumed, in game) popularized on browser-based and mobile platforms is making its way to consoles.

There is a variety of “publishing” players in the contemporary video game console market:

Large software publishers are the darlings of retail. Their “AAA” products drive traffic to brick and mortar store locations and boost shelf-space return on investment thanks to healthy marketing and promotional budgets. The number and diversity of titles produced give retail buyers the opportunity to swap out older/under-performing titles with new, fresh offerings, reducing the risk of carrying large physical inventories. However, large publishers are gradually devoting more resources to the digital distribution of content. The significant reduction in COGS preserves cash flow, cash that can be applied toward the acquisition of small publishers who specialize in digital distribution and direct marketing of content to consumers.

Middle-sized companies are trapped in a legacy “retail” business model and are scrambling to adjust their business models to be more nimble (i.e. embrace digital distribution). Many are financing products with money obtained from physical distributors, and they lack the ability to expand to new markets, such as digitally distributed content, as their money is tied-up elsewhere. As distributors and retailers hold onto cash, the middle-sized companies are often squeezed. They are the last to be paid by the firms upon whom they are dependent, reducing their liquidity, eroding their competitive advantage, and undercutting their ability to green-light new products. Less attractive to retail, shelf space is shrinking for them. They offer a smaller product portfolio and lack the marketing and promotional punch of large companies. “Let’s put it out and see what it does” marketing and PR strategies are executed by default. Nearly always, these strategies do not work.

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New, small companies, such as the Company, are being founded with business models that fully embrace digital distribution, eliminating high-cost cost of goods sold, bypassing retail and traditional distribution channel challenges, and directing sales, marketing, and promotional efforts directly to the consumer. The business models of these companies, like Soul and Vibe Interactive Inc., allow for revenue and shareholder value to be maximized while simultaneously providing consumers with reduced prices for goods and services.

Snapshot: Mobile Devices: In 2007, modeled after iTunes, Apple’s App Store introduced a whole new way of getting mobile content into the hands of consumers, “Apps.” Both casual and core gamers have been targeted by a wide variety of companies.

Some mobile games are better than others. Few releases feature the hallmark graphical and gameplay polish of traditional portable video game console titles. Consumer awareness, in the Company’s opinion, is slight for the vast majority of releases. Marketing and PR strategies akin to “let’s put it out and see what it does” are rampant. The App Store is saturated. Everybody has an internal information filter; that filter is becoming more and more refined on a daily basis. As a result, the challenge for companies such as ours becomes how to break through the clutter and noise, or how to convince consumers that your product is something they need, not just want. As the proliferation of mobile devices continues to grow, the sophistication of the mobile devices themselves, and their users, will exponentially grow.

Many of our mobile releases (such as interactive book apps) are expected to be revenue generating marketing vehicles for our brands (both licensed and internally-generated.) Our mobile product development strategy is to create a combination of stand-alone and “Companion” app products. It is anticipated that “Companion” apps (which include the newly entered interactive book category) will expand IP awareness and/or have (as appropriate) cross-platform integration with console and personal computer versions of the Company’s releases. For licensed-brand products, a mix between stand-alone and “Companion” app offerings is the likely strategy. Internally-generated wholly-owned intellectual property will be more “Companion” app focused as part of an effort to transform our properties into self-sustaining entertainment franchises.

· Monetized Content and Consumables: Soul and Vibe’s stand-6alone and “Companion” app products have been released as both “free-to-play” entertainment experiences (with monetized content and “consumables” offerings) and as “premium” (pay to download) products. Typically, the Company’s video games have been released as “free-to-play” entertainment experiences. Monetized content and “Consumables” can be shared across the Company’s console, mobile, and personal computer releases (inclusive of those released on browser-based systems, such as Facebook.) The Company’s interactive books have been released as “premium” products. The Company’s downloadable/streamable music offerings have been released as “premium” products.

· ~~Monetized~~Supported ~~Content~~Mobile ~~and Consumables~~Platforms: To date, Soul and Vibe’s ~~stand-alone~~products have been published on Apple iOS and ~~“Companion”~~Android ~~app~~devices ~~products~~(via ~~will~~Google’s ~~feature~~Google ~~monetized~~Play ~~content~~and Amazon.) The Company is evaluating the Windows platform and ~~“consumables~~intends on supporting the platform as appropriate.” ~~Monetized~~Continuing ~~content~~the trend it started with the release of Timeless Gems and ~~“Consumables”~~SirVival, ~~can~~and beon ~~shared~~a ~~across~~title-by-title basis thereafter, the Company’s ~~console,~~may continue to integrate support for Facebook in its mobile, ~~and~~titles. ~~personal~~Facebook ~~computer~~support ~~releases~~enables ~~(inclusive~~social ofmedia ~~those~~connectivity ~~released~~across platform versions and it also provides an additional platform on ~~browser-based~~which ~~systems~~users can play the game. In addition, where appropriate, the Company may translate products to portable consoles, such as ~~Facebook~~the Nintendo 3DS and the PlayStation Vita, given it is licensed to develop and publish product on those hardware platforms.)

·² ~~Supported~~Apple ~~Mobile Platforms~~iOS: Soul and Vibe’s ~~products~~is ~~are~~an ~~expected~~active todeveloper/publisher bewithin ~~published on~~ Apple’s ~~iOS~~network and ~~Android~~has ~~devices,~~a ~~and~~live company profile within the ~~(mobile)~~App ~~Windows~~Store ~~platform~~marketplace. ~~Where~~The ~~appropriate,~~Company currently supports the ~~Company~~iPhone, ~~may~~iPad/iPad ~~integrate~~Mini, ~~Facebook~~and ~~support~~desktop/laptop ~~for~~lines ~~its~~of ~~mobile~~Apple ~~titles,~~branded ~~enabling~~hardware ~~social~~through ~~media~~games ~~connectivity~~and ~~across~~games-related ~~platform~~content ~~versions~~distributed via The App Store. InIt ~~addition,~~is ~~where~~anticipated ~~appropriate,~~that many of the Company’s ~~may~~iOS ~~translate~~platform ~~products~~games may connect to ~~portable~~(and ~~consoles,~~be ~~such~~playable on) Facebook, as well. The Company is currently evaluating support for Apple TV, the ~~Nintendo~~App ~~3DS~~Store for iMac desktop computer hardware, and the ~~PlayStation~~iPad ~~Vita~~Pro.

² ~~Apple iOS~~Android: Soul and Vibe is ~~signed~~an upactive ~~as a~~ developer/publisher within ~~Apple~~Google’s ~~network~~“Google Play” and ~~has~~Amazon’s ~~completed~~networks ~~the~~and ~~setup~~has oflive a company ~~profile~~profiles within the ~~App~~Google ~~Store~~and ~~marketplace~~Amazon marketplaces. The Company ~~will~~currently ~~support~~supports ~~the~~Android ~~iPhone,~~mobile ~~iPad/iPad~~phones ~~Mini,~~ and ~~desktop/laptop~~Android ~~lines~~7, of9, ~~Apple~~and ~~branded~~10-inch ~~hardware~~tablets through games and games-related content distributed via The App Store. The Company currently supports Amazon’s Kindle Fire line of products, as well. It is anticipated that many of the Company’s ~~iOS~~Android platform games may connect to (and be playable on) Facebook, as well. ² Windows Platform: As noted previously, in addition to its Xbox 360 PLA, Soul and Vibe has secured licensing to develop and publish games and games-related content for the Windows Phone. Soul and Vibe has a separate PLA for the Windows Phone platform. Like Xbox Live (“Live”), the Windows Phone is a “closed” and “managed” platform. There are business and strategic reasons for implementing these features and supporting the platform: Windows Phone product versions can support implementation of Microsoft’s proprietary Avatar game character set and grant the user access to Live, Microsoft’s online gaming service, and Marketplace through which Avatar items can be purchased. It is anticipated that many of the Company’s Windows platform games may connect to (and be playable on) Facebook, as well. ² Portable Consoles: Where appropriate, the Company may port products to portable consoles, such as the Nintendo 3DS and the PlayStation Vita. PlayStation Vita games can be developed as a cross-platform “companion” and/or “second screen” complement to games on the PlayStation 3 and its successor, the PlayStation 4. It is anticipated that many of the Company’s Windows console titles may connect to (and be playable on) Facebook, as appropriate.

² Android: Soul and Vibe is signed up as a developer/publisher within Google’s “Google Play” and Amazon’s networks and has completed the setup of a company profile within the Google and Amazon marketplaces. The Company will support Android mobile phones and Android 7, 9, and 10-~~inch~~ ~~tablets through games and games~~8-related content distributed via The App Store. It is anticipated that many of the Company’s Android platform games may connect to (and be playable on) Facebook, as well. ² Windows Platform: As noted previously, in addition to its Xbox 360 PLA, Soul and Vibe has secured licensing to develop and publish games and games-related content for the Windows Phone. Soul and Vibe has a separate PLA for the Windows Phone platform. Like Xbox Live Arcade (“XBLA”), the Windows Phone is a “closed” and “managed” platform. There are business and strategic reasons for implementing these features and supporting the platform: Windows Phone product versions can support implementation of Microsoft’s proprietary Avatar game character set and grant the user access to Live, Microsoft’s online gaming service, and Marketplace through which Avatar items can be purchased. It is anticipated that many of the Company’s Windows platform games may connect to (and be playable on) Facebook, as well. ² Portable Consoles: Where appropriate, the Company may port products to portable consoles, such as the Nintendo 3DS and the PlayStation Vita. PlayStation Vita games can be developed as a cross-platform “companion” and/or “second screen” complement to games on the PlayStation 3 and its successor, the PlayStation 4. It is anticipated that many of the Company’s Windows console titles may connect to (and be playable on) Facebook, as appropriate.

Cross-Platform Support: The Company expects to expand consumer awareness for each game franchise, promote interconnectivity between hardware platforms for our games, and amortize development and marketing expenses. Soul and Vibe can interconnect Windows-based phone and tablet versions of its games with the Xbox 360 and its successor, the Xbox One. Similarly, the Company can interconnect Apple iOS and Android device versions of its games with the PlayStation 3 and its successor, the PlayStation 4.

Marketing Strategy

Our marketing strategy focuses on direct ~~interaction~~ interaction with the consumer through social media outlets including the likes of Facebook, Twitter, Instagram, direct-to-consumer advertisements on social networks, hardware platform specific cross-promotional partnerships, and a robust user community built around our products through www.soulandvibe.com. The Company believes that a key to building product and brand awareness is to leverage an array of social networks that includes, but is not limited to, Facebook, Twitter, Pinterest, Instagram, and YouTube. By providing our customers with the means to generate an automatic “status” update post to their user profile, and for their “Friends” to see that customer’s status updates and respond, Soul and Vibe expects to realize the benefit of viral product promotion. Consumer interest is expected to be generated, and the Company hopes that sales will be generated, at minimal cost to the Company. Most ~~Our~~of the Company’s catalogue of mobile products ~~are~~currently ~~expected to~~ connect to (and beare playable on) social media platforms such as Facebook. All of the Company’s publishing labels, such as Soul and Vibe Interactive, Soul and Vibe Music, and Soul and Vibe Books, as well as all company published products released/revealed through December 31, 2015, have official Facebook and Twitter pages. The Company publishes its iOS platform releases as “Universal Apps,” making a single transaction yield accessible product to be installed on every [applicable] Apple-branded device a user owns.

Through its anticipated support of Windows ~~8 initiatives~~ ~~such~~initiatives as(including ~~Smart~~the ~~Glass~~Windows ~~(as~~10 ~~well~~initiatives asthat ~~the~~Microsoft ~~forthcoming~~continues ~~Windows~~to 10roll ~~initiatives~~out), the Company ~~will~~anticipates beit will able to cross promote any/all Companion App versions of its Windows-based products to users based on the particular ~~mobile~~Windows device they use (inclusive of phones, Surface tablets, Xbox consoles, etc.) The benefits to this cross-promotional effort will include heightened consumer awareness for IP expanding content and monetized consumables for the Windows platform.

The above is subject to change, including, but not limited to, the addition of other social media outlets and social networks that may or may not be in existence as of today's date.

The cross-promotional partnerships via social media outlets and social networks are not contemplated in the Company's publisher license agreements. Support is included in the software development kits provided by our license partners and other licensed publishers have previously, and are currently, exploiting cross-promotional partnerships within social media outlets and social networks.

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Sales and Distribution

~~Most~~To date, all of the Company’s products ~~will~~ beare digitally distributed (via download/streaming) through a “First Party” distribution store (for example: ~~Microsoft Corporation’s Marketplace,~~ Apple Inc.’s App Store, Google’s Google Play, Amazon, Facebook, iTunes, Spotify, Microsoft Corporation’s Marketplace, etc.) Some of our products ~~may~~ bear licensed-brands through which there is great potential for exploitation via merchandising, cross-promotion and/or publicity tie-ins with ~~its~~our licensor(s), as well as within social media communities. ~~Other~~Some of our products ~~will~~are be based on internally generated, wholly owned intellectual properties. Some of our products (depending upon the license attached or the individual internally generated intellectual property) may or may not appeal to select regional territories of the world. The Company will ~~also~~continue to try to acquire “Pick Up” opportunities, games developed by external third party developers for either a flat fee or a fee and a back-end royalty. It is estimated that licensed-brand and Pick Up products may be good candidates for retail distribution.

ItWhenever ispossible, and as appropriate, it is anticipated that our video game and interactive book products, and their associated marketing and publicity assets, will be localized into E-F-I-G-S (English, French, Italian, German, and Spanish). As appropriate, through post release product updates, additional languages may be added, starting with Portuguese, Russian, Korean, Japanese, and Chinese. The Company does not have an internal translation staff. ~~Third~~The Company hires third party localization firms ~~are~~ ~~expected~~ to bemanage translations; the Company manages its contracted third party development partners to ~~manage~~implement ~~translations~~any/all localized assets.

Competition

Many companies worldwide are dedicated to developing and publishing products for the video and computer games market. We expect more companies to enter this industry. Our competitors vary in size from small companies to very large companies with dominant market shares and substantial financial resources. The Company’s games will be in competition with these companies, such as Zynga, King, Supercell, Rovio, Electronic Arts, Activision, Playdom, Ubisoft, Majesco, and others. Most of our competitors have significantly greater financial, marketing and development resources than we have. As a result, we may not be able to devote adequate resources to develop, acquire or license new technologies, undertake extensive marketing campaigns, adopt aggressive pricing policies or adequately compensate our developers to the same degree as certain of our competitors. As interactive products (games) in many of our proposed markets are relatively new and rapidly evolving, our current or future competitors may compete more successfully as the industry matures. In particular, any of our competitors may offer products and services that have significant performance, price, creativity and/or other advantages over our games and technologies. These products and services may significantly affect the demand for our services. In addition, any of our current or future competitors may be acquired by, receive investments from or enter into other strategic relationships with larger, longer-established and better-financed companies and therefore obtain significantly greater financial, marketing and technology licensing and development resources than we have. If we are unable to compete effectively in our principal markets, our business, financial condition and results of operations could be materially and adversely affected.

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Patents, Trademarks and Intellectual Property

Some of our products ~~will~~are be based on internally generated intellectual property, whereas others ~~may~~are ~~involve~~based on IP governed by third-party licensing agreements between the Company and ~~third~~licensors ~~parties~~ that allow the Company to develop and sell products using ~~that~~their ~~third party’s~~ (usually well known) intellectual properties. Nonetheless, all unique intellectual property generated by the Company including all textual, aural and graphical designs for products (whether or not under a branded license) created by Company employees or its contractors working through work-for-hire agreements executed with the Company, will be owned by the Company. ~~Currently~~To date, ~~the~~all ~~Company~~music ~~has~~content ~~the~~published ~~following~~by ~~games~~Soul inand ~~pre-production:~~Vibe ~~“The~~Music ~~Wheaties~~are copyrighted assets ~~Challenge,”~~of ~~“Bugaboo,”~~the aCompany. ~~virtual-pet~~Each ~~game~~music ~~that~~track ~~may~~is ~~bear~~an individual asset identifiable through a ~~licensed-brand,~~proprietary ~~“The~~ISRC ~~Dragon~~code. ~~Wars,”~~Each ~~“Grimwhiskers,”~~EP is identified by ~~and~~a ~~“Last~~proprietary ~~Day~~UPC oncode, ~~Earth”~~as (Lwell.~~D.O.E.)~~ ~~These~~The ~~product~~music ~~names~~content ~~are~~that ~~working~~comprises ~~titles~~Soul and ~~may~~Vibe beMusic ~~changed~~releases atis ~~any~~recognized ~~time~~by the music identification service, Shazam.

Our policy is to require each of our employees, contracted developers, consultants and advisors to execute a confidentiality agreement upon the commencement of employment, development-publishing, work-for-hire, or consulting relationship with us. These agreements provide that all confidential information developed or made known to the individual during the term of the relationship shall be the exclusive property of the Company and shall be kept confidential and not disclosed to third parties except in specific circumstances.

We may elect, depending upon circumstances, to file for additional copyright protection or patent protection for our products. However, we have not filed for any copyrights or patents in any jurisdiction. We currently do not have registered U.S. trademarks but plan to file for trademarks when selling our products. We regard trademarks as valuable assets and intend to vigorously defend them against infringement.

Employees

As of the date of this ~~offering~~annual report, we have one (1) employee, our Chief Executive Officer. The Company has two consultants performing the roles of Director of Operations and Quality Assurance (“QA”) Manager. The Company is currently compensating these consultants with restricted stock. It is anticipated that these two consultants will become formal employees of the Company upon receipt of appropriate financing.

~~-8-~~The Company has assembled a Strategic Advisory Board comprised of subject matter experts from the video and computer games industry. As of December 31, 2015 the Company had seven advisory board members.

The Company has assembled a Strategic Advisory Board comprised of subject matter experts from the video and computer games industry. Four members of our Advisory Board have been publicly announced as of May 28, 2013 with another two revealed through a publicly distributed shareholder letter in November of 2013.

Address and Telephone Number

Our executive office is located at ~~1660~~ 6548 South ~~Hwy~~Big ~~100~~Cottonwood Canyon Road, Suite ~~500,~~200 ~~St.~~Salt ~~Louis~~Lake ~~Park~~City, MNUtah, ~~55416~~84121, and our phone number is (763) 400-8040. Our website, www.soulandvibe.com, ~~contains~~ contains a description of our company, but such website and the information contained on our website ~~should~~is subject to frequent change and should not be viewed as part of this Annual Report.

ITEM 1A.

RISK FACTORS.

An investment in our common stock involves significant risks. You should carefully consider the following risks and all other information set forth in this Annual Report before deciding to invest in our common stock. If any of the events or developments described below occurs, our business, financial condition and results of operations may suffer. In that case, the value of our common stock may decline and you could lose all or part of your investment.

You should consider each of the following risk factors and any other information set forth in this Form 10-K and the other reports filed by the Company with the Securities and Exchange Commission (the “SEC”), including the Company’s financial statements and related notes, in evaluating the Company’s business and prospects. The risks and uncertainties described below are not the only ones that impact on the Company’s operations and business. Additional risks and uncertainties not presently known to the Company, or that the Company currently considers immaterial, may also impair its business or operations. If any of the following risks actually occurs, the Company’s business and financial condition, results or prospects could be harmed.

Risks Relating to Our Company

We have historically incurred significant losses and our financial situation creates doubt whether we will continue as a going concern.

During the twelve months ended December 31, ~~2014~~ 2015, the Company realized a net loss of $2,~~121~~160,~~633~~946 compared with a net loss of $2,~~270~~121,~~453~~633 for the year ended December 31, ~~2013.~~ 2014. As of December 31, ~~2014~~2015, the Company had a working capital deficiency of $12,~~629~~396,~~760~~130 and a shareholder’s deficit of $1,~~238~~998,~~127~~993. There are no assurances that we will be able to achieve a level of revenues adequate to generate sufficient cash flow from operations or obtain additional financing through private placements, public offerings and/or bank financing necessary to support our working capital requirements. To the extent that funds generated from any private placements, public offerings and/or bank financing are insufficient, we will have to raise additional working capital. No assurance can be given that additional financing will be available, or if available, will be on acceptable terms. These conditions raise substantial doubt about our ability to continue as a going concern. If adequate working capital is not available we may be forced to discontinue operations, which would cause investors to lose their entire investment.

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Our independent auditors have expressed doubt about our ability to continue as a going concern. If we do not continue as a going concern, investors will lose their entire investment.

In their report on our financial statements included in this Annual Report, our independent auditors have expressed doubt about our ability to continue as a going concern. Our ability to continue as a going concern is an issue raised as a result of ongoing operating losses and a lack of financing commitments then in place to meet expected cash requirements. Our ability to continue as a going concern is subject to our ability to generate a profit and/or obtain necessary funding from outside sources, including obtaining additional funding from the sale of our securities, increasing sales or obtaining loans and grants from various financial institutions where possible. If we do not continue as a going concern, investors will lose their entire investment.

We have a limited operating history and face many of the risks and difficulties frequently encountered by a development stage company.

We are a company in its infancy, and to date, our development efforts have been focused primarily on the development and marketing of our business model and initial product portfolio offerings. Our operations commenced in the first quarter of 2014, however, we have limited operating history for investors to evaluate the potential of our business development. We have not built our customer base and our brand name. In addition, we also face many of the risks and difficulties inherent in gaining market share as a new company:

•	Develop effective business plan;
•	Meet customer standards;
•	Attain customer loyalty; and
•	Develop and upgrade our service.

Our future will depend on our ability to ~~release~~ release video and computer games and entertainment apps, interactive books, and downloadable/streamable music within the market place, which requires careful planning of developing products that meets customer standards without incurring unnecessary cost and expense.

~~-9-~~The success of our business is highly dependent on being able to predict which new videogame/hardware/distribution platforms will be successful, and on the market acceptance and timely release of those platforms. If we do not accurately predict which new videogame/hardware/distribution platforms will be successful, our financial performance will be materially adversely affected.

~~The~~We ~~success~~expect to derive most of our ~~business~~revenue ~~is highly~~from ~~dependent~~the sale of products for play on ~~being~~videogame/hardware/distribution ~~able~~platforms tomanufactured ~~predict~~by ~~which~~third parties, such as video game consoles, mobile devices, personal computers and browser-based social media platforms such as Facebook. Therefore, the success of our products is driven in large part by the success of new videogame hardware systems/distribution platforms and our ability to accurately predict which systems/platforms will be most successful, ~~and~~in on the ~~market~~marketplace. ~~acceptance~~We must make product development decisions and ~~timely~~commit ~~release~~significant resources well in advance of ~~those~~the ~~platforms~~anticipated introduction of a new system/platform. A new system/platform for which we are developing products may be delayed, may not succeed or may have a shorter life cycle than anticipated. If the systems/platforms for which we are developing products are not released when anticipated or do not ~~accurately~~attain ~~predict~~wide ~~which~~market ~~new~~acceptance, ~~videogame~~our ~~platforms~~revenue growth will suffer, we may be ~~successful~~unable to fully recover the resources we have committed, and our financial performance will be ~~materially adversely affected~~harmed.

We expect to derive most of our revenue from the sale of products for play on videogame platforms manufactured by third parties, such as video game consoles, mobile devices, personal computers and browser-based distribution platforms such as Facebook. Therefore, the success of our products is driven in large part by the success of new videogame hardware systems/distribution platforms and our ability to accurately predict which systems/platforms will be most successful in the marketplace. We must make product development decisions and commit significant resources well in advance of the anticipated introduction of a new system/platform. A new system/platform for which we are developing products may be delayed, may not succeed or may have a shorter life cycle than anticipated. If the systems/platforms for which we are developing products are not released when anticipated or do not attain wide market acceptance, our revenue growth will suffer, we may be unable to fully recover the resources we have committed, and our financial performance will be harmed.

Technology changes rapidly in our business, and if we fail to anticipate new technologies, the quality, timeliness and competitiveness of our products will suffer.

Rapid technology changes in our industry ~~require~~ require us to anticipate, sometimes years in advance, which technologies and/or distribution platforms our products must take advantage of in order to make them competitive in the market at the time they are released. Therefore, we usually start our product development with a range of technical development goals that we hope to be able to achieve. We may not be able to achieve these goals, or our competition may be able to achieve them more quickly than we can. In either case, our products may be technologically inferior to competitive products, or less appealing to consumers, or both. If we cannot achieve our technology goals within the original development schedule of our products, then we may delay products until these technology goals can be achieved, which may delay or reduce revenue and increase our development expenses. Alternatively, we may increase the resources employed in research and development in an attempt to accelerate our development of new technologies, either to preserve our product launch schedule or to keep up with our competition, which would increase our development expenses and adversely affect our operations and financial condition.

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Our limited operating history makes it difficult to evaluate our future business prospects and to make decisions based on of our historical performance.

Although our Chief Executive Officer has ~~been~~ been engaged in the video game industry for a significant period of time, (25 years) we did not begin operations of our current business ~~focusing~~ focusing on the development and publishing of games and games-related content, interactive books, and downloadable/streamable music for ~~console~~consoles, mobile devices, ~~and~~ personal computers, and browser-based social media platforms until recently. We have a very limited operating history in our current form, which makes it difficult to evaluate our business on the basis of historical operations. As a consequence, it is difficult, if not impossible, to forecast our future results based upon our historical data. Reliance on our historical results may not be representative of the results we will achieve. Because of the uncertainties related to our lack of historical operations, we may be hindered in our ability to anticipate and timely adapt to increases or decreases in sales, product costs or expenses. If we make poor budgetary decisions as a result of unreliable historical data, we could be less profitable or incur losses, which may result in a decline in our stock price.

If our games fail to gain market acceptance, we may not have sufficient capital to pay our expenses and to continue to operate.

Our ultimate success will depend on generating revenues from the sale of games and games-related content (which is inclusive of virtual apparel and costumes for Avatars, premium downloadable content, and micro-transactions). As a result, if we do not generate enough users, we may be unable to generate sufficient revenues for our games and games-related content. We may not achieve and sustain market acceptance sufficient to generate revenues to cover our costs and allow us to become profitable or even continue to operate.

We must effectively manage the growth of our operations, or our company will suffer.

Our ability to successfully implement our business plan requires an effective planning and management process. If funding is available, we may elect to increase the scope of our operations and acquire complimentary businesses. Implementing our business plan will require significant additional funding and resources. If we grow our operations, we will need to hire additional employees and make significant capital investments. If we grow our operations, it will place a significant strain on our existing management and resources. If we grow, we will need to improve our financial and managerial controls and reporting systems and procedures, and we will need to expand, train and manage our workforce. Any failure to manage any of the foregoing areas efficiently and effectively would cause our business to suffer.

Our business is both seasonal and cyclical. If we fail to deliver our products at the right times, our sales will suffer.

Our business is highly seasonal, with the ~~highest~~ highest levels of consumer demand, and a significant percentage of our revenue, occurring in the ~~month~~months of November, December., and January. If we miss this key selling period, due to product delays or delayed introduction of a new hardware platform for which we have developed products, our sales will suffer disproportionately. Our industry is also cyclical. Videogame platforms have historically had a life cycle of approximately four to eight years. As one group of platforms is reaching the end of its cycle and new platforms are emerging, consumers often defer game software purchases until the new platforms are available, causing sales to decline. This decline may not be immediately offset by increased sales of products for the new platform as the installed base of the new platform needs adequate time to grow. If we fail to deliver our products at the right times, our sales will suffer.

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Our results of operations may fluctuate from quarter to quarter, which could affect our business, financial condition and results of operations.

Our results of operations may fluctuate from quarter to quarter depending upon several factors, some of which are beyond our control. These factors include, but are not limited to,

• ~~the~~The availability of consumer returns in the marketplace (for products distributed at retail); • ~~the~~The volume of physical product trade-ins provided by consumers to our retail partners; and • ~~consumer~~Consumer spending patterns through online distribution systems and/or with our retail partners (based on the individual product.)

These, as well as other factors, could affect our business, financial condition and results of operations, and this makes the prediction of our financial results on a quarterly basis difficult. Also, it is possible that our quarterly financial results may be below the expectations of public market analysts.

We are heavily dependent on our senior management, and a loss of a member of our senior management team could cause our stock price to suffer.

If we lose the services of Peter Anthony Chiodo, our sole director and Chief Executive Officer and certain key employees, we may not be able to find appropriate replacements on a timely basis, and our business could be adversely affected. Our existing operations and continued future development depend to a significant extent upon the performance and active participation of Mr. Chiodo and certain key employees. Although we entered into an employment agreement with Mr. Chiodo in January 2015 and although we may enter into employment agreements with additional key employees in the future, we cannot guarantee that we will be successful in retaining the services of these individuals. If we were to lose any of these individuals, we may not be able to find appropriate replacements on a timely basis and our financial condition and results of operations could be materially adversely affected.

- 12-

We may be unable to maintain an effective system of internal control over financial reporting, and as a result we may be unable to accurately report our financial results.

Our reporting obligations as a public company place a significant strain on our management, operational and financial resources and systems. We do not at the moment have a chief financial officer, a chief accounting officer, or any employee with a financial or accounting background, though we are actively conducting a search for such an individual. At present, we would be unable to conclude that we maintain an effective system of internal control over financial reporting. If we fail to maintain an effective system of internal control over financial reporting, we could experience delays or inaccuracies in our reporting of financial information, or non-compliance with the Commission, reporting and other regulatory requirements. This could subject us to regulatory scrutiny and result in a loss of public confidence in our management, which could, among other things, cause our stock price to drop.

Risks Relating to Our Business and Industry

We operate in a highly competitive industry and compete against many large companies that could harm our business.

Many companies worldwide are dedicated to developing and publishing products for the video and computer games market. We expect more companies to enter this industry. Our competitors vary in size from small companies to very large companies with dominant market shares and substantial financial resources. The Company’s games will be in competition with these companies, such as King, Supercell, Rovio, Zynga, Electronic Arts, Activision, Playdom, Ubisoft, Majesco, and others. Most of our competitors have significantly greater financial, marketing and development resources than we have. As a result, we may not be able to devote adequate resources to develop, acquire or license new technologies, undertake extensive marketing campaigns, adopt aggressive pricing policies or adequately compensate our developers to the same degree as certain of our competitors. As interactive products (games) in many of our proposed markets are relatively new and rapidly evolving, our current or future competitors may compete more successfully as the industry matures. In particular, any of our competitors may offer products and services that have significant performance, price, creativity and/or other advantages over our games and technologies. These products and services may significantly affect the demand for our services. In addition, any of our current or future competitors may be acquired by, receive investments from or enter into other strategic relationships with larger, longer-established and better-financed companies and therefore obtain significantly greater financial, marketing and technology licensing and development resources than we have. If we are unable to compete effectively in our principal markets, our business, financial condition and results of operations could be materially and adversely affected.

Unexpected network interruptions, security breaches or computer virus attacks could harm our business.

The Company may be required to develop and maintain a substantial computer network infrastructure in order to protect our games, intellectual properties, and proprietary technologies. Any failure to maintain satisfactory performance, reliability, security and availability of such network infrastructure, whether maintained by us or by third parties, may cause significant harm to our ability to attract and maintain customers and/or users for our services. Major risks relating to any such future network infrastructure include:

•

Any breakdowns or system failures, including from fire, flood, earthquake, typhoon or other natural disasters, power loss or telecommunications failure, resulting in a sustained shutdown of all or a material portion of our servers; and

•

Any security breach caused by hacking, loss or corruption of data or malfunctions of software, hardware or other computer equipment, and the inadvertent transmission of computer viruses.

~~-11-~~Any of the foregoing factors could reduce a future users’ satisfaction, harm our business and reputation, have a material adverse effect on our financial condition and results of operations, and result in the loss of an investor’s entire investment.

Any of the foregoing factors could reduce a future users’ satisfaction, harm our business and reputation, have a material adverse effect on our financial condition and results of operations and result in the loss of an investor’s entire investment.

We rely upon third parties to provide web and email hosting, networking and distribution for our games, and disruption in these services could harm our business.

We ~~will~~currently utilize, and plan on continuing to utilize over the current fiscal year, third party networking providers and distribution partnerships through companies including, but not limited to, Sony Computer Entertainment, Apple, Google, Amazon, and Microsoft, to network and distribute our games and other proprietary technologies. In addition, we utilize a third party web hosting service for our company website and email communications. If disruptions or capacity constraints occur, the Company may have no means of replacing these services, on a timely basis or at all. This could cause a material adverse condition for our operations and financial earnings.

Our lack of patent and/or copyright or trademark protection and any unauthorized use of the games by third parties may harm our business.

We have not filed, as of the date hereof, for patent and/or copyright protection for our games, planned proprietary technologies and/or planned products. Presently we intend to rely on trade secret protection and/or confidentiality agreements with our key technology support personnel, customers, business partners and others to protect our intellectual property rights. Once any of our games or products is developed and ready to be marketed, we intend to file for trademark protection of that game’s or product’s name or other distinguishing mark, but we have yet not done so. Despite certain precautions taken by us, it may be possible for third parties to obtain and use our intellectual property without authorization. This risk may be increased due to the lack of any patent, trademark and/or copyright protection. If any of our proprietary rights are misappropriated or we are forced to defend our intellectual property rights, we will have to incur substantial costs. Such litigation could result in substantial costs and diversion of our resources, including diverting the time and effort of our senior management, and could disrupt our business, as well as have a material adverse effect on our business, prospects, financial condition and results of operations. Management will from time to time determine whether applying for patent, trademark and copyright protection is appropriate for us. We have no guarantee that, if filed, any applications will be granted or, if awarded, whether they will offer us any meaningful protection from other companies in our business. Furthermore, any patents, trademarks or copyrights that we may be granted may be held by a court to infringe on the intellectual property rights of others and subject us to awards for damages.

- 13-

We may be subject to claims with respect to the infringement of intellectual property rights of others, which could result in substantial costs and diversion of our financial and management resources to defend such claims and/or lawsuits against us and could harm our business.

We cannot be certain that our games and proprietary technologies will not infringe upon patents, trademarks, copyrights or other intellectual property rights held by third parties. While we know of no basis for any claims of this type, the existence of and ownership of intellectual property can be difficult to verify and we have not made an exhaustive search of all patent filings. Additionally, most patent applications are kept confidential for twelve to eighteen months, or longer, and we would not be able to be aware of potentially conflicting claims that they make. We may become subject to legal proceedings and claims from time to time relating to the intellectual property of others in the ordinary course of our business. If we are found to have violated the intellectual property rights of others, we may be enjoined from using such intellectual property, and we may incur licensing fees or be forced to develop alternative technology or obtain other licenses. In addition, we may incur substantial expenses in defending against these third party infringement claims and be diverted from devoting time to our business and operational issues, regardless of the merits of any such claim. Successful infringement or licensing claims against us may result in substantial monetary damages, which may materially disrupt the conduct of our business and have a material adverse effect on our reputation, business, financial condition and results of operations.

Our ability to obtain favorable terms from our suppliers may impact our financial results.

Our financial results depend significantly upon the business terms we can obtain from our suppliers, primarily competitive prices and consistent availability. Because substantially all of our purchases are already cash in advance we do not have risk associated with loss of favorable payment terms.

If the products that we offer do not reflect our customers’ tastes and preferences, we may never be able to develop revenues or profits.

Our success depends in part on our ability to offer products and services that reflect consumers’ tastes and preferences. Consumers’ tastes are subject to frequent, significant and sometimes unpredictable changes. If the physical merchandise we offer for sale fails to satisfy customers’ tastes or respond to changes in customer preferences, our sales could suffer and we could be required to mark down unsold inventory (for retail distributed products). If the digitally distributed merchandise we offer gratis (using a “freemium model,”) also known as a “free-to-play” model) or for purchase (using a “premium” model) fails to satisfy customers’ tastes or respond to changes in customer preferences, our downloads and monetized content conversion rates could suffer. The two (2) aforementioned scenarios could depress our profit margins. In addition, any failure to offer products and services in line with customers’ preferences could allow competitors to gain market share, which could harm our business, results of operations , and financial condition.

-12-

Our sales and profitability may be affected by changes in economic, business and industry conditions.

If the economic climate in the United States or abroad deteriorates, customers or potential customers could reduce or delay their technology and entertainment investments. Reduced or delayed technology and entertainment investments could decrease our sales and profitability. In this environment, our customers may experience financial difficulty, cease operations and fail to budget or reduce budgets for the purchase of our products and professional services. This may lead to longer sales cycles, delays in purchase decisions, payment and collection, and can also result in downward price pressures, causing our sales and profitability to decline. In addition, general economic uncertainty and general declines in capital spending in the information technology sector make it difficult to predict changes in the purchasing requirements of our customers and the markets we serve. There are many other factors which could affect our business, including:

• ~~the~~The introduction and market acceptance of new technologies, products and services; • ~~new~~New competitors and new forms of competition; • ~~the~~The size and timing of customer orders (for retail distributed physical product); • ~~the~~The size and timing of capital expenditures by our customers; • ~~adverse~~Adverse changes in the credit quality of our customers and suppliers; • ~~changes~~Changes in the pricing policies of, or the introduction of, new products and services by us or our competitors; • ~~changes~~Changes in the terms of our contracts with our customers or suppliers; • ~~the~~The availability of products from our suppliers; and • ~~variations~~Variations in product costs and the mix of products sold.

These trends and factors could adversely affect our business, profitability and financial condition and diminish our ability to achieve our strategic objectives.

- 14-

Risks Related to an Investment in Our Securities

There is a limited market for our common stock, which may make it more difficult to dispose of your stock.

Our common stock is currently quoted on the OTC QB under the symbol “SOUL.” There is a limited trading market for our common stock. Accordingly, there can be no assurance as to the liquidity of any markets that may develop for our common stock, the ability of holders of our common stock to sell shares of our common stock, or the prices at which holders may be able to sell their common stock.

Because our principal stockholder controls a significant number of shares of our common stock, he has effective control over actions requiring stockholder approval.

Our Chief Executive Officer and principal stockholder beneficially owns more than 50% of our outstanding shares of common stock. Accordingly, he has the ability to control the Company and the outcome of issues submitted to our stockholders.

We expect to experience volatility in the price of our Common Stock, which could negatively affect stockholders’ investments.

The trading price of our Common Stock may be highly volatile and could be subject to wide fluctuations in response to various factors, some of which are beyond our control. The stock market in general has experienced extreme price and volume fluctuations that have often been unrelated or disproportionate to the operating performance of companies with securities traded in those markets. Broad market and industry factors may seriously affect the market price of companies’ stock, including ours, regardless of actual operating performance. All of these factors could adversely affect your ability to sell your shares of Common Stock or, if you are able to sell your shares, to sell your shares at a price that you determine to be fair or favorable.

The relative lack of public company experience of our management team could adversely impact our ability to comply with the reporting requirements of U.S. securities laws.

Our management team lacks public company experience, which could impair our ability to comply with legal and regulatory requirements such as those imposed by the Sarbanes-Oxley Act of 2002. Our senior management has little experience in managing a publicly traded company. Such responsibilities include complying with federal securities laws and making required disclosures on a timely basis. Our senior management may not be able to implement programs and policies in an effective and timely manner that adequately respond to such increased legal, regulatory compliance and reporting requirements, including the establishing and maintaining of internal controls over financial reporting. Any such deficiencies, weaknesses or lack of compliance could have a materially adverse effect on our ability to comply with the reporting requirements of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which is necessary to maintain our public company status. If we were to fail to fulfill those obligations, our ability to continue as a U.S. public company would be in jeopardy, we could be subject to the imposition of fines and penalties and our management would have to divert resources from attending to our business plan.

Our Common Stock is categorized as “penny stock,” which may make it more difficult for investors to sell their shares of Common Stock due to suitability requirements.

Our Common Stock is categorized as “penny stock”. The SEC has adopted Rule 15g-9 which generally defines “penny stock” to be any equity security that has a market price (as defined) less than $5.00 per share or an exercise price of less than $5.00 per share, subject to certain exceptions. The price of our Common Stock is significantly less than $5.00 per share, and is therefore considered “penny stock.” This designation imposes additional sales practice requirements on broker-dealers who sell to persons other than established customers and accredited investors. The penny stock rules require a broker-dealer buying our securities to disclose certain information concerning the transaction, obtain a written agreement from the purchaser and determine that the purchaser is reasonably suitable to purchase the securities given the increased risks generally inherent in penny stocks. These rules may restrict the ability and/or willingness of brokers or dealers to buy or sell our Common Stock, either directly or on behalf of their clients, may discourage potential stockholders from purchasing our Common Stock, or may adversely affect the ability of stockholders to sell their shares.

~~-13-~~FINRA sales practice requirements may also limit a stockholder’s ability to buy and sell our Common Stock, which could depress the price of our Common Stock.

Financial Industry Regulatory Authority, Inc. (“FINRA”) sales practice requirements may also limit a stockholder’s ability to buy and sell our Common Stock, which could depress the price of our Common Stock.

In addition to the “penny stock” rules described above, the FINRA has adopted rules that require a broker-dealer to have reasonable grounds for believing that the investment is suitable for that customer before recommending an investment to a customer. Prior to recommending speculative low priced securities to their non-institutional customers, broker-dealers must make reasonable efforts to obtain information about the customer’s financial status, tax status, investment objectives and other information. Under interpretations of these rules, FINRA believes that there is a high probability that speculative low priced securities will not be suitable for at least some customers. Thus, the FINRA requirements make it more difficult for broker-dealers to recommend that their customers buy our Common Stock, which may limit your ability to buy and sell our shares of Common Stock, have an adverse effect on the market for our shares of Common Stock, and thereby depress our price per share of Common Stock.

The elimination of monetary liability against our directors, officers and employees under Nevada law and the existence of indemnification rights for or obligations to our directors, officers and employees may result in substantial expenditures by us and may discourage lawsuits against our directors, officers and employees.

Our Articles of Incorporation contain a provision permitting us to eliminate the personal liability of our directors to us and our stockholders for damages for the breach of a fiduciary duty as a director or officer to the extent provided by Nevada law. We may also have contractual indemnification obligations under any future employment agreements with our officers. The foregoing indemnification obligations could result in us incurring substantial expenditures to cover the cost of settlement or damage awards against directors and officers, which we may be unable to recoup. These provisions and the resulting costs may also discourage us from bringing a lawsuit against directors and officers for breaches of their fiduciary duties, and may similarly discourage the filing of derivative litigation by our stockholders against our directors and officers even though such actions, if successful, might otherwise benefit us and our stockholders.

- 15-

We may issue additional shares of Common Stock or preferred stock in the future, which could cause significant dilution to all stockholders.

Our Articles of Incorporation authorize ~~the~~ the issuance of up to ~~300~~750,000,000 shares of Common Stock and 10,000,000 shares of preferred stock, with a par value of $0.001 per share. As of March 2425, ~~2015~~2016, we had 48237,~~744~~642,~~973~~126 shares of Common Stock and 130,000 shares of Series B Preferred Stock issued and outstanding; however, we may issue additional shares of Common Stock or preferred stock in the future in connection with a financing, ~~whether~~ whether or not in connection with the Purchase Agreement, or an acquisition. Such issuances may not require the approval of our stockholders. In addition, certain of our outstanding rights to purchase additional shares of Common Stock or securities convertible into our Common Stock are subject to full-ratchet anti-dilution protection, which could result in the right to purchase significantly ~~more~~ more shares of Common Stock being issued or a reduction in the purchase price for any such shares or both. Any issuance of additional shares of our Common Stock, or equity securities convertible into our Common Stock, including but not limited to, preferred stock, warrants and options, will dilute the percentage ownership interest of all stockholders, may dilute the book value per share of our Common Stock, and may negatively impact the market price of our Common Stock.

Anti-takeover effects of certain provisions of Nevada state law hinder a potential takeover of us.

Certain provisions of the Nevada Revised Statutes have anti-takeover effects and may inhibit a non-negotiated merger or other business combination. These provisions are intended to encourage any person interested in acquiring us to negotiate with, and to obtain the approval of, our board of directors in connection with such a transaction. However, certain of these provisions may discourage a future acquisition of us, including an acquisition in which the stockholders might otherwise receive a premium for their shares. As a result, stockholders who might desire to participate in such a transaction may not have the opportunity to do so.

Because we do not intend to pay any cash dividends on our Common Stock, our stockholders will not be able to receive a return on their shares unless they sell them.

We intend to retain any future earnings to finance the development and expansion of our business. We do not anticipate paying any cash dividends on our Common Stock in the foreseeable future. Declaring and paying future dividends, if any, will be determined by our Board, based upon earnings, financial condition, capital resources, capital requirements, restrictions in our Articles of Incorporation, contractual restrictions, and such other factors as our Board deems relevant. Unless we pay dividends, our stockholders will not be able to receive a return on their shares unless they sell them. There is no assurance that stockholders will be able to sell shares when desired.

ITEM 1B.

UNRESOLVED STAFF COMMENTS.

Not applicable.

-14-

ITEM 2.

PROPERTIES.

~~Currently~~Through December 31, 2015, our Chief Executive ~~Officer~~ ~~supplies~~Officer supplied office space to the Company at no charge. In addition, wethe ~~pay~~Company paid approximately $250 per month for virtual office space. Effective January 1, 2016, the Company entered into a lease for professional office space. The Company effectively pays $2,500 in rent, monthly. The Company subsequently cancelled its virtual office space and is no longer incurring any expenses associated with the virtual office space. Future minimum lease commitments under the lease for the years ending December 31 are as follows: $29,491 – 2016 and $30,375 – 2017.

ITEM 3.

LEGAL PROCEEDINGS.

In the ordinary course of business, we may be involved in legal proceedings from time to time. As of the date hereof, except as set forth herein, there are no known legal proceedings against the Company. No governmental agency has instituted proceedings, served, or threatened the Company with any complaints.

ITEM 4.

MINE SAFETY DISCLOSURES

Not Applicable

- 16-

PART II

ITEM 5.

MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASERS OF EQUITY SECURITIES.

Market Information

Our shares of common stock are eligible ~~for~~ for quotation on the OTC BBQB under the symbol “SOUL.” However, our shares do not trade other than on an extremely limited and sporadic basis. The following table sets forth, for the periods indicated, the range of high and low ~~bid~~sales ~~quotations~~prices per share as reported on the ~~OTC~~NASDAQ BBStock ~~since the first period for which figures are available~~Market. ~~These quotations represent inter-dealer prices, without retail markups, markdowns or commissions and may not necessarily represent actual transactions.~~ Our shares of common stock first began trading on October 17, 2012.

On ~~August~~June 125, ~~2013~~2015, the holder of a majority of the shares of Common Stock approved a reverse split of such shares by a ratio of 1 for 40 (the “Reverse Split”). The Company filed the certificate of amendment (the “Certificate”) to its articles of incorporation with the State of Nevada effectuating the Reverse Split on August 20, 2015. The Reverse Split became effective onin the ~~OTC~~State BBof Nevada on August 12 25, ~~2013, having~~2015. ~~been~~The ~~approved~~2015 byReverse ~~FINRA~~Split became effective on the OTC QB on August 925, ~~2013~~2015. As a result of the Reverse Split, each ~~three~~ forty (340) shares of Common Stock issued and outstanding prior to the Reverse Split were converted into one (1) share of Common Stock, and all options, warrants, and any other similar instruments convertible into, or exchangeable or exercisable for, shares of Common Stock have been proportionally adjusted. ~~The~~All ~~figures~~references ~~below~~to ~~reflect~~common ~~the~~stock ~~Reverse~~have ~~Split~~been retroactively restated.

	High		Low
Year 2013
First Quarter	$	1.28	$	0.86
Second Quarter	$	1.08	$	0.69
Third Quarter	$	4.44	$	0.31
Fourth Quarter	$	0.55	$	0.17
Year 2014
First Quarter	$	024.6284	$	014.3890
Second Quarter	$	020.5260	$	04.1258
Third Quarter	$	06.1760	$	01.0321
Fourth Quarter	$	01.0656	$	0.0132
Year 2015
First Quarter to date	$	0.06		0.02
First Quarter	$	1.88	$	0.70
Second Quarter	$	0.88	$	0.10
Third Quarter	$	0.18	$	0.01
Fourth Quarter	$	0.03	$	0.003
Year 2016
First Quarter through March 25, 2016	$	0.006	$	0.001

Holders. As of March 2425, ~~2015~~2016, there were approximately 4429 holders of record of our common stock, which excludes those shareholders holding stock in street name.

Dividend Policy. We have not declared or paid cash dividends or made distributions in the past, and we do not anticipate that we will pay cash dividends or make distributions in the foreseeable future. We currently intend to retain and reinvest future earnings, if any, to finance our operations.

Sales of Unregistered Securities. ~~During~~ During the three months ended December 31, ~~2014~~2015, ~~advisory~~there ~~board members and consultants~~ were ~~issued~~no asales ~~total~~ of ~~4,871,665~~unregistered ~~shares of common stock for services~~securities. In addition, on January 26, 2015, we issued an aggregate of 960,000 shares of our common stock to Peter Anthony Chiodo, Chief Executive Officer, pursuant to the employment agreement entered into by and between our company and Mr. Chiodo on January 20, 2015.

-15-

ITEM 6.

SELECTED FINANCIAL DATA.

Not applicable.

ITEM 7.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND PLAN OF OPERATIONS

The following discussion and analysis of of the results of operations and financial condition for the year ended December 31, ~~2014~~2015, should be read in conjunction with the financial statements and related notes and the other financial information that are included elsewhere in this Annual Report. This discussion includes forward-looking statements based upon current expectations that involve risks and uncertainties, such as our plans, objectives, expectations and intentions. Forward-looking statements are statements not based on historical information and which relate to future operations, strategies, financial results or other developments. Forward-looking statements are based upon estimates, forecasts, and assumptions that are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control and many of which, with respect to future business decisions, are subject to change. These uncertainties and contingencies can affect actual results and could cause actual results to differ materially from those expressed in any forward-looking statements made by us, or on our behalf. We disclaim any obligation to update forward-looking statements. Actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of a number of factors, including those set forth under the Risk Factors, Cautionary Note Regarding Forward-Looking Statements and Business sections in this Annual Report. We use words such as “anticipate,” “estimate,” “plan,” “project,” “continuing,” “ongoing,” “expect,” “believe,” “intend,” “may,” “will,” “should,” “could,” and similar expressions to identify forward-looking statements.

~~We and our representatives may from time to time make written or oral statements that are “forward~~-~~looking,”~~ including statements contained in this Annual Report and other filings with the SEC, reports to our stockholders and news releases. All statements that express expectations, estimates, forecasts or projections are forward17-looking statements. In addition, other written or oral statements which constitute forward-looking statements may be made by us or on our behalf. Words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “estimate,” “project,” “forecast,” “may,” “should,” variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in or suggested by such forward-looking statements. We undertake no obligation to update or revise any of the forward-looking statements after the date of this Annual Report to conform forward-looking statements to actual results. Important factors on which such statements are based are assumptions concerning uncertainties, including but not limited to, uncertainties associated with the following:

We, and our representatives, may, from time to time, make written or oral statements that are “forward-looking,” including statements contained in this Annual Report and other filings with the SEC, reports to our stockholders and news releases. All statements that express expectations, estimates, forecasts or projections are forward-looking statements. In addition, other written or oral statements, which constitute forward-looking statements, may be made by us or on our behalf. Words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “estimate,” “project,” “forecast,” “may,” “should,” variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions, which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in or suggested by such forward-looking statements. We undertake no obligation to update or revise any of the forward-looking statements after the date of this Annual Report to conform forward-looking statements to actual results. Important factors on which such statements are based are assumptions concerning uncertainties, including but not limited to, uncertainties associated with the following:

•

Inadequate capital and barriers to raising the additional capital or to obtaining the financing needed to implement our business plans;

•

Our failure to earn revenues or profits;

•

Inadequate capital to continue business;

•

Volatility or decline of our stock price;

•

Potential fluctuation in quarterly results;

•

Rapid and significant changes in markets;

•

Litigation with or legal claims and allegations by outside parties; and

•

Insufficient revenues to cover operating costs.

The following discussion should be read in conjunction with the financial statements and the notes thereto which are included in this Annual Report. This discussion contains forward-looking statements that involve risks, uncertainties and assumptions. Our actual results may differ substantially from those anticipated in any forward-looking statements included in this discussion as a result of various factors.

Overview and Outlook

Victory LG, Inc. was formed in the state of of Nevada on January 5, 2011 to provide retail sales of an Energy liquid-gel capsule to the general public. On September 21, 2012, the Board of Directors approved an amendment to the Company’s Articles of Incorporation to change the name of the Company to Soul and Vibe Interactive Inc. (formerly Victory LG, Inc.). The change of the Company’s name to Soul and Vibe Interactive Inc. was intended to align the Company’s name with management’s marketing plan. The Company’s primary business focus and source of revenue moving forward is the development and publishing (sales) of video and computer game software, interactive books, and downloadable/streamable music for ~~home~~ consoles, mobile devices, ~~and~~ personal computers, and browser-based social media platforms. The Company ~~will~~sells ~~primarily sell~~ its products through digital distribution ~~channels~~ ~~and, secondarily by working through strategic partners, at brick-and-mortar stores~~channels. The Company's products ~~will~~are be a mix of licensed brand and internally generated, wholly owned intellectual properties.

-16-

As stated elsewhere herein, on March 8, 2013, we discontinued entirely the business of Victory LG, Inc. Consequently, this Item 7 discusses the registrant as currently constituted only.

The Company has adopted a fiscal year end of December 31.

Completion of Share Exchange

On February 6, 2013, we completed the acquisition of Soul and Vibe Entertainment, Inc. when we entered into the Agreement with Soul and Vibe Entertainment, Inc. (“Soul”) and, for certain limited purposes, its then sole stockholder. Pursuant to the Agreement, the former stockholder of Soul transferred all of the issued and outstanding shares of common stock to us in exchange for 12308,333~~,334~~ newly issued shares of our common stock. As a result of the Exchange, Soul became our wholly- owned subsidiary. As of March 8, 2013, the dietary supplement business sector of the Company was discontinued entirely. As a result of the Exchange, the Company’s primary business focus and source of revenue moving forward is the development and publishing (sales) of video and computer game software for home consoles, mobile devices, and personal computers. The Company expects to generate its corporate revenue from the sale of video and computer games. We develop, publish, and digitally distribute interactive entertainment for video game consoles, mobile devices, and personal computers.

~~The~~- Company concentrates its operational strategy on the development of product for a variety of hardware platforms: video game consoles (for example: Xbox 360, PlayStation 3 and their successors), mobile (for example: Apple iOS and Android devices, Windows Phones and Tablets), and personal computers (for example: PC and Mac). Our products will also be released on portable video game consoles (for example: PlayStation Vita), which can be defined as residing in both the video game console and mobile hardware platform categories. Products will be designed for specific hardware platforms; not all products will be released on all hardware platforms.18-

~~Most~~The ofCompany ~~the~~intends ~~Company’s~~to ~~products~~focus ~~are~~its operational strategy on the development of digitally distributed ~~(via~~video ~~download)~~game, ~~through~~interactive book, and music product for a ~~“First~~variety ~~Party”~~of ~~distribution~~hardware platforms ~~store~~that include: Video game consoles (for example: ~~Microsoft’s~~Xbox ~~Marketplace or~~360 ~~Apple’s~~and ~~App~~PlayStation ~~Store~~3)., ~~Some~~mobile of(for ~~the~~example: ~~Company’s~~Apple ~~products~~iOS, ~~may~~Android, and ~~bear~~Windows ~~licensed~~hand-~~brands~~held/portable ~~through~~devices), ~~which~~augmented ~~there~~reality/wearable istech ~~great~~devices ~~potential~~ (for ~~exploitation~~example: ~~via~~HTC ~~merchandising~~Vive, ~~cross~~Vuzix-~~promotion~~branded hardware, and~~/or~~ ~~publicity~~Oculus ~~tie~~Rift), personal computers (such as PC and Mac), and browser-~~ins~~based ~~with~~social ~~its~~media ~~licensor~~platforms, such as ~~well~~Facebook. Our video game products are also anticipated to be released on portable video game consoles (for example: Nintendo 3DS and PlayStation Vita), which can be defined as ~~within~~residing ~~social~~in ~~media~~both the video game console and mobile hardware platform categories. Our music products are ~~communities~~also anticipated to be accessible on internet-enabled video game consoles (for example: Spotify via the PlayStation Network and Microsoft Groove via the Xbox One.) ~~Other~~The Company wishes to emphasize: Individual products will be ~~based~~designed onfor ~~our~~specific ~~internally~~hardware platforms ~~generated~~ and ~~wholly~~that ~~owned~~not ~~intellectual~~all ~~properties~~products will be ultimately released on all hardware platforms.

The Company’s products to date have been digitally distributed (via download) through a “First Party” distribution store (for example: Facebook, Microsoft Corporation’s Marketplace, Apple Inc.’s App Store, Google’s Google Play, Amazon, etc.). It is anticipated that the Company’s future products will be digitally distributed, as well. Some of the Company’s products may bear licensed-brands through which there is potential for exploitation via merchandising, cross-promotion and/or publicity tie-ins with its licensor, as well as within social media communities. Other Company products will be based on our internally generated and wholly owned intellectual properties.

Market and Industry

Currently, ideas about how game console ~~and~~ and mobile products might be able to “talk to one another” are taking shape and being put into practice. The execution of these ideas are expanding play experiences and creating new marketing vehicles and cross-promotional revenue generating mechanisms for games as an entertainment category.

-17-

Results of Operations

Working Capital

	December 31, 2014			December 31, 2013
	December 31, 2015			December 31, 2014
Current Assets	$	4350,~~061~~446		$	~~121~~43,~~718~~061
Current Liabilities		12,~~672~~446,~~821~~576			1,~~934~~672,~~348~~821
Working Capital (Deficit)	$	(12,~~629~~396,~~760~~130	)	$	(1,~~812~~629,~~630~~760	)

Cash Flows

	Twelve months ended			Twelve months ended
	December 31, 2014			December 31, 2013
	December 31, 2015			December 31, 2014
Cash Flows Used in Operating Activities	$	(~~419~~250,~~470~~381	)	$	(~~261~~419,~~197~~470	)
Cash Flows Used in Investing Activities		(~~200~~90,~~962~~807	)		(~~165~~200,~~599~~962	)
Cash Flows Provided by Financing Activities		~~531~~322,~~755~~526			~~541~~531,~~100~~755
Net Increase (Decrease) in Cash During Period	$	(88,677	)	$	114,304
Net Decrease in Cash During Period	$	(18,662	)	$	(88,677	)

- 19-

Balance Sheet

As at December 31, ~~2014~~2015, the Company had ~~total~~ total assets of $~~434~~459,~~694~~712 compared with total assets of $~~293~~434,~~275~~694 as at December 31, ~~2013~~2014. The assets are mainly comprised of cash ~~and~~ and capitalized development costs.

The Company had total liabilities of $12,~~672~~458,~~821~~705 at December 31, ~~2014~~2015 compared with $1,~~934~~672,~~348~~821 as at December 31, ~~2013~~2014. The ~~decrease~~increase in total liabilities is mainly attributable to aan ~~decrease~~increase in the derivative liability.

Operating Expenses

During the twelve months ended December 31, ~~2014~~ 2015, the Company incurred operating expenses totaling $1,~~652~~136,~~214~~490 compared with $~~901~~1,~~348~~652,214 for the year ended December 31, ~~2013~~2014. The ~~increase~~decrease in operating expenses is mainly attributable to ana ~~increase~~decrease in general and administrative expenses ~~related~~as toa ~~the commencement~~result of initial operations commencing in the prior year.

During the twelve months ended December 31, ~~2014~~ 2015, the Company realized net loss of $2,~~121~~160,~~633~~946 compared with a net loss of $2,~~270~~121,~~453~~633 for the year ended December 31, ~~2013~~2014. The ~~decrease~~increase in net loss was primarily due to a ~~gain~~loss on derivative instruments offset by a decrease in operating expense and a gain on extinguishment of debt.

Plan of Operations

We plan to engage in product development, ~~product~~ product release and marketing. Dependent on the timing of appropriate financing, the Company intends to begin development of two ~~proprietary~~ proprietary IP-based games and acquire an estimated two “pick up” games from independent software developers. Dependent on appropriate financing, the two proprietary IP-based games are anticipated to be released in 2016 and the two “pick-up” games are expected to be released in the second half of ~~2015~~2016. The Company, as a publisher, intends to release each game under the label “Soul and Vibe.” Prior to release, the Company intends to develop and execute a marketing and publicity plan designed to produce a testing plan for each title. As, and when each game has been internally approved by the Company’s in-house Quality Assurance (testing) department, it will be submitted to the hardware platform manufacturer (as appropriate) for review and approval. Assuming approval is granted, the title(s) will either be propped to their servers for consumer purchase (download) or sent to a replicator (for physical product). As part of executing this plan, the Company expects to invest, subject to being able to raise the requisite financing, in capital equipment that will be needed to bring the products to market. This is inclusive of development and testing equipment and general hardware for marketing and production management. As the number of products the Company publishes increases, the staff of the Company is expected to increase commensurately. The Company presently anticipates that the staff increases will fall in the following categories: Quality Assurance (testing), marketing and public relations and production management along with the likely integration of consultants in the areas of consumer marketing and sales (~~retail).~~to ~~In addition,~~drive ~~the~~digital ~~Company~~product ~~intends~~downloads toand/or ~~sign~~at retail afor ~~lease~~retail ~~for~~placement ~~office~~of ~~space~~product). In addition, ~~establish~~the ~~its~~Company ~~office~~intends ~~and~~to undertake and execute marketing and PR ~~initiatives~~ initiatives for the Company and the products it intends to release from its newly established professional office space in Salt Lake City, Utah. If the Company is successful in raising the requisite financing in the future, it will: 1(i) pursue continued development of multiple projects that will be released on multiple hardware platforms and 2(ii) publish them in a “staggered” release.

LIQUIDITY AND CAPITAL RESOURCES

As atof December 31, ~~2014~~2015, the Company had a a cash balance of $257,~~752~~090 and a working capital deficit of $12,~~629~~396,~~760~~130 compared with a cash balance of $~~114~~25,~~429~~752 and working capital deficit of $1,~~812~~629,~~630~~760 at December 31, ~~2013~~2014. The ~~increase~~decrease in working capital is mainly due to aan ~~decrease~~increase in the derivative liability and accrued expenses.

Cash Flows from Operating Activities

During the year ended December 31, ~~2014~~2015, ~~the~~ the Company used $~~419~~250,~~470~~381 of cash in operating activities compared with use of $~~261~~419,~~197~~470 of cash in operating activities during ~~the~~ the year ended December 31, ~~2013~~2014. The ~~increase~~decrease in the use of cash for operating activities is mainly attributable to an increase in accrued ~~general and administrative~~ expenses ~~related to the commencement of initial operations~~.

-18-

Cash Flows from Investing Activity

During the year ended December 31, ~~2014~~2015, ~~the~~ the Company used $~~200~~90,~~962~~807 of cash in investing activities compared with $~~165~~200,~~599~~962 of cash used during the year ended December 31, ~~2013.~~ 2014. The ~~increase~~decrease in cash used in investing activities is mainly due to ~~increased~~a ~~product~~decrease ~~development~~in ~~costs~~cash ~~and~~paid ~~capital~~for ~~expenditures~~capitalized development costs.

Cash Flows from Financing Activities

During the year ended December 31, ~~2014~~2015, ~~the~~ the Company received $~~531~~322,~~755~~526 of cash from financing activities compared with the receipt of $~~541~~531,~~100~~755 of cash during the year ended December 31, ~~2013~~2014. The cash provided by financing activities is mainly due to proceeds from issuance of common stock and warrants for cash as well as the issuance of convertible debentures. The Company is using proceeds received from the issuance of common stock and convertible debentures to fund product development costs, product marketing and product publicity costs, and general and administrative expenses.

OnDuring ~~February~~September 32014, ~~2015 (~~the ~~“Issuance Date”), the~~ Company ~~completed~~received a ~~the~~total ~~closing~~ of a$200,000 ~~private~~in ~~placement~~exchange ~~financing~~for ~~transaction~~a ~~(the~~Convertible ~~“Transaction”)~~Debenture with an ~~accredited~~a ~~investor~~maturity ~~(the~~value ~~“OID~~of ~~Investor”)~~$210,667, ~~which~~due ~~purchased~~in aJune ~~Convertible~~of ~~Note~~2015. ~~(the~~The ~~“OID~~Debenture accrues ~~Note”)~~interest inat ~~the aggregate~~a ~~principal~~rate ~~amount~~ of upapproximately to10% ~~$400~~per annum,~~000~~ ~~due~~is ~~two~~convertible ~~(2)~~into ~~years~~shares ~~from~~of the ~~Issuance~~Company’s ~~Date~~common ~~(the~~stock ~~“Maturity~~at ~~Date”), and received~~the ~~gross~~option ~~proceeds~~ of ~~$50,000,~~the ~~excluding~~holder ~~transaction~~at ~~costs,~~a ~~fees~~conversion ~~and~~price ~~expenses.~~per ~~The~~share ~~OID~~equal ~~Note~~to ~~carries~~the anlesser ~~original~~of ~~issue~~the ~~discount~~trading (price on the ~~“OID”)~~ ofdate ~~ten~~immediately ~~percent~~preceding the ~~(10%).~~conversion ~~The~~date, ~~Company~~or isan ~~therefore~~amount ~~obligated~~equal to ~~pay~~60% of the ~~OID~~lowest ~~Investor~~trading anprice ~~aggregate~~(or ofa ~~$55,000~~40% ~~(the “Principal~~discount ~~Sum”~~to market) onfor the ~~Maturity~~ten ~~Date~~trading days immediately preceding the conversion date.

On- March 16, 2015, the Company entered into a Securities Purchase Agreement (the “SPA”) with LG Capital Funding, LLC, an accredited investor (“LG Capital”), pursuant to which the Company issued LG Capital a convertible promissory note (the “LG Note”) in the principal amount of $52,500 (“LG Note”). Interest on the LG Note accrues at the rate of 8% per annum. The Company is not required to make any payments on the LG Note until maturity on March 16, 2016. The Company has the right to repay the LG Notes at any time during the first 180 days of the term of the LG Note at a rate of 115% of the unpaid principal amount during the first 30 days, 121% of the unpaid principal amount between days 31 and 60, 127% of the unpaid principal amount between days 61 and 90, 133% of the unpaid principal amount between days 91 and 120, 139% of the unpaid principal amount between days 121 and 150, 140% of the unpaid principal amount between days 151 and 180.20-

OnDuring ~~March~~May ~~17,~~ 2015, ~~for~~the ~~aggregate~~Company ~~consideration~~issued an exchange ofnote to an accredited investor in substitution for $~~267~~183,~~500~~667 ~~(the~~of ~~“Consideration”)~~previously outstanding convertible debenture balance and $67,132 of ~~the~~accrued ~~Company~~interest ~~issued~~to aan ~~Convertible~~unrelated ~~Note~~third ~~(the~~party. ~~“BLE~~The ~~Note”)~~exchange innote ~~the~~was ~~original principal~~issued ~~amount~~with a maturity value of $~~294,~~250,799, (is due in March 2016, bears 10% interest and is convertible into shares of the ~~“Original~~Company ~~Principal~~at ~~Amount”)~~a rate equal to ~~Black~~60% ~~Mountain~~of ~~Equities,~~the ~~Inc.,~~average anof ~~accredited~~the ~~investor~~lowest trading price (~~“BLE”~~or a 40% discount to market). ~~The~~during ~~Original~~the ~~Principal~~10 ~~Amount~~consecutive ~~carries~~trading andays ~~original~~immediately ~~issue~~preceding ~~discount~~the ofconversion ~~$26,750~~date. The ~~Company~~note also ~~received~~stipulates ~~$53,500 in~~a ~~initial~~conversion ~~consideration~~limitation, ~~from~~whereby the ~~BLE~~holder ~~Note~~may ~~upon~~not ~~execution~~convert more than 33.33% ~~The~~of ~~BLE~~the ~~Note~~principal ~~bears~~balance awithin ~~one~~a 15-~~time~~day ~~interest~~period ~~charge~~during ofthe ~~10%~~90 ~~which~~days ~~was~~following ~~applied to~~the date of issuance. During 2015, the ~~Original~~note ~~Principal~~principal ~~Amount~~of ~~upon~~$89,003 ~~issuance~~was converted into approximately 4,030,000 shares of the ~~BLE~~Company’s ~~Note~~common stock. ~~The~~As ~~maturity~~noted ~~date~~in isthe ~~two~~paragraph ~~years~~below, ~~from~~the ~~each~~outstanding ~~payment~~balance of this anote, ~~portion~~after of the ~~Consideration~~exchange, is $76,411 at December 31, 2015.

During October 2015, a portion of the note listed above was exchanged, valued at $85,384, to a different accredited investor in substitution for $85,384 of previously outstanding convertible note principal to an unrelated third party, pursuant to a new exchange agreement. The new exchange note was issued with a maturity value of $85,384, is due on May 2017, bears 10% interest and is convertible into shares of the Company at a rate equal to 50% of the average of the three lowest trading prices (or a 50% discount to market) during the 25 consecutive trading days immediately preceding the conversion date. The note also stipulates two conversion limitations. The first conversion limitation stipulates that the new exchange note holder has an exclusive option to purchase the remaining balance of the original exchange note. During the exclusivity period, the original exchange note holder may not convert the outstanding balance of its note with the Company for 90 days. The second conversion limitation stipulates that the original exchange note holder may not convert the outstanding balance of its separate note with the Company, the “April Debenture,” that originated in May of 2015, for 90 days following the execution of the new exchange note. In October 2015, the note had an outstanding balance of $83,323 at which time the Company amended the note to increase the principal amount to $100,000 and decrease the interest rate to 4% and to waive all accrued interest outstanding. In November 2015, the note was amended to further decrease the interest rate to 2% and to waive all accrued interest outstanding. During December 2015, $26,316 of the outstanding balance was sold to an unrelated third party (Rock Capital) for $26,316. In total, $21,847 of the note was converted into approximately 10,389,000 shares during 2015 and has an outstanding balance of $53,897 at December 31, 2015.

As noted in the paragraph above, during December 2015, Rock Capital purchased $26,316 from an accredited investor in exchange for a Convertible Note with a principal balance of $26,316. Interest on the note accrues at the rate of 2% per annum. The note is due one year from the date of each installment and is convertible using a conversion price of the average of 50% of the lowest trade price (or a 50% discount to market) occurring during the 25 trading days immediately preceding the conversion date. The note also stipulates a conversion limitation, whereby the holder may not convert more than 33.33% of the principal balance within a 15-day period during the 90 days following the date of issuance. The note has an outstanding balance of $26,316 as of December 31, 2015.

On February 3, 2015 (the “Issuance Date”), the Company completed the closing of a private placement financing transaction (the “Transaction”) with an accredited investor (the “OID Investor”), which purchased a Convertible Note (the “OID Note”) in the aggregate principal amount of up to $400,000 due two (2) years from the Issuance Date (the “Maturity Date”), and received gross proceeds of $50,000, excluding transaction costs, fees and expenses. The OID Note carries an original issue discount (the “OID”) of ten percent (10%). The Company was therefore obligated to pay the OID Investor an aggregate of $55,555 (the “Principal Sum”) on the Maturity Date. During the fourth quarter 2015, the note was fully converted into approximately 16,512,000 shares; subsequent to December 31, 2015 the Company and the OID Investor agreed to retire the note in its entirety, which reduced the potential for additional derivative liability being added to the Company’s balance sheet.

On March 17, 2015, for aggregate consideration of up to $267,500 (the “Consideration”), the Company issued a Convertible Note (the “BLE Note”) in the original principal amount of up to $294,250 (the “Original Principal Amount”) to Black Mountain Equities, Inc., an accredited investor (“BLE”). The Original Principal Amount carries an original issue discount of $26,750. The Company received $53,500 in initial consideration from the BLE Note upon execution with an initial discount of $5,350. The maturity value of the note is $58,850 due in March 2017. The BLE Note bore a one-time interest charge of 10% that was applied to the Original Principal Amount upon issuance of the BLE Note.

During September 2015, Black Mountain Equities, Inc., issued two exchange notes, $33,850 and $25,000 to two different accredited investors in substitution for $58,850 of previously outstanding convertible note principal to unrelated third parties, pursuant to exchange agreements discussed in the notes detailed below.

The first of the exchange notes was issued with a maturity value of $33,850, is due in March 2017, bears 10% interest and is convertible into shares of the Company at a rate equal to 60% of the average of the three lowest trading prices (or a 40% discount to market) during the 25 consecutive trading days immediately preceding the conversion date. The note also stipulates a conversion limitation, whereby the holder may not convert more than 33.33% of the principal balance within a 15-day period during the 90 days following the date of issuance. In October 2015, the note had an outstanding balance of $25,243 at which time the Company amended the note to increase the principal amount to $31,854 and decrease the interest rate to 2% and to waive all accrued interest outstanding. During October 2015, $25,000 of the outstanding balance was sold to an unrelated third party (BME Holdings) for $25,000. In November 2015, the note was amended to decrease the interest rate to 1% and to waive all accrued interest outstanding. As of December 31, 2015, the note has an outstanding balance of $4,059. Subsequent to year-end, the holder of the note reduced the equity amount from 9.99% to 4.99% through an equity blocker agreement.

- 21-

As noted in the paragraph above, the first exchange note that was purchased by BME Holdings has an outstanding balance of $25,000 as of December 31, 2015, is due in March 2018 and bears 1% interest. In November 2015, the conversion price for the note was amended to a rate equal to 50% of the lowest one trading price (or a 50% discount to market) during the 25 consecutive trading days immediately preceding the conversion date.

The second of the exchange notes was issued with a maturity value of $25,000, is due in March 2017, bears 10% interest and is convertible into shares of the Company at a rate equal to 60% of the average of the three lowest trading prices (or a 40% discount to market) during the 25 consecutive trading days immediately preceding the conversion date. The note also stipulates a conversion limitation, whereby the holder may not convert more than 33.33% of the principal balance within a 15-day period during the 90 days following the date of issuance. In October 2015, the note had an outstanding balance of $16,702 at which time the Company amended the note to increase the principal amount to $23,314 and decrease the interest rate to 2% and to waive all accrued interest outstanding. During October 2015, the $23,314 outstanding balance was sold to an unrelated third party (BME Holdings). In November 2015, the note was amended to decrease the interest rate to 1% and to waive all accrued interest outstanding. There is no outstanding balance on the note as of December 31, 2015 as it was sold to BME Holdings. Subsequent to year-end, the holder of the note reduced the equity amount from 9.99% to 4.99% through an equity blocker agreement. The second exchange note that was purchased by BME Holdings for $23,314, and was due in March 2018, had an interest rate of 1%. The note was fully converted into approximately 8,016,000 shares. There is no outstanding balance on the note as of December 31, 2015.

During November 2015, the Company issued a $5,000 note, without any consideration, which does not accrue interest and is due in November 2017. The note is convertible into shares of the Company at a rate equal to 60% of the average of the lowest trading price (or a 40% discount to market) during the 25 consecutive trading days immediately preceding the conversion date. At December 31, 2015, the note had an outstanding balance of $5,000.

During March 2015, the Company issued an exchange note to an accredited investor in substitution for $105,000 in principal and $5,293 in interest of previously outstanding convertible note principal (the “Individual Friends and Family Note”) to an unrelated third party, pursuant to an exchange agreement. The exchange note was issued with a maturity value of $110,293 is due in March 2016, bears no interest and is convertible into shares of the Company at a rate equal to 65% of the average of the three lowest trading prices (or a 35% discount to market) during the 25 consecutive trading days immediately preceding the conversion date. The note also stipulates a conversion limitation, whereby the holder may not convert more than 33.33% of the principal balance within a 15-day period during the 90 days following the date of issuance. Note principal was converted into approximately 730,000 shares during 2015. There is no outstanding balance as of December 31, 2015.

During March 2015, the Company received $50,000 from an accredited investor in exchange for a Convertible Note with a principal balance of $52,500. Interest on the note accrues at the rate of 8% per annum. The note is due one year from the date of installment and is convertible using a conversion price of the average of 60% of the three lowest trade prices (or a 40% discount to market) occurring during the 15 trading days immediately preceding the conversion date. During 2015, $26,400 of the balance was converted into approximately 7,754,000 shares of stock in the current year and the note has an outstanding principal balance of $26,100 as of December 31, 2015. In early October, the Company received $26,000 from the accredited investor in exchange for a Convertible Note with a principal balance of $28,000. Interest on the note accrues at the rate of 8% per annum. The note is due one year from the date of installment and is convertible using a conversion price of the average of 60% (or a 40% discount to market) of the three lowest trade prices occurring during the 15 trading days immediately preceding the conversion date. As of December 31, 2015, the note carried a balance of $28,000.

During April 2015, the Company received $50,000 from an accredited investor in exchange for a Convertible Note with a principal balance of $53,500. (This note is referred to as the “April Debenture” in the Convertible Debentures section, below.) Interest on the note accrues at the rate of 8% per annum. The note is due one year from the date of each installment and is convertible using a conversion price of the average of 60% of the three lowest trade prices (or a 40% discount to market) occurring during the 25 trading days immediately preceding the conversion date. The outstanding balance of the note is subject to a 90 day “lock-out” during which the note holder is prevented from any further conversions against the note, as per the aged debt purchase agreement that was executed in October 2015 (as detailed earlier in this section of the document.) During 2015, $11,344 of the note was converted into approximately 4,295,000 shares and has an outstanding balance of $42,156 at December 31, 2015.

During May 2015, the Company issued an exchange note to an accredited investor in substitution for $27,778 in principal and $4,246 in interest of previously outstanding convertible note balance (the “Grouped Friends and Family Notes”) to an unrelated third party, pursuant to an exchange agreement. (The July 2013 Convertible Note and two of the August 2013 Convertible Notes were included in this exchange.) The exchange note was issued with a maturity value of $32,024, is due in May 2016, bears no interest and is convertible into shares of the Company at a rate equal to 65% of the average of the lowest three trading prices (or a 35% discount to market) during the 25 consecutive trading days immediately preceding the conversion date. The note also stipulates a conversion limitation, whereby the holder may not convert more than 33.33% of the principal balance within a 15-day period during the 90 days following the date of issuance. Note principal was fully converted into approximately 525,000 shares during 2015. There is no outstanding balance as of December 31, 2015.

- 22-

During June 2015, the Company received $40,000 from an accredited investor in exchange for a Convertible Note with a principal balance of $45,000. Interest on the note accrues at the rate of 8% per annum. The note is due one year from the date of each installment and is convertible using a conversion price of the average of 60% of the three lowest trade prices (or a 40% discount to market) occurring during the 25 trading days immediately preceding the conversion date. During 2015, $3,500 of the note was converted into approximately 1,517,000 shares and had a balance of $41,500 as of December 31, 2015.

During September 2015, for aggregate consideration of up to $105,000 (the “Consideration”), the Company issued a Convertible Note (the “TJC Note”) in the original principal amount of $28,000 (the “Original Principal Amount”). During November 2015, the Company received an additional $10,000 from this note. Interest on the note accrues at the rate of 10% per annum. The note is due one year from the date of each installment and is convertible using a conversion price of the average of 60% of the three lowest trade prices (or a 40% discount to market) occurring during the 25 trading days immediately preceding the conversion date. The note also stipulates a conversion limitation, whereby the holder may not convert more than 33.33% of the principal balance within a 15-day period during the 90 days following the date of issuance. As of December 31, 2015, the note had an outstanding balance of $38,000.

During October 2015, the Company issued an exchange note to a consultant, without any consideration, for the value of $50,000 in consulting services. The note was issued with a maturity value of $50,000, is due in April 2016, bears an interest rate of 2% and is convertible into shares of the Company at a rate equal to 60% of the average of the lowest trading price (or a 40% discount to market) during the 20 consecutive trading days immediately preceding the conversion date. As of December 31, 2015, the note had an outstanding balance of $50,000.

During December 2015, the Company received $10,000 from an accredited investor in exchange for a Convertible Note with a principal balance of $11,500. Interest on the note accrues at the rate of 10% per annum. The note is due one year from the date of each installment and is convertible using a conversion price of the average of 50% of the lowest trade price (or a 50% discount to market) occurring during the 25 trading days immediately preceding the conversion date. The note also stipulates a conversion limitation, whereby the holder may not convert more than 33.33% of the principal balance within a 15-day period during the 90 days following the date of issuance. As of December 31, 2015, the note had an outstanding balance of $11,500.

During December 2015, the Company received $25,000 from an accredited investor in exchange for a Convertible Note with a principal balance of $28,500. Interest on the note accrues at the rate of 10% per annum. The note is due one year from the date of each installment and is convertible using a conversion price of the average of 50% of the three lowest trade prices (or a 50% discount to market) occurring during the 25 trading days immediately preceding the conversion date. As of December 31, 2015, the note had an outstanding balance of $28,500.

During 2015, the Company paid an amount due of $2,500 to an officer of the Company. The amount was unsecured and bore no interest.

On April 24, 2015, the Company entered into a promissory note for $42,080. The note carries an interest rate of 5%. The note requires monthly payments of $2,000 and matures in April 2016. The note is personally guaranteed by the chief executive officer of the Company. The outstanding balance of the note at December 31, 2015 is $27,580.

Going Concern

We have not attained profitable operations and are dependent upon obtaining financing to pursue any extensive acquisitions and activities. For these reasons, our auditors stated in their report on our audited financial statements that they have substantial doubt that we will be able to continue as a going concern without further financing. Our intended source of future cash flow to fund our growth model until we are able to establish profitable operations ~~are~~will be through additional debt and equity offerings.

Off-Balance Sheet Arrangements

We have no significant 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 are material to stockholders.

Future Financings

We will continue to rely on the issuance of debt and equity in order to continue to fund our business operations. Issuances of additional shares will result in dilution to existing stockholders. There is no assurance that we will achieve any additional sales of the equity securities or arrange for debt or other financing to fund planned acquisitions and exploration activities.

We intend to raise additional capital through equity and debt financing as needed, though there cannot be any assurance that such funds will be available to us on acceptable terms, on an acceptable schedule, or at all.

We- will be required to raise additional funds through public or private financing, additional collaborative relationships or other arrangements until we are able to raise revenues to a point of positive cash flow. We believe our existing and available capital resources will be sufficient to satisfy our funding requirements through the first quarter of 2015. We are evaluating various options to further reduce our cash requirements to operate at a reduced rate, as well as options to raise additional funds, including obtaining loans and selling common stock. There is no guarantee that the Company will be able to generate enough revenue and/or raise capital to support its operations.23-

~~The~~We ~~issuance~~will ofbe ~~additional~~required ~~securities~~to ~~may result~~raise inadditional afunds through ~~significant~~public ~~dilution~~or inprivate ~~the~~financing, ~~equity~~additional ~~interests~~collaborative ofrelationships ~~our~~or ~~current~~other ~~stockholders.~~arrangements ~~Obtaining~~until ~~loans,~~we ~~assuming~~are ~~these~~able ~~loans~~to ~~would~~raise revenues beto ~~available,~~a ~~will~~point ~~increase~~of ~~our~~positive ~~liabilities and future~~ cash ~~commitments~~flow. ~~There~~We isbelieve noour ~~assurance~~existing ~~that~~and weavailable capital resources will be ~~able~~sufficient to ~~obtain~~satisfy ~~further~~our funding ~~funds~~requirements ~~required~~through ~~for~~the ~~our~~second ~~continued~~quarter ~~operations~~of or2016. ~~that~~We ~~additional~~are ~~financing~~evaluating ~~will~~various beoptions ~~available~~ to ~~sue~~further ~~when~~reduce ~~needed~~our ~~or,~~cash ifrequirements ~~available,~~to operate ~~that~~at ita ~~can~~reduced berate, ~~obtained~~as onwell ~~commercially~~as ~~reasonable~~options ~~terms. If we are not able~~ to ~~obtain~~raise ~~the~~ additional ~~financing on a timely basis~~funds, we ~~will~~including ~~not~~obtaining beloans ~~able~~and toselling ~~meet~~common ~~our~~stock. ~~other~~There ~~obligations~~is asno guarantee ~~they~~that ~~become~~the ~~due~~Company ~~and we~~ will be ~~forced~~able to ~~scale~~generate ~~down~~enough revenue and/or ~~perhaps~~raise ~~even~~capital ~~cease our~~to support its operations.

~~-19-~~The issuance of additional securities may result in a significant dilution in the equity interests of our current stockholders. Obtaining loans, assuming these loans would be available, will increase our liabilities and future cash commitments. There is no assurance that we will be able to obtain further funds required for our continued operations or that additional financing will be available to use when needed or, if available, that it can be obtained on commercially reasonable terms. If we are not able to obtain the additional financing on a timely basis, we will not be able to meet our other obligations as they become due and we will be forced to scale down or perhaps even cease our operations.

Due to the uncertainty of our ability to ~~meet~~ meet our current operating and capital expenses, our independent auditors included a ~~note~~paragraph toin their report on our financial statements for the year ended December 31, ~~2014~~2015 regarding concerns about our ability to continue as a going concern. There is substantial doubt about our ability to continue as a going concern as the continuation and expansion of our business is dependent upon obtaining further financing, successful and sufficient market acceptance of our products, and achieving a profitable level of operations. The condensed consolidated financial statements do not include any adjustments relating to the recoverability or classification of recorded assets and liabilities that might result should the Company be unable to continue as a going concern.

OFF-BALANCE SHEET ARRANGEMENTS

We have no off-balance sheet arrangements.

CRITICAL ACCOUNTING POLICIES

We have identified the policies outlined below as critical to our business operations and an understanding of our results of operations. The list is not intended to be a comprehensive list of all of our accounting policies. In many cases, the accounting treatment of a particular transaction is specifically dictated by accounting principles generally accepted in the United States, with no need for management's judgment in their application. The impact and any associated risks related to these policies on our business operations is discussed throughout management's Discussion and Analysis or Plan of Operation where such policies affect our reported and expected financial results. Note that our preparation of the financial statements requires us to make estimates and assumptions that affect the reported amount of assets and liabilities, disclosure of contingent assets and liabilities at the date of our financial statements, and the reported amounts of revenue and expenses during the reporting period. There can be no assurance that actual results will not differ from those estimates.

Use of Estimates

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

Cash Equivalents

The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents.

Income Taxes

The Company accounts for income taxes in accordance with the Financial Accounting Standards Board (FASB) Topic ASC 740, “Income Taxes.” We account for income taxes under the asset and liability method, 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. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date.

Revenue Recognition

The Company ~~will~~ primarily digitally ~~distribute~~distributes its products through (an) online merchants / portal service(s). The Company ~~will~~recognizes ~~recognize~~ revenue at the “on demand” point of of sale by the customer and recognizes a receivable ~~will be logged~~. (For the purposes of digital distribution, customer is equivalent to end consumer.) The ~~Most~~ portal service(s) track product sales ~~/ monetized content sales~~ on a daily ~~basis.~~/ Depending upon the individual service, either approximately every two (2) weeks, monthly, or quarterly, the portal services will remit payment to the Company. Ownership of product is transferred to the customer with a no refund, no return policy, as set by the online portal service(s). For retail distributed products (picknear-~~ups~~daily and select licensed-brand games), the Company will recognize revenue through traditional retail "sell-in" and "sell-through." Receivables are logged based on "sell-through" reports from retailers and distributors. Based on the distributor, product sales are tracked on a quarterly basis. On average, between thirty (30) to forty-five (45) days following the end of a quarter, the distributor will remit payment to the Company. Ownership of product is transferred to the customer (end user) with a no refund, no return policy, as set by individual retailers.

For the Company’s games and entertainment apps (such as e-books) payment is remitted to the Company every two weeks, monthly, or quarterly (depending upon the payment policies of the individual digital merchant/portal service). Ownership of product is transferred to the customer with a no refund, no return policy, as set by the online portal service(s). For retail distributed products (pick-ups and select licensed-brand games), the Company recognizes revenue through traditional retail "sell-in" and "sell-through." Receivables are logged based on "sell-through" reports from retailers and distributors. Based on the distributor, product sales are tracked on a monthly basis. On average, between thirty (30) to forty-five (45) days following the end of a month, the distributor remits payment to the Company. Ownership of product is transferred to the customer (end user) with a no refund, no return policy, as set by individual retailers.

- 24-

For the Company’s music releases (soundtracks and multi-track singles) it receives sales reports three months following any given month’s end. Earned revenue is collected by the Company’s aggregator and the Company, at its own discretion, can request the earned funds be deposited into its proprietary PayPal account at a time of its own choosing.

Impairment of Long-Lived Assets

The Company follows paragraph 360-10-05-4 of the FASB Accounting Standards Codification for its long-lived assets. The Company’s long-lived asset, which includes deferred development costs, is reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable.

The Company assesses the recoverability of its long-lived assets by comparing the projected undiscounted net cash flows associated with the related long-lived asset or group of long-lived assets over their remaining estimated useful lives against their respective carrying amounts. Impairment, if any, is based on the excess of the carrying amount over the fair value of those assets. Fair value is generally determined using the asset’s expected future discounted cash flows or market value, if readily determinable. If long-lived assets are determined to be recoverable, but the newly determined remaining estimated useful lives are shorter than originally estimated, the net book values of the long-lived assets are depreciated over the newly determined remaining estimated useful lives.

-20-

Net Income (Loss) per Common Share

Net income (loss) per common share is computed pursuant to section 260-10-45 of the FASB Accounting Standards Codification. Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock and potentially outstanding shares of common stock during the period.

Stock Based Compensation Expense

The Company adopted FASB guidance on stock based compensation upon inception on January 5, 2011. Under FASB ASC 718-10-30-2, all share-based payments to employees, including grants of employee stock options, to be recognized in the income statement based on their fair values. Pro forma disclosure is no longer an alternative. ~~The Company did not issue any stock and stock options for services and compensation for the period from January 5, 2011 (Inception) through December 31, 2013.~~

Derivative Instruments

The Company accounts for derivative instruments in accordance with ASC Topic 815, Derivatives and Hedging, all derivative instruments are reflected as either assets or liabilities at fair value in the balance sheet. ~~In accordance with~~ The Company uses estimates of fair value to value its derivative instruments. Fair value is defined as the price to sell an asset or transfer a liability in an orderly transaction between willing and able market participants. In general, the Company’s policy in estimating fair values is to first look at observable market prices for identical assets and liabilities in active markets, where available. When these are not available, other inputs are used to model fair value such as prices of similar instruments, yield curves, volatilities, prepayment speeds, default rates and credit spreads (including for the Company’s liabilities), relying first on observable data from active markets. Additional ~~adjustments~~ adjustments may be made for factors including liquidity, credit, bid/offer spreads, etc., depending on current market conditions. ~~Transaction~~ Transaction costs are not included in the determination of fair value. When possible, the Company seeks to validate the model’s ~~output~~ output to market transactions. Depending on the availability of observable inputs and prices, different valuation models could ~~produce~~ produce materially different fair value estimates. The values presented may not represent future fair values and may not be realizable. The Company categorizes its fair value estimates in accordance with ASC 820 based on the hierarchical framework associated with the three levels of price transparency utilized in measuring financial instruments at fair value as discussed above. As of December 31, ~~2014~~2015 and ~~2013~~2014, the Company had a $1,~~081~~313,~~318~~673 and $1,~~575~~081,~~807~~318 of derivative liabilities, respectively.

Internal-Use Software Development Costs

In accordance with ASC 350, Intangibles - Goodwill and Other Internal-Use Software, the Company capitalizes all game software development costs once upon reaching the application development stage, management has authorized and committed funding to the project and it is probable that the project will be completed. Costs that are capitalized are mainly in the form of fees paid to consultants in the form of cash and common stock of the Company. General and administrative costs and overhead are not capitalized as cost of internal-use software. Capitalization ceases no later than the point at which the project is substantially complete and ready for its intended use, generally after all substantial testing is completed. As of December 31, ~~2014~~2015 and ~~2013~~2014, the Company has capitalized $~~429~~515,~~405~~155 and $~~169~~429,~~000~~405, respectively, in internal-use software development costs which includes accumulated amortization of $116,475 and $45,704 as of December 31, 2015 and 2014, respectively. Two projects, Timeless Gems and Striker Rush: Championship Edition, were developed, completed, and placed into service as of December 31, 2014. AnThree ~~additional~~packages ~~title~~of expansion content were developed, aand released, for Timeless Gems throughout 2014 and 2015. A third ~~title~~game, ~~which~~SirVival, ~~has~~was ~~not~~acquired ~~been~~by the Company in the fourth quarter of 2013. Development ~~publically~~on ~~announced~~the astitle commenced through the game’s launch during the third quarter of ~~this~~2015. ~~annual~~Two ~~report~~interactive storybooks, isJohnny ~~currently~~Tractor and ~~under~~Friends: ~~development.~~County ~~Though~~Fair ~~incomplete~~and asJohnny ofTractor and Friends: Snow Day, were developed and launched during the ~~issuance~~third ofand ~~this~~fourth ~~annual~~quarters ~~report~~of 2015. A third interactive storybook, itwhich ishas ~~anticipated~~not ~~that~~been itformally ~~will~~announced beas ~~placed~~of ~~into~~December ~~service~~31, in2015, entered active development during the ~~second~~fourth quarter of 2015.

- 25-

Fair Value of Financial Instruments

ASC 820, Fair Value Measurements, (ASC 820) and ASC 825, Financial Instruments (ASC 825), requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. It establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

It prioritizes the inputs into three levels that may be used to measure fair value:

Level 1 - Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.

Level 2 - Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.

Level 3 - Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

~~-21-~~The Company’s financial instruments consist principally of cash, accounts payable, notes, convertible notes, accrued liabilities and derivative liabilities. Pursuant to ASC 820 and 825, the fair value of cash is determined based on “Level 1” inputs, which consist of quoted prices in active markets for identical assets. The recorded values of financial instruments other than derivative liabilities approximate their current fair values because of their nature and respective maturity dates or durations. Derivative liabilities are measured at fair value. The following table sets forth by level with the fair value hierarchy the Company’s financial assets and liabilities measured at fair value on December 31, 2015 and 2014:

The Company’s financial instruments consist principally of cash, accounts payable, notes, convertible notes, accrued liabilities and derivative liabilities. Pursuant to ASC 820 and 825, the fair value of cash is determined based on “Level 1” inputs, which consist of quoted prices in active markets for identical assets. The recorded values of financial instruments other than derivative liabilities approximate their current fair values because of their nature and respective maturity dates or durations. Derivative liabilities are measured at fair value. The following table sets forth by level with the fair value hierarchy the Company’s financial assets and liabilities measured at fair value on December 31, ~~2014 and 2013~~2015:

	Level 1		Level 2		Level 3		Total

Assets	$	-	$	-	$	-	$	-
Liabilities
Derivative financial instruments	$	-	$	-	$	1,313,673	$	1,313,673

December 31, 2014:

	Level 1		Level 2		Level 3		Total
Assets	$	-	$	-	$	-	$	-
Liabilities		-		-		-		-
Derivative financial instruments	$	-	$	-	$	1,081,318	$	1,081,318

December 31, 2013:

	Level 1		Level 2		Level 3		Total
Assets	$	-	$	-	$	-	$	-
Liabilities		-		-		-		-
Derivative financial instruments	$	-	$	-	$	1,575,807	$	1,575,807

Going concern

Our financial statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern, which contemplate the realization of assets and liquidation of liabilities in the normal course of business. We have incurred continuous losses from operations, have an accumulated deficit of $46,~~447~~607,~~023~~969 and a working capital deficit of $12,~~629~~396,~~760~~130 at December 31, ~~2014~~2015, and have reported negative cash flows from operations since inception. In addition, we do not currently have the cash resources to meet our operating commitments for the next twelve months. The Company’s ability to continue as a going concern must be considered in light of the problems, expenses, and complications frequently encountered by entrance into established markets and the competitive nature in which we operate.

Our ability to continue as a going concern is dependent on our ability to generate sufficient cash from operations to meet our cash needs and/or to raise funds to finance ongoing operations and repay debt. There can be no assurance, however, that we will be successful in our efforts to raise additional debt or equity capital and/or that our cash generated by our future operations will be adequate to meet our needs. These factors, among others, indicate that we may be unable to continue as a going concern for a reasonable period of time.

Recently Issued Accounting Standards

Management does not expect the adoption of recently issued accounting pronouncements to have a significant impact on our results of operations, financial position or cash flow.

ITEM 7A.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

Not applicable.

- 26-

ITEM 8.

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.

~~The~~REPORT ~~financial~~OF ~~statements~~INDEPENDENT ~~required~~REGISTERED ~~by this~~PUBLIC ~~item~~ACCOUNTING ~~are located following the signature page of this Annual Report.~~FIRM

To the Board of Directors and Shareholders
Soul and Vibe Interactive, Inc.
Salt Lake City, Utah

We have audited the accompanying consolidated balance sheet of Soul and Vibe Interactive, Inc. and subsidiaries as of December 31, 2014, and the related consolidated statements of operations, shareholders' equity (deficit), and cash flows for the year then ended. These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these consolidated financial statements based on our audit.

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 audits 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 consolidated financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall consolidated financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of Soul and Vibe Interactive, Inc. and subsidiaries as of December 31, 2014, and the results of their operations and their cash flows for the year then ended, in conformity with U.S. generally accepted accounting principles.

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the consolidated financial statements, the Company has suffered recurring losses from operations, has negative working capital, and has a deficit in shareholders’ equity. This raises substantial doubt about the Company's ability to continue as a going concern. Management's plans in regard to this matter are also described in Note 2. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

/s/ HJ & Associates, LLC

HJ & Associates, LLC
Salt Lake City, Utah
March 31, 2015

- 27-

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareholders
Soul and Vibe Interactive, Inc.

Salt Lake City, Utah

We have audited the accompanying balance sheet of Soul and Vibe Interactive, Inc. as of December 31, 2015, and the related statements of operations, stockholders' equity (deficit), and cash flows for the year then ended. 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 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 Soul and Vibe Interactive, Inc. as of December 31, 2015, and the results of its operations, and its cash flows for the year then ended, in conformity with U.S. generally accepted accounting principles. The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As disclosed in Note 2 to the financial statements, the Company has negative cash flow from operations. This raises substantial doubt about the Company’s ability to continue as a going concern. Management’s plans in regard to these matters are also described in Note 2. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

/s/ Haynie & Company

Haynie & Company

Salt Lake City, Utah

April 1, 2016

- 28-

Soul and Vibe Interactive Inc.

Consolidated Balance Sheets

	December 31,
	2015			2014
ASSETS

Current Assets
Cash	$	7,090		$	25,752
Accounts Receivable		463			3,619
Debt Issue Cost		11,443			6,190
Prepaid Expenses		31,450			7,500

Total Current Assets		50,446			43,061

Fixed Assets
Furniture and Equipment		14,526			9,470
Accumulated Depreciation		(3,940	)		(1,538	)

Total Fixed Assets		10,586			7,932

Other Assets
Development Costs, net of accumulated amortization of $116,475 and $45,704 as of December 31, 2015 and 2014, respectively		398,680			383,701

Total Assets	$	459,712		$	434,694

LIABILITIES AND SHAREHOLDER'S DEFICIT

Current Liabilities
Accounts payable	$	430,512		$	346,928
Related party payable		22,068			-
Accrued expenses		470,901			33,113
Accrued interest, related party		-			1,458
Note payable, related party		-			2,500
Note payable		27,580			-
Convertible note payable, related party, net of discount of $0 and $324 as of December 31, 2015 and 2014, respectively		-			9,676
Current portion of convertible debentures, net of discount of $160,325 and $135,617 as of December 31, 2015 and 2014, respectively		181,842			197,828
Derivative liability		1,313,673			1,081,318

Total Current Liabilities		2,446,576			1,672,821

Long-term portion of convertible debentures, net of discount of $102,143 and $0 as of December 31, 2015 and 2014, respectively		12,129			-

Total Liabilities		2,458,705			1,672,821

Shareholder's Deficit
Preferred Stock, $0.001 par value, 10,000,000 authorized, 130,000 issued and outstanding as of December 31, 2015 and 2014		130			130
Common Stock, $0.001 par value, 750,000,000 authorized, 60,840,309 and 926,087 issued and outstanding as of December 31, 2015 and 2014, respectively		60,840			926
Common Stock Held in Escrow		(25	)		-
Additional Paid-in Capital		4,548,031			3,207,840
Accumulated Deficit		(6,607,969	)		(4,447,023	)

Total Shareholder's Deficit		(1,998,993	)		(1,238,127	)

Total Liabilities & Shareholder's Deficit	$	459,712		$	434,694

The accompanying notes are an integral part of these consolidated financial statements

- 29-

Soul and Vibe Interactive Inc.

Consolidated Statements of Operations

	December 31,
	2015			2014

Revenues	$	6,547		$	62,428
Cost of Sales		(87,775	)		(63,732	)

Gross Loss		(81,228	)		(1,304	)

Operating Expenses
General & Administrative		705,012			469,453
Professional Fees		431,478			1,182,761

Total Operating Expenses		1,136,490			1,652,214

Operating Loss		(1,217,718	)		(1,653,518	)

Other Income (Expense)
Gain (Loss) on Derivative		(1,445,953	)		30,870
Gain (Loss) on Extinguishment of Debt		918,890			(76,360	)
Interest Expense		(416,165	)		(422,625	)

Total Other Income (Expense)		(943,228	)		(468,115	)

Loss before Income Taxes		(2,160,946	)		(2,121,633	)

Income Taxes		-			-

Net Loss	$	(2,160,946	)	$	(2,121,633	)

Basic and Diluted Loss per Share	$	(0.23	)	$	(3.42	)

Weighted Average Shares Outstanding		9,487,504			621,066

The accompanying notes are an integral part of these consolidated financial statements

- 30-

Soul and Vibe Interactive Inc.

Consolidated Statement of Changes in Shareholder's Deficit

	Preferred Stock				Common Stock
	Shares		Amount		Shares		Amount		Held in Escrow			Additional Paid- in Capital			Accumulated Deficit			Total Shareholder's Deficit
Balance at December 31, 2013		130,000	$	130		397,971	$	398	$	-		$	683,789		$	(2,325,390	)	$	(1,641,073	)

Common stock issued for cash		-		-		55,998		56		-			375,299						375,355
Common stock issued for services		-		-		187,897		188		-			588,391						588,579
Common stock issued for prepaid expenses		-		-		64,294		64		-			315,262						315,326
Common stock issued for software development costs		-		-		40,983		41		-			58,624						58,665
Cashless exercise of warrants		-		-		6,944		7		-			(7	)					-
Converted debenture principal and accrued interest		-		-		172,000		172		-			1,030,574						1,030,746
Warrants issued upon refinance of debt recorded as debt discount		-		-		-		-		-			22,941						22,941
Warrants issued for services		-		-		-		-		-			39,674						39,674
Contribution of wages, interest and rent by officer		-		-		-		-		-			93,293						93,293

Net loss		-		-		-		-		-			-			(2,121,633	)		(2,121,633	)

Balance at December 31, 2014		130,000	$	130		926,087	$	926	$	-		$	3,207,840		$	(4,447,023	)	$	(1,238,127	)

Common stock issued for services		-		-		57,225		57					56,708			-			56,765
Common stock issued for prepaid expenses		-		-		63,533		64		-			71,036			-			71,100
Converted debenture principal and accrued interest		-		-		59,739,841		59,740					1,061,503			-			1,121,243
Common stock issued as compensation		-		-		28,000		28					32,132			-			32,160
Warrants issued for compensation		-		-		-		-		-			118,787			-			118,787
Common stock issued into escrow		-		-		25,000		25		(25	)		-			-			-
Common stock issued for reverse stock split		-		-		623		-		-			25			-			25

Net income		-		-		-		-					-			(2,160,946	)		(2,160,946	)

Balance at December 31, 2015		130,000	$	130		60,840,309	$	60,840	$	(25	)	$	4,548,031		$	(6,607,969	)	$	(1,998,993	)

The accompanying notes are an integral part of these consolidated financial statements

- 31-

Soul and Vibe Interactive Inc.

Consolidated Statements of Cash Flows

	December 31,
	2015			2014

Cash Flows from Operating Activities
Net Loss	$	(2,160,946	)	$	(2,121,633	)

Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation		2,403			1,347
Amortization of debt issuance costs		4,536			11,099
Amortization of debt discount		315,098			362,259
Amortization of software development costs		70,771			45,704
Wages and interest contributed to capital		-			93,293
Common stock issued for services		56,765			628,253
Gain (loss) on derivative		1,445,953			(30,870	)
Gain (loss) on extinguishment of debt		(918,890	)		76,360
Common stock and warrants issued as compensation		150,946			-
Changes in Operating Assets and Liabilites:
Decrease in accounts receivable		3,156			(3,619	)
Decrease in prepaid expenses		97,150			307,826
Decrease in debt issuance costs		3,711			-
Increase in accounts payable		146,383			165,085
Increase in accrued expenses		532,583			45,426

Net cash used in operating activities		(250,381	)		(419,470	)

Cash Flows from Investing Activities
Purchased of fixed assets		(5,057	)		(6,722	)
Cash paid for development costs		(85,750	)		(194,240	)

Net cash used in investing activities		(90,807	)		(200,962	)

Cash Flows from financing activities
Repayment of related party notes payable		(2,500	)		(33,600	)
Repayment of notes payable		(14,500	)		-
Payment of debt issuance costs		-			(10,000	)
Proceeds from the issuance of convertible debenture and notes payable		339,500			200,000
Proceeds from sale of common stock and warrants, net of offering costs		-			375,355
Stock issued for true-up reverse stock split		26			-

Net cash provided by financing activities		322,526			531,755

Net decrease in cash		(18,662	)		(88,677	)

Cash Balance at Beg of Period		25,752			114,429
Cash Balance at End of Period	$	7,090		$	25,752

Supplemental Disclosure of Cash Flow Information
Cash paid for interest	$	-		$	-
Cash paid for income taxes	$	-		$	-

Supplemental Disclosure of NonCash Transactions

Capital stock issued for software development costs	$	-		$	58,665
Software development costs financed by accounts payable	$	-		$	7,500
Accrued interest converted to capital stock	$	14,074		$	26,760
Debenture principal converted to capital stock	$	419,982		$	368,422
Debt discount removed upon extinguishment of debt	$	282,266		$	104,415
Derivative liability removed upon extinguishment of debt	$	1,917,734		$	663,619
Capital stock issued for prepaid expenses	$	71,100		$	315,326
Warrants issued upon refinance of debt recorded as debt discount	$	-		$	22,941
Fair value of derivative conversion option recorded as debt discount	$	-		$	200,000
Discount on issuance of convertible debenture and notes payable	$	13,500		$	10,667
Notes issued for interest	$	5,000		$	-
Notes for services	$	92,080		$	-
Accrued interest converted to principal	$	76,671		$	-
Original issue discount	$	18,406		$	-
Stock in escrow	$	25		$	-

The accompanying notes are an integral part of these consolidated financial statements

- 32-

Soul and Vibe Interactive Inc.

Notes to Financial Statements

Note 1 – Nature of Business and Significant Accounting Policies

Nature of Business

Soul and Vibe Interactive Inc. (“the Company”) was incorporated in the state of Nevada on January 5, 2011 (“Inception”). The Company’s primary business focus and source of revenue is the development and publishing (sales) of games, interactive books, and downloadable/streamable music for digital devices. We develop, publish, and digitally distribute interactive entertainment (games and interactive books) for video game consoles, mobile and augmented reality/wearable tech devices, personal computers, and social-media platforms. We develop, publish, and digitally distribute music for play on digital devices through downloadable/streamable channels that include, but are not limited to, the likes of: Apple Music, iTunes, Spotify, Google Play, Amazon, Rdio, Deezer, Tidal, YouTube Music, Beats/MediaNet, and Microsoft Groove. The music service Shazam, also, recognizes Soul and Vibe Music products. The Company primarily sells its products through digital distribution channels. To date, the Company's products have been a mix of licensed brand and internally generated, wholly owned intellectual properties.

Principles of Consolidation

The accompanying consolidated financial statements included herein have been prepared by Soul and Vibe Interactive Inc. (“SVI”) and its wholly owned subsidiary Soul and Vibe Entertainment, Inc., a Nevada corporation (“Soul,” and collectively with SVI, the “Company”) in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission (the “SEC”). We believe that all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations presented have been reflected herein and that the disclosures made are adequate to make the information not misleading.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and the 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

The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents.

Derivative Instruments

The Company accounts for derivative instruments in accordance with ASC Topic 815, Derivatives and Hedging, all derivative instruments are reflected as either assets or liabilities at fair value in the balance sheet. The Company uses estimates of fair value to value its derivative instruments. Fair value is defined as the price to sell an asset or transfer a liability in an orderly transaction between willing and able market participants. In general, the Company’s policy in estimating fair values is to first look at observable market prices for identical assets and liabilities in active markets, where available. When these are not available, other inputs are used to model fair value such as prices of similar instruments, yield curves, volatilities, prepayment speeds, default rates and credit spreads (including for the Company’s liabilities), relying first on observable data from active markets. Additional adjustments may be made for factors including liquidity, credit, bid/offer spreads, etc., depending on current market conditions. Transaction costs are not included in the determination of fair value. When possible, the Company seeks to validate the model’s output to market transactions. Depending on the availability of observable inputs and prices, different valuation models could produce materially different fair value estimates. The values presented may not represent future fair values and may not be realizable. The Company categorizes its fair value estimates in accordance with ASC 820 based on the hierarchical framework associated with the three levels of price transparency utilized in measuring financial instruments at fair value as discussed above. As of December 31, 2015 and 2014, the Company had a $1,313,673 and $1,081,318 of derivative liabilities, respectively.

Fair Value of Financial Instruments

Level 1 - Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.

- 33-

December 31, 2015:

	Level 1		Level 2		Level 3		Total

Assets	$	-	$	-	$	-	$	-
Liabilities
Derivative financial instruments	$	-	$	-	$	1,313,673	$	1,313,673

December 31, 2014:

	Level 1		Level 2		Level 3		Total

Assets	$	-	$	-	$	-	$	-
Liabilities
Derivative financial instruments	$	-	$	-	$	1,081,318	$	1,081,318

Revenue Recognition

The Company primarily digitally distributes its products through (an) online merchants / portal service(s). The Company recognizes revenue at the “on demand” point of sale by the customer and recognizes a receivable. (For the purposes of digital distribution, customer is equivalent to end consumer.) The portal service(s) track product sales on a daily / near-daily basis.

For the Company’s games and entertainment apps (such as e-books) payment is remitted to the Company every two weeks, monthly, or quarterly (depending upon the digital merchant / portal service). Ownership of product is transferred to the customer with a no refund, no return policy, as set by the online portal service(s). For retail distributed products (pick-ups and select licensed-brand games), the Company recognizes revenue through traditional retail "sell-in" and "sell-through." Receivables are logged based on "sell-through" reports from retailers and distributors. Based on the distributor, product sales are tracked on a monthly basis. On average, between thirty (30) to forty-five (45) days following the end of a month, the distributor remits payment to the Company. Ownership of product is transferred to the customer (end user) with a no refund, no return policy, as set by individual retailers.

Advertising and Promotion

All costs associated with advertising and promoting products are expensed as incurred. The Company has incurred advertising and promotion costs for the years ended December 31, 2015 and 2014 of $37,169 and $184,632, respectively.

Basic and Diluted Loss Per Share

The basic net loss per common share is computed by dividing the net loss by the weighted average number of common shares outstanding. Diluted net loss per common share is computed by dividing the net income adjusted on an “as if converted” basis, by the weighted average number of common shares outstanding plus potential dilutive securities.

Stock-Based Compensation

The Company adopted Financial Accounting Standards Board (FASB) guidance on stock based compensation upon inception at January 5, 2011. Under FASB ASC 718-10-30-2, all share-based payments to employees, including grants of employee stock options, to be recognized in the income statement based on their fair values. Pro forma disclosure is no longer an alternative.

Income Taxes

The Company accounts for income taxes in accordance with the FASB Topic ASC 740, “Income Taxes.” We account for income taxes under the asset and liability method, 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. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date.

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Recently Issued Accounting Pronouncements

In February 2016, the FASB issued Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842), which provides guidance for accounting for leases. The new guidance requires companies to recognize the assets and liabilities for the rights and obligations created by leased assets, initially measured at the present value of the lease payments. The accounting guidance for lessors is largely unchanged. The ASU is effective for annual and interim periods beginning after December 15, 2018. It is to be adopted using a modified retrospective approach. The Company is currently evaluating the impact that the adoption of this guidance will have on the Company’s financial statements.

In November 2015, FASB issued ASU No. 2015-17, which amended the Income Taxes (Topic 740) of the Accounting Standards Codification to simplify the presentation of deferred income taxes by requiring that deferred tax liabilities and assets be classified as noncurrent in a classified balance sheet. The amendments will be effective for consolidated financial statements issued for annual periods beginning after December 15, 2017 with early adoption permitted as of the beginning of an interim or annual reporting period. The Company will apply the guidance prospectively. The Company does not expect these amendments to have a material effect on its consolidated financial statements.

Reclassifications

The presentation of certain items in the consolidated financial statements for the year ended December 31, 2014 has been changed to conform to the classifications used in 2015. These reclassifications had no effect on stockholders' equity or net income as previously reported.

Development Costs

The Company capitalizes all game software development costs once upon reaching the application development stage, management has authorized and committed funding to the project and it is probable that the project will be completed. Costs that are capitalized are primarily fees paid to consultants in the form of cash and common stock of the Company. Capitalization ceases no later than the point at which the project is substantially complete and ready for its intended use, generally after all substantial testing is completed. As of December 31, 2015 and 2014, capitalized software development costs totaled $515,155 and $429,405 respectively.

Capitalized software development costs are amortized over the estimated useful life of 5 years, using the greater of the straight-line method or the ratio of current revenues to total projected future revenues. Amortization expense related to capitalized software development costs for the years ended December 31, 2015 and 2014 was $70,770 and $45,704, respectively.

Note 2 – Going Concern

The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which contemplate continuation of the Company as a going concern. This basis of accounting contemplates the recovery of the Company's assets and the satisfaction of its liabilities in the normal course of business. Through December 31, 2015, the Company had incurred cumulative losses of $6,607,969 since inception. Additionally, the Company, has negative working capital, and a deficit in stockholders' equity. All of these items raise substantial doubt about its ability to continue as a going concern. In view of these matters, recoverability of a major portion of the recorded asset amounts shown in the accompanying balance sheet is dependent upon continued operations of the Company, which in turn is dependent upon the Company's ability to raise additional capital and generate revenues from its operations. The financial statements do not include classification of recorded asset amounts or amounts and classification of liabilities that might be necessary, should the Company be unable to continue as a going concern.

Management has taken the following steps to revise its operating and financial requirements, which it believes are sufficient to provide the Company with the ability to continue as a going concern. Management devoted considerable effort during the year ended December 31, 2015, towards (i) obtaining additional equity financing, (ii) evaluation of its distribution and marketing methods, (iii) identifying and negotiating development/publishing and product acquisition opportunities for the Company, and (iv) launching two new publishing labels, Soul and Vibe Music & Soul and Vibe Books, in an effort to increase the number of potential revenue generating product launches on a staggered release schedule. In addition, the Company began to generate its first revenues in the first quarter of 2014 and has continued to generate revenue through 2015.

Management's plans with respect to alleviating the adverse financial conditions that caused the Company’s independent auditors to express substantial doubt about the Company's ability to continue as a going concern are as follows:

Management requires $2.5M to $3.0M in financing in order to begin execution of its business plan and to continue operations. This capital, if raised, would be utilized over a twelve-month period. The financing will cover the acquisition of pick-ups (depending on the value of the financing, also the development of a proprietary intellectual property (IP) product) along with the release of the games and entertainment apps as well as the marketing and public relations (PR) expenses associated with bringing them to market on a variety of hardware platforms that include: video game consoles, mobiles devices, and personal computers (which also includes browser-based social media platforms, such as Facebook.) The anticipated number of pick-ups is two. The financing would also cover general and administrative expenses, operational expenses and will allow the Company to secure an initial number of premium full-time employees. The Company is currently evaluating financing opportunities that are compatible with its growth plans and business model. Additional financing (beyond the identified $2.5M to $3.0M; cumulatively of $5.0M) would allow the Company to pursue development of multiple projects “from scratch” and publish them in a “staggered” release, as per its current three-year business plan.

Since our Company’s inception, we have generated a degree of revenue. Revenue generation began in the 1^st quarter of 2014 with the release of our first video game product. The release was Timeless Gems, an innovative "match-3" game that features board game elements. Timeless Gems was released, worldwide, on Facebook, Google's Google Play, and Apple's App Store (for iPhone, iPad, and iPod Touch) in February and March 2014. In addition to the development and release of the Timeless Gems product, two packages of expansion content for Timeless Gems were developed and released during fiscal year 2014. A third package of expansion content for Timeless Gems was developed during fiscal year 2014. This third package of expansion content was released in December 2015.

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In June 2014, with the opening game of the 2014 World Cup Soccer tournament, the company released a second video game product, Striker Rush: Champion Edition. Striker Rush: Champion Edition was released, worldwide, through Apple’s App Store (for iPhone, iPad, and iPod Touch mobile devices), and through Google's Google Play and Amazon.com (for Android devices) in concert with its development partner, 1DER Entertainment.

During fiscal year 2014, the Company licensed Timeless Gems and Striker Rush: Champion Edition to Tanjarine, a subsidiary of TouchTunes, the largest provider of in-venue music and entertainment throughout North America. Tanjarine was the first integrated tabletop ordering, entertainment and pay-at-the-table solution to combine 10" proprietary tabletop tablets with server handhelds, which expedited service, payments, and cross-marketed products and services with in-venue second screen televisions. The platform provided guests with menu and entertainment options, portability that eliminated the constraints of one-tablet-per-table installations, and other innovations that helped increase restaurant efficiency and average check size. Customizable for bars and restaurants, Tanjarine’s catalog of entertainment offers games, music and content targeted everyone from families to sports fans to couples and more. Many of the games also enabled guests to play with a friend or connect the tabletop tablets to second screen televisions located throughout a venue, which created a more interactive gaming experience. The Company anticipated it would continue to receive licensing revenue from Tanjarine through 2015 and beyond, as Tanjarine purchased product installs of the Company’s products for play on their proprietary hardware. In April of 2015, TouchTunes was acquired by a third party. As part of the acquisition, TouchTunes terminated their subsidiary, Tanjarine, as well as all pre-existing contractual (licensing) agreements.

During the fourth quarter of 2013, the Company entered into a development/published agreement with 1DER Entertainment for SirVival, an interactive game. As a part of the development/publishing agreement, the Company acquired the SirVival IP from 1DER Entertainment. Through fiscal year 2014 and the first two quarters of 2015, the Company continued the development of SirVival; the game was released, worldwide, on Facebook, Google's Google Play, and Apple's App Store (for iPhone, iPad, and iPod Touch) during the third quarter of 2015. In addition to the development and release of the SirVival video game product, one package of expansion content for SirVival entered development during the fourth quarter of 2014, but this package has not yet been released. The Company will formally announce the targeted release date of this expansion pack at a later date.

In June 2015, the Company announced a new (second) publishing label, Soul and Vibe Music. Soul and Vibe Music is a proprietary music-publishing label that publishes music content through downloadable/streamable distribution channels that include, but are not limited to, the likes of: Apple Music, iTunes, Spotify, Google Play, Amazon, Rdio, Deezer, Tidal, YouTube Music Key, Beats/MediaNet, and Microsoft Groove. The Company aims to leverage its existing, and to develop new, music assets that are associated with its licensed-brands and internally generated intellectual properties as stand-alone “premium” music soundtrack and single-track and/or multi-track music single product releases. It is the Company’s intent that these music soundtrack and single-track and/or multi-track music single product releases will double as potential revenue-generating cross-promotional marketing vehicles for the Company’s video games and entertainment apps based on licensed-brands and internally generated intellectual properties. As of December 31, 2015, Soul and Vibe Music has released one full-length soundtrack, “Songs of SirVival,” and four multi-track music singles, “SirVival and Tantrum,” “Who Is Gurk Burkle?,” “Smorgon Magma, The Black Rider,” and “Spellbound.” The development of a fifth multi-track music single, “Bugaboo, A Bump In The Night,” commenced during the fourth quarter of 2015, but it was neither formally announced nor released until February 2016.

As the Soul and Vibe Music label grows, the Company intends to pursue the licensing of music for 1.) inclusion in its games and apps and, 2.) to release, via downloadable/streamable distribution channels, as “premium” stand-alone and/or compilation music product releases. The Company also anticipates it will contract music industry subject matter experts as consultants to help broaden the label’s product mix. The Company anticipates that a broadened product mix for the Soul and Vibe Music label will increase consumer awareness, build IPs, and drive revenue.

To date, all music content published by Soul and Vibe Music are copyrighted assets of the Company. Each individual music track is a unique asset that is identifiable through a proprietary ISRC code. EPs are identifiable through a proprietary UPC code. The music content that comprises Soul and Vibe Music releases are each recognized by the music identification service, Shazam. The music content that comprises Soul and Vibe Music releases are, also, cross-promoted (on iTunes) via the Options Menu of the Company’s SirVival video game.

In August 2015, the Company announced a new (third) publishing label, Soul and Vibe Books. Soul and Vibe Books is a proprietary publishing label that specializes in the development and launch of digitally distributed electronic books (“e-books” and “interactive storybooks.”) The Company aims to leverage its licensed-brands and internally generated intellectual properties as stand-alone “premium” entertainment app e-books. It is the Company’s intent that these e-books will double as potential revenue-generating cross-promotional marketing vehicles for the Company’s video games and entertainment apps based on licensed-brands and internally generated intellectual properties. During the twelve months ended December 31, 2015, the Company continued the development of a four-product line of e-books based on the Company’s John Deere licensed brand. The first product in the four-product line was Johnny Tractor and Friends: County Fair. Johnny Tractor and Friends: County Fair was launched on Apple’s App Store for iPhone, iPad, and iPod Touch in September 2015 and on Google’s Google Play and Amazon (for Android devices) in October 2015. The Company launched a second e-book, Johnny Tractor and Friends: Snow Day, in December 2015. During the fourth quarter, the Company continued development on a third e-book. The Company anticipates it will formally announce, and release, this third e-book during the 1^st quarter of 2016. The Company anticipates the fourth e-book in the series will be formally announced, and released, during the second quarter of 2016. Ultimately, it is the Company’s intent to localize all four e-books in the line into a variety of languages including, but not limited to, French, German, Spanish, and Italian. The Company anticipates that localized versions of its e-books will be released, albeit on a staggered release schedule, throughout fiscal year 2016; the localized versions of its e-books will be released as title updates via Apple’s App Store, Google’s Google Play, and Amazon.

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On November 30, 2015, the Company announced its line of John Deere-branded Johnny Tractor and Friends e-books will be cross-promoted with TOMY International (“TOMY”) toys that are also based on the Johnny Tractor and Friends IP. Commencing in December 2015, and continuing through 2016, TOMY’s line of John Deere-branded Johnny Tractor and Friends toys will feature, within the packaging, a two-sided pack-in poster. The Company’s Johnny Tractor and Friends series of e-books is highlighted on one side of the poster, and a robust selection from TOMY’s diverse line of Johnny Tractor and Friends toys is highlighted on the other. In addition, each of the Company’s Johnny Tractor and Friends interactive storybooks cross-promotes TOMY’s toys via a color full-screen image that appears at the end of each e-book. TOMY’s line of Johnny Tractor and Friends toys are available at Target, Walmart, Toys”R”Us, Amazon, and many other fine retail and online merchants. The Company anticipates that the cross-promotional relationship with TOMY will increase consumer awareness for the Soul and Vibe Books label and its line of e-book products.

As the Soul and Vibe Books label grows, the Company intends to expand its e-book product mix to feature additional lines based on both the Company’s proprietary IPs and other licensed-brands. The Company also anticipates it will pursue a broadening of the supported hardware platforms on which its e-books can be read. The Company anticipates that expanded platform support, and a broadened product mix for the Soul and Vibe Books label, will increase consumer awareness, build IPs, and drive revenue.

These aforementioned releases, across the games, interactive books, and downloadable/streamable music product categories, have begun to generate a degree of revenue for the Company. Our operations to date have been financed by Mr. Chiodo, our sole officer, and independent accredited investors who have entered into private finance transactions with us.

The Company intends to focus its operational strategy on the development of digitally distributed video game, interactive book, and music product for a variety of hardware platforms that include: Video game consoles (for example: Xbox 360 and PlayStation 3), mobile (for example: Apple iOS, Android, and Windows hand-held/portable devices), augmented reality/wearable tech devices (for example: HTC Vive, Vuzix-branded hardware, and Oculus Rift), personal computers (such as PC and Mac), and browser-based social media platforms, such as Facebook. Our video game products are also anticipated to be released on portable video game consoles (for example: Nintendo 3DS and PlayStation Vita), which can be defined as residing in both the video game console and mobile hardware platform categories. Our music products are also anticipated to be accessible on internet-enabled video game consoles (for example: Spotify via the PlayStation Network and Microsoft Groove via the Xbox One.) The Company wishes to emphasize: Individual products will be designed for specific hardware platforms and that not all products will be ultimately released on all hardware platforms.

Most of the Company’s products are expected to be digitally distributed (via download) through a “First Party” distribution store (for example: Facebook, Microsoft Corporation’s Marketplace, Apple Inc.’s App Store, Google’s Google Play, Amazon, etc.). Some of the Company’s products may bear licensed-brands through which there is potential for exploitation via merchandising, cross-promotion and/or publicity tie-ins with its licensor, as well as within social media communities. Other Company products will be based on our internally generated and wholly owned intellectual properties.

The Company’s products are focused within three core areas: Licensed-brand games and Apps (inclusive of e-books), internally-generated intellectual property (“IP”) based games, e-books, and music, and so-called “Pick-Ups.” Pick-ups are products developed (and financed) by independent software/content developers located throughout the world. Oftentimes, these independent software/content developers are looking for a publishing partner such as the Company as they tend to: (i) lack the marketing/publicity infrastructure and relationships to properly bring a game to market, (ii) need to partner with a company in possession of platform-specific publishing licenses, and/or (iii) require some additional capital to complete the development cycle. The Company can acquire the products created by these independent software/content developers for either a flat fee or a combination of a flat fee and a small “back-end” royalty that is payable once the Company recoups its costs. Pick-ups could be beneficial for the Company as they represent products that can often be quickly brought to market and subsequently fill in the gaps between the releases of the “bigger” Licensed-Brand and internally-generated IP-based products. This allows the Company to establish a recurring release calendar that: (i) more-evenly distributes revenues across a fiscal year and (ii) provides a steady stream of content for our users and games industry media to talk about, thus reinforcing our Soul and Vibe brand as a publishing label. It is anticipated that a large portion of the Company’s product portfolio in fiscal year 2016 onward may be comprised of pick-up opportunities.

Our business is primarily focused on developing, publishing, and marketing video games and entertainment Apps, interactive books, and downloadable/streamable music for multiple hardware platform categories: Console, mobile and augmented reality/wearable tech devices, personal computers, and browser-based social media networks. In regards to console publishing, we have entered into publishing agreements with hardware platform manufacturers such as Microsoft Corporation, Sony (through Sony Computer Entertainment of America, LLC), and, most recently, in the 3^rd Quarter of 2015, Nintendo of America. Our publishing agreements with these entities are for non-exclusive licenses, both for the rights to publish and to develop titles for their respective hardware platforms. These agreements form a foundation for our business. We must maintain a license to develop and publish titles for each console platform. Each license specifies the territory to which it applies, and licenses range from multi-national distribution to approval on a title-by-title basis. Our existing hardware platform licenses are with Microsoft (for the Xbox 360, Windows 8, Windows Live, and Windows Phone), with Sony (for the PlayStation 3 and PlayStation Vita), and with Nintendo of America for the Nintendo 3DS™ system and the Wii U™ system. (The Company also intends to pursue development and publishing licensing for Nintendo’s forthcoming console, codenamed “NX,” which is rumored to launch in 2016.) Our publishing licenses with Microsoft, Sony, and Nintendo require that we obtain approval for publication of new titles on a title-by-title basis. As a result, the number of titles we are able to publish for these hardware platforms and our ability to time the release of titles is dependent upon decisions made by third party hardware manufacturers.

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Note 3 – Related Party Transactions

Related Party Notes Payable

During 2015, the Company paid an amount due of $2,500 to an officer of the Company. The amount was unsecured and bore no interest.

Related Party Convertible Notes Payable

During July 2013, the Company received $9,000 in exchange for a Convertible Note with a maturity value of $10,000 and a warrant to purchase up to 834 shares of the Company’s common stock for a period of two years at a price of $0.60 per share. The convertible note is unsecured, due one year from the date of issue and accrues interest at a rate of approximately 10% per annum. During August 2014 an agreement was signed extending the due date of the convertible note to February 2015. Pursuant to this agreement, the holder was issued a warrant to purchase 1,000 additional shares of the Company’s common shares for a period of two years at a price of $0.06 per share. The warrants that were issued in July 2013 expired during the quarter ended June 30, 2015. The warrants that were issued in August 2014 are scheduled to expire in August 2016 if not exercised or “called” by the Company prior to expiration.

The Company valued the initial warrant and beneficial conversion feature of the convertible note at $10,000, which was recorded as a discount to the convertible note. This discount was being amortized over the initial life of the convertible note, which expired in July 2014. The Company valued the additional warrant at $1,728, which was recorded as a discount to the convertible note. This discount is being amortized over the remaining life of the convertible note or until such time as the convertible note is repaid or converted, or upon exercise of the warrants. During the years ended December 31, 2015 and 2014, the Company amortized $0 and $324 of these debt discounts to interest expense, respectively. In July 2015, warrants for 834 shares of the Company’s Common stock, which were issued in July 2013 in connection with one Convertible Note, expired. The warrants that were issued in August 2014 are scheduled to expire in August 2016 if not exercised or “called” by the Company prior to expiration.

Interest expense related to this convertible note payable totaled $127 and $1,458 for the years ended December 31, 2015 and 2014, respectively.

During May 2015, the Company issued an exchange note to an accredited investor in substitution for $32,024 of previously outstanding convertible note balance and the accrued interest balance to an unrelated third party, pursuant to an exchange agreement. The July 2013 Convertible Note was included in this exchange. The exchange note was issued with a maturity value of $32,024, is due in May 2016, bears no interest and is convertible into shares of the Company at a rate equal to 65% of the average of the lowest three trading prices during the 25 consecutive trading days immediately preceding the conversion date. The note also stipulates a conversion limitation, whereby the holder may not convert more than 33.33% of the principal balance within a 15-day period during the 90 days following the date of issuance. The note principal was converted into 525,066 shares during 2015. There is no outstanding balance as of December 31, 2015.

Related Party Payable

The Company owes an officer of the Company $22,068 and $0 as of December 31, 2015 and 2014, respectively which relates to expense reimbursement.

Note 4 – Convertible Debentures

During the year ended December 31, 2014, the Company issued various convertible debentures in the total amount of $210,667: $200,000 cash and $10,667 original issue discount. The debenture issued in 2014 is unsecured and bears interest of 10% per annum, maturing in nine months. The outstanding principal and accrued interest of the debenture is convertible into shares of the Company’s common stock at the option of the holder at a conversion price per share equal to the lesser of the trading price on the date immediately preceding the conversion date, or an amount equal to 60% of the lowest trading price for the ten trading days immediately preceding the conversion date.

The following is a schedule of the convertible debentures outstanding as of December 31, 2014:

Description	Date	Conversion Price	Original Principal Amount		Unpaid Principal Balance			Term	Interest Rate

Debenture 1	8/8/2013	Fixed	$	105,000	$	105,000		18 months		10	%
Debenture 2	8/8/2013	Fixed		7,778		7,778		18 months		10	%
Debenture 3	8/8/2013	Fixed		10,000		10,000		18 months		10	%
Debenture 4	9/18/2014	Variable		210,667		210,667		9 months		10	%

Total at December 31, 2014			$	333,445	$	333,445
Less discount						(135,617	)

					$	197,828

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During the year ended December 31, 2015, the Company issued various convertible debentures in the total amount of $514,476: $339,500 cash; $18,406 original issue discount; $50,000 services; $29,899 adjustment to principal; and $76,671 for accrued interest payable. In addition in 2015, a total principal balance of $419,982 was extinguished through the conversion of principal to common shares of the Company. The debentures issued in 2015 are unsecured and bear simple interest ranging from 0% to 10% per annum, with maturities ranging from three months to three years. The outstanding principal and accrued interest of the debentures are convertible into shares of the Company’s common stock at variable discounted pricing based conversion prices defined in the underlying agreements. Debentures 1 – 3 were convertible at a fixed price but were exchanged into notes with variable discounted pricing before any conversions took place.

The following is a schedule of the convertible debentures outstanding as of December 31, 2015:

Description	Date	Conversion Price	Original Principal Amount		Unpaid Principal Balance			Term	Interest Rate

Debenture 1	8/8/2013	Fixed	$	105,000	$	0		18 months		10	%
Debenture 2	8/8/2013	Fixed		7,778		0		18 months		10	%
Debenture 3	8/8/2013	Fixed		10,000		0		18 months		10	%
Debenture 4	9/18/2014	Variable		210,667		0		9 months		10	%
Debenture 5	2/3/2015	Variable		55,556		0		24 months		12	%
Debenture 6	3/12/2015	Variable		58,850		0		12 months		10	%
Debenture 7	3/16/2015	Variable		52,500		26,100		12 months		8	%
Debenture 8	3/20/2015	Variable		110,293		0		12 months		10	%
Debenture 9	4/21/2015	Variable		53,500		42,156		12 months		0	%
Debenture 10	5/7/2015	Variable		32,024		0		12 months		0	%
Debenture 11	5/11/2015	Variable		250,799		76,411		12 months		10	%
Debenture 12	6/2/2015	Variable		45,000		41,500		12 months		8	%
Debenture 13	9/16/2015	Variable		28,000		28,000		30 months		1	%
Debenture 14	9/25/2015	Variable		28,000		28,000		12 months		10	%
Debenture 15	9/16/2015	Variable		25,000		0		18 months		10	%
Debenture 16	9/25/2015	Variable		33,850		4,059		12 months		10	%
Debenture 17	10/20/2015	Variable		50,000		50,000		6 months		2	%
Debenture 18	10/23/2015	Variable		*		53,897		17 months		2	%
Debenture 19	10/26/2015	Variable		**		25,000		29 months		1	%
Debenture 20	10/26/2015	Variable		***		0		29 months		1	%
Debenture 21	11/9/2015	Variable		10,000		10,000		10 months		10	%
Debenture 22	11/23/2015	Variable		5,000		5,000		24 months		0	%
Debenture 23	12/2/2015	Variable		11,500		11,500		12 months		10	%
Debenture 24	12/4/2015	Variable		28,500		28,500		12 months		10	%
Debenture 25	12/4/2015	Variable		****		26,316		17 months		2	%

Total at December 31, 2015			$	1,211,817	$	456,439
Less discount						(262,468	)

					$	193,971
Less current portion						(181,842	)
						12,129

Convertible debenture was transferred from Debenture 11 in the table above.

Convertible debenture was transferred from Debenture 16 in the table above.

***

Convertible debenture was transferred from Debenture 15 in the table above.

****

Convertible debenture was transferred from Debenture 18 in the table above.

Accrued interest payable for the convertible debentures was $17,896 and $23,115 as of December 31, 2015 and 2014, respectively.

Scheduled maturity of long-term debt are as follows at December 31, 2015:

2016	342,167
2017	85,213
2018	29,059
Less discount	(262,468	)
Net convertible debentures	193,971

- 39-

Note 5 – Derivative Liabilities

The Company evaluated the convertible debentures discussed in Note 4 (with the exception of debentures 1 – 3 which were considered under ASC Topic 470) in accordance with ASC Topic 815, “Derivatives and Hedging,” and determined that the conversion feature of the convertible promissory notes were not afforded the exemption for conventional convertible instruments due to their variable conversion rates. The notes have no explicit limit on the number of shares issuable so they did not meet the conditions set forth in current accounting standards for equity classification. The Company elected to recognize the notes under paragraph 815-15-25-4, whereby there would be a separation into a host contract and derivative instrument. The Company elected to initially and subsequently measure the notes in their entirety at fair value, with changes in fair value recognized in earnings. The Company recorded a derivative liability representing the imputed interest associated with the embedded derivative. The debt discount is amortized over the life of the note and recognized as interest expense.

For the years ended December 31, 2015 and 2014, the Company amortized debt discount of $315,098 and $362,259 to interest expense, respectively. For purpose of estimating the fair value of the derivative liability, the Company used the Black Scholes option valuation model. The derivative liability is adjusted periodically according to stock price fluctuations and other inputs and was $1,313,673 and $1,081,318 at December 31, 2015 and 2014, respectively.

At December 31, 2015 and 2014, the convertible debentures and related accrued interest payable were convertible into approximately 247,328,000 and 1,128,000 shares of common stock, respectively.

The Company valued the Convertible Debenture conversion option derivatives using the Black-Scholes option-pricing model using the following assumptions: (1) risk-free interest rates of 0.03% to $1.06% (2) lives of between 0.2 and 2.21 years, (3) expected volatility of between 288% to 519%, (4) zero expected dividends, (5) conversion prices as set forth in the Convertible Debentures, and (6) the common stock price of the underlying shares on the valuation dates.

The following table summarizes the derivative liabilities included in the balance sheet at December 31, 2015:

Conversion option derivative liabilities December 31, 2013	$	1,575,807
Addition of new conversion option derivatives		200,000
Reclassification of conversion option derivative to gain on extinguishment of debt		(663,619	)
Change in fair value		(30,870	)
Derivative liability at December 31, 2014		1,081,318
Addition of new conversion option derivatives		2,531,803
Reclassification of conversion option derivative to gain on extinguishment of debt		(1,917,734	)
Change in fair value		(381,714	)
Derivative liability at December 31, 2015	$	1,313,673

Note 6 – Common Stock and Common Stock Warrants

Common Stock

Effective August 25, 2015, the holder of a majority of the shares of common stock approved a reverse split of such shares by a ratio of 1 for 40. As a result of the reverse split, each forty shares of common stock issued and outstanding prior to the Reverse Split had been converted into one share of common stock, and all options, warrants, and any other similar instruments convertible into, or exchangeable or exercisable for, shares of common stock have been proportionally adjusted. There were 623 shares issued to eliminate the fractional shares for the reverse stock split. All common stock shares have been retroactively restated to reflect the reverse split.

As of January 7, 2016, the Company amended their articles of incorporation to increase the number of authorized shares of common stock, par value $0.001 per share, from 300,000,000 to 750,000,000.

During January 2014, the Company sold an aggregate of 12,500 shares of its Common Stock to an accredited investor for an aggregate purchase price of $50,000. In addition and pursuant to the stock purchase agreement, an additional 7,500 shares were issued to the investor in July 2014. The Company also sold an aggregate of 16,250 shares of its common shares to another accredited investor for an aggregate purchase price of $130,000. Under this share purchase agreement, the investor was also issued warrants to purchase up to 17,500 shares of its common shares. Both of these stock sales were pursuant to Rule 506 of Regulation D under the Securities Act.

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During January 2014, the Company also completed the initial closing of a private placement financing transaction with an accredited investor, pursuant to a Securities Purchase Agreement. Pursuant to the Purchase Agreement, the Investor purchased 7,500 shares of the Company’s Common Stock for a per share purchase price of $11.60 per share. Each per share purchase price will be based on the average trading price of such shares for the 5 trading days prior to the closing (provided that certain conditions are met), and accordingly the Company received aggregate gross proceeds of $87,000, excluding transaction costs, fees and expenses. On February 27, 2014, the investor purchased an additional 7,500 shares for a per share purchase price of $10.50 with the Company receiving aggregate gross proceeds of $78,750, excluding transaction costs, fees and expenses. During March, 2014, the investor purchased an additional 4,748 shares for a per share purchase price of $9.40 with the Company receiving aggregate gross proceeds of $44,629, excluding transaction costs, fees and expenses. The Investor originally agreed to purchase up to an additional 82,500 shares on a monthly basis, subject to the fulfillment of certain conditions as more fully described in the Purchase Agreement, between the date of the Purchase Agreement and the one-year anniversary thereof. As a result, the investor is entitled to purchase up to an additional 62,752 shares of common stock during the term of the Purchase Agreement.

During the year ended December 31, 2014, pursuant to terms of their individual consulting agreements, the Company’s advisory board members were issued a total of 40,983 shares of common stock for their services. The total market value of the shares issued for advisory services was $58,655, equivalent to approximately $1,000 for each month of service per member.

The Company issued 252,191 common shares to individuals for consulting services rendered and software development costs incurred for the year ended December 31, 2014. The total market value of the shares issued for consulting services was $903,905, $315,326 of which was recorded as prepaid expenses and $588,579 of which is included in professional fees on the statement of operations for the year ended December 31, 2014.

During the year ended December 31, 2015, pursuant to terms of their individual consulting agreements, the Company’s advisory board members were issued a total of 15,674 shares of common stock for services. The total market value of the shares issued for advisory services was $29,143, equivalent to approximately $1,000 for each month of service per member. Issuances of approximately 4,977,000 shares for services valued at $126,090 performed during the year ended December 31, 2015 have been accrued as of December 31, 2015, within accrued expenses. These issuances will occur subsequent to December 31, 2015.

The Company issued 105,084 common shares to individuals for consulting services rendered for the year ended December 31, 2015. The total market value of the shares issued for consulting services was $98,722, of which $71,100 was recorded as prepaid expenses and $27,622 of which is included in professional fees on the statement of operations for the year ended December 31, 2015.

During 2015, pursuant to an employment agreement, the Company issued 28,000 shares to the officer of the Company (Note 7). These shares were valued at $32,160 and are included in general & administrative expenses on the statement of operations.

During 2015, pursuant to an employment agreement, an officer of the Company was eligible to receive 8,000 shares of the Company’s common stock (Note 7). These shares have not been issued as of December 31, 2015. The share issuance valued at $564 have been accrued as of December 31, 2015, within accrued expenses.

During February 2015, the Company entered into a common stock purchase agreement with an accredited investor, pursuant to which the Company may issue and sell, and the investor is committed to purchase, up to $2,000,000 of shares of the Company’s common stock over the 36-month term following the effective date of the agreement. Pursuant to the terms of the purchase agreement, the Company has reserved 175,000 shares of common stock to be held in escrow. 150,000 of these shares of common stock were to be disbursed to the investor in the event the common stock purchase agreement was not approved and deemed effective. 25,000 of these escrowed shares of common stock were to be disbursed to the investor in the event the Company terminates the purchase agreement or certain capital draw down thresholds are not met within the term of the common stock purchase agreement. During August 2015, the common stock purchase agreement was approved and went effective and 150,000 of these escrowed shares were returned to treasury and cancelled.

During the year ended December 31, 2015 $419,982 of note principal, as described in Note 4, was converted into 59,739,841 common shares.

Common Stock Warrants

During the year ended December 31, 2014, the Company issued a warrant to purchase 17,500 shares of common shares, as noted above. The warrant is exercisable after the date of the grant, and is exercisable at a price of $10 per share and expires five-years from the date of grant.

During the year ended December 31, 2014 the Company issued a warrant to purchase 6,250 shares of common shares. The warrant is exercisable after the date of the grant, and is exercisable at a price of $4.00 per share and expires five-years from the date of grant.

During the year ended December 31, 2014 the Company issued warrants to purchase 13,278 shares of common shares, as described in Notes 3 and 4. The warrants are exercisable after the date of the grant, are exercisable at a price of $2.40 per share, and expires two years from the date of grant.

During January 2015, pursuant to an employment agreement, the Company issued a warrant to purchase 100,000 shares of the Company (Note 8). The warrant is exercisable after the date of grant for a period of five years and has an exercise price of $1.20 per share. Additionally, the warrant is callable by the Company after six months from the grant date at a price of $4.00 per share, and expires five years from the date of grant.

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The Company valued its warrants using the Black-Scholes option-pricing model. Assumptions used during the year ended December 31, 2015 include (1) risk-free interest rates of 1.61%, (2) life of 5 years, (3) volatility of 229%, (4) zero expected dividends, (5) conversion prices as set forth in the related instruments, and (6) the common stock price of the underlying share on the valuation dates.

The following table summarizes the outstanding warrants and associated activity for the year ended December 31, 2015:

	Number of Warrants Outstanding			Weighted Average Price		Weighted Average Remaining Contractual Life
Balance, December 31, 2013		15,307			23.20		3.12
Granted		37,027			6.40		3.15
Exercised		(8,333	)		4.00		4.39
Expired		-			-		-
Balance, December 31, 2014		44,001			9.91		3.00
Granted		100,000			1.20		5.00
Exercised		-			-		-
Expired		6,973			29.28		-
Balance, December 31, 2015		137,028		$	2.57		3.50

Note 7 – Employment Agreement

On January 20, 2015, we executed an Employment Agreement with Peter Anthony Chiodo, which was effective as of January 1, 2015. Pursuant to the Agreement, Mr. Chiodo will continue to serve Company’s Chief Executive Officer. The term of the Agreement commenced on January 1, 2015 and is for a period of five years, unless terminated sooner pursuant to the terms of the Agreement. Mr. Chiodo will be paid a base salary of $160,000, subject to annual adjustments, in addition to a signing bonus of $60,000. Mr. Chiodo will be entitled to receive an aggregate of 100,000 shares of the Company’s common stock, par value $0.001 per share (the “Common Stock”), of which 24,000 such shares were issued immediately with the remaining 76,000 shares issuable at the rate of 4,000 shares per quarter on the first day of each quarter beginning April 1, 2015 and continuing up to and including December 31, 2019. At the discretion of the Executive, and to preserve the Company’s cash position, Mr. Chiodo is entitled to receive monthly compensation in the form of Common Stock pursuant to the terms of the Agreement. There is approximately 2,560,000 shares remaining on this agreement. The remaining shares to be issued at the rate of 160,000 shares per quarter on the first day of each quarter continuing January 1, 2016 and continuing up to and including December 31, 2019. Also related to the execution of this agreement, the Company issued a warrant to purchase 100,000 commons shares of the Company’s common stock (Note 6). Additionally, pursuant to the terms of the employment agreement, the Chief Executive Officer has the option to receive his compensation in cash or in the form of the Company’s common stock. The total issuable shares under the provision are determined using 70% of the volume-weighted average share price of the five days immediately preceding the end of the month in which the services were earned. The value of the shares will be based on the closing price of the end of the month in which the services were earned. This employment agreement is effective for five years and contains an automatic renewal provision for a period of one year.

Note 8 – Note Payable

On April 24, 2015, the Company entered into a promissory note for $42,080 for services provided. The note carries an interest rate of 5%. The note requires monthly payments of $2,000 and matures in April 2016. The note is personally guaranteed by the chief executive officer of the Company. The outstanding balance of the note at December 31, 2015 is $27,580.

Note 9 – Lease Obligations

During December 2015, the Company entered into a lease agreement to lease its corporate office in Salt Lake City, Utah until December 2017. Future minimum lease commitments under the lease for the years ending December 31 are as follows: $29,491 – 2016 and $30,375 – 2017.

Note 10 –Tax Note

Deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carryforwards and deferred tax liabilities are recognized for table temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax asset are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

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Net deferred tax liabilities consist of the following components as of December 31, 2015 and 2014:

	2015			2014

Deferred tax assets:
NOL Carryover	$	819,400		$	505,000
Related Party Accruals		-			600
Accrued payroll		85,800			-
Depreciation		2,900			-
Deferred tax liabilities
Depreciation		-			(1,700	)

Valuation allowance		(908,100	)		(503,900	)
Net deferred tax asset	$	-		$	-

The income tax provision differs from the amount of income tax determined by applying the U.S. federal income tax rate to pretax income from continuing operations for the years ended December 31, 2015 and 2014 due to the following:

	2015			2014

Book Loss	$	(842,800	)	$	(827,400	)
Depreciation		1,100			(1,200	)
Meals & Entertainment		1,200			900
Related Party Accruals		(600	)		600
Stock and Warrants for Services		108,700			352,500
Loss (Gain) on Derivative		563,900			(12,000	)
Loss on Extinguishment of Debt		(358,400	)		29,800
Amortization of Debt Discount		123,100			141,300
Contributed Services		-			36,400
Valuation allowance		318,000			279,100
	$	-		$	-

At December 31, 2015, the Company had net operating loss carryforwards of approximately $2,101,000 that may be offset against future taxable income from the year 2016 to 2035. No tax benefit has been reported in the December 31, 2015 financial statements since the potential tax benefit is offset by a valuation allowance of the same amount. Tax years 2012 to current remain open to examination by U.S. federal and state tax authorities.

Note 11 – Subsequent Events

Management has evaluated subsequent events according to the requirements of ASC Topic 855 to include the following.

Subsequent to December 31, 2015, the Company issued a total of approximately 176,802,000 shares of the Company’s common stock. All shares were issued in exchange for $123,423 of convertible note principal.

During January 2016, the Company received $75,000 from an accredited investor in exchange for a Convertible Note with a principal balance of $81,000. Interest on the note accrues at the rate of 10% per annum. The note is due one year from the date of each installment and is convertible using a conversion price of 50% of the lowest trade price (or a 50% discount to market) occurring during the 25 trading days immediately preceding the conversion date. The note also stipulates a conversion limitation, whereby the holder may not convert more than 33.33% of the principal balance within a 15-day period during the 90 days following the date of issuance.

During January 2016, the Company issued an exchange note to an accredited investor in substitution for $50,000 previously outstanding convertible debenture balance pursuant to an exchange agreement. The original note was associated with a consulting agreement; to financial consideration was paid to the Company in exchange for this originally executed convertible debenture. The exchange note was issued with a maturity value of $50,000, is due in April 2016, accrues at a rate of 2% per annum and is convertible into shares of the Company at a rate equal to 60% of the average three lowest trade prices (or a 40% discount to market) occurring during the 20 trading days immediately preceding the conversion date.

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ITEM 9.

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.

Not applicable.

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ITEM 9A.

CONTROLS AND PROCEDURES.

Evaluation of Disclosure Controls and Procedures.

We carried out an evaluation, under the supervision and with the participation of our management, including our Principal Executive Officer, of the effectiveness of our disclosure controls and procedures (as defined) in Exchange Act Rules 13a – 15(c) and 15d – 15(e)). Based upon that evaluation, our principal executive officer concluded that, as of the end of the period covered in this report, our disclosure controls and procedures were not effective to ensure that information required to be disclosed in reports filed under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) is recorded, processed, summarized and reported within the required time periods and is accumulated and communicated to our management, including our principal executive officer, as appropriate to allow timely decisions regarding required disclosure.

Our Principal Executive Officer does not expect that our disclosure controls or internal controls will prevent all error and all fraud. Although our disclosure controls and procedures were designed to provide reasonable assurance of achieving their objectives and our Principal Executive Officer has determined that our disclosure controls and procedures are effective at doing so, a control system, no matter how well conceived and operated, can provide only reasonable, not absolute assurance that the objectives of the 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 the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of a simple error or mistake. Additionally, controls can be circumvented if there exists in an individual a desire to do so. There can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.

Furthermore, smaller reporting companies face additional limitations. Smaller reporting companies employ fewer individuals and find it difficult to properly segregate duties. Often, one or two individuals control every aspect of the company's operation and are in a position to override any system of internal control. Additionally, smaller reporting companies tend to utilize general accounting software packages that lack a rigorous set of software controls.

Management’s Annual Report on Internal Control over Financial Reporting.

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. Management, with the participation of the Chief Executive, evaluated the effectiveness of the Company’s internal control over financial reporting as of December 31, ~~2014~~2015. In making this assessment, management used the criteria set forth by the committee of Sponsoring Organizations of the Treadway Commission (“COSO”) in Internal Control – Integrated Framework. A material ~~weakness~~ weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a ~~reasonable~~ reasonable possibility that a material misstatement of the company’s annual or interim financial statements will not be prevented or or detected on a timely basis. We have identified the following material weaknesses:

1. As of December 31, ~~2014~~2015, we did not maintain effective controls over the control environment. ~~Specifically~~Because we ~~have~~are ~~not~~a ~~developed~~small ~~and~~start-up ~~effectively~~company ~~communicated~~with toonly ~~our~~one ~~employees~~full ~~and~~time ~~consultants~~employee, ~~its~~we ~~accounting~~lack ~~policies~~the ability to have adequate segregation of duties and ~~procedures.~~adequate ~~This~~oversight ~~has~~of ~~resulted~~the infinancial ~~inconsistent~~statement ~~practices~~preparation process. Further, the Board of Directors does not currently have any independent members and no director qualifies as an audit committee financial expert as defined in Item 407(d)(5)(ii) of Regulation S-K. Since these entity level ~~programs~~controls have a pervasive effect across the organization, management has determined that these circumstances constitute a material weakness.

2. As of December 31, ~~2014~~2015, we did not ~~maintain~~have ~~effective~~adequate ~~controls~~accounting ~~over~~expertise ~~financial~~related ~~statement~~to ~~closing~~accounting ~~routines~~treatment orof ~~disclosure~~complex ~~preparations~~transactions and their related disclosures. Specifically, controls were not designed and in place to ensure that ~~all~~proper ~~accounts~~accounting ~~were~~was ~~correctly~~performed ~~reconciled~~for all complex transactions and that the disclosures required were originally addressed in our financial statements. Accordingly, management has determined that ~~those~~this control ~~deficiencies~~deficiency constitutes a material weakness.

Because of these material weaknesses, management has concluded that the Company did not maintain effective internal control over financial reporting as of December 31, 2014 based on the criteria established in “Internal Control-~~Integrated~~ ~~Framework” issued by the COSO.~~44-

Because of these material weaknesses, management has concluded that the Company did not maintain effective internal control over financial reporting as of December 31, 2015 based on the criteria established in “Internal Control-Integrated Framework” issued by the COSO.

Changes in Internal Control over Financial Reporting

There has been no change in the Company’s internal control over financial reporting through the date of this report or during the twelve months ended December 31, ~~2014~~2015, that materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

Independent Registered Accountant’s Internal Control Attestation

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

ITEM 9B.

OTHER INFORMATION.

None.

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PART III

ITEM 10.

DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE.

The name, age, and position of our management as of the date of this Annual Report is as follows:

Name	~~Name~~	Age	~~Position~~	Position
Peter Anthony Chiodo	~~Peter Anthony Chiodo~~	4344	~~Chief Executive Officer, President, Treasurer, Secretary, and Director~~	Chief Executive Officer, President, Treasurer, Secretary, and Director

Certain biographical information of Mr. Chiodo is set forth below.

Peter Anthony Chiodo

Peter Anthony Chiodo is the CEO, founder, ~~and~~ and sole director of Soul. He has ~~more~~25 ~~than 20~~ years of experience in the video and computer game industry as an award-winning director of product development and producer. He founded Soul and Vibe Entertainment, Inc. in July of 2011 and remains its CEO. He has served on the Adjunct Faculty representing the Video and Computer Games Industry: Instructor of “The Business of Video Games” and “The Art, Culture, and Economics of Video Games” courses at the Institute of Production and Recording (“IPR”) from March 2009 to present. From November 2003 to February 2011, he was the Director of Product Development at Destineer Games. From late 2006/early 2007 to 2011 (while at Destineer Games) he managed a production management staff of 7 individuals and was responsible for creating and implementing a development process that resulted in the release of more than 100 frontline and casual/family-friendly console and PC games over a four year period. From November 2003 through late 2006 (while at Destineer Games) he managed and was responsible for a development department consisting of over 30 engineers, artists, and designers. From February 2000 to November 2003, he was a Program Manager at Microsoft Corporation. From June 1990 to the present he has been personally credited in more than 200 games released on myriad video game console and personal computer platforms.

Mr. Chiodo has extensive experience directing both internal and external (contracted) production teams, worldwide, in the development of frontline and “casual” video game console, PC and Mac computer products, and software engine technologies. Most recently, he produced and co-designed the critically acclaimed Stoked: Big Air snowboarding series (Xbox 360) and the million unit-selling Summer Sports: Paradise Island (Wii). Internally developed products for which Tony was responsible secured a 2006 capital raise in excess of $12 million, the second largest raise in the interactive industry for the year, as well as an investment-equity position from In-Q-Tel, a venture capital company associated with the “lettered agencies” of the United States’ Federal Government. He has produced training tools and simulation center applications for the likes of the United States Marine Corps, DARPA (Defense Advanced Research Projects Agency), and others. Mr. Chiodo has served as a consultant to SiMCare Health and Vital Sims, Minnesota-based software companies that develop “serious games” for health care providers. Specifically, these simulations help physicians and nurses provide care to patients who suffer from chronic diseases. Mr. Chiodo has built relationships/negotiated agreements with software developers, licensing agents, Olympic champions, professional athletes and sports leagues, localization partners, and commodity, entertainment, exercise, and toy companies. He has presented proposals to the likes of Steven Spielberg and Star Wars star Mark Hamill for potential interactive products based on their own intellectual properties. Mr. Chiodo received a B.A. History and a B.S. in Political Science from the University of Utah in 1995 and an M.B.A. from the David Eccles School of Business at the University of Utah in 1998.

All directors hold office until the next annual meeting of stockholders and the election and qualification of their successors. Officers are elected annually by the board of directors and serve at the discretion of the board.

Director Qualifications

We believe that our directors should have the highest professional and personal ethics and values, consistent with our longstanding values and standards. They should have broad experience at the policy-making level in business or banking. They should be committed to enhancing stockholder value and should have sufficient time to carry out their duties and to provide insight and practical wisdom based on experience. Their service on other boards of public companies should be limited to a number that permits them, given their individual circumstances, to perform responsibly all director duties for us. Each director must represent the interests of all stockholders. When considering potential director candidates, the Board also considers the candidate’s character, judgment, diversity, age and skills, including financial literacy and experience in the context of our needs and the needs of the Board.

Board Committees

We have not previously had, and do not presently have, an audit committee, compensation committee or nominations and governance committee, but may establish them in the future.

Director Compensation

Directors are expected to timely and fully participate in all regular and special board meetings, and all meetings of committees on which they serve. We intend to compensate non-management directors in the future through stock options granted under a stock incentive plan.

-24 46-

Indebtedness of Directors and Executive Officers

None of our directors or executive officers or their respective associates or affiliates is indebted to us.

Family Relationships

None.

Involvement in Certain Legal Proceedings

Our directors and executive officers have not been involved in any of the following events during the past ten years:

· Any bankruptcy petition filed by or against such person or any business of which such person was a general partner or executive officer either at the time of the bankruptcy or within two years prior to that time; · Any conviction in a criminal proceeding or being subject to a pending criminal proceeding (excluding traffic violations and other minor offenses); · Being subject to any order, judgment, or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining him from or otherwise limiting his involvement in any type of business, securities or banking activities or to be associated with any person practicing in banking or securities activities;

· ~~Any~~Being ~~conviction~~found by a court of competent jurisdiction in a ~~criminal~~civil ~~proceeding~~action, the SEC or ~~being~~the ~~subject~~Commodity Futures Trading Commission to have violated a ~~pending~~Federal ~~criminal~~or ~~proceeding~~state ~~(excluding~~securities ~~traffic~~or ~~violations~~commodities law, and ~~other~~the ~~minor~~judgment ~~offenses)~~has not been reversed, suspended, or vacated · Being subject of, or a party to, any Federal or state judicial or administrative order, judgment decree, or finding, not subsequently reversed, suspended or vacated, relating to an alleged violation of any Federal or state securities or commodities law or regulation, any law or regulation respecting financial institutions or insurance companies, or any law or regulation prohibiting mail or wire fraud or fraud in connection with any business entity; or

· Being subject to any order, judgment, or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining him from or otherwise limiting his involvement in any type of business, securities or banking activities or to be associated with any person practicing in banking or securities activities;

· Being found by a court of competent jurisdiction in a civil action, the SEC or the Commodity Futures Trading Commission to have violated a Federal or state securities or commodities law, and the judgment has not been reversed, suspended, or vacated

· Being subject of, or a party to, any Federal or state judicial or administrative order, judgment decree, or finding, not subsequently reversed, suspended or vacated, relating to an alleged violation of any Federal or state securities or commodities law or regulation, any law or regulation respecting financial institutions or insurance companies, or any law or regulation prohibiting mail or wire fraud or fraud in connection with any business entity; or

Being subject of or party to any sanction or order, not subsequently reversed, suspended, or vacated, of any self-regulatory organization, any registered entity or any equivalent exchange, association, entity or organization that has disciplinary authority over its members or persons associated with a member.

Code of Ethics

On February 5, 2013, the Company adopted a Code of Ethics and Business Conduct.

Section 16(a) Beneficial Ownership Reporting Compliance

Section 16(a) of the Securities Exchange Act of 1934, as amended, requires directors and certain officers of the Company and persons who own more than ten percent (10%) of our common stock to file with the SEC initial reports of beneficial ownership (Form 3) and reports of subsequent changes in their beneficial ownership (Form 4 or Form 5) of our common stock. Such directors, officers and greater-than-ten-percent stockholders are required to furnish us with copies of the Section 16(a) reports they file. The SEC has established specific due dates for these reports, and we are required to disclose in this proxy statement any late filings or failures to file.

Based solely upon a review of the copies of the Section 16(a) reports (and any amendments thereto) furnished to us and written representations from certain reporting persons that no additional reports were required, we believe that our directors, reporting officers and greater-than-ten-percent stockholders complied with all these filing requirements for the fiscal year ended December 31, 2014.

ITEM 11.

EXECUTIVE COMPENSATION.

The following table provides certain summary information concerning compensation awarded to, earned by or paid to our Chief Executive Officer for fiscal years ~~2014~~2015 and ~~2013~~2014.

Name & Principal Position	Year	Salary ($)	~~Salary ($)~~	Bonus ($)	~~Bonus ($)~~	Option Awards ($)*	Option Awards ($)*	All Other Compensation($)	~~All Other Compensation($)~~	Total ($)	~~Total ($)~~
Peter Anthony Chiodo	~~2014~~2015 (1)		—		—		—	$	—32,160		—
Chief Executive Officer	~~2013~~2014 (2)		—		—		—		—		—

(1) While no salary was paid to Mr. Chiodo, an hourly wage computation totaling $84220,000 was expensed as of December 31, ~~2014~~2015 for the services he contributed. Stock of $32,160 was issued to Mr. Chiodo during 2015 and $564 of stock was included in accrued expenses as of December 31, 2015.

(2) While no salary was paid to Mr. Chiodo, an hourly wage computation totaling $7784,000 was expensed as of December 31, ~~2013~~2014 for the services he contributed. The amount is in accrued expenses as of December 31, 2015.

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Compensation of Directors

We have not established standard compensation arrangements for our director and do not have any agreements or understandings to compensate him or any future director for their services as such.

Outstanding Equity Awards

We had no outstanding equity awards as of the fiscal year ended December 31, ~~2013~~2014. orIssuances for approximately 4,977,000 shares for services performed during 2015 have been accrued as December 31, ~~2014~~2015, within accrued expenses. During 2015, the Company did not issue 164,000 shares of stock to the chief executive officer for the services rendered under the employment agreement below.

- 47-

Employment Agreements

Pursuant to the Agreement, Mr. Chiodo has ~~received~~ received a warrant to purchase 4100,000~~,000~~ shares of Common Stock, which shall terminate on the earlier of 5 years from the grant date. The exercise price of the Warrant is $01.0320 per share, subject to adjustment for certain events as set forth in the Warrant. In addition, the Warrant shall be callable by the Company beginning July 1, 2015, provided the Common Stock trades at a volume-weighted ~~average~~ average price of $04.1000 or greater for ten (10) consecutive trading days on the Company’s principal trading market.

The Agreement imposes, in addition to the above, obligations on Mr. Chiodo regarding confidentiality and non-competition.

Director Compensation

Our sole director, Peter Anthony Chiodo, ~~has~~ has not received any compensation for service as a director or for any special assignments. The following table sets forth director compensation as of December 31, ~~2013~~2015 and December 31, 2014:

Name & Year	Fees Paid in Cash ($)		Stock Awards ($) (2)		Option Awards ($)		Non-Equity Incentive Plan Compensation ($)		Nonqualified Deferred Compensation Earnings ($)		All Other Compensation ($)		Total ($)
Peter A. Chiodo (1)
2015		0	$	32,160	$	118,787		0		0		0	$	150,497
2014		0		0		0		0		0		0		0
2013		0		0		0		0		0		0		0

(1) Appointed President, Chief Executive Officer, and Chairman of the Board, on February 6, 2013.

(1)	Appointed President, Chief Executive Officer, and Chairman of the Board, on February 6, 2013.
(2)	$564 shares are accrued for included in accrued expenses at December 31, 2015.

Narrative to Director Compensation Table

Except as discussed below, we do not compensate our director for his services in his capacity as a director. Directors are not paid for meetings attended. All travel and lodging expenses associated with corporate matters are reimbursed by us, if and when incurred.

ITEM 12.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT.

The following table sets forth certain ~~information~~ information as ofMarch ~~the~~25, ~~date~~2016 ~~of this Annual Report~~ regarding the beneficial ownership of our common stock, based on 48237,~~744~~642,~~973~~126 shares of Common Stock issued and outstanding, by (i) each person or entity who, to our knowledge, owns more than 5% of our common stock and (ii) each executive officer and director. Unless otherwise indicated in the footnotes to the following table, each person named in the table has sole voting and investment power and that person’s address is c/o Soul and Vibe Interactive Inc., at ~~1660~~ 6548 South ~~Hwy~~Big ~~100~~Cottonwood Canyon Road, Suite ~~500,~~200 ~~St.~~Salt ~~Louis~~Lake ~~Park~~City, MNUtah, ~~55416~~84121.

Shares of common stock subject to options, warrants, or other rights currently exercisable or exercisable within 60 days of the date of this Annual Report, are deemed to be beneficially owned and outstanding for computing the share ownership and percentage of the stockholder holding such options, warrants or other rights, but are not deemed outstanding for computing the percentage of any other stockholder.

-26-

Name of Beneficial Owner

Number of Shares
Beneficially Owned

Percentage

Beneficially Owned

Peter Anthony Chiodo (1)

583,064,024

71.04

Name of Beneficial Owner		Number of Shares Beneficially Owned				Percentage Beneficially Owned
Peter Anthony Chiodo (1)			268,606,910				86.9	%

- 48-

1. Consists of 8(i) 5,~~606,910~~480 shares of common stock, (ii) 63,058,544 shares of common stock ~~and~~that are beneficially owned by Mr. Chiodo pursuant to his employment agreement (iii) and 130,000 shares of Series B Preferred Stock, each of which carries the vote of 24,000 shares of common stock.

Equity Compensation Plan Information

The following table provides information ~~about~~ about our equity compensation plans as of December 31, ~~2014~~2015:

Plan Category

Number of securities to be issued upon exercise of outstanding options, warrants and rights

Weighted- average exercise price of outstanding options, warrants and rights

~~Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (A))~~

Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (A))

Equity compensation plans approved by security holders

~~- - -~~—

~~- - -~~

—

Equity compensation plans not approved by security holders (1)

5125,000~~,000~~

~~2,288,250~~

1,799

Total

5,000,000

2,288,250

Equity compensation plans not approved by security holders (2)

250,000

235,000

Total

375,000

236,799

(1) Pursuant to our 2014 Equity Incentive Plan, we are authorized to issue an aggregate of 5125,000~~,000~~ shares of common stock, 2123,~~711,750of~~201 of which were issued as at December 31, ~~2014~~2015.

(2)	Pursuant to our 2015 Equity Incentive Plan, we are authorized to issue an aggregate of 250,000 shares of common stock, 15,000 of which were issued as at December 31, 2015.

ITEM 13.

CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE

Not applicable.

ITEM 14.

PRINCIPAL ACCOUNTANT FEES AND SERVICES.

	Audit Fees		~~Audit Fees~~		Audit-Related Fees		~~Audit-Related Fees~~	Tax Fees		~~All Other Fees~~	All Other Fees
2014	HJ & Associates, LLC		$	40,575			none	425		none
2015 Haynie & Company	$	74,000				none		$	2,900			none
2013	HJ & Associates, LLC		$	32,000			none	none		none
2014 HJ & Associates, LLC	$	40,575				none		$	425			none

We have no formal audit committee. However, our entire Board of Directors (the “Board”) is our de facto audit committee. In discharging its oversight responsibility as to the audit process, the Board obtained from the independent auditors a formal written statement describing all relationships between the auditors and us that might bear on the auditors' independence as required by Independence Standards Board Standard No. 1, “Independence Discussions with Audit Committees.” The Board discussed with the auditors any relationships that may impact their objectivity and independence, including fees for non-audit services, and satisfied itself as to the auditors' independence. The Board also discussed with management, the internal auditors and the independent auditors the quality and adequacy of its internal controls. The Board reviewed with the independent auditors their management letter on internal controls.

-27 49-

The Board discussed and reviewed with the ~~independent~~ independent auditors all matters required to be discussed by auditing standards generally accepted in the United States of America, ~~including~~ including those described in Statement on Auditing Standards No. 61, as amended, “Communication with Audit Committees”. The Board reviewed the audited consolidated financial statements of the Company as of and for the year ended December 31, ~~2013~~ 2015 with management and the independent auditors. Management has the responsibility for the preparation of the Company's financial statements and the independent auditors have the responsibility for the examination of those statements. Based on the above-mentioned review and discussions with the independent auditors and management, the Board approved the Company's audited consolidated financial statements and recommended that they be included in its Annual Report on Form 10-K for the year ended December 31, ~~2013~~2015, for filing with the Securities and Exchange Commission.

PART IV

ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES

(A) Financial Statements

See ~~index~~Item ~~to Financial Statements on Page F-1~~8

(B) Exhibits.

Exhibit No.	~~Description~~	Description
3.1	~~Articles of Incorporation (1)~~	Articles of Incorporation (1)
3.2	~~Certificate of Amendment to Articles of Incorporation (6)~~	Certificate of Amendment to Articles of Incorporation (6)
3.3	~~Certificate of Amendment to Articles of Incorporation (7)~~	Certificate of Amendment to Articles of Incorporation (7)
3.4	~~Certificate of Designation of Series B Preferred Stock (6)~~	Certificate of Designation of Series B Preferred Stock (6)
3.5	~~Amended and Restated Bylaws. (2)~~	Amended and Restated Bylaws (2)
3.6	~~Amendment to Certificate of Designation (12)~~	Amendment to Certificate of Designation (12)
4.1	Form of Debenture dated October 18, 2013 (8)
3.7		Certificate of Amendment to Articles of Incorporation (21)
4.2	Form of November Debenture dated November 18, 2013 (9)
3.8		Amendment to Certificate of Designation (22)
4.3	Form of Warrant issued to the holders of the 2013 Notes (13)
3.9		Amendment to the Articles of Incorporation (23)
4.4	Form of Debenture dated September 23, 2014 (14)
4.1		Form of Debenture dated October 18, 2013 (8)
4.5	Form of Warrant dated January 20, 2015 (12)
4.2		Form of November Debenture dated November 18, 2013 (9)
4.6	Form of Note dated February 3, 2015 (15)
4.3		Form of Warrant issued to the holders of the 2013 Notes (13)
4.7	Form of LG Note dated March 16, 2015 (17)
4.4		Form of Debenture dated September 23, 2014 (14)
4.8	BLE Note dated March 17, 2015 (17)
4.5		Form of Warrant dated January 20, 2015 (12)
10.1	Form of Share Exchange Agreement, dated as of February 5, 2013, by and among the Company, Soul, and Mr. Chiodo. (2)
4.6		Form of Note dated February 3, 2015 (15)
10.2	Agreement with Microsoft Corporation dated August 8, 2012 (5)*
4.7		Form of LG Note dated March 16, 2015 (17)
10.3	Agreement with Sony Computer Entertainment of America, LLC dated September 27, 2012 (3)
4.8		BLE Note dated March 17, 2015 (17)
10.4	Form of Trademark License Agreement with Gcom Enterprises, Inc., dated as of September 30, 2011 (5)*
4.9		BFC Note date April 21, 2015 (18)
10.5	Form of Shareholder Loan Agreement, dated as of July 14, 2011, by and between Soul and Mr. Chiodo (4)
4.10		Securities Purchase Agreement between the Company and GW Holdings Group, LLC dated June 2, 2015 (20)
10.6	Form of Addendum to the Shareholder Loan Agreement, dated as of December 31, 2012, by and between Soul and Mr. Chiodo (4)
4.11		GW Note dated June 2, 2015 (20)
10.7	Securities Purchase Agreement dated as of October 18, 2013 (8)
4.12		Form of Debenture dated January 18, 2016 (23)
10.8	2014 Equity Incentive Plan (10)
10.1		Form of Share Exchange Agreement, dated as of February 5, 2013, by and among the Company, Soul, and Mr. Chiodo. (2)

-28 50-

10.9	Securities Purchase Agreement dated as of January 23, 2014 (11)
10.2		Agreement with Microsoft Corporation dated August 8, 2012 (5)*
10.10	Form of Agreement by and between the Company and the holders of the Company’s securities signatory thereto (13)
10.3		Agreement with Sony Computer Entertainment of America, LLC dated September 27, 2012 (3)
10.11	Form of Securities Purchase Agreement dated September 23, 2014 (14)
10.4		Form of Trademark License Agreement with Gcom Enterprises, Inc., dated as of September 30, 2011 (5)*
10.12	Form of Employment Agreement by and between the Company and Peter Anthony Chiodo (12)
10.5		Form of Shareholder Loan Agreement, dated as of July 14, 2011, by and between Soul and Mr. Chiodo (4)
10.13	Common Stock Purchase Agreement between the registrant and Beaufort Capital Partners LLC, a New York limited liability company, dated February 11, 2015 (16)
10.6		Form of Addendum to the Shareholder Loan Agreement, dated as of December 31, 2012, by and between Soul and Mr. Chiodo (4)
10.14	Registration Rights Agreement between the registrant and Beaufort Capital Partners LLC, a New York limited liability company, dated February 11, 2015 (16)
10.7		Securities Purchase Agreement dated as of October 18, 2013 (8)
10.15	Form of Stock Purchase Agreement dated March 16, 2015 (17)
10.8		2014 Equity Incentive Plan (10)
14	Code of Ethics (2)
10.9		Securities Purchase Agreement dated as of January 23, 2014 (11)
21	List of Subsidiaries**
10.10		Form of Agreement by and between the Company and the holders of the Company’s securities signatory thereto (13)
31.1	Certification pursuant to Section 302 of the Sarbanes-Oxley Act**
10.11		Form of Securities Purchase Agreement dated September 23, 2014 (14)
31.2	Certification pursuant to Section 302 of the Sarbanes-Oxley Act**
10.12		Form of Employment Agreement by and between the Company and Peter Anthony Chiodo (12)
32.1	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002***
10.13		Common Stock Purchase Agreement between the registrant and Beaufort Capital Partners LLC, a New York limited liability company, dated February 11, 2015 (16)
101.INS	XBRL Instance Document**
10.14		Registration Rights Agreement between the registrant and Beaufort Capital Partners LLC, a New York limited liability company, dated February 11, 2015 (16)
101.SCH	XBRL Taxonomy Extension Schema Document**
10.15		Form of Stock Purchase Agreement dated March 16, 2015 (17)
101.CAL	XBRL Taxonomy Calculation Linkbase Document**
10.16		Development and Publishing Agreement dated April 23, 2015 (19)
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document**
10.17		Form of Securities Purchase Agreement dated January 18, 2016 (23)
101.LAB	XBRL Taxonomy Label Linkbase Document**
14		Code of Ethics (2)
101.PRE	XBRL Taxonomy Presentation Linkbase Document**
21		List of Subsidiaries**
31.1		Certification pursuant to Section 302 of the Sarbanes-Oxley Act**
31.2		Certification pursuant to Section 302 of the Sarbanes-Oxley Act**
32.1		Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002***
101.INS		XBRL Instance Document**
101.SCH		XBRL Taxonomy Extension Schema Document**
101.CAL		XBRL Taxonomy Calculation Linkbase Document**
101.DEF		XBRL Taxonomy Extension Definition Linkbase Document**
101.LAB		XBRL Taxonomy Label Linkbase Document**
101.PRE		XBRL Taxonomy Presentation Linkbase Document**

1. Incorporated by reference herein from the Registration Statement on Form S-1/A filed on April 29, 2011.

2. Incorporated by reference herein from the Current Report on Form 8-K filed on February 7, 2013.

~~3. Incorporated by reference herein from the Current Report on Form 8~~-K ~~filed on March 18, 2013.~~51-

43. Incorporated by reference herein from the Current Report on Form 8-K filed on ~~April~~March 2218, 2013.

54. Incorporated by reference herein from the Current Report on Form 8-K filed on ~~May~~April 3122, 2013.

65. Incorporated by reference herein from the Current Report on Form 8-K filed on ~~July~~May 31, 2013.

76. Incorporated by reference herein from the Current Report on Form 8-K filed on ~~August~~July 1231, 2013.

87. Incorporated by reference herein from the Current Report on Form 8-K filed on ~~October~~August 2212, 2013.

98. Incorporated by reference herein from the Current Report on Form 8-K filed on ~~November~~October 2122, 2013.

109. Incorporated by reference herein from the Current ~~Registration~~Report ~~Statement~~ on Form S-8-K filed on ~~December~~November 3121, 2013.

1110. Incorporated by reference herein from the ~~Current~~Registration ~~Report~~ Statement on Form 8S-K8 filed on ~~January~~December 2431, ~~2014~~2013.

1211. Incorporated by reference herein from the Current Report on Form 8-K filed on January 2324, ~~2015~~2014.

1312. Incorporated by reference herein from the Current Report on Form 8-K filed on ~~September~~January 1523, ~~2014~~2015.

1413. Incorporated by reference herein from the Current Report on Form 8-K filed on September 2915, 2014.

1514. Incorporated by reference herein from the Current Report on Form 8-K filed on ~~February~~September 929, ~~2015~~2014.

1615. Incorporated by reference herein from the Current ~~Registration~~Report ~~Statement~~ on Form S8-1K filed on February 139, 2015.

1716. Incorporated by reference herein from the Registration ~~Current~~Statement ~~Report~~ on Form 8S-K1 filed on ~~March~~February 2013, 2015.

*17. ~~This~~Incorporated ~~Exhibit~~by ~~has~~reference ~~been~~herein ~~separately~~from ~~filed~~the ~~with~~Current ~~the~~Report ~~Commission~~on ~~pursuant~~Form to8-K anfiled ~~application~~on ~~for~~March ~~confidential~~20, ~~treatment~~2015. ~~The confidential portions of the Exhibit have been omitted and are marked by “X.”~~

**18. ~~Filed~~Incorporated ~~herewith~~by reference herein from the Current Report on Form 8-K filed on April 28, 2015.

~~***~~19. ~~This~~Incorporated ~~Certification~~by ~~shall~~reference ~~not~~herein befrom ~~deemed to be “filed” for purposes of Section 18 of~~ the ~~Exchange Act, or otherwise subject to the liability of that section,~~ ~~and~~Current ~~shall~~Report ~~not~~on beForm ~~incorporated~~8-K ~~by reference into any registration statement or other document~~ filed ~~under~~on ~~the~~April ~~Securities Act of 1933~~29, ~~as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing~~2015.

20. Incorporated by reference herein from the Current Report on Form 8-~~28-~~K filed on June 8, 2015.

~~SIGNATURES~~21. Incorporated by reference herein from the Current Report on Form 8-K filed on August 25, 2015.

~~Pursuant~~22. toIncorporated ~~the~~by ~~requirements~~reference ofherein ~~Section 13~~from ~~or 15(d) of~~ the Current ~~Securities Exchange Act of 1934, the registrant has duly caused this~~ Report ~~to be signed~~ on ~~its~~Form ~~behalf~~8-K byfiled ~~the undersigned~~on ~~thereunto~~December ~~duly~~1, ~~authorized~~2015.

	SOUL AND VIBE INTERACTIVE INC.
March 31, 2015	By:	/s/ Peter Anthony Chiodo
	Name:	Peter Anthony Chiodo
	Title:	Chief Executive Officer (Principal Executive Officer and Principal Financial Officer)

23. Incorporated by reference herein from the Current Report on Form 8-K filed on January 27, 2016.

~~Pursuant~~* toThis ~~the~~Exhibit ~~requirements~~has ofbeen ~~the~~separately ~~Securities~~filed ~~Exchange Act~~with ofthe ~~1934,~~Commission ~~this~~pursuant ~~Report~~to ~~has~~an ~~been~~application ~~signed~~for ~~below~~confidential bytreatment. ~~the~~The ~~following~~confidential ~~persons~~portions ~~on behalf~~ of the ~~registrant~~Exhibit ~~and~~have inbeen ~~the capacities~~ omitted and onare ~~the dates~~marked ~~indicated~~by “X.”

March 31, 2015	By:	/s/ Peter Anthony Chiodo
	Name:	Peter Anthony Chiodo
	Title:	Chief Executive Officer (Principal Executive Officer and Principal Financial Officer) and Chairman of the Board of Directors

** Filed herewith.

~~-29-~~*** This Certification shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

~~Item~~- ~~8. Financial Statements.~~52-

~~SOUL AND VIBE INTERACTIVE INC.~~SIGNATURES

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

FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013

	SOUL AND VIBE INTERACTIVE INC.

April 1, 2016	By:	/s/ Peter Anthony Chiodo
	Name:	Peter Anthony Chiodo
	Title:	Chief Executive Officer (Principal Executive Officer and Principal Financial Officer)

~~-31-~~Pursuant to the requirements of the Securities Exchange 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.

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

April 1, 2016	By:	/s/ Peter Anthony Chiodo
	Name:	Peter Anthony Chiodo
	Title:	Chief Executive Officer (Principal Executive Officer and Principal Financial Officer) and Chairman of the Board of Directors

To- the Board of Directors and Shareholders Soul and Vibe Interactive, Inc. St. Louis Park, Minnesota We have audited the accompanying consolidated balance sheets of Soul and Vibe Interactive, Inc. and subsidiaries as of December 31, 2014 and 2013, and the related consolidated statements of operations, shareholders' equity (deficit), and cash flows for the years then ended. These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits53-

We conducted our audits 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 audits 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 consolidated financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall consolidated financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of Soul and Vibe Interactive, Inc. and subsidiaries as of December 31, 2014 and 2013, and the results of their operations and their cash flows for the years then ended, in conformity with U.S. generally accepted accounting principles. The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the consolidated financial statements, the Company has suffered recurring losses from operations, has negative working capital, and has a deficit in shareholders’ equity. This raises substantial doubt about the Company's ability to continue as a going concern. Management's plans in regard to this matter are also described in Note 2. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

/s/ HJ & Associates, LLC

HJ & Associates, LLC Salt Lake City, Utah March 31, 2015

-32-

Soul and Vibe Interactive Inc. Consolidated Balance Sheets

	December 31,
	2014			2013
ASSETS
Current Assets
Cash	$	25,752		$	114,429
Accounts Receivable		3,619			-
Debt Issue Cost		6,190			7,289
Prepaid Expenses		7,500			-
Total Current Assets		43,061			121,718
Fixed Assets
Furniture and Equipment		9,470			2,748
Accumulated Depreciation		(1,538	)		(191	)
Total Fixed Assets		7,932			2,557
Other Assets
Development Costs, net of accumulated amortization of $45,704 and $0 as
of December 31, 2014 and 2013, respectively		383,701			169,000
Total Assets	$	434,694		$	293,275
LIABILITIES AND SHAREHOLDER'S DEFICIT
Current Liabilities
Accounts payable	$	346,928		$	184,343
Accrued expenses		33,113			5,905
Accrued interest, related party		1,458			-
Note payable, related party		2,500			36,100
Convertible note payable, related party, net of discount of $324 and
$5,397 as of December 31, 2014 and 2013, respectively		8,626			4,603
Convertible notes payable, net of discount of $5,204 and $74,136 as of
December 31, 2014 and 2013, respectively		118,624			48,642
Convertible debentures, net of discount of $130,413 and $289,474 as of
December 31, 2014 and 2013, respectively		80,254			78,948
Derivative liability		1,081,318			1,575,807
Total Current Liabilities		1,672,821			1,934,348
Shareholder's Deficit
Preferred Stock, $0.001 par value, 10,000,000 authorized, 130,000 issued and outstanding as of December 31, 2014 and 2013, respectively		130			130
Common Stock, $0.001 par value, 300,000,000 authorized, 37,043,492 and 15,918,840 issued and outstanding as of December 31, 2014 and 2013, respectively		37,044			15,919
Additional Paid-in Capital		3,171,722			668,268
Accumulated Deficit		(4,447,023	)		(2,325,390	)
Total Shareholder's Deficit		(1,238,127	)		(1,641,073	)
Total Liabilities & Shareholder's Deficit	$	434,694		$	293,275

-30-

Soul and Vibe Interactive Inc. Consolidated Statements of Operations

	December 31,
	2014			2013
Revenues	$	62,428		$	-
Cost of Sales		(63,732	)		-
Gross Profit (Loss)		(1,304	)		-
Operating Expenses
General & Administrative		469,453			369,040
Professional Fees		1,182,761			532,308
Total Operating Expenses		1,652,214			901,348
Operating Loss		(1,653,518	)		(901,348	)
Other Income (Expense)
Gain (Loss) on Derivative		30,870			(1,225,807	)
Loss on Extinguishment of Debt		(76,360	)		-
Interest Expense		(422,625	)		(143,298	)
Total Other Income (Expense)		(468,115	)		(1,369,105	)
Loss before Income Taxes		(2,121,633	)		(2,270,453	)
Income Taxes		-			-
Net Loss	$	(2,121,633	)	$	(2,270,453	)
Basic Loss per Share	$	(0.09	)	$	(0.16	)
Weighted Average Shares Outstanding		24,842,637			14,046,016

-31-

Soul and Vibe Interactive Inc. Consolidated Statement of Changes in Shareholder's Deficit

	Preferred Stock				Common Stock
	Shares		Amount		Shares			Amount			Additional Paid-in Capital			Accumulated Deficit			Total Shareholder's Deficit
Balance at December 31, 2012		-	$	-		24,000,000		$	24,000		$	(6,000	)	$	(54,937	)	$	(36,937	)
Common stock issued for purchase of subsidiary		-		-		12,333,334			12,333			(12,333	)		-			-
Acquisition of subsidiary		-		-		-			-			(71,555	)		-			(71,555	)
Inventory exchange		-		-		-			-			38,913			-			38,913
Common stock issued for cash		-		-		333,334			333			99,667			-			100,000
Common stock issued for services		-		-		738,510			739			391,871						392,610
Preferred stock issued for cancelled common stock		130,000		130		(21,486,431	)		(21,486	)		21,356			-			-
Debt discount on convertible notes and convertible notes related party		-		-		-			-			119,500			-			119,500
Contribution of wages, interest and rent by officer		-		-		-			-			86,849			-			86,849
Fractional share adjustment for 1-for-3 stock split		-		-		93			-			-			-			-
Net Loss		-		-		-			-			-			(2,270,453	)		(2,270,453	)
Balance at December 31, 2013		130,000	$	130		15,918,840		$	15,919		$	668,268		$	(2,325,390	)	$	(1,641,073	)
Common stock issued for cash		-		-		2,239,910			2,240			373,115			-			375,355
Common stock issued for services		-		-		7,515,898			7,516			581,063			-			588,579
Common stock issued for prepaid expenses		-		-		2,571,750			2,572			312,754			-			315,326
Common stock issued for software development costs		-		-		1,639,320			1,639			57,026			-			58,665
Cashless exercise of warrants		-		-		277,777			278			(278	)		-			-
Converted debenture principal and accrued interest		-		-		6,879,997			6,880			1,023,866			-			1,030,746
Warrants issued upon refinance of debt recorded as debt discount		-		-		-			-			22,941			-			22,941
Warrants issued for services		-		-		-			-			39,674						39,674
Contribution of wages, interest and rent by officer		-		-		-			-			93,293			-			93,293
Net loss		-		-		-			-			-			(2,121,633	)		(2,121,633	)
Balance at December 31, 2014		130,000	$	130		37,043,492		$	37,044		$	3,171,722		$	(4,447,023	)	$	(1,238,127	)

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Soul and Vibe Interactive Inc. Consolidated Statements of Cash Flows

	December 31,
	2014			2013
Cash Flows from Operating Activities
Net Loss	$	(2,121,633	)	$	(2,270,453	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation		1,347			191
Amortization of debt issuance costs		11,099			2,711
Amortization of debt discount		362,259			132,192
Amortization of software development costs		45,704			-
Wages and interest contributed to capital		93,293			86,849
Common stock and warrants issued for services		628,253			392,610
Loss (Gain) on derivative		(30,870	)		1,225,807
Loss on extinguishment of debt		76,360			-
Changes in Operating Assets and Liabilites:
Increase in accounts receivable		(3,619	)		-
Decrease in prepaid expenses		307,826			-
Increase in accounts payable		165,085			152,991
Increase in accrued interest		45,426			15,905
Net cash used in operating activities		(419,470	)		(261,197	)
Cash Flows from Investing Activities
Cash acquired in business combination		-			2,149
Purchased of fixed assets		(6,722	)		(2,748	)
Cash paid for development costs		(194,240	)		(165,000	)
Net cash provided by (used in) investing activities		(200,962	)		(165,599	)
Cash Flows from financing activities
Proceeds from note payable, related party		-			6,600
Repayment of related party notes payable		(33,600	)		(25,000	)
Proceeds from convertible notes payable, related party		-			9,000
Payment of debt issuance costs		(10,000	)		(10,000	)
Proceeds from the issuance of convertible debenture and notes payable		200,000			460,500
Proceeds from sale of common stock and warrants, net of offering costs		375,355			100,000
Net cash provided by financing activities		531,755			541,100
Net increase in cash		(88,677	)		114,304
Cash Balance at Beg of Period		114,429			125
Cash Balance at End of Period	$	25,752		$	114,429
Supplemental Disclosure of Cash Flow Information
Cash paid for interest	$	-		$	-
Cash paid for income taxes	$	-		$	-
Supplemental Disclosure of NonCash Transactions
Capital stock issued for software development costs	$	58,665		$	-
Software development costs financed by accounts payable	$	7,500		$	-
Accrued interest converted to capital stock	$	26,760		$	-
Debenture principal converted to capital stock	$	368,422		$	-
Debt discount removed upon extinguishment of debt	$	104,415		$	-
Derivative liability removed upon extinguishment of debt	$	663,619		$	-
Capital stock issued for prepaid expenses	$	315,326		$	-
Warrants issued upon refinance of debt recorded as debt discount	$	22,941		$	-
Fair value of derivative conversion option recorded as debt discount	$	200,000		$	-
Discount on issuance of convertible debenture and notes payable	$	10,667		$	119,500
Capital contribution for asset exchange	$	-		$	38,913

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Soul and Vibe Interactive Inc.

Notes to Financial Statements

Note 1 – Nature of Business and Significant Accounting Policies

Nature of Business

Soul and Vibe Interactive Inc. (“the Company”) was incorporated in the state of Nevada on January 5, 2011 (“Inception”). The Company’s primary business focus and source of revenue is the development and publishing (sales) of video and computer game software for home consoles, mobile devices, and personal computers. The Company will primarily sell its products through digital distribution channels and, secondarily by working through strategic partners, at brick-and-mortar stores. The Company's products will be a mix of licensed brand and internally generated, wholly owned intellectual properties.

Principles of Consolidation

The consolidated financial statements include the accounts of Soul and Vibe Interactive Inc. and its two wholly owned subsidiaries, Soul and Vibe Entertainment Inc. and Soul and Vibe Publishing Inc., collectively referred to as “the Company”. All significant inter-company balances and transactions are eliminated in consolidation.

Use of Estimates

Cash and Cash Equivalents

The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents.

Derivative Instruments

The Company accounts for derivative instruments in accordance with ASC Topic 815, Derivatives and Hedging, all derivative instruments are reflected as either assets or liabilities at fair value in the balance sheet. The Company uses estimates of fair value to value its derivative instruments. Fair value is defined as the price to sell an asset or transfer a liability in an orderly transaction between willing and able market participants. In general, the Company’s policy in estimating fair values is to first look at observable market prices for identical assets and liabilities in active markets, where available. When these are not available, other inputs are used to model fair value such as prices of similar instruments, yield curves, volatilities, prepayment speeds, default rates and credit spreads (including for the Company’s liabilities), relying first on observable data from active markets. Additional adjustments may be made for factors including liquidity, credit, bid/offer spreads, etc., depending on current market conditions. Transaction costs are not included in the determination of fair value. When possible, the Company seeks to validate the model’s output to market transactions. Depending on the availability of observable inputs and prices, different valuation models could produce materially different fair value estimates. The values presented may not represent future fair values and may not be realizable. The Company categorizes its fair value estimates in accordance with ASC 820 based on the hierarchical framework associated with the three levels of price transparency utilized in measuring financial instruments at fair value as discussed above. As of December 31, 2014 and 2013, the Company had a $1,038,121 and $1,575,807 of derivative liabilities, respectively.

Fair Value of Financial Instruments

ASC 820, Fair Value Measurements,(ASC 820) and ASC 825, Financial Instruments (ASC 825), requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. It establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. It prioritizes the inputs into three levels that may be used to measure fair value:

Level 1 - Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.

December 31, 2014:

	Level 1		Level 2		Level 3		Total
Assets	$	-	$	-	$	-	$	-
Liabilities
Derivative financial instruments	$	-	$	-	$	1,081,318	$	1,081,318

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December 31, 2013:

	Level 1		Level 2		Level 3		Total
Assets	$	-	$	-	$	-	$	-
Liabilities
Derivative financial instruments	$	-	$	-	$	1,575,807	$	1,575,807

Revenue Recognition

The Company will primarily digitally distribute its products through (an) online merchant(s) /portal service(s). The Company will recognize revenue at the “on demand” point of sale by the customer and recognizes a receivable. (For the purposes of digital distribution, customer is equivalent to end consumer.) The portal service(s) will track product sales on a daily / near-daily basis. Every two weeks, monthly, or quarterly (depending upon the digital merchant / portal service) payment is remitted to the Company. Ownership of product is transferred to the customer with a no refund, no return policy, as set by the online portal service(s). For retail distributed products (pick-ups and select licensed-brand games), the Company recognizes revenue through traditional retail "sell-in" and "sell-through." Receivables are logged based on "sell-through" reports from retailers and distributors. Based on the distributor, product sales are tracked on a monthly basis. On average, between thirty (30) to forty-five (45) days following the end of a month, the distributor remits payment to the Company. Ownership of product is transferred to the customer (end user) with a no refund, no return policy, as set by individual retailers.

Advertising and Promotion

Basic Loss Per Share

The basic net loss per common share is computed by dividing the net loss by the weighted average number of common shares outstanding.

Stock-Based Compensation

The Company adopted FASB guidance on stock based compensation upon inception at January 5, 2011. Under FASB ASC 718-10-30-2, all share-based payments to employees, including grants of employee stock options, to be recognized in the income statement based on their fair values. Pro forma disclosure is no longer an alternative.

Income Taxes

Recently Issued Accounting Pronouncements

The Company has implemented all recent accounting pronouncements as applicable. Other recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the AICPA, and the SEC did not or are not believed by management to have a material impact on the Company's present or future financial statements.

Development Costs

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Note 2 – Going Concern

The accompanying financial statements have been prepared in conformity with generally accepted accounting principles, which contemplate continuation of the Company as a going concern. This basis of accounting contemplates the recovery of the Company's assets and the satisfaction of its liabilities in the normal course of business. Through December 31, 2014, the Company had incurred cumulative losses of $4,447,023 since inception. Additionally, the Company has accumulated significant losses, has negative working capital, and a deficit in stockholders' equity. All of these items raise substantial doubt about its ability to continue as a going concern. In view of these matters, recoverability of a major portion of the recorded asset amounts shown in the accompanying balance sheet is dependent upon continued operations of the Company, which in turn is dependent upon the Company's ability to raise additional capital and generate revenues from its operations. The financial statements do not include classification of recorded asset amounts or amounts and classification of liabilities that might be necessary, should the Company be unable to continue as a going concern.

Management has taken the following steps to revise its operating and financial requirements, which it believes are sufficient to provide the Company with the ability to continue as a going concern. Management devoted considerable effort during the year ended December 31, 2014, towards (i) obtaining additional equity financing, (ii) evaluation of its distribution and marketing methods, and (iii) identifying and negotiating development/publishing and product acquisition opportunities for the Company. In addition, the Company began to generate its first revenues in the first quarter of 2014 and has continued to generate revenue in the remainder of the year.

Management requires $2.5M to $3.0M in financing in order to begin execution of its business plan and to continue operations. This capital, if raised, would be utilized over a twelve-month period. The financing will cover the acquisition of pick-ups (depending on the value of the financing, also the development of a proprietary intellectual property (IP) product) along with the release of the games as well as the marketing and public relations (PR) expenses associated with bringing them to market on a variety of hardware platforms that include: video game consoles, mobiles devices, and personal computers. The anticipated number of pick-ups is two. The financing would also cover general and administrative expenses, operational expenses and will allow the Company to secure an initial number of premium full-time employees. The Company is currently evaluating financing opportunities that are compatible with its growth plans and business model. Additional financing (beyond the identified $2.5M to $3.0M; cumulatively of $5.0M) would allow the Company to pursue development of multiple projects “from scratch” and publish them in a “staggered” release, as per its current three-year business plan.

During the year ended December 31, 2014 the Company completed the development of, and released into the market, two products: Timeless Gems and Striker Rush: Champion Edition. Timeless Gems was released on Facebook, through Apple’s App Store for iPhone, iPad, and iPod Touch mobile devices, and through Google Play for Android devices. Striker Rush: Champion Edition was released through Apple’s App Store for iPhone, iPad, and iPod Touch mobile devices, and through Google Play and Amazon.com for Android devices in concert with its development partner, 1DER Entertainment. In addition to the development and release of the Timeless Gems product, two packages of expansion content for Timeless Gems were developed and released during the year ended December 31, 2014. A third package of expansion content for Timeless Gems was developed during the year ended December 31, 2014 but this package has not yet been released. It is anticipated that this third expansion package will be released during the second quarter of 2015.

During the year ended December 31, 2014, the Company also continued the development of additional products that, as of December 31, 2014, have not been publically announced. It is anticipated that these products will be released into the market in the second quarter of 2015 on the following hardware platforms: Facebook, through Apple’s App Store for iPhone, iPad, and iPod Touch mobile devices, through Google Play and Amazon.com for Android devices, and on the Windows Mobile Platform with anticipated future support for Xbox Live, as a feature set, primarily to coincide with Microsoft’s launch of the Windows 10 OS platform.

During the year ended December 31, 2014, the Company licensed Timeless Gems and Striker Rush: Champion Edition to Tanjarine, a subsidiary of TouchTunes, the largest provider of in-venue music and entertainment throughout North America. Tanjarine is the first integrated tabletop ordering, entertainment and pay-at-the-table solution to combine 10" proprietary tabletop tablets with server handhelds, which expedite service, payment, and second screen televisions. The platform provides guests with menu and entertainment options, portability that eliminates the constraints of one-tablet-per-table installations, and other innovations that help increase restaurant efficiency and average check size. Customizable for bars and restaurants, Tanjarine’s catalog of entertainment offers games, music and content that targets everyone from families to sports fans to couples and more. Many of the games also enable guests to play with a friend or connect the tabletop tablets to second screen televisions located throughout a venue, creating a more interactive gaming experience. It is anticipated that the Company will receive licensing revenue from Tanjarine as Tanjarine purchases product installs of the Company’s products for play on their proprietary hardware.

Note 3 – Notes Payable and Convertible Notes Payable – Related Party

Notes Payable

The Company had a note payable to an officer. This note was established pursuant to an agreement dated July 14, 2011, as amended on December 31, 2012. The note was unsecured, was due on demand and bore interest at 3.5% per annum. As of December 31, 2014 and 2013, the note had a balance of $0 and $33,600, respectively. Accrued interest was $0 and $0 as of December 31, 2014 and December 31, 2013, respectively, as interest for this note payable was recorded as contributed capital. In addition, an amount of $2,500 was paid by the officer to a third party on behalf of the Company. This amount is reimbursable to the officer, and has been included in the note payable, related party balance as of December 31, 2014 and 2013. The amount is unsecured and bears no interest.

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Convertible Notes Payable

During July 2013, the Company received $9,000 in exchange for a Convertible Note with a maturity value of $10,000 and a warrant to purchase up to 33,334 shares of the Company’s common stock for a period of two years at a price of $0.60 per share. The convertible note is unsecured, due one year from the date of issue and accrues interest at a rate of approximately 10% per annum. During August 2014 an agreement was signed extending the due date of the convertible note to February 2015. Pursuant to this agreement, the holder was issued a warrant to purchase 40,000 additional shares of the Company’s common shares for a period of two years at a price of $0.06 per share.

The Company valued the initial warrant and beneficial conversion feature of the convertible note at $10,000, which was recorded as a discount to the convertible note. This discount was being amortized over the initial life of the convertible note, which expired in July 2014. The Company valued the additional warrant at $1,728, which was recorded as a discount to the convertible note. This discount is being amortized over the remaining life of the convertible note or until such time as the convertible note is repaid or converted, or upon exercise of the warrants. During the years ended December 31, 2014 and 2013, the Company amortized $6,724 and $4,603 of these debt discounts to interest expense, respectively.

Interest expense related to this convertible note payable totaled $1,458 for the year ended December 31, 2014.

Note 4 – Notes Payable and Convertible Notes Payable and Convertible Debentures

Convertible Notes Payable

During August 2013, the Company received a total of $110,500 in exchange for three convertible notes with a maturity values totaling $122,778 and warrants to purchase up to 245,556 shares of the Company’s common stock for a period of two years at a price of $0.75 per share. The convertible notes are unsecured, due one year from the date of issue and accrue interest at a rate of approximately 10% per annum. During August 2014 an agreement was signed extending the due date of the convertible notes to February 2015. Pursuant to this agreement, the holders were issued warrants to purchase 491,112 additional shares of the Company’s common shares for a period of two years at a price of $0.06 per share.

The Company valued the initial warrants and beneficial conversion features of the convertible notes at $122,778, which was recorded as a discount to the convertible notes. This discount was being amortized over the initial life of the convertible notes, which expired in August 2014. The Company valued the additional warrants at $21,214, which was recorded as a discount to the convertible note. This discount is being amortized over the remaining life of the convertible notes or until such time as the convertible notes are repaid or converted, or upon exercise of the warrants. During the year ended December 31, 2014 and 2013, the Company amortized $90,238 and $48,642 of these debt discounts to interest expense, respectively.

Interest expense related to these convertible notes payable totaled $17,155 for the year ended December 31, 2014.

Convertible Debentures

During October and November 2013, the Company received a total of $350,000 in exchange for two convertible debentures with maturity values totaling $368,422, due in July and August of 2014. The Debentures accrued interest at a rate of approximately 10% per annum, were convertible into shares of the Company’s common stock at the option of the holder at a conversion price per share equal to the lesser of the trading price on the date immediately preceding the conversion date, or an amount equal to 60% of the lowest trading price for the ten trading days immediately preceding the conversion date, subject to a floor of 40% of the trading price on the day prior to conversion. The Convertible Debentures were subject to adjustment for stock splits, reverse stock splits, stock dividends and other similar transactions and subject to the terms of the Debenture. The Company was allowed to redeem the Debentures, subjected to prior notice to the Investors, by paying an amount equal to 130% of the principal and interest payable under the Debentures. During May of 2014, the convertible debenture agreement was amended to reflect a conversion price equal to 35% of the lowest trading price for the ten trading days immediately preceding the conversion date with no floor. During the year ended December 31, 2014, the entire amount of principal and accrued interest related to the debentures was converted into common shares of the Company.

Due to there being no explicit limit to the number of shares to be delivered upon settlement of the above conversion options embedded in the Convertible Debentures, the conversion options were deemed and classified as derivative liabilities, recorded at fair value. The Company valued the convertible debentures at $368,422, which was recorded as a discount to the convertible debentures. This discount was being amortized over the life of the convertible debenture. During the years ended December 31, 2014 and 2013, the Company amortized $185,060 and $79,948 of this debt discount to interest expense, respectively.

During September 2014, the Company received a total of $200,000 in exchange for a convertible debenture with a maturity value of $210,667, due in June of 2015. The Debenture accrues interest at a rate of approximately 10% per annum, is convertible into shares of the Company’s common stock at the option of the holder at a conversion price per share equal to the lesser of the trading price on the date immediately preceding the conversion date, or an amount equal to 60% of the lowest trading price for the ten trading days immediately preceding the conversion date. The Convertible Debenture is subject to adjustment for stock splits, reverse stock splits, stock dividends and other similar transactions and subject to the terms of the Debenture. The Company may redeem the Debentures, subject to prior notice to the Investors, by paying an amount equal to 100% - 130% of the principal and interest payable under the Debentures, depending on when the prepayment option is exercised.

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Due to there being no explicit limit to the number of shares to be delivered upon settlement of the above conversion option embedded in the Convertible Debenture, the conversion option is deemed and classified as derivative liability, recorded at fair value. The Company valued the conversion option at $200,000, which was recorded as a discount to the convertible debenture. This discount is being amortized over the life of the convertible debenture or until such time as the convertible debenture is repaid or converted. During the year ended December 31, 2014, the Company amortized $80,254 of the debt discount to interest expense.

Note 5 – Derivative Liabilities

The Company analyzed the conversion options embedded in the Convertible Debentures for derivative accounting consideration under ASC 815 and determined that the instruments embedded in the above referenced Convertible Debentures should be classified as liabilities and recorded at fair value. Additionally, the above referenced Convertible Debentures contain dilutive issuance clauses. Under these clauses, based on future issuances of The Company’s common stock or other convertible instruments, the conversion price of the above referenced Convertible Debentures can be adjusted downward. The fair values of the conversion option instruments were determined using a Black-Scholes option-pricing model. Upon the issuance dates of the above referenced Convertible Debentures, $568,422 was recorded as debt discount and $158,042 was recorded as day one loss on derivative liability. At December 31, 2014 and 2013, the conversion options were valued at $1,081,318 and $1,575,807.

The Company valued the Convertible Debenture conversion option derivatives using the Black-Scholes option-pricing model using the following assumptions: (1) risk-free interest rates of 0.12%, (2) lives of between 0.55 and 0.46 years, (3) expected volatility of between 230% to 285%, (4) zero expected dividends, (5) conversion prices as set forth in the Convertible Debentures, and (6) the common stock price of the underlying shares on the valuation dates.

The following table summarizes the derivative liabilities included in the balance sheet at December 31, 2014:

Conversion option derivative liabilities December 31, 2013	$	1,575,807
Addition of new conversion option derivatives		200,000
Reclassification of conversion option derivative to gain on extinguishment of debt		(663,619	)
Change in fair value		(30,870	)
Balance at December 31, 2014	$	1,081,318

Note 6 – Share Exchange Agreement

On February 5, 2013, the Company entered into a Share Exchange Agreement with Soul and Vibe Entertainment, LLC and the sole shareholder of Soul , all related parties. Pursuant to the Agreement, Soul became a wholly owned subsidiary of the Company. As consideration for the Exchange, the Shareholder exchanged an aggregate of 6,000,000 shares of common stock of Soul, constituting all shares of capital stock of Soul issued and outstanding for an aggregate of 12,333,334 shares of the Company’s common stock. The Agreement contains customary terms and conditions for a transaction of this type, including representations, warranties and covenants, as well as provisions describing the consideration exchanged, the process of exchanging the consideration and the effect of the Exchange.

The Exchange was deemed to be an acquisition of a related party entity in accordance with Accounting Standards Codification (“ASC”) 850, Business Combinations. As such, the Company did not recognize any step-up fair value basis in the assets or liabilities of Soul from the Exchange, which were recorded in the consolidated financial statements at their historical carrying amounts.

Note 7 – Exchange Agreement

On March 26, 2013, the Company entered into an Exchange Agreement with Pauline Carson and BK Consulting. Pursuant to the Agreement, the Company exchanged all inventories from discontinued operations totaling $23,604 to Carson and BK in exchange for assuming the liability of notes payable plus accrued interest totaling $49,425 and accounts payable totaling $13,692 from the Company and forgiving the Company of any liability for the notes and accounts payable. As a result of the Exchange Agreement, the Company recognized additional paid in capital of $38,913 during the nine months ended December 31, 2013.

Note 9 – Common Stock and Common Stock Warrants

Common Stock

On August 1, 2013, the holder of a majority of the shares of common stock of the Company approved a reverse split of such shares by a ratio of 1 for 3. The Company filed the certificate of amendment to its articles of incorporation with the State of Nevada effectuating the Reverse Split on August 7, 2013, which Reverse Split was approved by the Financial Industry Regulatory Authority, Inc. on August 9, 2013 and became effective in the State of Nevada on August 12, 2013.

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During January 2014, the Company sold an aggregate of 500,000 shares of its Common Stock to an accredited investor for an aggregate purchase price of $50,000. In addition and pursuant to the stock purchase agreement, an additional 300,000 shares were issued to the investor in July 2014. The Company also sold an aggregate of 650,000 shares of its common shares to another accredited investor for an aggregate purchase price of $130,000. Under this share purchase agreement, the investor was also issued warrants to purchase up to 700,000 shares of its common shares. Both of these stock sales were pursuant to Rule 506 of Regulation D under the Securities Act.

During January 2014, the Company also completed the initial closing of a private placement financing transaction with an accredited investor, pursuant to a Securities Purchase Agreement. Pursuant to the Purchase Agreement, the Investor purchased 300,000 shares of the Company’s Common Stock for a per share purchase price of $0.29 per share. Each per share purchase price will be based on the average trading price of such shares for the 5 trading days prior to the closing (provided that certain conditions are met), and accordingly the Company received aggregate gross proceeds of $87,000, excluding transaction costs, fees and expenses. On February 27, 2014, the investor purchased an additional 300,000 shares for a per share purchase price of $0.2625 with the Company receiving aggregate gross proceeds of $78,750, excluding transaction costs, fees and expenses. During March, 2014, the investor purchased an additional 189,910 shares for a per share purchase price of $0.235 with the Company receiving aggregate gross proceeds of $44,629, excluding transaction costs, fees and expenses. The Investor originally agreed to purchase up to an additional 3,300,000 shares on a monthly basis, subject to the fulfillment of certain conditions as more fully described in the Purchase Agreement, between the date of the Purchase Agreement and the one-year anniversary thereof. As a result, the investor is entitled to purchase up to an additional 2,510,090 shares of common stock during the term of the Purchase Agreement.

During the year ended December 31, 2013, the Company sold 333,334 shares of its common stock and a warrant to purchase 333,334 common shares to an investor pursuant to a Stock Purchase Agreement (SPA) for $100,000. The warrant was redeemable six-months after the date of the grant, was exercisable at a price of $0.15 per share and expire five-years from the date of grant.

During the year ended December 31, 2014, pursuant to terms of their individual consulting agreements, the Company’s advisory board members were issued a total of 1,622,850 shares of common stock for their services. The total market value of the shares issued for advisory services was $75,379, equivalent to approximately $1,000 for each month of service per member. During the year ended December 31, 2013, the Company’s advisory board members were issued a total of 174,393 shares of common stock for services, 66,667 of those common shares were upon execution of the advisory board agreement and thereafter a value equal to $1,000 for each month of engagement.

The Company issued 10,104,118 common shares to individuals for consulting services rendered and software development costs incurred for the year ended December 31, 2014. The total market value of the shares issued for consulting services was $887,191, $315,326 of which was recorded as prepaid expenses and $513,200 of which is included in professional fees on the statement of operations for the year ended December 31, 2014. The total market value of the shares issued for software development costs was $58,665, which is included in development costs on the balance sheet. The Company issued 564,116 common shares to individuals for consulting services rendered for the year ended December 31, 2013.

During the year ended December 31, 2013, the Company entered into the Return to Treasury Agreement with its sole director and chief executive officer as well as the majority shareholder of its shares of common stock pursuant to which the Company issued 130,000 shares of its newly created Series B Preferred Stock, par value $.001 per share, in exchange for the surrender of 21,486,431 shares of the Company’s common stock.

Common Stock Warrants

During the year ended December 31, 2014, the Company issued a warrant to purchase 700,000 shares of common shares, as noted above. The warrant is exercisable after the date of the grant, and is exercisable at a price of $0.25 per share and expire five-years from the date of grant.

During the year ended December 31, 2013, the Company sold 333,334 shares of its common stock pursuant to a Stock Purchase Agreement and issued a warrant to purchase 333,334 shares of common shares, as noted above. The warrant was redeemable six-months after the date of the grant, and was initially exercisable at a price of $0.15 per share and expired five-years from the date of grant. During the year ended December 31, 2014, the warrant agreement was amended. The amendment changed the exercise price of the warrant to $0.10 per share post adjustment pursuant to the reverse stock split which occurred during August 2013. Except as modified by this amendment, all of the terms and conditions of the warrant remained in full force and effect. The warrant holder then exercised the warrant, on a cashless basis, and received in consideration therefor an aggregate of 277,777 shares of common stock.

During the year ended December 31, 2014 the Company issued a warrant to purchase 250,000 shares of common shares. The warrant is exercisable after the date of the grant, and is exercisable at a price of $0.10 per share and expire five-years from the date of grant.

During the year ended December 31, 2014 the Company issued warrants to purchase 531,112 shares of common shares, as described in Notes 3 and 4. The warrants are exercisable after the date of the grant, are exercisable at a price of $0.06 per share, and expire two years from the date of grant.

During July 2013, in conjunction with the issuance of a Convertible Note, the Company issued a warrant to purchase up to 33,334 shares of the Company’s common stock for a period of two years at a price of $0.60 per share.

During August 2013, in conjunction with the issuance of three Convertible Notes, the Company issued warrant to purchase up to 245,556 shares of the Company’s common stock for a period of two years at a price of $0.60 per share.

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The Company valued its warrants using the Black-Scholes option-pricing model. Assumptions used during the year ended December 31, 2014 include (1) risk-free interest rates between 0.51% and 1.72%, (2) lives between 2 and 5 years, (3) expected volatility of between 160% and 246%, (4) zero expected dividends, (5) conversion prices as set forth in the related instruments, and (6) the common stock price of the underlying share on the valuation dates.

The Company valued its warrants using the Black-Scholes option-pricing model. Assumptions used during the year ended December 31, 2013 include (1) risk-free interest rates between 0.13% and 0.32%, (2) lives of 2 years, (3) expected volatility of between 375% and 417%, (4) zero expected dividends, (5) conversion prices as set forth in the related instruments, and (6) the common stock price of the underlying share on the valuation dates.

The following table summarizes the outstanding warrants and associated activity for the year ended December 31, 2014:

	Number of Warrants Outstanding			Weighted Average Price		Weighted Average Remaining Contractual Life
Balance, December 31, 2013		612,224			0.58		3.12
Granted		1,481,112			0.16		3.15
Exercised		(333,334	)		0.10		4.39
Expired		-			-		-
Balance, December 31, 2014		1,760,002		$	0.25		2.75

Note 10 – Preferred Stock

On July 28, 2013, the Board authorized the designation of a new series of preferred stock out of its available Preferred Stock once such Preferred Stock had been created pursuant to the Amendment of Series B Preferred Stock. On July 30, 2013, the Company filed the Certificate of Designation of the Series B Preferred Stock with the Secretary of State of the State of Nevada. Each such share of Series B Preferred Stock entitles its holder to vote the equivalent of 1,000 shares of common stock at the record date for the determination of shareholders entitled to vote on any matter coming before the common shareholders or, if no such record date is established, at the date such vote is taken or any written consent of shareholders is solicited. The Series B Preferred Stock has no stated value, is not convertible into other securities of the Company and has no liquidation preference.

Note 11 –Tax Note

Net deferred tax liabilities consist of the following components as of December 31, 2014 and 2013:

	2014			2013
Deferred tax assets:
NOL Carryover	$	505,000		$	81,100
R&D Credit Carry-forward		-			-
Allowance for Doubtful Accounts		-			-
Related Party Accruals		600			1,200
Deferred tax liabilities
Depreciation		(1,700	)		(400	)
Valuation allowance		(503,900	)		(80,700	)
Net deferred tax asset	$	-		$	-

	2014			2013
Book Income	$	(827,400	)	$	(340,600	)
Depreciation		(1,200	)		(400	)
Meals & Entertainment		900			200
Related Party Accruals		600			(500	)
Stock and Warrants for Services		352,500			58,900
Loss (Gain) on Derivative		(12,000	)		183,900
Loss on Extinguishment of Debt		29,800			-
Amortization of Debt Discount		141,300			19,800
Contributed Services		36,400			13,000
Valuation allowance		279,100			65,700
	$	-		$	-

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At December 31, 2014, the Company had net operating loss carryforwards of approximately $1,295,600 that may be offset against future taxable income from the year 2015 to 2034. No tax benefit has been reported in the December 31, 2014 financial statements since the potential tax benefit is offset by a valuation allowance of the same amount.

Note 12 – Subsequent Events

Management has evaluated subsequent events according to the requirements of ASC Topic 855 to include the following.

During January 2015, the Company entered into an employment agreement with is chief executive officer. This agreement provides terms including initial base compensation, stock compensation, incentive pay provisions, termination and non-compete clauses as well as other customary terms and provisions. Pursuant to the terms of the agreement, the executive will be entitled to receive 4,000,000 shares of the Company’s common stock, of which 960,000 such shares were issued in January 2015 with the remaining 3,040,000 shares to be issued at the rate of 160,000 shares per quarter on the first day of each quarter beginning April 1, 2015 and continuing up to and including December 31, 2019. Also related to the execution of this agreement, the Company issued a warrant to purchase 4,000,000 commons shares of the Company’s common stock. The warrant is exercisable immediately upon the effective date of the agreement at a price of $0.03 per share, expires five years from the date of grant and is callable by the Company six months from the effective date. Additionally, pursuant to the terms of the employment agreement, the chief executive officer has the option to receive his compensation in cash or in the form of the Company’s common stock. The total issuable shares are determined using 70% of the volume-weighted average share price of the five days immediately preceding the end of the month in which the services were earned. This employment agreement is effective for five years and contains an automatic renewal provision for a period of one year.

During February 2015, the Company received $50,000 from an accredited investor in exchange for a convertible note with a principal balance of $55,556. The proceeds and principal are an installment of a larger convertible note with an aggregate principal amount of $400,000. The note carries an original issue discount of 10%. The note provisions contain a 90-day interest free period and a one-time interest charge of 12% upon expiration of the interest free period and applied to each principal installment. The note is due two years from the date of each installment and is convertible using a conversion price of the lessor of $0.03 or 60% of the lowest trade price in the 25 trading days immediately preceding the conversion date.

During March 2015, the Company entered into a common stock purchase agreement with an accredited investor, pursuant to which the investor issued a promissory note with the principal amount of $52,500. Interest on the note accrues at the rate of 8% per annum. The note is convertible into the Company’s common stock at a conversion price per share equal to 60% of the lowest trade price in the 15 trading days immediately preceding the conversion date.

During March 2015, the Company received $53,500 from an accredited investor in exchange for a convertible note with a principal balance of $58,850. The proceeds and principal are an installment of a larger convertible note with an aggregate principal amount of $294,250. The note carries an original issue discount of approximately 10%. The note is subject to a one-time interest charge of 10% of the original principal installment. The note is due two years from the date of each installment and is convertible using a conversion price of the average of 60% of the three lowest closing share prices occurring during the 25 trading days immediately preceding the conversion date.

During March 2015, the Company issued an exchange note to an accredited investor in substitution for a previously outstanding convertible note payable by the Company to an unrelated third party, pursuant to an exchange agreement. The exchange note was issued with a maturity value of $110,293, is due in March 2016, accrues interest at a rate of 10% per annum and is convertible into shares of the Company at a rate equal to 65% of the average of the three lowest trading prices during the 25 consecutive trading days immediately preceding the conversion date. The note also stipulates a conversion limitation, whereby the holder may not convert more than 33.33% of the principal balance within a 15-day period during the 90 days following the date of issuance

Subsequent to December 31, 2014, the company issued 3,741,481 shares of common stock to its advisory board, consultants and others for services rendered valued between $0.0207 and $0.0349 per share.

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Filing Compare · Soul & Vibe Interactive Inc.