UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~August~~February 3129, ~~2015~~2016

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _________ to _________

Commission File Number: 333-180424

VALMIE RESOURCES, INC.

(Exact name of registrant as specified in its charter)

Nevada		45-3124748
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

1001 S Dairy Ashford Road, Suite 100 Houston, TX		77077
(Address of principal executive offices)		(Zip Code)

(713) 595-6675

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing 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 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]

APPLICABLE ONLY TO CORPORATE ISSUERS

As of ~~October~~April 1514, ~~2015~~2016 the registrant had 64,092,035 shares of common stock outstanding.

TABLE OF CONTENTS

		Page
PART I – FINANCIAL INFORMATION
Item 1.	Consolidated Financial Statements (Unaudited)	3
Item 2.	Management’s Discussion & Analysis of Financial Condition and Results of Operations	4
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	8
Item 4.	Controls and Procedures	8
PART II – OTHER INFORMATION
		9
Item 1.	Legal Proceedings	9
Item 1A.	Risk Factors	9
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	9
Item 3.	Defaults Upon Senior Securities	9
Item 4.	Mine Safety Disclosures	9
Item 5.	Other Information	9
Item 6.	Exhibits	9

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

VALMIE RESOURCES, INC.

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

~~August~~February 3129, ~~2015~~2016

(Stated in US Dollars)

(Unaudited)

	Page

Consolidated Balance Sheets	F-1

Consolidated Statements of Operations	F-2

Consolidated Statements of Cash Flows	F-3

Notes to the Unaudited Interim Consolidated Financial Statements	F-4 – F-10

	Page
Consolidated Balance Sheets	F-1
Consolidated Statements of Operations	F-2
Consolidated Statements of Cash Flows	F-3
Notes to the Unaudited Interim Consolidated Financial Statements	F-4 – F-11

Valmie Resources, Inc.

Consolidated Balance Sheets

(Stated in US Dollars)

	August 31, 2015			November 30, 2014
	(unaudited)
ASSETS
Current Assets
Cash and cash equivalents (Note 4)	$	2,702		$	12,565
Prepaid expenses		350			-
Total Current Assets		3,052			12,565
Prototype development (at cost)		32,443			-
Intangible asset (Note 9)		100,000			-
Goodwill (Note 3)		2,777,145			-
Total Assets	$	2,912,640		$	12,565
LIABILITIES
Current Liabilities
Accounts payable and accrued liabilities (Note 6)	$	199,592		$	83,250
Due to related parties (Note 7)		-			44,809
Total Current Liabilities		199,592			128,059
Promissory Notes (Note 8)		37,593			67,805
Total Liabilities		237,185			195,864
STOCKHOLDERS’ EQUITY (DEFICIENCY)
Capital stock (Note 5)
Authorized:
10,000,000 preferred shares, $0.001 per share (Nil – November 30, 2014)
750,000,000 common shares, $0.001 par value (750,000,000 – November 30, 2014)
Issued and outstanding:
2,000,000 preferred shares (Nil – November 30, 2014)		2,000			-
64,092,035 common shares (296,400,000 – November 30, 2014)		64,092			296,400
Additional paid-in capital		13,743,781			(155,657	)
Retained deficit		(11,134,418	)		(324,042	)
Total Stockholders’ Equity (Deficiency)		2,675,455			(183,299	)
Total Liabilities and Stockholders’ Equity (Deficiency)	$	2,912,640		$	12,565

(Unaudited)

	February 29, 2016			November 30, 2015
	(unaudited)
ASSETS

Current Assets
Cash and cash equivalents (Note 4)	$	24,858		$	22,876
Prepaid expenses		350			350
Total Current Assets		25,208			23,226
Prototype development (at cost)		32,806			32,732
Total Assets	$	58,014		$	55,958

LIABILITIES

Current Liabilities
Accounts payable and accrued liabilities	$	73,505		$	61,195
Promissory note (Note 8)		18,458			17,897
Total Current Liabilities		91,963			79,092
Promissory Notes (Note 8)		176,942			104,737
Total Liabilities		268,905			183,829

STOCKHOLDERS’ DEFICIENCY

Capital stock (Note 5)
Authorized:
10,000,000 preferred shares, $0.001 per share
750,000,000 common shares, $0.001 par value
Issued and outstanding:
2,000,000 preferred shares		2,000			2,000
64,092,035 common shares		64,092			64,092

Additional paid-in capital		13,743,781			13,743,781
Retained deficit		(14,020,764	)		(13,937,744	)

Total Stockholders’ Deficiency		(210,891	)		(127,871	)

Total Liabilities and Stockholders’ Equity	$	58,014		$	55,958

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

F-1

Valmie Resources, Inc.

Consolidated Statements of Operations

(Stated in US Dollars)

(Unaudited)

	Three Months Ended August 31, 2015			Three Months Ended August 31, 2014			Nine Months Ended August 31, 2015			Nine Months Ended August 31, 2014
	Three Months Ended February 29, 2016			Three Months Ended February 28, 2015
Revenue:	$	-		$	-		$	-		$	-
Revenue	$	-		$	-
Operating Expenses:
Operating Expenses
General and administrative		(311,~~826~~160	)		~~149~~7,003			~~20,476~~			~~1,433~~
Management fees		15,000			-			37,000			-
Management fee (Note 7)		15,000			11,000
Professional fees		~~177~~50,~~280~~349			7110,~~321~~060			~~345,740~~			~~39,595~~
Transfer agent fees		1,~~775~~100			~~400~~446			~~3,928~~			~~1,275~~
Loss from Operations		~~(190~~77,~~229~~609	)		(7128,~~870~~509	)		~~(407,144~~	)		~~(42,303~~	)
Other income (expenses)
Other expenses
Interest		-5,411			-6,811			~~1,190~~			-
Loss on settlement of debt		-			-			(10,404,422	)		-
		5,411			6,811
		-			-			(10,403,232	)		-
Net Loss	$	83,020		$	135,320
Net Loss for the Period	$	(190,229	)	$	(7,870	)	$	(10,810,376	)	$	(42,303	)
Basic and Diluted Loss per Common Share	$	(0.00	)	$	(0.00	)
Basic and Diluted Loss per Common Share		63,987,965			296,400,000			150,774,391			296,400,000
Weighted Average Number of Common Shares Outstanding		64,092,035			182,992,667
Weighted Average Number of Common Shares Outstanding	$	(0.00	)	$	(0.00	)	$	(0.07	)	$	(0.00	)

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

F-2

Valmie Resources, Inc.

Consolidated Statements of Cash Flows

August 31, 2015

(Stated in US Dollars)

(Unaudited)

	Nine Months Ended August 31, 2015			Nine Months Ended August 31, 2014
	Three Months Ended February 29, 2016			Three Months Ended February 28, 2015
Cash Flows from Operating Activities
Net loss for the period	$	(10,810,376	)	$	(42,303	)
Net loss	$	(83,020	)	$	(135,320	)
Adjustments to reconcile net loss to net cash used in operating activities:
Loss on settlement of debt by issuing common stock		10,404,422			-
Changes in operating assets and liabilities:
Accounts payable and accrued liabilities		~~116~~12,~~342~~310			22(52,~~688~~929	)
Prepaid expenses		~~(350~~-	)		~~5,000~~(350	)
Interest accrual		~~(313~~5,266	)		-6,811
Net cash used in operations		(~~290~~65,~~275~~444	)		(14181,~~615~~788	)
Cash Flows from Investing Activities
Advances to Vertitek Inc.		(25,500	)		-
Advances to Vertitek Inc. (Note 3)		-			(25,500	)
Cash acquired on the acquisition of Vertitek Inc.		6,132			-
Increase in prototype development		(74	)		-
Increase in prototype development		(20,220	)		-
Net cash used in investing activities		(74	)		(25,500	)
Net cash used in investing activities		(39,588	)		-
Cash Flows from Financing Activities
Proceeds from related party payable		-			29,073
Proceeds from promissory notes		67,500			200,000
Proceeds from promissory notes		320,000			-
Net cash provided by financing activities		67,500			102,323
Net cash provided by financing activities		320,000			29,073
Change in cash and cash equivalents		1,982			(7,288	)
Change in cash and cash equivalents		(9,863	)		14,458
Cash and cash equivalents - beginning of period		22,876			12,565
Cash and cash equivalents - beginning of period		12,565			-
Cash and cash equivalents - end of period	$	24,858			5,277
Cash and cash equivalents - end of period	$	2,702		$	14,458
Supplementary Disclosure of Non-Cash Investing & Financing Activity
Supplementary Cash Flow Information
Cash paid for:
Interest	$	-		$	-
Income taxes	$	-		$	-
Supplementary Disclosure of Non-Cash Investing & Financing Activity
Issuance of common stock for subsidiary	$	2,770,000		$	-
Issuance of common stock to settle debt	$	383,927		$	-
Issuance of common stock for intangible asset	$	100,000		$	-

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

F-3

Valmie Resources, Inc.

Notes to Consolidated Financial Statements

August 31, 2015

(Stated in US Dollars)

(Unaudited)

1. Organization

Valmie Resources, Inc. (the “Company”) was incorporated on August 26, 2011, in the State of Nevada, ~~USA~~U.S.A. The accounting ~~and~~ and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (“US GAAP”), and the Company’s fiscal year end is November 30.

In early December 2014, the Company changed its business focus from mining to pursuing opportunities for the commercialization of leading edge products and services in the rapidly expanding technology industry.

On March, 31, 2015, the Company acquired 100% interest in Vertitek Inc., a Wyoming corporation (“Vertitek”).

Vertitek was established to provide unmanned vehicle software, hardware and cloud services for a wide range of commercial applications around the globe. Vertitek is in the process of developing the V-1 Drone^SM, a cutting edge multi-rotor UAV designed specifically to meet the requirements of a growing commercial user base.

2. Basis of Presentation

Unaudited Interim Financial Statements

The accompanying unaudited interim financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and the rules and regulations of the Securities and Exchange Commission (the “SEC”). They do not include all information and footnotes required by US GAAP for complete financial statements. However, except as disclosed herein, there have been no material changes in the information disclosed in the notes to the financial statements for the year ended November 30, ~~2014~~2015, included in the Company’s Form 10-K filed with the SEC. The unaudited interim ~~financial~~consolidated ~~statements~~financial statements should be read in conjunction with those financial statements included in the Form 10-KQ. In the opinion of ~~management~~Management, all adjustments considered necessary for a fair presentation, consisting solely of normal recurring adjustments, have been made. Operating results for the ~~nine~~three months ended ~~August~~February 3129, ~~2015~~2016, are not necessarily indicative of the results that may be expected for the year ending November 30, ~~2015~~2016.

3. Acquisition of Vertitek Inc.

On March 31, 2015, the Company issued 1,000,000 shares of common stock in exchange for 100% of the issued and outstanding shares of Vertitek. Vertitek was previously named Landstar Leasing, Inc. (“Landstar”) and was incorporated pursuant to the Wyoming Business Corporation Act on February 19, 2014. On November 19, 2014, Landstar changed its name to Vertitek Inc. As a result of the acquisition, Vertitek became a wholly owned subsidiary of the Company.

In December 2014, the Company changed its business focus from mining to opportunities in the technology industry. The acquisition of Vertitek enables the Company to pursue its new business focus as Vertitek has focused on the development of unmanned vehicle software, hardware and cloud services for a wide range of commercial applications around the globe. Vertitek is in the process of developing the V-1 DroneSM, a cutting edge multi-rotor unmanned aerial vehicle (“UAV”) designed specifically to meet the requirements of a growing commercial user base.

F-4

Valmie Resources, Inc.

Notes to Consolidated Financial Statements

August 31, 2015

(Stated in US Dollars)

(Unaudited)

3. Acquisition of Vertitek Inc. ~~(continued)~~

~~The~~On ~~acquisition~~March ~~was~~31, ~~accounted~~2015, the Company issued 1,000,000 shares of common stock in exchange for as100% aof ~~business~~the ~~combination~~issued ~~under~~and outstanding shares of Vertitek. Vertitek was previously named Landstar Leasing, Inc. (“Landstar”) and was incorporated pursuant to the Wyoming ~~acquisition~~Business ~~method~~Corporation Act on February 19, 2014. On November 19, 2014, Landstar changed its name to Vertitek Inc. As a result of ~~accounting~~the inacquisition, ~~accordance~~Vertitek ~~with~~became USa ~~GAAP~~wholly owned subsidiary of the Company.

~~Fair~~In ~~Value~~December 2014, the Company changed its business focus from mining to opportunities in the technology industry. The acquisition of ~~Consideration~~Vertitek ~~Transferred~~enables the Company to pursue its new business focus as Vertitek has focused on the development of unmanned vehicle software, hardware and ~~Recording~~cloud services for a wide range of ~~Assets~~commercial ~~Acquired~~applications around the globe. Vertitek is in the process of developing the V-1 DroneSM, ~~Liabilities~~a ~~Assumed~~cutting ~~and~~edge ~~Non~~multi-~~controlling~~rotor ~~Interests~~unmanned aerial vehicle (“UAV”) designed specifically to meet the requirements of a growing commercial user base.

The ~~following~~acquisition ~~table~~was ~~summarizes~~accounted ~~the~~for as an asset acquisition ~~date~~in ~~fair~~accordance ~~value~~with ofUS GAAP as Vertitek did not meet the ~~consideration~~definition ~~transferred,~~of ~~identifiable~~a business. ~~assets~~Vertitek ~~acquired~~did not consist of sufficient processes (systems, ~~liabilities~~standards, protocols, conventions or rules) that would be ~~assumed~~able to be applied to those inputs and ~~non-controlling~~have ~~interests~~the ~~including~~ability anto ~~amount~~create ~~for~~outputs ~~goodwill:~~as required by Accounting Standards Codification 805.

~~Consideration:~~In exchange for common stock of $2,770,000, the Company acquired $18,355 of financial assets, $2,777,145 of intangible assets related to intellectual property and $25,500 of financial liabilities. The total value of the intangible assets related to intellectual property ($2,777,145) was impaired and written-off as of November 30, 2015.

Common stock issued	$	2,770,000
Fair value of total consideration transferred	$	2,770,000
Recognized amount of identifiable assets acquired and liabilities assumed:
Financial assets	$	18,355
Financial liabilities		(25,500	)
Total identifiable net assets (liabilities)		(7,145	)
Goodwill		2,777,145
	$	2,770,000

4. Cash and Cash Eequivalents

Goodwill represents the future economic benefit arising from other assets acquired that could not be individually identified and separately recognized. The goodwill arising from the acquisition is attributable to the general reputation of Vertitek’s founding owner and expected synergies. The goodwill is not expected to be deductible for tax purposes.

	February 29, 2016		November 30, 2015

Cash on deposit	$	24,858	$	22,876
	$	24,858	$	22,876

Pro Forma Information

The following unaudited supplemental pro forma information assumes the acquisition referred to above had been completed as of December 1, 2013 and is not indicative of the results of operations that would have been achieved had the transactions been consummated on such date or of results that might be achieved in the future.

	Nine months ended August 31, 2015			Nine months ended August 31, 2014
Revenue	$	-		$	-
Loss from operations	$	(407,144	)	$	(53,212	)
Net loss	$	(10,810,376	)	$	(53,212	)

F-5

Valmie Resources, Inc.

Notes to Consolidated Financial Statements

August 31, 2015

(Stated in US Dollars)

(Unaudited)

4. Cash and Cash Equivalents

	August 31, 2015		November 30, 2014
Cash on deposit	$	2,702	$	3,027
Funds held in trust		-		9,538
	$	2,702	$	12,565

5. Capital Stock

Authorized Stock

At inception, the Company authorized 100,000,000 shares of common stock with a par value of $0.001 per share. Each share entitles the holder to one vote, in person or proxy, on any matter on which action of the stockholders of the corporation is sought.

On December 3, 2013, the holders of a majority of the Company’s issued and outstanding common stock approved an increase in its authorized capital from 100,000,000 shares of common stock, par value $0.001, to 750,000,000 shares of common stock, par value $0.001 (the “Authorized Capital Increase”). The Company formally effected the Authorized Capital Increase on December 4, 2013 by filing a Certificate of Amendment with the Nevada Secretary of State.

On December 3, 2013, the Company’s sole director approved a stock dividend of 59 authorized but unissued shares of its common stock on each one (1) issued and outstanding share of its common stock held by shareholders of record as of December 16, 2013. The payment date for the stock dividend was December 17, 2013, as determined by the Financial Industry Regulatory Authority (FINRA). Upon the payment of the stock dividend, the Company had 296,400,000 issued and outstanding shares of common stock, which represents an increase of 291,460,000 shares over its prior total of 4,940,000 issued and outstanding shares of common stock. The split is reflected retrospectively in the ~~accompanying~~consolidated financial statements.

On December 10, 2014, the holders of a majority of the Company’s issued and outstanding common stock approved a set of amended and restated articles of incorporation that, among other things, increased the Company’s authorized capital to 760,000,000 shares, consisting of 750,000,000 shares of common stock, par value $0.001, and 10,000,000 shares of “blank check” preferred stock, par value $0.001.F-5

On December 11, 2014, the Company’ sole director approved the designation of 2,000,000 shares of the Company’s authorized but unissued “blank check” preferred stock, par value $0.001, as Series “A” preferred stock. The shares of Series “A” preferred stock carry certain rights and preferences, may be converted into shares of the Company’s common stock on a 10 for one (1) basis at any time after 18 months from the date of issuance, and each share of Series “A” preferred stock has voting rights and carries a voting weight equal to 50 shares of common stock.

The preferred stock ranks senior to (a) any other series of preferred stock of the Company currently existing or hereafter created (b) the common stock of the Company, now existing or hereafter issued and (c) any other class of securities of the Company, in each case with respect to dividend distributions and distributions of assets upon the liquidation, dissolution or winding up of the Company whether voluntary or involuntary.

The Company formally effected the designation by filing a Certificate of Designation with the Nevada Secretary of State on January 15, 2015.

F-6

Valmie Resources, Inc.

Notes to Consolidated Financial Statements

August 31, 2015

(Stated in US Dollars)

(Unaudited)

5. Capital Stock (continued)

On December 11, 2014, the Company’s sole director approved the designation of 2,000,000 shares of the Company’s authorized but unissued “blank check” preferred stock, par value $0.001, as Series “A” preferred stock. The shares of Series “A” preferred stock carry certain rights and preferences and may be converted into shares of the Company’s common stock on a 10 for one (1) basis at any time after 18 months from the date of issuance, and that each share of Series “A” preferred stock has voting rights and carries a voting weight equal to 50 shares of common stock.

The Company formally effected the designation by filing a Certificate of Designation with the Nevada Secretary of State on January 15, 2015.

Share Issuances

On January 16, 2015, the owner of an aggregate of 237,360,000 shares of the Company’s common stock agreed to cancel those shares in exchange for the issuance of the 2,000,000 shares of Series “A” preferred stock. As a result, the number of issued and outstanding shares of the Company’s common stock decreased from 296,400,000 to 59,040,000.

On April 6, 2015, the Company issued 3,500,000 shares of common stock at a deemed price of $0.10 per share in settlement of promissory notes totaling $350,000, including $300,000 in proceeds received during the ~~current~~ fiscal year. The stock was valued at the $2.81 ~~trading~~ trading price per share, resulting in a loss on the settlement of debt in the amount of $9,485,000.

On April 6, 2015, the Company issued 339,270 shares of common stock at a deemed price of $0.10 per share in settlement of related party loans totaling $33,927. The stock was valued at the $2.81 trading price per share, resulting in a loss on the settlement of debt in the amount of $919,422.

On April 6, 2015, the Company issued 1,000,000 shares of common stock at a price of $2.77 per share for the acquisition of Vertitek. The stock was valued at $2.77 per share on the effective date of the acquisition of Vertitek, March 31, 2015.

On July 21, 2015, the Company issued 212,765 shares of common stock at a deemed price of $0.47 per share for the purchase of all of the rights, title and interest in and to certain intellectual property from the Company’s President.

As of ~~August~~February 3129, ~~2015~~2016, the Company had 64,092,035 issued and outstanding shares of common stock and 2,000,000 issued and outstanding shares of Series “A” preferred stock.

AsAt ofFebruary ~~August 31~~29, ~~2015~~2016, the Company had no issued or outstanding stock options or warrants.

F-6

Valmie Resources, Inc.

Notes to Consolidated Financial Statements

(Stated in US Dollars)

(Unaudited)

6. Mineral Property Costs

Lander County, Nevada Claims

On September 30, 2011, the Company entered into an option agreement that would provide for the purchase of a 100% interest in the Carico Lake Valley Property (the “Property”). The Property is located in the State of Nevada.

To complete the option, the agreement requires the Company to make the following payments and incur the following amounts on exploration and development:

a) $15,000 cash on September 30, 2011 (paid); b) an additional $30,000 cash on September 30, 2013 (not paid); c) an additional $60,000 cash on September 30, 2013 (not paid); d) an additional $120,000 cash on September 30, 2014 (not paid) and e) incur a minimum of $125,000 ($12,654 ~~has~~was ~~been~~ incurred as of ~~August~~February 3129, ~~2015~~2016) on exploration and development work by December 31, 2013 and every subsequent year thereafter, through 2014.

The entity that owns the Property has made the 2014 payments due to the Bureau of Land Management, Nevada (“BLM”) and Lander County. The payments ($6,406) are reflected in accounts payable and accrued liabilities and the annual exploration and development work.

The Company is responsible for any and all property payments due to any government authority on the property during the term of this option agreement (BLM: $3,920 yr., Lander County: $294 yr.).

The entity that owns the Property terminated the option agreement with the Company on July 28, 2014 and the above mentioned reimbursement of $6,406 remains outstanding. The Company has no further rights to the Property.

F-7

Valmie Resources, Inc.

Notes to Consolidated Financial Statements

August 31, 2015

(Stated in US Dollars)

(Unaudited)

6. Mineral Property Costs (continued)

The Company is responsible for any and all property payments due to any government authority on the property during the term of this option agreement (BLM: $3,920 yr., Lander County: $294 yr.).

7. Related Party Transactions

On July 15, 2015, the Company entered into an asset purchase agreement with its current President pursuant to which the Company acquired all of the right, title and interest in and to certain intellectual property from the President in consideration for the issuance of $100,000 worth of common stock on that date at a deemed price of $0.47 per share. As a result, the Company issued 212,765 shares of common stock to the President. The entire $100,000 of intellectual property was impaired and written-off as of November 30, 2015.

During the period ended ~~August~~February 3129, ~~2015~~2016, the Company paid management fees of $515,000 (~~2014~~2015 – $~~Nil~~6,000) to aits ~~former~~current ~~director~~President and $~~32,000~~ Nil (~~2014~~2015 – $~~Nil~~5,000) to ~~its~~a former ~~current President~~director, and converted $~~33,927~~Nil (~~2014~~2015 – $~~Nil~~33,927) ~~into~~in ~~common stock for~~ debt ~~repayment~~ owed to a former director into common stock resulting in a loss on the settlement of debt in the amount of $Nil (2015 – $919,422). The Company had $~~10,782~~Nil (~~2014~~2015 – $~~Nil~~10,782) ofin debt forgiven ~~from~~by aits ~~former~~majority ~~director~~shareholder.

As of August 31, 2015, the Company was obligated to a former director for non-interest bearing, unsecured and with no fixed terms of repayment loans with a balance of $Nil (November 30, 2014 – $19,146). The Company also owed $Nil to its majority shareholder at August 31, 2015 (November 30, 2014 – $25,663).

8. Promissory Notes

On August 18, 2014, the Company entered into a promissory note agreement with Investor A for an aggregate amount of $50,000 plus simple interest at an annual interest rate of 15%, repayable on August 18, 2016. On April 6, 2015, the promissory note was settled through the issuance of 500,000 shares of common stock. The Company recognized a loss of $1,355,000 in connection with the debt settlement.

On October 7, 2014, the Company entered into a promissory note agreement with Investor A for an aggregate amount of $25,000 plus simple interest at an annual interest rate of 15%, repayable on October 7, 2016. On April 6, 2015, the promissory note was settled through the issuance of 250,000 shares of common stock. The Company recognized a loss of $677,500 in connection with the debt settlement.

On October 22, 2014, the Company entered into a promissory note agreement with Investor B for an aggregate amount of $15,000 plus simple interest at an annual interest rate of 15%, repayable on October 22, 2016. As of ~~August~~February 3129, ~~2015~~2016, $15,000 was received and interest accrued of $13,~~769~~458 ($2,897 as at November 30, 2015).

On November 23, 2014, the Company entered into a promissory note agreement with Investor C for an aggregate amount of $75,000 plus simple interest at an annual interest rate of 15%, repayable on November 23, 2016. On April 6, 2015, the promissory note was settled through the issuance of 750,000 shares of common stock. The Company recognized a loss of $2,032,500 in connection with the debt settlement.

On December 29, 2014, the Company entered into another promissory note agreement with Investor A for an aggregate amount of $75,000 plus simple interest at an annual interest rate of 15%, repayable on December 29, 2016. On April 6, 2015, the promissory note was settled through the issuance of 750,000 shares of common stock. The Company recognized a loss of $2,032,500 for the debt settlement.

On January 26, 2015, the Company entered into another promissory note agreement with Investor A for an aggregate amount of $50,000 plus simple interest at an annual interest rate of 15%, repayable on January 26, 2017. On April 6, 2015, the promissory note was settled through the issuance of 500,000 shares of common stock. The Company recognized a loss of $1,355,000 in connection with the debt settlement.

F-8

Valmie Resources, Inc.

Notes to Consolidated Financial Statements

August 31, 2015

(Stated in US Dollars)

(Unaudited)

8. Promissory Notes (continued)

On February 27, 2015, the Company entered into another promissory note agreement with Investor A for an aggregate amount of $25,000 plus simple interest at an annual interest rate of 15%, repayable on February 27, 2017. On April 6, 2015, the promissory note was settled through the issuance of 250,000 shares of common stock. The Company recognized a loss of $677,500 in connection with the debt settlement.

On March 20, 2015, the Company entered into another promissory note agreement with Investor A for an aggregate amount of $50,000 plus simple interest at an annual interest rate of 15%, repayable on March 20, 2017. On April 6, 2015, the promissory note was settled through the issuance of 500,000 shares of common stock. The Company recognized a loss of $1,355,000 in connection with the debt settlement.

OnDuring ~~July~~the 30period ended February 29, ~~2015~~2016, the Company entered into amultiple promissory note ~~agreement~~agreements with Investor D for an aggregate amount of $2067,~~000~~500 ~~plus~~($102,500 ~~simple~~in aggregate during the year ended November 30, 2015). The promissory notes mature two years from the date of the inception of the notes and bear simple interest at an annual interest rate of 15%~~, repayable on July 30, 2017~~. The ~~note~~notes isare secured by all of the assets, properties, goods, inventory, equipment, furniture, fixtures, leases, supplies, records, money, documents, instruments, chattel paper, accounts, intellectual property rights (including but not limited to, copyrights, moral rights, patents, patent applications, trademarks, service marks, trade names, trade secrets) and other general intangibles, whether owned by Company on the date of the note or hereafter acquired, and all proceeds thereof. ~~As of August 31, 2015, $20,000 was received and interest accrued of $263.~~

9.The ~~Intangible~~following ~~Asset~~are the notes outstanding as at February 29, 2016:

	Principal		Accrued Interest
Note 1 on October 22, 2014 Due October 22, 2016	$	15,000	$	3,458
Note 2 on July 30, 2015 Due July 30, 2017	$	20,000	$	1,759
Note 3 on September 2, 2015 Due September 2, 2017	$	7,500	$	555
Note 4 on October 2, 2015 Due October 2, 2017	$	10,000	$	616
Note 5 on October 21, 2015 Due October 21, 2017	$	15,000	$	808
Note 6 on October 29, 2015 Due October 29, 2017	$	25,000	$	1,264
Note 7 on November 17, 2015 Due November 17, 2017	$	25,000	$	1,068
Note 8 on January 4, 2016 Due January 4, 2018	$	25,000	$	575
Note 9 on January 18, 2016 Due January 18, 2018	$	10,000	$	173
Note 10 on February 2, 2016 Due February 2, 2018	$	7,500	$	83
Note 11 on February 25, 2016 Due February 25, 2018	$	25,000	$	41
	$	185,000	$	10,400

10. Provision for Income Taxes

The Company recognizes the tax effects of transactions in the year in which such transactions enter into the determination of net income, regardless of when reported for tax purposes. Deferred taxes are provided in the financial statements under FASC 718-740-20 to give effect to the resulting temporary differences which may arise from differences in the bases of fixed assets, depreciation methods, allowances, and start-up costs based on the income taxes expected to be payable in future years.

Deferred tax assets arising as a result of net operating loss carryforwards have been offset completely by a valuation allowance due to the uncertainty of their utilization in future periods. Operating loss carryforwards generated during the period from August 26, 2011 (date of inception) through August 31, 2015 of $11,134,418 will begin to expire in 2031. Accordingly, deferred tax assets of approximately $3,897,046 were offset by the valuation allowance.

The Company follows the provisions of uncertain tax positions as addressed in FASC 740-10-65-1. The Company recognized approximately no increase in the liability for unrecognized tax benefits.

F-9

Valmie Resources, Inc.

Notes to Consolidated Financial Statements

August 31, 2015

(Stated in US Dollars)

(Unaudited)

109. Provision for Income Taxes ~~(continued)~~

The Company ~~has~~recognizes nothe tax ~~position~~effects atof ~~August~~transactions ~~31,~~in ~~2015 for which~~ the ~~ultimate~~year ~~deductibility~~in iswhich ~~highly~~such ~~certain~~transactions ~~but~~enter ~~for~~into ~~which~~the ~~there~~determination isof ~~uncertainty~~net ~~about~~income, ~~the~~regardless ~~timing~~ of ~~such~~when ~~deductibility.~~reported ~~The~~for ~~Company recognizes interest accrued related to unrecognized~~ tax ~~benefits~~purposes. inDeferred ~~interest expense~~taxes ~~and~~are ~~penalties~~provided in ~~operating expenses. No such interest or penalties were recognized during~~ the ~~periods~~consolidated ~~presented.~~financial ~~The~~statements ~~Company~~under ~~had~~FASC no718-740-20 ~~accruals~~to ~~for~~give ~~interest~~effect ~~and~~to ~~penalties~~the atresulting ~~August~~temporary ~~31,~~differences ~~2015.~~which ~~The Company’s utilization of any net operating loss carry forward~~ may bearise ~~unlikely~~from asdifferences ain ~~result~~the bases of ~~its~~fixed ~~intended exploration stage activities. The tax years for November 30~~assets, depreciation ~~2014~~methods, ~~2013~~allowances, ~~2012~~ and ~~2011~~start-up ~~are~~costs ~~still~~based ~~open~~on ~~for~~the ~~examination~~income bytaxes ~~the~~expected ~~Internal~~to ~~Revenue~~be ~~Service~~payable ~~(IRS)~~in future years.

	Nine months ended August 31, 2015
	Amount			Tax Effect (35%)
Net operating losses	$	10,810,376		$	3,783,632
Valuation allowance		(10,810,376	)		(3,783,632	)
Net deferred tax asset (liability)	$	-		$	-

Deferred tax assets arising as a result of net operating loss carryforwards have been offset completely by a valuation allowance due to the uncertainty of their utilization in future periods. Operating loss carryforwards generated during the period from August 26, 2011 (date of inception) through February 29, 2016 of $739,198 will begin to expire in 2031. Accordingly, deferred tax assets of approximately $258,719 were offset by the valuation allowance.

	Nine months ended August 31, 2014
	Amount			Tax Effect (35%)
Net operating losses	$	42,303		$	14,806
Valuation allowance		(42,303	)		(14,806	)
Net deferred tax asset (liability)	$	-		$	-

The Company follows the provisions of uncertain tax positions as addressed in FASC 740-10-65-1. The Company recognized approximately no increase in the liability for unrecognized tax benefits.

11The Company has no tax position at February 29, 2016 for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility. The Company recognizes interest accrued related to unrecognized tax benefits ~~Going~~in ~~Concern~~interest expense and ~~Liquidity~~penalties ~~Considerations~~in operating expenses. No such interest or penalties were recognized during the periods presented. The Company had no accruals for interest and penalties at February 29, 2016. The Company’s utilization of any net operating loss carry forward may be unlikely as a result of its intended exploration stage activities. The tax years for November 30, 2015, 2014, 2013, 2012 are still open for examination by the Internal Revenue Service (IRS).

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates, among other things, the realization of assets and satisfaction of liabilities in the normal course of business10. ~~As at August 31,~~ ~~2015,~~Going ~~the~~Concern ~~Company had a working capital deficiency of $196,540 (November 30, 2014 – $115,494)~~ and aLiquidity retained deficit of $11,134,418 (November 30, 2014 – $324,042). The Company intends to fund operations through equity financing arrangements, which may be insufficient to fund its capital expenditures, working capital and other cash requirements for the next 12 months.Considerations

The ~~ability~~consolidated offinancial statements have been prepared assuming that the Company towill continue inas ~~existence~~a isgoing ~~dependent upon~~concern, which contemplates, among other things, ~~obtaining~~the ~~additional~~realization ~~financing~~of toassets ~~continue~~and satisfaction of liabilities in the normal course of business. As at February 29, 2016, the Company had a working capital deficiency of $66,755 (November 30, 2015 – $55,866) and an accumulated deficit of $14,020,764 (November 30, 2015 – $13,937,744). The Company intends to fund operations through equity financing arrangements, which may be insufficient to fund its capital expenditures, working capital and other cash requirements for the ~~operations~~next of12 ~~Vertitek~~months.

The ability of the Company to continue in existence is dependent upon, among other things, obtaining additional financing to continue operations and the operations of Vertitek.

In response to these problems, management intends to raise additional funds through public or private placement offerings.

These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern. The ~~accompanying~~consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

11. Commitments

Pursuant to a Letter of Intent dated July 7, 2015, the Company is obligated to pay one vendor $5,000 for costs incurred to construct a prototype and testing of such prototype. As at February 29, 2016, $3,000 has been paid in relation to this agreement.

F-10

~~Valmie~~12. ~~Resources,~~Subsequent ~~Inc.~~Events

~~Notes~~The Company has evaluated subsequent events tofrom ~~Consolidated~~February ~~Financial~~29, ~~Statements~~2016, through the date these financial statements were issued and determined that there are no additional items to disclose.

August 31, 2015

(Stated in US Dollars)

(Unaudited)

12. Commitments

Consulting

Pursuant to a consulting agreement dated September 1, 2014, the Company is obligated to pay one consultant $25,000 per month for a term of one year and reimburse the consultant’s reasonable expenses incurred in the course of providing services under the agreement. For the nine months ended August 31, 2015, the Company had paid or accrued $366,286 in fees and expenses under the agreement and $448,786 from the beginning of the agreement.

Memorandum of Understanding (“MOU”)

On April 29, 2015, the Company entered into a MOU with Alpha Search and Recover (“ASAR”) to facilitate and promote cooperation between ASAR and the Company in a subsequent Agreement that will outline ASAR’s interest in utilizing the Company’s UAV technology and AIMD software platform for search and rescue missions. This MOU will expire 180 days from the date set forth above if no definitive Agreement is executed. As at August 31, 2015, no final formal agreement is in place as negotiation continues in regards to specification of the drone that will be provided.

Letter of Intent

Pursuant to a Letter of Intent dated July 7, 2015, the Company is obligated to pay one vendor $5,000 for costs incurred to construct a prototype and testing of such prototype. As at August 31, 2015, $3,000 has been paid in relations to this agreement.

13. Intangible Assets

The following table sets forth the changes in the carrying amount of the Company’s goodwill and intangible assets for the nine months ended August 31, 2015:

	August 31, 2015		November 30, 2014
Acquisition of Vertitek, Inc.	$	2,777,145	$	-
Acquisition of AIMD	$	100,000	$	-

The Company reviews identifiable intangible assets for impairment whenever events or change in circumstances indicate that the carrying amount of an asset may not be recoverable. For the nine months ended August 31, 2015, the Company recorded $Nil (2014 – $Nil) impairment loss for intangible assets.

14. Subsequent Events

The Company has evaluated subsequent events from August 31, 2015, through the date these financial statements were issued and determined there are no additional items to disclose.

F-11

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

As used in this quarterly report, the terms “we”, “us” and “our” mean Valmie Resources, Inc. and all dollar amounts refer to U.S. dollars, unless otherwise indicated.

Forward-Looking Statements

This quarterly report contains forward-looking statements. All statements other than statements of historical fact are “forward-looking statements”, including any projections of earnings, revenues or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements concerning proposed new products, services or developments; any statements regarding future economic conditions or performance; statements of belief; and any statement of assumptions underlying any of the foregoing. Such forward-looking statements are subject to inherent risks and uncertainties, and actual results could differ materially from those anticipated by any forward-looking statements.

These forward-looking statements involve significant risks and uncertainties, including, but not limited to, the following: competition, promotional costs, and risk of declining revenues. Our actual results could differ materially from those anticipated in such forward-looking statements as a result of a number of factors. These forward-looking statements are made as of the date of this filing, and we assume no obligation to update such forward-looking statements.

The following discussion of our financial condition and results of operations is based upon our ~~consolidated~~ financial statements which have been prepared in conformity with accounting principles generally accepted in the United States. It should be read in conjunction with our financial statements, including the notes thereto, that appear elsewhere in this quarterly report. The discussion of results, causes and trends should not be construed to imply any conclusion that these results or trends will necessarily continue ~~into~~ into the future.

Overview

We were incorporated pursuant to the laws of the State of Nevada on August 26, 2011. We have one wholly owned subsidiary, Vertitek Inc. ~~(“Vertitek”)~~, a Wyoming corporation (“Vertitek”). From our inception until the quarter ended August 31, 2014, we were a mineral exploration company exploring for precious metals, or gold and silver targets. Our property, known as the Carico Lake Valley Property (the “Property”), was located in Lander County, Nevada.

In July 2014, the landowner notified us that our option to acquire an interest in the Property had been terminated and that the Property had been sold to a third party. Our efforts from that date until the end of our ~~most~~fiscal ~~recently~~year ~~completed~~ended ~~fiscal~~November ~~year~~20, 2014, were primarily directed to identifying new development properties.

In early December 2014, our majority shareholder determined it was in the best interests of our shareholders to change our business focus from mining to pursuing opportunities for the commercialization of leading edge products and services in the rapidly expanding technology industry. We therefore sought to develop or acquire concepts with valid business models positioned to make a significant impact within the four key technology “megasectors”: software, hardware, networking and semiconductors.

Business Strategy

The first major step in our shift to the technology sector was the appointment of Gerald B. Hammack as our sole officer and director on December 8, 2014. Mr. Hammack has more than 30 years of experience in a variety of technology-related fields, including programming, digital telephony and database management, as well as substantial expertise in the setup and management of complex data processing systems.

Over the past several years, Mr. Hammack has been developing a series of software platforms and technologies designed to provide the near real-time data processing required by the ever-expanding use of commercial Unmanned Aerial Vehicles or ~~UAV’s~~UAVs (more ~~commonly~~ commonly referred to as drones). Towards the end of 2014, we rebranded Mr. Hammack’s development efforts ~~to date~~ as the AIMD (Automated Intelligence for Mobile Devices) data processing platform and adopted them as our own. On July 15, 2015, we entered into an asset purchase agreement with Mr. Hammack pursuant to which we acquired all of the right, title and interest in and to the intellectual property relating to the AIMD platform in consideration for the issuance of $100,000 worth of our common stock to Mr. Hammack on that date at a deemed price of $0.47 per share. Since we did not acquire any patents from Mr. Hammack, we recognized an intangible asset value of $100,000 related to the acquisition.

While in the process of launching the AIMD platform, we determined that it would be necessary to find a partner that had the technology and experience in the design and manufacture of ~~UAV’s~~UAVs in order to design and build a prototype unit to test and refine our ~~product~~ product and service offerings. After extensive investigation we located ana ~~up-and-coming~~ UAV manufacturer, Vertitek. Vertitek’s hardware and software technology ~~enables~~is being designed to enable a sophisticated level of autonomy for ~~UAV’s~~UAVs and other autonomous mobilized devices, ~~including~~ including precision guidance controls and advanced safety features. Vertitek’s under development commercial V-1 DroneSM is a multi-rotor platform that incorporates an integrated, fully autonomous autopilot, which could be connected to, and ~~controlled~~ controlled from, the AIMD platform.

~~After~~On ~~significant~~January ~~discussion~~27, 2015 we entered into a share exchange agreement with Vertitek and ~~its~~the ~~principal~~sole shareholder, onof ~~January 20~~Vertitek, ~~2015~~Masamos weServices Ltd., ~~entered into~~ a ~~letter~~Cypriot ofcorporation ~~intent~~ (~~the~~ “~~LOI~~Masamos”), ~~with Vertitek~~ to acquire 100% of the capital stock of ~~that~~Vertitek ~~company~~ in exchange for the issuance of shares of our common stock to the principal shareholder of Vertitek, contingent upon certain due diligence requirements. On January 27, 2015 we entered into a share exchange agreement with Vertitek and the sole shareholder of Vertitek, Masamos ~~Services Ltd~~., ~~a Cypriot corporation (“Masamos”), on substantially the same terms as the LOI.~~ On March 31, 2015, the closing of the share exchange agreement occurred and we issued 1,000,000 shares of our common stock to Masamos in exchange for 100% of the issued and outstanding shares of Vertitek ~~(the “Acquisition”)~~. As a result ~~of the Acquisition~~, Vertitek became our wholly owned subsidiary.

AsTo ofdate, ~~August~~we ~~31,~~have ~~2015,~~not wegenerated ~~had~~any ~~advanced~~revenue athrough ~~total~~the sales of ~~$33~~UAVs or the provision of software,~~500~~ tohardware ~~Vertitek~~or ~~under~~cloud abased ~~line~~services. As ofwe ~~credit~~are instill ~~the~~developing ~~amount~~our oftechnologies, ~~$150~~we have not yet launched our manufacturing,~~000~~ tosales ~~continue~~or marketing operations and have ~~the~~not ~~development~~yet ofidentified ~~the~~any ~~V-1~~customers ~~DroneSM~~for our systems or solutions.

We have never declared bankruptcy, receivership or any similar proceedings nor have we had any material reclassifications, mergers, consolidations, or purchases or sales of a significant amount of assets not in the ordinary course of business.

Results of Operations

Revenues

We have not generated any revenue since our inception. We anticipate that we will incur substantial losses for the foreseeable future and our ability to generate any revenue during the next 12 months continues to be uncertain.

Three Months ended August 31, 2015 and 2014

Expenses

During the three months ended ~~August~~February 3129, ~~2015~~2016, we incurred $~~190~~77,~~229~~609 in operating expenses, including $~~177~~50,~~280~~349 in professional fees, $1511,~~000~~160 in ~~management~~general ~~fees~~ and administrative expenses, $115,~~775~~000 in ~~transfer~~management ~~agent~~ fees, asand ~~offset by a~~ $31,~~826~~100 ~~gain~~ in ~~general~~transfer ~~and~~agent ~~administrative expenses~~fees. During the same period in fiscal ~~2014~~2015, we incurred $7128,~~870~~509 in operating expenses, including $7110,~~321~~060 in professional fees, $~~149~~7,003 in general and administrative expenses, $11,000 in management fees and $~~400~~446 in transfer agent fees. The $~~182~~50,~~359~~900 ~~increase~~decrease in our operating expenses between the two periods was therefore primarily attributable to the significant ~~increase~~decrease in our professional fees, which was in turn related to our obligations under a consulting agreement we entered into on September 1, 2014 that was amended effective February 28, 2015 to cancel the fixed monthly fee. During the three months ended ~~August~~February 3129, ~~2015~~2016, our ~~management fees~~general and administrative expenses and transfer agent fees also increased due to the general increase in our operations subsequent to the acquisition of Vertitek.

Net Loss

During the three months ended August 31, 2015, we incurred a net loss of $190,229, whereas we incurred a net loss of $7,870 during the same period in fiscal 2014. Our basic and diluted net loss per share during each of those periods was $0.00.

~~Nine~~During ~~Months~~the three months ended ~~August~~February 3129, ~~2015~~2016, ~~and~~we ~~2014~~also incurred $5,411 in interest expenses, whereas we incurred $6,811 in interest expenses during the same period in fiscal 2015.

Expenses

During the nine months ended August 31, 2015, we incurred $407,144 in operating expenses, including $345,740 in professional fees, $37,000 in management fees, $20,476 in general and administrative expenses and $3,928 in transfer agent fees. During the same period in fiscal 2014, we incurred $42,303 in operating expenses, including $39,595 in professional fees, $1,433 in general and administrative expenses and $1,275 in transfer agent fees. The $364,841 increase in our operating expenses between the two periods was therefore largely attributable to the increases in our professional fees and operations as described above.

During the nine months ended August 31, 2015, we also incurred a $10,404,422 loss on the settlement of debt as offset by $1,190 in interest income, whereas we did not incur any such expense during the same period in fiscal 2014. The loss on the settlement of debt was entirely due to the issuances of common stock to various creditors that we completed on April 6, 2015, including 3,500,000 shares pursuant to the settlement of various promissory notes at a deemed price of $0.10 per share, which was well below the market price of our common stock on that day.

Net Loss

During the ~~nine~~three months ended ~~August~~February 3129, ~~2015~~2016, we incurred a ~~net~~ loss from operations of $1077,~~810~~609,~~376,~~ ~~whereas~~a wenet ~~incurred~~loss of $83,020, and a net loss per share of $~~42,303~~0.00. ~~during~~ During the same period in ~~2013.~~fiscal ~~Our~~2015, ~~basic~~we ~~and~~incurred ~~diluted~~a loss from operations of $128,509, a net loss ~~per~~of ~~share~~$135,320 and ~~during~~a ~~those~~net ~~periods~~loss ~~was~~per ~~$0.07~~share ~~and~~of $0.00~~, respectively~~.

Liquidity and Capital Resources

As of ~~August~~February 3129, ~~2015~~2016, we had $224,~~702~~858 in cash and cash equivalents, $325,~~052~~208 in current assets, $258,~~912,640~~014 in total assets, $~~199~~91,~~592~~963 in current liabilities, $~~237~~268,~~185~~905 in total liabilities, a working capital deficit of $~~196~~66,~~540~~755 and a retained deficit of $1114,~~134~~020,~~418~~764.

During the ~~nine~~three months ended ~~August~~February 3129, ~~2015~~2016, we used $~~290~~65,~~275~~444 in net cash on operating activities due to net losses and our accounts payable ~~decreased~~ increasing by $~~116~~12,~~342~~310. During the same period in fiscal ~~2014,~~2015 we used $14181,~~615~~788 in net cash on operating activities, ~~our accounts payable~~due ~~increased~~to bynet ~~$22,688~~losses and our ~~prepaid~~accounts ~~expenses~~payable ~~decreased~~decreasing by $552,~~000~~929. The majority of our spending on operating activities for the ~~nine~~ three months ended ~~August~~February 3129, 2016 and 2015 was attributable to our net loss as described above, as adjusted for ~~the loss on the settlement of debt and~~ changes in our accounts payable and accrued liabilities, and was associated with carrying out our reporting obligations under applicable securities laws and transitioning our business focus from mining to pursuing opportunities for the commercialization of products and services in the technology industry.

During the ~~nine~~three months ended ~~August~~February 3129, ~~2015~~2016, we used $~~39,588~~74 in net cash on investing activities~~, substantially all of which was in the form of advances to Vertitek and prototype development costs~~. During the same period in fiscal ~~2014~~2015, we ~~did~~used ~~not~~$25,500 ~~use~~in ~~any~~ net cash on investing activities, all of which was in the form of advances to Vertitek.

During the ~~nine~~three months ended ~~August~~February 3129, ~~2015~~2016, we received $~~320~~67,~~000~~500 from financing activities, all of which was in the form of proceeds from promissory notes. During the same period in fiscal ~~2014~~2015, we received $29200,~~073~~000 from financing activities, all of which was also in the form of proceeds from apromissory ~~related party~~notes.

During the ~~nine~~three months ended ~~August~~February 3129, ~~2015~~2016, our cash position ~~decreased~~increased by $91,~~863~~982 due to a combination of our operating, investing and financing activities.

Our plans for the next 12 months are uncertain due to our current financial condition; however, we intend to raise additional funds through public or private placement offerings. If we are unsuccessful in raising enough money through such efforts, we may review other financing possibilities such as bank loans. At this time we do not have a commitment from any broker-dealer to provide us with financing. There is no assurance that any financing will be available to us or if available, on terms that will be acceptable to us. In the absence of such financing, we may be forced to cease or significantly curtail our operations.

Plan of Operations

We will need to raise additional capital to fully develop our business plan. We have a 24-month plan during which we intend to implement our business development and marketing plan. We believe we must raise approximately $1,500,000 to pay for expenses associated with the continued development of our AIMD platform as well as the development and commercialization of the ~~Vertitek~~ V-1 DroneSM. Of this, we plan to use $500,000 to finance anticipated activities during Phase I of our development plan as described below, and $1,000,000 to finance anticipated activities during Phase II.

Phase I

Description	Estimated Amount ($)
Complete the development of the AIMD platform		200,000
Finalize the design of the Vertitek V-1 DroneSM		150,000
Finalize the design of the V-1 DroneSM		150,000
Hire sales staff to work with potential clients		50,000
Additional working capital to cover general and administrative expenses		100,000
Total		500,000

Phase II

Description	Estimated Amount ($)
Complete small-scale manufacturing of the Vertitek V-1 DroneSM		500,000
Complete small-scale manufacturing of the V-1 DroneSM		500,000
Sales literature, displays and advertising expenses		200,000
Management and consulting fees, employee salaries		200,000
Additional working capital to cover general and administrative expenses		100,000
Total		1,000,000

Many of the developments enumerated in Phase II are dependent on the completion of our Phase I objectives, and both phases are dependent on us obtaining additional financing. There can be no assurance that we will be able to secure such financing, and if we are able to raise some but not all of the funds required to undertake the developments in Phase I and Phase II our management will likely need to re-examine our proposed business activities to use our resources most efficiently. In this event, our focus will likely be on spending available funds to maintain our reporting status with the SEC and developing our product designs to attract investors.

If we are unable to raise additional funds, we will not be able to complete any of the milestones in either Phase I or Phase II. Due to the fact that many of the milestones are dependent on each other, if we are unsuccessful in obtaining additional financing we may not be able to implement any facets of our business plan.

We intend to pursue capital through public or private financing as well as borrowings and other sources, such as loans from our existing shareholders in order to finance our business activities. We cannot guarantee that additional funding will be available on favourable terms, if at all. If adequate funds are not available, then our ability to continue our operations may be significantly hindered.

Going Concern

Our financial statements have been prepared on a going concern basis, which contemplates, among other things, that we will continue to realize our assets and satisfy our liabilities in the normal course of business. As at ~~August~~February 3129, ~~2015~~2016, we had a working ~~capital~~ capital deficit of $~~196~~66,~~540~~755 and a retained deficit of $1114,~~134~~020,~~418~~764. We intend to fund our operations through equity financing arrangements, which may be insufficient to fund our capital expenditures, working capital and other cash requirements for the next 12 months.

Our ability to continue in existence is dependent upon, among other things, obtaining additional financing to continue our operations and the operations of Vertitek. These factors, among others, raise substantial doubt about our ability to continue as a going concern. Our financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Off-Balance Sheet Arrangements

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

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Not applicable.

Item 4. Controls and Procedures

Disclosure Controls and Procedures

We maintain disclosure controls and procedures, as defined in Rule 13a-15(e) and Rule 15d-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”), that are designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC, and that such information is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow for timely decisions regarding required disclosure.

As of the end of the period covered by this report, management, with the participation of our Chief Executive and Chief Financial Officer, carried out an evaluation of the effectiveness of our disclosure controls and procedures. Based upon this evaluation, management concluded that our disclosure controls and procedures were effective as of the date of filing this report applicable for the period covered by this report.

Internal Control Over Financial Reporting

There were no changes in our internal control over financial reporting (as defined in Rule 13a-15(e) and Rule 15d-15(e) under the Exchange Act) during the period covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II – OTHER INFORMATION

Item 1. Legal Proceedings

~~There~~We ~~are~~do nonot know of any material, active or pending legal proceedings against us, ~~other~~nor ~~than~~are ~~ordinary~~we ~~routine~~involved ~~litigation~~as ~~incidental~~a toplaintiff ~~our~~in ~~business,~~any tomaterial proceedings ~~which~~or wepending litigation. There are a ~~party~~no orproceedings ofin which any of our ~~properties~~directors, isofficers ~~the~~or ~~subject.~~affiliates, ~~Our~~or ~~management~~any isregistered beneficial ~~not~~shareholders ~~aware~~are ofan ~~any~~adverse ~~such~~party ~~legal~~or ~~proceedings~~have ~~contemplated by~~a ~~any~~material ~~governmental~~interest ~~authority~~adverse ~~against~~to us.

Item 1A. Risk Factors

Not applicable.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

~~None~~Between December 1, 2015 and February 29, 2016, we issued four promissory notes to Crystal Resource Corp., a Wyoming corporation (“Crystal”), in the aggregate principal amount of $67,500 in exchange for advances to us in an identical amount. Each of the promissory notes bears simple interest at an annual rate of 15% and matures two years from the date of issuance. Each of the promissory notes is secured by all of the assets, properties, goods, inventory, equipment, furniture, fixtures, leases, supplies, records, money, documents, instruments, chattel paper, accounts, intellectual property rights (including but not limited to, copyrights, moral rights, patents, patent applications, trademarks, service marks, trade names, trade secrets) and other general intangibles, whether owned by us on the date of the applicable note or thereafter acquired, and all proceeds thereof.

We issued the foregoing promissory notes in reliance upon the exemption from registration provided by Section 4(a)(2) of the Securities Act. Our reliance on Section 4(a)(2) was based on the fact that none of the issuances involved a “public offering” and Crystal provided representations to us that it acquired the shares for investment purposes and not with a view to the distribution thereof in a transaction that would violate the Securities Act or the securities laws of any state of the United States or any other applicable jurisdiction.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

None.

Item 5. Other Information

None.

Item 6. Exhibits

Exhibit Number		Exhibit Description
31.1		Certification of the Chief Executive Officer and Chief Financial Officer pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 *
32.1		Certification of the Chief Executive Officer and Chief Financial Officer pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 *
101.INS		XBRL Instance Document
101.SCH		XBRL Taxonomy Extension Schema
101.CAL		XBRL Taxonomy Extension Calculation Linkbase
101.DEF		XBRL Taxonomy Extension Definition Linkbase
101.LAB		XBRL Taxonomy Extension Label Linkbase
101.PRE		XBRL Taxonomy Presentation Linkbase

* Filed herewith

SIGNATURES

Pursuant to the requirements 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.

	VALMIE RESOURCES, INC.
	(Registrant)
Date: October 15, 2015	/s/ Gerald B. Hammack
Date: April 14, 2016	/s/ Gerald B. Hammack
	Gerald B. Hammack
	Chairman, President, Chief Executive Officer, Chief Financial Officer, Principal Accounting Officer, Secretary, Treasurer, Director

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