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 September 30, 2017
	For the quarterly period ended March 31, 2018
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from __________ to __________

000-53669
Commission File Number

EPOXY, INC.
(Exact name of registrant as specified in its charter)

Nevada	N/A
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

2518 Anthem Village Drive, Suite 100, Henderson NV	89052
(Address of principal executive offices)	(Zip Code)

702-350-2449
(Registrant's telephone number, including area code)


(Former name, former address and former fiscal year, if changed since last report)

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 [ ] No [X]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer [ ]	Accelerated filer [ ]
Non-accelerated filer [ ] (Do not check if a smaller reporting company)	Smaller reporting company [X]
	Emerging growth company [X]

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. [ ]

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 ISSUERS INVOLVED IN BANKRUPTCY

PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

Indicate by check mark whether the registrant filed all documents and reports required to be filed by Section 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.

Yes [ ] No [ ]

APPLICABLE ONLY TO CORPORATE ISSUERS

1,602,995,014 shares of common stock outstanding as of ~~February~~June 2010, 2018 (Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.)

EPOXY, INC.

TABLE OF CONTENTS

		Page
	PART I – FINANCIAL INFORMATION
Item 1.	Financial Statements	3
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	4
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	87
Item 4.	Controls and Procedures	87
	PART II – OTHER INFORMATION
Item 1.	Legal Proceedings	98
Item 1A.	Risk Factors	98
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	98
Item 3.	Defaults Upon Senior Securities	108
Item 4.	Mine Safety Disclosures	108
Item 5.	Other Information	108
Item 6.	Exhibits	108
	SIGNATURES	119

EPOXY, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

PART I -- FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

	Page
Unaudited Consolidated Balance Sheets as of September 30, 2017 and December 31,2016	F-1
Unaudited Consolidated Balance Sheets as of March 31, 2018 and December 31, 2017	F-1
Unaudited Consolidated Statements of Operations for the three and nine months ended September 30, 2017 and 2016	F-2
Unaudited Consolidated Statements of Operations for the three months ended March 31, 2018 and 2017	F-2
Unaudited Consolidated Statement of Cash Flows for the nine months ended September 30, 2017 and 2016	F-3
Unaudited Consolidated Statement of Cash Flows for the three months ended March 31, 2018 and 2017	F-3
Notes to the Unaudited Consolidated Financial Statements	F-4 to F-1312

EPOXY, INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited)

	March 31, 2018 (Unaudited)			December 31, 2017
ASSETS
Current
Cash	$	3,473		$	5,440
Accounts receivable		2,750			2,750
Prepaid expenses		970			970
Total Current Assets		7,193			9,160

Trademark and Patent		-			7,695

Total Assets	$	7,193		$	16,855

LIABILITIES
Current
Accounts payable and accrued liabilities	$	274,936		$	252,082
Accounts payable and accrued liabilities – related parties		98,053			88,293
Loans payable		17,000			17,000
Loan payable – related party		12,000			12,000
Derivative liabilities		647,697			497,988
Convertible notes, net of unamortized discounts and deferred financing cost		202,943			193,144
Other liabilities		72,400			72,400
Total Current Liabilities		1,325,029			1,132,907

Total Liabilities		1,325,029			1,132,907

STOCKHOLDERS' DEFICIT
Preferred Stock, $0.00001 par value;
authorized: 35,000,000 Series A Preferred share, 25,080,985 issued and outstanding as of March 31, 2018 and December 31, 2017		251			251
authorized: 15,000,000 Series B Preferred shares, 1,000,000 shares issued and outstanding as of March 31, 2018 and December 31, 2017		10			10
Common Stock, $0.00001 par value;
authorized: 4,450,000,000 shares, 1,602,995,014 shares issued and outstanding as of March 31, 2018 and December 31, 2017		16,030			16,030
Additional paid-in capital		3,827,203			3,827,028
Accumulated deficit		(5,161,330	)		(4,959,371	)
Total Stockholders' Deficit		(1,317,836	)		(1,116,052	)
Total Liabilities and Stockholders' Deficit	$	7,193		$	16,855

	September 30, 2017			December 31, 2016
ASSETS
Current
Cash	$	6,210		$	2,662
Prepaid expenses		3,970			970
Total Current Assets		10,180			3,632
Trademark and Patent		7,695			7,695
Total Assets	$	17,875		$	11,327
LIABILITIES
Current
Accounts payable and accrued liabilities	$	229,468		$	169,186
Accounts payable – related parties		76,222			41,300
Deferred revenue		72,400			101,400
Loans payable		17,000			17,000
Loan payable – related party		12,000			12,000
Derivative liabilities		401,632			109,403
Convertible notes, net of unamortized discounts and deferred financing cost		181,772			189,112
Total Current Liabilities		990,494			639,401
Total Liabilities		990,494			639,401
STOCKHOLDERS' DEFICIT
Preferred Stock, $0.00001 par value;
authorized: 35,000,000 Series A Preferred share, 25,080,985 issued and outstanding as of September 30, 2017 and December 31, 2016		251			251
authorized: 15,000,000 Series B Preferred shares, 1,000,000 shares issued and outstanding as of September 30, 2017 and December 31, 2016		10			10
Common Stock, $0.00001 par value;
authorized: 4,450,000,000 shares, 1,602,995,014 and 532,940,996 shares issued and outstanding as of September 30, 2017 and December 31, 2016, respectively		16,030			5,330
Additional paid-in capital		3,826,853			3,277,438
Accumulated deficit		(4,815,763	)		(3,911,103	)
Total Stockholders' Deficit		(972,619	)		(628,074	)
Total Liabilities and Stockholders' Deficit	$	17,875		$	11,327

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

F-1

EPOXY, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	Three Months Ended
	March 31,
	2018			2017

Revenue	$	33,823		$	41,053

Operating Expenses
Depreciation, and impairment		7,695			-
Software research and development		12,448			2,880
General and administrative expenses		67,994			64,358
Total operating expenses		88,137			67,238

Loss from operations		(54,314	)		(26,185	)

Other Income (Expenses):
Loss on change in fair value of derivative liabilities		(129,709	)		(440,558	)
Interest expenses		(17,936	)		(61,220	)
Total other income (expenses)		(147,645	)		(501,778	)

Net loss	$	(201,959	)	$	(527,963	)

Net loss per share – basic and diluted	$	(0.00	)	$	(0.00	)

Weighted average shares outstanding – basic and diluted		1,602,995,014			1,175,896,613

	Three months ended						Nine months ended
	September 30,						September 30,
	2017			2016			2017			2016
Revenue	$	18,252		$	7,779		$	79,356		$	20,931
Operating Expenses
Depreciation		-			2,831			-			8,492
Software research and development		4,546			11,752			10,946			33,621
General and administrative expenses		53,785			53,768			179,942			188,447
Total operating expenses		58,331			68,351			190,888			230,560
Loss from operations		(40,079	)		(60,572	)		(111,532	)		(209,629	)
Other Income (Expenses):
Gain (loss) on change in fair value of derivative liabilities		(180,134	)		(63,852	)		(682,331	)		(334,687	)
Recovered loss on debt settlement		-			-			-			9,000
Interest expenses		(14,335	)		(33,558	)		(110,797	)		(174,698	)
Total other income (expenses)		(194,469	)		(97,410	)		(793,128	)		(500,385	)
Income (loss) before taxes		(234,548	)	$	(157,982	)	$	(904,660	)	$	(710,014	)
Income tax (expense) benefit		-			-			-			-
Net income (loss)	$	(234,548	)	$	(157,982	)	$	(904,660	)	$	(710,014	)
Net income (loss) per share – basic and diluted	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.00	)
Weighted average shares outstanding – basic and diluted		1,602,995,014			483,650,826			1,390,625,644			387,839,302

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

F-2

EPOXY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Nine months ended
	Three Months Ended
	September 30,
	March 31,
	2017			2016
	2018			2017
Cash flows from Operating Activities
Net loss	$	(~~904~~201,~~660~~959	)	$	(~~710~~527,~~014~~963	)
Adjustments to reconcile net loss to net cash used in operations:
Depreciation		-			8,492
Impairment of trademark and patent		7,695			-
Accrued interest converted to shares		5,704			13,132
Transfer agent fees paid by note holders and settled with shares, including loss on issuance date		-			7,804
Transfer agent fees paid with shares		7,804			-
Loss on change in fair value of derivative liabilities		129,709			440,558
(Gain) loss on change in fair value of derivative liabilities		682,331			334,687
Amortization of discounts on convertible notes		9,377			51,524
Amortization of discounts on convertible notes		81,855			134,959
Amortization of deferred financing costs		422			4,692
Amortization of deferred financing costs		6,605			14,639
Imputed interest		175			175
Interest expense due to default convertible note		3,680			-
Accrued interest settled with shares		-			5,704
Imputed interest		525			525
Changes in operating assets and liabilities:
Prepaid expenses		~~(3,000~~-	)		2(3,~~975~~000	)
Deferred revenue		~~(29,000~~-	)		72(29,~~400~~000	)
Accounts payable and accrued expenses		6022,~~282~~854			413,~~841~~587
Accounts payable, related party		34,922			-
Accounts payable and accrued expenses – related party		9,760			9,871
Net cash used in operating activities		(5221,~~952~~967	)		(8636,~~364~~048	)
Cash flows from Investing Activities
Net cash provided by (used in) investing activities		-			-
Cash flows from Financing Activities
Proceeds from loan		-			12,000
Proceeds from convertible notes		20,000			41,500
Proceeds from convertible notes		56,500			71,500
Net cash provided by financing activities		20,000			41,500
Net cash provided by financing activities		56,500			83,500
Net increase (decrease) in cash during the period		(1,967	)		5,452
Net decrease in cash during the period		3,548			(2,864	)
Cash, beginning of period		5,440			2,662
Cash, beginning of period		2,662			5,883
Cash, end of period	$	3,473		$	8,114
Cash, end of period	$	6,210		$	3,019
Supplemental disclosure of cash flow information:
Cash paid for:
Interest	$	-		$	-
Income taxes	$	-		$	-
Supplemental non-cash investing and financing activities:
Supplemental non-cash investing & financing activities:
Debt principal converted to shares	$	~~91,300~~-		$	~~242~~91,~~000~~300
Accrued interest and transfer agent fees converted to shares		~~9,224~~-			139,~~132~~224
Derivative liability reclassified as additional paid-in capital		~~475,922~~-			~~579~~475,~~057~~922
Derivative liability – debt discount	$	4920,~~680~~000		$	~~102~~46,~~032~~000
Debt issuance financing cost		4,500			9,500
Loan payable assigned to convertible note		-			15,000
Accrued interest assigned to convertible note	$	-		$	6,031

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

F-3

EPOXY, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 1 – Description of business and basis of presentation

Organization and nature of business)

Epoxy, Inc. (the "Company") was incorporated in the State of Nevada on November 13, 2007 as Rioridge Resources Corp. On July 22, 2008, the Company changed its name to Neohydro Technologies Corp.

On August 1, 2014, the Company's name changed from Neohydro Technologies Corp. to Epoxy, Inc. in furtherance of actions taken on May 23, 2014, when the Board of Directors of the Company (the "Board") approved, and recommended to the Majority Stockholders that they approve the name change. On May 27, 2014, the Majority Stockholders approved the name change by written consent in lieu of a meeting, in accordance with Nevada law. On August 4, 2014, the Company submitted the name change to FINRA for their review and approval, as well as the approval of a symbol change from NHYT to EPXY. The Company filed an amendment to our Articles of Incorporation with the Secretary of State of Nevada changing our name to Epoxy, Inc. effective on August 1, 2014.

On March 16, 2016 pursuant to approval by the board of directors and shareholders, the Company filed an Amendment to its Articles of Incorporation increasing the authorized shares to 900,000,000 with 850,000,000 common and 50,000,000 preferred shares . On September 28, 2016, the Company's board of directors and majority shareholder approved a further increase of the Company's authorized share capital from 850,000,000 common shares to 1,950,000,000 common shares. The Company filed the amendment with the State of Nevada on November 21, 2016. On November 7, 2017, the Company's board of directors and majority shareholder approved a further increase of the Company's authorized share capital from 1,950,000,000 common shares to 4,450,000,000 common shares. The Company filed the amendment with the State of Nevada on January 11, 2018.

The Company, initially through its wholly owned subsidiary, Couponz, Inc., and now primarily via operations undertaken by Epoxy, Inc directly, is the developer of Epoxy app, an application or "app" for iPhone iOS and Android operating systems. Epoxy is an innovative smart phone application designed and created to conveniently connect business owners and consumers in order to ease marketing frustrations. The mobile app gives loyal customers the ease of keeping track of rewards and punch cards all in one place while also giving opportunities to review and share businesses with friends. In turn, Epoxy provides businesses the ability to reward customers, share offers, and deliver information about special events with their customers.

Financial Statements Presented

The accompanying unaudited financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions for Form 10-Q and Article 210 8-03 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. All such adjustments are of a normal recurring nature. Operating results for the ~~nine~~three months ended ~~September~~March 3031, ~~2017~~2018, are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, ~~2017~~2018. For further information, refer to the financial statements and footnotes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, ~~2016~~2017 as filed with the Securities and Exchange Commission on ~~December~~June 298, ~~2017~~2018.

Note 2 – Going Concern

For the ~~nine~~three months ended ~~September~~March 3031, ~~2017~~2018, the Company used net cash in operations of $5221,~~952~~967. In addition, the Company had a working capital deficit as of ~~September~~March 3031, ~~2017~~2018. The Company believes that its existing capital resources may not be adequate to enable it to execute its business plan. These conditions raise substantial doubt as to the Company's ability to continue as a going concern. The Company estimates that it will require additional cash resources during ~~2017~~2018 based on its current operating plan and condition. The Company expects cash flows from operating activities to improve, primarily as a result of an increase in revenue and a decrease in certain operating expenses, although there can be no assurance thereof. The accompanying consolidated financial statements do not include any adjustments that might be necessary should we be unable to continue as a going concern. If we fail to generate positive cash flow or obtain additional financing, when required, we may have to modify, delay, or abandon some or all of our business and expansion plans.

F-4

EPOXY, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 3- Fair Value Measurements

FASB ASC 820, Fair Value Measurements and Disclosures, defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. FASB ASC 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. FASB ASC 820 describes three levels of inputs that may be used to measure fair value:

Level 1 – Quoted prices in active markets for identical assets or liabilities.

Level 2 – Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 – Unobservable inputs that are supported by little or no market activity and that are financial instruments whose values are determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant judgment or estimation.

If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization is based on the lowest level of input that is significant to the fair value measurement of the instrument.

The following table provides a summary of the fair value of our derivative liabilities as of ~~September~~March 3031, ~~2017~~2018 and December 31, ~~2016~~2017:

Fair value measurements on a recurring basis

~~Fair value measurements on a recurring basis~~

Level 1

~~Level 1~~

Level 2

~~Level 2~~

Level 3

~~Level 3~~

As of September 30, 2017:

As of March 31, 2018:

Liabilities

Derivative liabilities

~~401~~647,~~632~~697

As of December 31, 2016:

As of December 31, 2017:

Liabilities

Derivative liabilities

~~109~~497,~~403~~988

Note 4- Loans Payable

The Company has received loans from ~~arms length~~ third parties in prior fiscal years ~~in the gross amount of $32~~,~~000,~~ accruing interest at rates of between 5% and 10% with default interest rates of between 10% and $16%. The loans are in default and due on demand as at ~~September~~March 3031, ~~2017~~2018 and December 31, ~~2016~~2017:

	Note Payable			Accrued interest
Balance, December 31, 2015	$	32,000		$	2,825
Balance, December 31, 2016	$	17,000		$	4,218
Additions		-			71,~~424~~848
Debt assignment		(15,000	)		(6,031	)
Balance, December 31, 2017		17,000			6,066
Balance, December 31, 2016		17,000			4,218
Additions		-			456
Additions					1,382
Balance, March 31, 2018	$	17,000		$	6,522
Balance, September 30, 2017	$	17,000		$	5,600

On July 13, 2016, a total of $15,000 in principal and $6,031 in accrued interest payable to Andara Investments Limited (formerly known as Adam's Ale) was acquired by GW Holdings Group LLC. The Company issued a convertible replacement note in the principal amount of $21,031 to GW on July 21, 2016. (ref Note 5- Convertible Notes (4))

F-5

EPOXY, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 5- Convertible Notes

~~(1)~~At ~~Convertible~~March ~~notes~~31, ~~originally~~2018 ~~due~~and onDecember ~~November~~31, 272017, ~~2015~~convertible ~~(CN#1)~~notes payable consisted of the following:

On November 27, 2012, the Company entered certain convertible loan agreements with four (4) investors. The Company received a total of $125,000 which bears interest at 10% per annum and is due on November 27, 2015. Interest shall accrue from the advancement date and shall be payable quarterly. Any portion of the loan and unpaid interest are convertible at any time at the option of the lender into shares of common stock of the Company at a conversion price of $0.0005 per share. On the date of the agreements, the Company recognized the intrinsic value of the embedded beneficial conversion feature of $125,000 as additional paid-in capital and reduced the carrying value of the convertible debenture to $nil. The carrying value will be accreted over the term of the convertible debentures up to its face value of $125,000.

	March 31, 2018			December 31, 2017
Principal amount	$	226,180		$	205,430
Less: unamortized debt discount		(22,343	)		(11,721	)
Financing costs		(894	)		(565	)
Convertible notes payable, net	$	202,943		$	193,144

(1)	Convertible notes originally due on November 27, 2015

On November 27, 2012, the Company entered certain convertible loan agreements with four (4) investors. The Company received a total of $125,000 which bears interest at 10% per annum and is due on November 27, 2015. Interest shall accrue from the advancement date and shall be payable quarterly. Any portion of the loan and unpaid interest are convertible at any time at the option of the lender into shares of common stock of the Company at a conversion price of $0.0005 per share. On the date of the agreements, the Company recognized the intrinsic value of the embedded beneficial conversion feature of $125,000 as additional paid-in capital and reduced the carrying value of the convertible debenture to $0. The carrying value will be accreted over the term of the convertible debentures up to its face value of $125,000.

On August 1, 2014, the Company successfully amended the terms of the aforementioned loan agreements. Under the amended terms, a total of $125,000 originally available for conversion into 250,000,000 shares of common stock at $0.0005 per share was amended to reflect a fixed conversion price of $0.005 per share for a total of 25,000,000 shares of common stock, if converted.

The Company analyzed the above amendment under ASC 470-60 and concluded that the amendment to the conversion terms qualified as a substantial modification, and as such the remaining unamortized discount of $88,184 as of the amendment date, was recorded as loss on extinguishment of debt. The Company recalculated the intrinsic value of the embedded beneficial conversion feature of $125,000, which amount was recorded as the discount on the amended convertible notes. The carrying value will be accreted over the term of the convertible notes up to their face value of $125,000.

Concurrently, in August 2014, the conversion features in respect to these notes became tainted upon the issuance of other variable rate convertible debt. Accordingly, we accounted for the conversion options in respect to these notes as derivative liabilities.

On July 16, 2015, the Company again amended the terms of the convertible loan agreements for a total of $125,000 to extend the maturity date from November 27, 2015 to April 16, 2016. Subsequently, the parties agreed the notes would mature on January 1, 2017. The notes were further modified whereby they do not become convertible until maturity.

Upon the change to the terms of the convertible notes, the Company analyzed the conversion feature for derivative accounting consideration under FASB ASC 470 and determined that the conversion feature would not create embedded derivatives until maturity, January 1, 2017.

Further upon maturity, and due to the continuing existence of other variable rate convertible debt, we accounted for the conversion options in respect to these notes as derivative liabilities. As a result on January 1, 2017 we recorded a loss on derivative liabilities of $21,140. At the nine months ended September 30, 2017 we revalued the derivative liabilities and recorded a gain of $10,009.

The carrying value of these convertible notes is as follows:

	September 30, 2017		December 31, 2016		December 31, 2015
Face value of certain convertible notes		125,000		125,000		125,000
Less: unamortized discount		-		-		-
Carrying value		125,000		125,000		125,000

As at September 30, 2017 and December 31, 2016, the carrying values of the convertible debenture was $125,000.

During the three and nine months ended September 30, 2017, accrued convertible interest thereon was $3,116 and $9,349 respectively.

The notes came due on January 1, 2017 and are currently in default.

F-6

EPOXY, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 5- Convertible Notes (continued)

(21) Convertible ~~note~~notes originally due on ~~January~~November 2527, ~~2017~~2015 (~~CN#2~~cont'd)

~~On January 25, 2016, the Company entered into a convertible loan agreement with an investor.~~ The ~~Company~~carrying ~~received~~value ~~net proceeds totaling $30,000 from total loan proceeds~~ of ~~$35,000,~~these ~~which~~convertible ~~bears~~notes ~~interest at 8% per annum and~~ is ~~due~~as on January 25, 2017. Financing fees of $3,000 and legal fees of $2,000 were paid in respect of the note. Interest shall accrue from the advancement date and shall be payable on maturity. Any portion of the loan and unpaid interest are convertible at any time at the option of the lender into shares of common stock of the Company at a conversion price of 52% of the lowest trading prices for the previous twelve (12) trading days to the date of conversion.follows:

As ofat ~~December~~March 31, ~~2016,~~2018 ~~the~~and ~~balance~~December ~~payable~~31, on2017, CNthe #2carrying ~~includes~~values ~~$35,000~~of inthe ~~principal from~~ convertible ~~notes~~debenture ~~and~~was $2125,~~616 in accrued interest payable~~000.

~~The~~During ~~following table reflects~~ the ~~details~~three ofmonths ~~the~~ended ~~issuance~~March ~~of 290~~31,~~187,136~~ ~~shares~~2018 ~~in respect of Conversion Notices received for a total of $35,000 in principal~~ and $22017,~~792~~ in accrued convertible interest ~~from~~thereon ~~CN#2~~was ~~with~~ $3,~~520 in transfer agent fees during the nine months ended September 30, 2017:~~116.

Conversion Date	Original Principal Amount ($)		Accrued interest payable ($)		Transfer Agent Fees ($)		Conversion Price ($)		Number of shares issued
January 4, 2017		5,000		-	$	-		0.000312		16,025,641
January 9, 2017		6,660		-		440		0.000260		27,307,692
January 12, 2017		4,458		-		440		0.000156		31,397,436
January 17, 2017		4,702		-		440		0.000156		32,961,538
January 18, 2017		4,959		-		440		0.000156		34,608,974
January 19, 2017		3,272		-		440		0.000104		35,692,308
January 23, 2017		3,396		-		440		0.0000936		40,980,235
January 24, 2017		1,553		2,033		440		0.0000936		43,015,491
January 26, 2017		1,000		759		440		0.00007799		28,197,821
Total		35,000		2,792		3,520				290,187,136

The notes came due on January 1, 2017 and are currently in default.

As(2) ofConvertible ~~September~~note ~~30,~~due ~~2017, the~~on ~~principal~~January ~~amount~~25, ~~and all accrued interest payable with respect to the aforementioned convertible notes was paid in full with issuance of common stock.~~2017

~~(3)~~On ~~Convertible~~January ~~note~~25, 2016, the Company entered into a convertible loan agreement with an investor. The Company received net proceeds of $30,000 from total loan proceeds of $35,000, which bears interest at 8% per annum and is due on ~~May~~January 2425, 2017. ~~(CN#~~Financing fees of $3,000 and legal fees of $2,000 were paid in respect of the note. Interest shall accrue from the advancement date and shall be payable on maturity. Any portion of the loan and unpaid interest are convertible at any time at the option of the lender into shares of common stock of the Company at a conversion price of 52% of the lowest trading prices for the previous twelve (12) trading days to the date of conversion.

OnIn ~~May~~January 202017, ~~2016,~~ the ~~Company~~noteholder ~~entered~~gave ~~into~~notice aof ~~convertible~~conversion ~~loan~~and ~~agreement~~the ~~with an investor. The~~ Company ~~received~~issued ~~net proceeds totaling $46~~290,~~000~~187,136 ~~from~~shares ~~total loan proceeds~~ of ~~$41,500,~~its ~~which~~common ~~bears~~stock ~~interest~~in atfull 8%satisfaction ~~per~~of ~~annum~~the ~~and~~entire isprincipal ~~due on May 24, 2017. Financing fees~~ of $235,~~500~~000 and ~~legal~~accrued ~~fees~~interest balance of $2,~~000~~792 ~~were~~with ~~paid~~$3,520 in ~~respect~~transfer ofagent ~~the note~~fees. Interest shall accrue from the advancement date and shall be payable on maturity. Any portion of the loan and unpaid interest are convertible at any time at the option of the lender into shares of common stock of the Company at a conversion price of a 45% discount to the lowest trading prices for the previous twenty (20) trading days to the date of conversion.

(3)	Convertible note due on May 24, 2017

On May 20, 2016, the Company entered into a convertible loan agreement with an investor. The Company received net proceeds of $46,000 from total loan proceeds of $41,500, which bears interest at 8% per annum and is due on May 24, 2017. Financing fees of $2,500 and legal fees of $2,000 were paid in respect of the note. Interest shall accrue from the advancement date and shall be payable on maturity. Any portion of the loan and unpaid interest are convertible at any time at the option of the lender into shares of common stock of the Company at a conversion price of a 45% discount to the lowest trading prices for the previous twenty (20) trading days to the date of conversion.

During the three months period ended March 31, 2017 the noteholder gave notice of conversion and the Company issued 726,933,349 shares of its common stock in full satisfaction of the entire principal of $46,000 and accrued interest balance of $2,625

On January 11, 2017, the Company received net proceeds of $41,500 with respect to the backend feature of this Convertible Note. Financing fees of $2,500 and legal fees of $2,000 were paid in respect of the backend note which bears interest at 8% per annum and is due on May 24, 2017. During the quarter ended June 30, 2017 the convertible note fell into default due to the Company failure to be current in its filings with the Securities and Exchange Commission. Upon an event of default, the interest rate is increased to 24% per annum. On May 24, 2017, this Note remained unpaid at maturity, and the outstanding principal due under this Note was increased by 8%, or $3,680.

As at March 31, 2018 the carrying value of the back-end convertible debenture and accrued convertible interest thereon were $49,680 and $12,045 respectively. As at December 31, 2017 the carrying value of the back-end convertible debenture and accrued convertible interest thereon were $49,680 and $9,105, respectively.

F-7

EPOXY, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 5- Convertible Notes (continued)

(34) Convertible note due on ~~May~~July 2413, 2017 ~~(CN#3) (cont'd)~~

The following table reflects the details of the issuance of 726,933,349 shares in respect of Conversion Notices received for a total of $46,000 in principal and $2,625 in accrued interest from CN#3 during the nine months ended September 30, 2017:

Conversion Date	Original Principal Amount ($)		Accrued interest payable ($)		Conversion Price ($)		Number of shares issued
January 12, 2017		2,500		126		0.00012		21,883,561
January 18, 2017		2,700		140		0.00008		35,495,753
January 24, 2017		3,250		172		0.00008		42,779,794
January 31, 2017		2,750		150		0.00006		48,334,703
February 1, 2017		2,900		159		0.00006		50,981,735
February 2, 2017		2,900		160		0.00006		50,992,328
February 3, 2017		2,900		160		0.00006		51,002,922
February 7, 2017		3,300		185		0.00006		58,086,027
February 90, 2017		3,300		186		0.00006		58,110,136
February 10, 2017		3,650		207		0.00006		64,286,666
February 15, 2017		3,825		221		0.00006		67,438,767
February 17, 2017		4,025		235		0.00006		70,9943,83
March 21, 2017		5,250		343		0.00008		69,911,301
March 23, 2017		2,750		181		0.00008		36,635,273
Total		46,000		2,625				726,933,349

As of September 30, 2017, the principal amount and all accrued interest payable with respect to the aforementioned convertible notes was paid in full with issuance of common stock.

On January 11, 2017, the Company received net proceeds of $41,500 with respect to the backend feature of this Convertible Note. Financing fees of $2,500 and legal fees of $2,000 were paid in respect of the backend note which bears interest at 8% per annum and is due on May 24, 2017. During the quarter ended June 30, 2017 the convertible note fell into default due to the Company failure to be current in its filings with the Securities and Exchange Commission. Upon an event of default the interest rate is increased to 24% per annum. On May 24, 2017, this Note remained unpaid at maturity, and the outstanding principal due under this Note was increased by 8%, or $3,680.

As at September 30, 2017 the carrying values of the back-end convertible debenture and accrued convertible interest thereon were $49,680 and $6,099, respectively.

(4) Convertible note due on July 13, 2017 (CN#4)

On July 13, 2016 a total of $15,000 in principal and $6,031 in accrued interest payable to Andara Investments Limited (formerly known as Adam's Ale) was acquired by GW Holdings Group LLC. The Company issued a replacement note in the principal amount of $21,031 to GW on July 21, 2016 which convertible note bears interest at 8% per annum and is due on July 13, 2017. Interest shall accrue from the advancement date and shall be payable on maturity. Any portion of the loan and unpaid interest are convertible at any time at the option of the lender into shares of common stock of the Company at a conversion price of a 52% discount to the lowest trading prices for the previous twenty (20) trading days to the date of conversion.

~~The~~During ~~following~~the ~~table~~year ~~reflects~~ended December 31, 2016, the ~~issuance~~Company ofissued 49,290,170 shares in respect of Conversion Notices received for a total of $10,731 in principal and $137 in accrued interest, ~~during~~and ~~the~~in ~~year~~January ~~ended December 31~~2017, ~~2016 and~~ the ~~issuance~~Company issued 52,933,533 shares in respect of Conversion Notices received for a total of $10,300 in principal and $278 in accrued interest ~~during~~in ~~the~~January ~~nine months ended September 30,~~ 2017:.

(5)	Convertible note due on January 5, 2018

On July 5, 2017, the Company entered into a convertible loan agreement with an investor. The Company received total loan proceeds $15,000, which bears interest at 5% per annum and is due on January 5, 2018. Upon an event of default, the interest rate is increased to 15% per annum. Interest shall accrue from the advancement date and shall be payable on maturity. Any portion of the loan and unpaid interest are convertible at any time at the option of the lender into shares of common stock of the Company at a conversion price of a 50% discount to the lowest trading prices for the previous twenty (20) trading days to the date of conversion.

As at March 31, 2018 the carrying value of the convertible debenture and accrued convertible interest thereon were $15,000 and $902, respectively. As at December 31, 2017 the carrying value of the convertible debenture and accrued convertible interest thereon were $14,592 and $368, respectively.

(6)	Convertible note due on September 27, 2018

On September 27, 2017, the Company entered into a Securities Purchase Agreement ("SPA") with an investor where under the Company will issue four 8% convertible redeemable notes in the aggregate principal amount of $63,000 with the first note being $15,750 funded on October 4, 2017, with financing cost of $750, and the rest will be funded in future periods, convertible into shares of the Company's common stock with a maturity date on September 27, 2018. On January 15, 2019 a further $15,000, inclusive of $750 in legal fees, and on March 8, 2018 additional $5,000, had been received. Any portion of the loan and unpaid interest are convertible at any time at the option of the lender into shares of common stock of the Company at a conversion price of a 45% discount to the lowest trading prices for the previous twenty (20) trading days to the date of conversion.

As at March 31, 2018 the carrying value of the convertible debenture and accrued convertible interest thereon were $13,263 and $918, respectively. The unamortized debt discount was

$23,237 and $11,878, respectively as of March 31, 2018 and December 31, 2017, and the carrying value of the convertible debenture and accrued convertible interest thereon was $3,872 and $304, respectively.

In our evaluation of the aforementioned financing arrangements, we concluded that the conversion features were not afforded the exemption as a conventional convertible instrument and it did not otherwise meet the conditions set forth in current accounting standards for equity classification. Accordingly, they do not meet the conditions necessary to obtain equity classification and are required to be carried as derivative liabilities. (See footnote 7 for derivative disclosure)

F-8

EPOXY, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 5- Convertible Notes (continued)

~~(4)~~The ~~Convertible~~following ~~note~~table ~~due~~sets onforth ~~July~~interest ~~13,~~expense ~~2017~~for ~~(CN#4)~~amortization ~~(cont'd)~~of the debt discount and financing costs recognized related to the above convertible notes:

Conversion Date		Original Principal Amount ($)				Accrued interest payable ($)		Conversion Price ($)		Number of shares issued
	Three Months ended March 31,
September 7, 2016			4,800				5		0.00020		24,026,301
	2018			2017
December 13, 2016			5,931				133		0.00024		25,263,869
Amortization of financing costs	$	422		$	4,692
January 5, 2017			5,150				141		0.00020		26,455,479
Amortization of debt discount		9,377			51,524
January 9, 2017			5,150				146		0.00020		26,478,054
Total	$	9,799		$	56,216
Total			21,031				425				102,223,703

As of September 30, 2017, the principal amount and all accrued interest payable with respect to the aforementioned convertible notes was paid in full with issuance of common stock.

(5) Convertible note due on January 5, 2018 (CN#5)

On July 5, 2017, the Company entered into a convertible loan agreement with an investor. The Company received total loan proceeds $15,000, which bears interest at 5% per annum and is due on January 5, 2018. Interest shall accrue from the advancement date and shall be payable on maturity. Any portion of the loan and unpaid interest are convertible at any time at the option of the lender into shares of common stock of the Company at a conversion price of a 50% discount to the lowest trading prices for the previous twenty (20) trading days to the date of conversion.

The carrying value of certain convertible notes (CN#2, CN#3, CN#4, C#5) are as follows:

	CN#2			CN#3			CN#4			CN#5			Total
Carrying value, December 31, 2016	$	32,699		$	27,853		$	5,665		$	-		$	64,112
Face value of certain convertible notes		35,000			46,000			21,031			-			102,031
Add: Face value of certain convertible notes		-			46,000			-			15,000			61,000
Face value due to default					3,680						-			3,680
Less: Face value converted to shares		(35,000	)		(46,000	)		(21,031	)		-			(102,031	)
Less: unamortized discount					-			-			(7,908	)		(7,908	)
Less: deferred financing costs					-			-			-			-
Carrying value, September 30, 2017	$	-		$	49,680		$	-		$	7,092			56,772

Amortization of the discount over the three and nine months ended September 30, 2017 totaled $7,092 and $81,855, respectively. Amortization of the discount over the three and nine months ended September 30, 2016 totaled $25,619 and $134,959, respectively.

Amortization of deferred financing costs over the three months and nine months ended September 30, 2017 totaled $nil and $6,605, respectively. Amortization of deferred financing costs over the three and nine months ended September 30, 2016 totaled $2,394 and $14,639, respectively.

F-9

EPOXY, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Unaudited

Note 6 – Common Stock and Stock-Based Compensation

On November 7, 2017 the Board of Directors and majority shareholders approved the authorization of an increase of the authorized shares of the Company to an aggregate number of Four and a Half Billion (4,500,000,000) of which 4,450,000,000 will be common stock, with a par value of $0.00001 per share, and Fifty Million (50,000,000) shares will be preferred stock, with a par value of $0.00001 per share. ~~The Amendment has been retroactively affected as of the date of the filing of this report.~~

Common stock

~~The~~As ~~following~~described more fully above in Note 5, the Company issued 1,070,054,018 shares of common stock to settle certain convertible notes and accrued interest payable during the year ended December 31, 2017. There were ~~issued~~no inshare issuances during the ~~nine~~three months ended ~~September~~March 3031, ~~2017~~2018.

Issuance Date		Conversion Price/FMV ($)		Number of shares issued		Amount ($)
January 6, 2017	Conversion of debt		0.000312		16,025,641		5,000
January 10, 2017	Conversion of debt		0.00020		26,455,479		5,291
January 11, 2017	Conversion of debt		0.00020		26,478,054		5,296
January 11, 2017	Conversion of debt		0.000260		27,307,692		7,100
January 13, 2017	Conversion of debt		0.000156		31,397,436		4,898
January 17, 2017	Conversion of debt		0.000156		32,961,538		5,142
January 18, 2017	Conversion of debt		0.00012		21,883,561		2,626
January 19, 2017	Conversion of debt		0.00008		35,495,753		2,840
January 19, 2017	Conversion of debt		0.000156		34,608,974		5,399
January 20, 2017	Conversion of debt		0.000104		35,692,308		3,712
January 23, 2017	Conversion of debt		0.0000936		40,980,235		3,836
January 26, 2017	Conversion of debt		0.0000936		43,015,491		4,026
January 26, 2017	Conversion of debt		0.00008		42,779,794		3,422
January 27, 2017	Conversion of debt		0.00007799		28,197,821		2,199
January 31, 2017	Conversion of debt		0.00006		48,334,703		2,900
February 3, 2017	Conversion of debt		0.00006		50,981,735		3,059
February 3, 2017	Conversion of debt		0.00006		50,992,328		3,060
February 6, 2017	Conversion of debt		0.00006		51,002,922		3,060
February 8, 2017	Conversion of debt		0.00006		58,086,027		3,485
February 10, 2017	Conversion of debt		0.00006		58,110,136		3,486
February 13, 2017	Conversion of debt		0.00006		64,286,666		3,857
February 16, 2017	Conversion of debt		0.00006		67,438,767		4,046
February 21, 2017	Conversion of debt		0.00006		70,9943,83		4,260
March 24, 2017	Conversion of debt		0.00008		69,911,301		5,593
March 27, 2017	Conversion of debt		0.00008		36,635,273		2,931
Total					1,070,054,018		100,524

As at March 31, 2018 and December 31, 2017 the Company had 1,602,995,014 shares of common stock issued and outstanding

Included in above table are shares issued to reimburse transfer agent fees paid by the note holders in respect to shares issued upon receipt of conversion notices, in the cummulative amount of $3,520. The cummulative loss recorded based on the fair market value of the shares issued to settle transfer agent fees was $4,284 which amount as been expensed as transfer agent fees.

Series A Preferred Shares

As at ~~September~~March 3031, ~~2017~~2018 and December 31, ~~2016~~2017 the Company had 25,080,985 Series A Preferred Shares issued and outstanding, each carrying conversion rights of 2.5 common shares to each 1 share of Series A Preferred Stock and voting rights of 15 to 1, compared to common stock.

~~F-10~~On September 16, 2015 pursuant to approval by the Board of Directors, the registrant filed a Certificate of Designation for its Class B preferred shares under which it was designated that there should be 15,000,000 Class B preferred shares with par value of $0.00001 each of which shall have voting rights of 1,000 to 1 as compared to common stock but no conversion rights.

F-9

EPOXY, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 6 – Common Stock and Stock-Based Compensation (continued)

Series B Preferred shares

On September 16, 2015 pursuant to approval by the Board of Directors, the registrant filed a Certificate of Designation for its Class B preferred shares under which it was designated that there should be 15,000,000 Class B preferred shares with par value of $0.00001 each of which shall have voting rights of 1,000 to 1 as compared to common stock but no conversion rights.

On October 6, 2015, the Board of Directors authorized the issuance of 1,000,000 Class B preferred shares to David Gasparine, the CEO, for services rendered to the corporation. The shares issued to David Gasparine are not registered under the Securities Act. These shares will be issued relying upon the exemption from the registration requirements provided under Sections 4(a) or 3(b) of the Securities Act.

Note 7 - Derivative Liabilities

On August 22, 2014, the Company entered into a convertible loan agreement with an investor (the "CN#1") which the Company concluded are tainted due to the variable conversion rate of the below convertible notes and as such they do not meet the conditions necessary to obtain equity classification and are required to be carried as derivative liabilities.

On January 25, 2016, the Company entered into a convertible loan agreement with an investor. The Company received net proceeds totaling $30,000 from total loan proceeds of $35,000, which bears interest at 8% per annum and is due on January 25, 2017. Financing fees of $3,000 and legal fees of $2,000 were paid in respect of the note. Interest shall accrue from the advancement date and shall be payable on maturity. Any portion of the loan and unpaid interest are convertible at any time at the option of the lender into shares of common stock of the Company at a conversion price of 52% of the lowest trading prices for the previous twelve (12) trading days to the date of conversion.

On May 24, 2016, the Company entered into a convertible loan agreement with an investor. The Company received net proceeds of $41,500 from total loan proceeds of $46,000, which bears interest at 8% per annum and is due on May 24, 2017. During the period ended March 31, 2017 the Company received a further $41,500 ($46,000 gross proceeds) in respect of a backend note forming part of the original convertible loan agreement which allowed for additional funds to be advanced under the same terms as the original note at a subsequent date to the original loan agreement. Financing fees of $2,500 and legal fees of $2,000 were paid in respect of each note. Interest shall accrue from the advancement date and shall be payable on maturity. Any portion of the loan and unpaid interest are convertible at any time at the option of the lender into shares of common stock of the Company at a conversion price of a 45% discount to the lowest trading prices for the previous twenty (20) trading days to the date of conversion.

On July 5, 2017, the Company entered into a convertible loan agreement with an investor. The Company received total loan proceeds $15,000, which bears interest at 5% per annum and is due on January 5, 2018. Interest shall accrue from the advancement date and shall be payable on maturity. Any portion of the loan and unpaid interest are convertible at any time at the option of the lender into shares of common stock of the Company at a conversion price of a 50% discount to the lowest trading prices for the previous twenty (20) trading days to the date of conversion.

~~F-11~~On September 27, 2017, the Company entered into a Securities Purchase Agreement ("SPA") with an investor where under the Company will issue four 8% convertible redeemable notes in the aggregate principal amount of $63,000 with the first note being $15,750 funded on October 4, 2017, with financing cost of $750, and the rest will be funded in future periods, convertible into shares of the Company's common stock with a maturity date on September 27, 2018. On January 15, 2018 a further $15,000, inclusive of $750 in legal fees, and on March 8, 2018 additional $5,000, had been received. Any portion of the loan and unpaid interest are convertible at any time at the option of the lender into shares of common stock of the Company at a conversion price of a 45% discount to the lowest trading prices for the previous twenty (20) trading days to the date of conversion. Upon issuance, a total of $26,387, the day one loss on the notes, was recorded as a change in the fair value of the derivative liability.

EPOXY, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Unaudited

Note 7 - Derivative Liabilities (continued)

Since equity classification is not available for the conversion feature, we were required to bifurcate the embedded conversion feature and carry it as a derivative liability, at fair value. Derivative financial instruments are carried initially and subsequently at their fair values.

We estimated the fair value of the derivative on the inception dates, and subsequently, using the Black-Scholes Merton valuation technique, adjusted for the effect of dilution, because that technique embodies all of the assumptions (including, volatility, expected terms, and risk-free rates) that are necessary to fair value complex derivate instruments.

As a result of the application of ASC No. 815 in period ended ~~September~~March 3031, ~~2017~~2018 and December 31, ~~2016~~2017, the fair value of the conversion feature associated with the convertible loans is summarized as follows:

Balance at December 31, 2016	$	109,403
Balance at December 31, 2017	$	497,988
Recognition of derivative associated with tainted instruments		21,140
Derivative additions associated with convertible notes		20,000
Derivative additions associated with convertible notes		64,680
Loss on change in fair value during the period		129,709
Derivative liability reclassified as additional paid-in capital associated with conversion of debt		(475,922	)
Balance at March 31, 2018	$	647,697
Loss on change in fair value during the period		682,331
Balance at September 30, 2017	$	401,632

The fair value at the commitment and re-measurement dates for the Company's derivative liabilities were based upon the following management assumptions as of ~~September~~March 3031, ~~2017~~2018, December 31, ~~2016~~2017 and commitment date:

Commitment Date

~~Commitment Date~~

March 31, 2018

~~December 31, 2016~~

December 31, 2017

~~September 30, 2017~~

Expected dividends

Expected volatility

319.13%~453.80%

~~319.13%~324~~

286.05%~361.56%

~~286.05%~361.56%~~

572.51% ~ 1,194%

~~290.11%~~

Expected term

0 ~ 0.98 years

~~0 ~ 0.50 years~~

0.07~0.53 years

~~0.07~0.53 years~~

0 ~ 0.74 years

~~0.27 years~~

Risk free interest rate

0.55~1.33%

~~0.55~1.15%~~

0.44~0.62%

~~0.44~0.62%~~

1.28% ~ 1.65%

~~1.06%~~

F-10

EPOXY, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 8 - Commitments

(1)	Office Lease

On April 16, 2015 the Company entered into a six-month lease commencing April 1, 2015 with certain other third parties in respect of a shared office and residential premises located in San Diego, California. The Company's obligation under the terms of the lease was $875 per month plus utilities. The Company paid a security deposit of $875 and the first two months rent totaling $1,750 upon signing of the contract. Effective November 1, 2015, the Company agreed to a rent increase to $925 per month plus utilities. The Company did not enter into a formal renewal agreement and the lease is now operating on a month to month basis.

(2)	Vehicle Lease

On July 29, 2016 the Company entered into a closed end motor vehicle lease for a 36 months term with an initial deposit of $1,200 and a monthly payment of $897, due on the first of each month. The lease does not meet the criteria of a capital lease and therefore the amounts are expended on a monthly basis and included in operating expenses. The lease was personally ~~guarantees~~guaranteed by our President, Mr. David Gasparine. At the end of the term, the vehicle may be purchased for $35,568.

Future minimum payments under the terms of the aforementioned lease are as follows:

2017 - $2,690

2018 - $10,761

2019 - $6,277

F-12

EPOXY, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Unaudited

Note 9 – Related Party Transactions

Transactions with David Gasparine

On August 28, 2014, the Company entered into an employment agreement with David Gasparine, president of the Company, for management services. The employment agreement became effective as of September 1, 2014. Under the employment agreement, the base salary is of $36,000 per annum, paid monthly. The amount of base salary shall be determined by the Board of Directors and may be increased, but not decreased, from time to time by the Board of Directors of the Company. In ~~addition~~October ~~to the base salary~~2015, ~~Mr. Gasparine shall be eligible for periodic bonuses in amounts to be determined by~~ the ~~Board of Directors. In January 2015 the~~ board agreed to increase Mr. Gasparine's salary tounder ~~$57,600~~an ~~per~~employment ~~year,~~agreement ~~with~~originally aentered ~~further~~into ~~salary~~during ~~increase~~fiscal 2014 to $72,000 per annum ~~effective October 1, 2015~~.

During the three ~~and nine~~ months ended ~~September~~March 3031, 2018 and 2017, the Company accrued additional fees of $3618,000 ~~and~~respectively ~~$54,000,~~for ~~respectively~~services provided by Mr. Gasparine. The Company paid $157,~~625~~000, net to Mr. Gasparine in the current three month period (2017 - $6,640), leaving $7496,~~963~~191 and $86,731, respectively, on the balance sheets as accounts payable and accrued liabilities – related parties as at March 31, 2018 and December 31, 2017.

Transactions with Mary Gasparine

On September 12, 2016 the Company received proceeds of $12,000 secured by a promissory note from Mary Gasparine, the mother of our CEO, President and a director. The loan bears interest at 12% per annum and matures on September 12, 2017. As at ~~September~~March 3031, 2018 and December 31, 2017 a cumulative total of $1,~~259~~862 and $1,562, respectively, has been accrued as interest expense in respect to the aforementioned loan and recorded on the balance sheets as accounts payable and accrued liabilities – related party. On September 12, 2017 this loan came due and payable, including all accrued interest thereon. This loan is presently in default.

~~Note 10 – Deferred Revenue~~F-11

(a) During the three months ended March 31, 2016 the Company entered into various agreements with a telephone service provider (the "Client") for the launch of the Epoxy App at its corporate and franchise locations. Under the terms of the agreement, Epoxy would offer training to the corporate location and the term would run twelve months from the launch of the Epoxy App. As consideration the Company would receive fees from certain locations in advance, totaling $23,400. Subsequent to the execution of the agreements the Client revised its corporate focus. As a result, the Company has recorded the entire fee remitted as deferred revenue until such time as a formal unwinding of the agreement is complete. As at December 31, 2016 and September 30, 2017, the amounts received remain in deferred revenue as the Company has not yet concluded the unwinding of the agreement. At the date this report, executive management of the Client has not responded to management requests to complete the formal unwinding of the agreement. (b) On March 31, 2016 the Company entered into an agreement with a third party to develop a customized EPOXY ~~app for gift and loyalty cards for each client. Under the terms of the agreement Epoxy will receive a development fee of $49~~,~~000~~ ~~which amounts were paid as to $30,000 on signing of the agreement, and $19,000 upon official launch of the pilot program, which occurred during the year ended December 31, 2016~~INC. All proceeds have been received under the contract and recorded as deferred revenue. These amounts are expected to be realized as income upon completion of the pilot program. However, as at the date of this report, executive management of the third party has not confirmed the program is complete. (c) On October 11, 2016 the Company entered into an agreement with a third party to develop a customized EPOXY app for gift and loyalty cards for each client. Under the terms of the agreement Epoxy will receive a development fee of $10,500 which amounts were paid on signing of the agreement. In addition to the development fees, Epoxy will receive monthly fee of $25 per location if locations number between 50-500 or less if the locations are over 500. The parties agreed to a mutual termination of the original agreement effective February 28, 2017 and all amounts were realized as income during the nine months ended September 30, 2017. (d) On November 9, 2016 the Company entered into an agreement with a third party for the development of a customized Epoxy app pilot program and branded corporate implementation. Under the terms of the agreement Epoxy will receive a development fee of $18,500 in the first phase which amounts were paid on signing of the agreement, and $42,750 in the second phase. In addition to the development fees in phase 1 and phase 2, Epoxy will receive monthly fee of $700 if locations number between 1-50 or more if the locations are over 50. These amounts will be realized as income upon completion of the pilot program in fiscal 2017. As at the date of this report this contract has moved from the "Pilot" phase into "Full Production" and is now live in the Canadian market under monthly pricing as agreed between the parties. During the nine months ended September 30, 2017, $18,500 deferred revenue was transferred to income.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 10 – Other Liability

(a)

During the three months ended March 31, 2016 the Company entered into various agreements with a telephone service provider (the "Client") for the launch of the Epoxy App at its corporate and franchise locations. Under the terms of the agreement, Epoxy would offer training to the corporate location and the term would run twelve months from the launch of the Epoxy App. As consideration the Company would receive fees from certain locations in advance, totaling $23,400. Subsequent to the execution of the agreements the Client revised its corporate focus. As a result, the Company has recorded the entire fee remitted as deferred revenue until such time as a formal unwinding of the agreement is complete. As at March 31, 2018 and December 31, 2017, the amounts received remain in other liability as the Company has not yet concluded the unwinding of the agreement. At the date this report, executive management of the Client has not responded to management requests to complete the formal unwinding of the agreement.

(b)

On March 31, 2016 the Company entered into an agreement with a third party to develop a customized EPOXY app for gift and loyalty cards for each client. Under the terms of the agreement Epoxy will receive a development fee of $49,000 which amounts were paid as to $30,000 on signing of the agreement, and $19,000 upon official launch of the pilot program, which occurred during the year ended December 31, 2016. All proceeds have been received under the contract. These amounts are expected to be realized as income upon completion of the pilot program. However, as at the date of this report, executive management of the third party has not confirmed the program is complete. As at March 31, 2018 and at December 31, 2017, the amounts received remained in other liability.

Note 11 – Subsequent events

OnThe ~~November 7, 2017 the Board of Directors of the~~ Company ~~amended~~has ~~the~~evaluated ~~rights~~subsequent ofevents ~~its Class B Preferred shares~~ from ~~voting~~the ~~rights~~balance ofsheet ~~1,000~~date tothrough 1the asdate ~~compared to common stock with no conversion rights, so~~ that ~~holders~~ of the ~~Class~~financial Bstatements ~~Preferred~~were ~~shares~~issued ~~shall~~and bedetermined ~~entitled~~that tothere ~~80%~~are ofno ~~the~~additional ~~total~~subsequent ~~votes~~events ~~on any matters brought~~ to ~~a vote of the holders of the Company's common stock~~disclose. ~~Class B Preferred shares continue to carry no conversion rights.~~

On November 7, 2017, the Company's board of directors and majority shareholder approved a further increase of the Company's authorized share capital from 1,950,000,000 common shares to 4,450,000,000 common shares. The Company filed the amendment with the State of Nevada on January 11, 2018.F-12

F-13

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION

This current report contains forward-looking statements relating to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as "may", "should", "intends", "expects", "plans", "anticipates", "believes", "estimates", "predicts", "potential", or "continue" or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors which may cause our or our industry's actual results, levels of activity or performance to be materially different from any future results, levels of activity or performance 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 or performance. You should not place undue reliance on these statements, which speak only as of the date that they were made. These cautionary statements should be considered with any written or oral forward-looking statements that we may issue in the future. Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results, later events or circumstances or to reflect the occurrence of unanticipated events.

In this report unless otherwise specified, all dollar amounts are expressed in United States dollars and all references to "common shares" refer to the common shares of our capital stock.

The management's discussion and analysis of our financial condition and results of operations are based upon our financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP").

The following discussion of our financial condition and results of operations should be read in conjunction with our audited financial statements for the fiscal year ended December 31, ~~2016~~2017, as filed with the Securities and Exchange Commission on ~~December~~June 298, ~~2017,~~2018 along with the accompanying notes. As used in this quarterly report, the terms "we", "us", "our", and the "Company" means Epoxy, Inc. and its wholly owned subsidiary Couponz, Inc.

Current Business

On July 19, 2013, the Company entered into an agreement to purchase Couponz, Inc. ("Couponz"), a company incorporated in the State of Nevada. Under the agreement, the Company had the right to acquire 100% of the ownership of Couponz, Inc. in exchange for the issuance of 24,514,319 shares of preferred stock of the Company and $100,000. The agreement provided for the preferred shares issued to be designated as 1 share of preferred to carry 15 shares of common voting rights and to be convertible into common shares on the basis of 2.5 shares of common for each 1 share of preferred. Mr. David Gasparine, the sole director of Epoxy Inc., is also the controlling shareholder of Couponz, Inc., and, as such, the transaction is considered to be non-arm's length. Mr. Gasparine became the controlling shareholder of the Company concurrent with the completion of the transaction.

On November 1, 2013, the Company completed the aforementioned transaction and Couponz, Inc. became a wholly owned subsidiary of the Company.

Our goal is to provide a simple and easy to use platform for consumers to find business information, including but not limited to product and service descriptions, promotions, loyalty programs, and customer reviews, as well as to provide business owners a simple and easy to use platform to promote their businesses to mobile app users. Through the use of research and development we will be able to continue evolving our platform and features provided for our users.

Epoxy~~, Couponz~~'s mobile app, is a "two-part" system that has a server that both a website and a mobile application access. The mobile app allows users to find local businesses that have an Epoxy membership. An app user can navigate to an individual business several ways. App users can find a specific business by searching for the specific name of the business, the category of the business or by the ~~App~~app users location and listed results on a Map View. App users can then filter the results of the businesses in the Map View by category. Once a business is chosen the app user is presented with a Business Landing Page or "BLP". The BLP displays information about that specific business that the business owner has input including operating hours, locations, menus, phone numbers as well as marketing such as digital loyalty cards and coupons. Within the BLP app users can also create reviews or "Sticky Notes" about that individual business and review other Sticky Notes that have been previously created. When an app user opens a loyalty card or offer the app has a built in scanner that allows the staff to "punch" or "redeem" either offer. A loyalty card is scanned multiple times and once completely filled is valid for a specified offer from the business owner. The app user can collect or "save" filled loyalty cards to redeem at a later time. A coupon is a one-time use offer that once redeemed will disappear from the device and become de-active. A business needs no equipment as the scanner is built into the Epoxy application that is required to scan each unique QR code. Epoxy provides each business with their own unique code that is used to track each loyalty card and offer. Each time an app user redeems an offer or digitally receives a punch the system tracks that information and displays it on a website administration panel for the business owner to track.

The website serves as a merchant login where merchants can access an administration panel that allows them to create their BLP and add digital punch cards, offers, events a and send out direct messages to individuals or groups in real-time. The admin panel also will provide the merchants with analytics such as the number of recipients for these direct messages, the number of punch cards and offers that have been used as well as the individual customers who are recommending that particular business (the referral system is a pending patent). This will allow the merchant to distinguish between different levels of consumers and compensate accordingly. This also adds a level of security and accuracy to the loyalty and coupon program that is not practical with a paper system.

~~Our~~The ~~pricing~~website ~~for~~serves as a merchant login where merchants iscan aaccess ~~simple~~an ~~flat~~administration ~~membership~~panel ~~fee~~that ofallows ~~$50~~them ato ~~month~~create their BLP and add digital punch cards, ~~without~~offers, ~~any~~events ~~contracts.~~and send out direct messages to individuals or groups in real-time. The ~~mobile~~admin ~~app~~panel isalso ~~free~~will provide the merchants with analytics such as the number of recipients for ~~consumers~~these todirect ~~download~~messages, the number of punch cards and offers that have been used as well as the individual customers who are recommending that particular business (the referral system is ~~available~~a onpending ~~both~~patent). This ~~Android~~will allow the merchant to distinguish between different levels of consumers and ~~Apple~~compensate ~~platform~~accordingly. This also adds a level of security and accuracy to the loyalty and coupon program that is not practical with a paper system.

~~We plan to expand geographically in stages. We have already obtained various customers beyond the Las Vegas market and into certain Southwestern United States, as well as client accounts in Canada.~~ Our ~~initial~~pricing ~~target~~ for ~~expansion~~individual ~~was~~merchants ~~focused~~is ona ~~Southern~~simple ~~California~~flat ~~but~~membership wefee ~~have been expanding to new markets as the opportunity presents itself. As~~ of ~~December~~$50 ~~2019 we plan to expand nationally by adding customers with~~ a ~~national~~month, ~~presence~~without toany ~~our portfolio~~contracts. The Asmobile weapp ~~experience~~is ~~each~~free ~~stage~~for ofconsumers ~~growth, we plan~~ to ~~increase our staff primarily through commission-based sales people~~download, asand ~~opposed~~is toavailable ~~salaried~~on orboth ~~hourly~~Android ~~wage~~and ~~employees,~~Apple ~~thus minimizing the financial burden of each stage of expansion~~platforms. We ~~believe~~are ~~that this plan for expansion will~~ also ~~minimize~~translating ~~the~~our ~~need~~application ~~for~~into ~~additional~~other ~~outside~~languages ~~financing,~~in asorder ~~we plan~~ to ~~fund~~apply our ~~growth~~technology ~~primarily~~to ~~through~~other ~~the growth of our paying customer base~~markets. We Inhave ~~addition,~~obtained asa wesmall ~~move~~number ~~from~~of ~~single~~relationships ~~customer~~with ~~locations to~~ larger ~~corporate~~franchise ~~bodies~~based ~~with~~organizations ~~numerous~~to ~~franchise~~whom orwe ~~store~~offer ~~front~~tiered ~~locations~~pricing wewhich will ~~adjust~~reflect ~~the~~discounts ~~per~~for ~~location~~number ~~pricing~~ of ~~our~~locations ~~program~~using ~~to suit~~ our ~~customer's budget and needs~~service. In ~~addition,~~As well we ~~offer~~receive ~~training,~~development ~~customized~~fees ~~development~~from ~~and~~these ~~product~~merchants ~~support~~for ~~where~~the ~~applicable~~customization ~~for~~of atheir ~~one~~unique ~~time~~Epoxy ~~development~~app ~~fee~~presence.

We plan to expand geographically in stages. We have already obtained various customers beyond the Las Vegas market and into certain Southwestern United States, as well as client accounts in Canada. Our initial target for expansion was focused on Southern California but we have been expanding to new markets as the opportunity presents itself. By December 2019 we plan to expand nationally by adding customers with a national presence to our portfolio. As we experience each stage of growth, we plan to increase our staff primarily through commission-based sales people, as opposed to salaried or hourly wage employees, thus minimizing the financial burden of each stage of expansion. We believe that this plan for expansion will also minimize the need for additional outside financing, as we plan to fund our growth primarily through the growth of our paying customer base. In addition, as we move from single customer locations to larger corporate bodies with numerous franchise or store front locations we will adjust the per location pricing of our program to suit our customer's budget and needs. In addition, we offer training, customized development and product support where applicable for a one time development fee.

Our primary philosophy is to provide excellent customer service to both app users and merchants, while utilizing feedback through our events, website and mobile app. The mobile application platform gives us an opportunity to seamlessly receive feedback while providing a service. Once feedback has been provided we can then study and then apply this to the system. We believe if you keep the marketing simple, to the point and clean people will be willing to listen and convert. Once a customer is willing to listen, they can be turned into more valuable, loyal customers.

Couponz's product is marketed to Mobile App Users as well as Business owners.

~~Three~~RESULTS ~~Months~~OF ~~Ended September 30, 2017 Compared to the Three Months Ended September 30, 2016.~~OPERATIONS

~~Our~~Three ~~net~~Months ~~(loss)~~Ended ~~for~~March ~~the~~31, ~~three~~2018 ~~month~~Compared ~~periods~~to ~~ended~~the ~~September~~Three ~~30,~~Months ~~2017~~Ended ~~and~~March ~~2016~~31, ~~is as follows:~~2017.

	Three months ended September 30,
	2017			2016
Revenue		18,252			7,779
Operating Expenses
Depreciation		-			2,831
Software research and development		4,546			11,752
General and administrative expenses		53,785			53,768
Total operating expenses		58,331			68,351
Loss from operations		(40,079	)		(60,572	)
Other Income (Expenses):
Gain (loss) on change in fair value of derivative liabilities		(180,134	)		(63,852	)
Recovered loss on debt settlement		-			-
Interest expenses		(14,335	)		(33,558	)
Total other income (expenses)		(194,469	)		(97,410	)
Net income (loss)		(234,548	)		(157,982	)

Our net loss for the three month periods ended March 31, 2018 and 2017 is as follows:

During the comparative three month periods ended September 30, 2017 and 2016 the Company experienced a substantial increase to revenue as certain customer contracts transitioned from development phase to commercial operation with an increased number of participating locations. The Company experienced a decrease to software development costs and general and administrative expenses remained substantially unchanged period over period. Despite an increase to revenues, we are still not able to meet all our operational overhead as it comes due and during this time the Company has been actively seeking additional capital by way of loans and equity financings in order to meet operational shortfalls.

	Three Months Ended
	March 31,
	2018			2017

Revenue	$	33,823		$	41,053

Operating Expenses
Depreciation, and impairment		7,695			-
Software research and development		12,448			2,880
General and administrative expenses		67,994			64,358
Total operating expenses		88,137			67,238

Loss from operations		(54,314	)		(26,185	)

Other Income (Expenses):
Loss on change in fair value of derivative liabilities		(129,709	)		(440,558	)
Interest expenses		(17,936	)		(61,220	)
Total other income (expenses)		(147,645	)		(501,778	)

Net loss	$	(201,959	)	$	(527,963	)

~~Nine~~During ~~Months~~the ~~Ended~~comparative ~~September~~three 30month periods ended March 31, 2018 and 2017 ~~Compared~~the Company experienced a decline in period over period revenue as certain previously deferred revenues in the amount of $29,000 were brought into income during the three months ended March 31, 2017, with no similar transactions during the comparative three months ended March 31, 2018. The Company experienced a substantial increase to operating expenses as software development costs increased from $2,880 in the ~~Nine~~three ~~Months~~months ~~Ended~~ended ~~September~~March 3031, ~~2016~~2017 to $12,448 in the current period as we continued to upgrade our product offerings. In addition, the Company recorded a one time impairment of $7,695 relative to the write down of its previously capitalized trademark and patent application costs in the current three months ended March 31, 2018 with no prior expense in the comparative period. During the current three month period the Company has been actively seeking additional capital by way of loans and equity financings in order to meet operational shortfalls.

Our net (loss) for the nine month periods ended September 30, 2017 and 2016 is as follows:

	Nine months ended September 30,
	2017			2016
Revenue		79,356			20,931
Operating Expenses
Depreciation		-			8,492
Software research and development		10,946			33,621
General and administrative expenses		179,942			188,447
Total operating expenses		190,888			230,560
Loss from operations		(111,532	)		(209,629	)
Other Income (Expenses):
Gain (loss) on change in fair value of derivative liabilities		(682,331	)		(334,687	)
Recovered loss on debt settlement		-			9,000
Interest expenses		(110,797	)		(174,698	)
Total other income (expenses)		(793,128	)		(500,385	)
Net income (loss)		(904,660	)		(710,014	)

During the comparative nine month periods ended September 30, 2017 and 2016 the Company experienced a substantial increase to revenue as certain customer contracts transitioned from development phase to commercial operation with an increased number of participating locations. In addition, the Company was able to bring into income certain previously deferred revenue from fiscal 2016. The Company experienced a substantial decrease to software development costs period over period, as well as general and administrative expenses. Despite an increase to revenues, we are still not able to meet all our operational overhead as it comes due and during this time the Company has been actively seeking additional capital by way of loans and equity financings in order to meet operational shortfalls.

Liquidity and Financial Condition

Working Capital

	At September 30, 2017			At December 31, 2016
	At March 31, 2018				At December 31, 2017
Current Assets	$	107,~~180~~193		$	~~3,632~~$	9,160
Current Liabilities	$	~~990~~1,~~494~~325,029		$	~~639,401~~$	1,132,907
Working Capital (Deficit)	$	(~~980~~1,~~314~~317,836	)	$	~~(635,769~~$	)(1,123,747	)

The substantial increase to our working capital deficit is related to the valuation of our derivative liabilities which increased dramatically period over period.

Cash Flows

	Nine month periods ended September 30,
		Three month periods ended March 31,
	2017			2016
		2018				2017
Net cash used in operating activities	$	~~(52,952~~$	)(21,967	$)	~~(86,364~~	)$	(36,048	)
Net cash provided by financing activities	$	56,500		$	83,500
Net cash provided by (used in) investing activities			-				-
Net increase (decrease) in cash during period	$	3,548		$	(2,864	)
Net cash provided by financing activities		$	20,000			$	41,500
Net increase (decrease) in cash during period		$	(1,967	)		$	5,452

Operating Activities

Net cash used in operating activities was $5221,~~952~~967 for the ~~nine~~three-month period ended ~~September~~March 3031, ~~2017~~2018 compared with cash used in operating activities of $8636,~~364~~048 in the same period in ~~2016~~2017. The decrease in cash used in operating activities is predominantly attributable to various non-cash reconciliation adjustments including substantial reductions to the accretion of debt discount on convertible notes and the change in the fair value of our derivative liabilities,. We ~~which~~continued ~~resulted~~to inrecord ~~substantial~~increases ~~gains~~to ~~during~~accounts ~~our~~payable ~~current~~and ~~nine~~related ~~month~~party ~~period~~payables asin ~~compared~~the tocurrent ~~the~~and prior ~~nine~~comparative ~~months. We~~period, as we were not able to ~~reduce~~retire ~~the~~our ~~deferred~~obligations ~~revenue~~as atthey ~~fiscal~~became ~~year~~due. ~~end~~During byfiscal ~~$29,000~~2017 inwe ~~the~~were ~~current~~able ~~nine month period, but recorded increases~~ to ~~accounts~~bring ~~payable~~certain ~~and~~prior ~~related~~deferred ~~party~~revenues ~~payables~~ in the ~~current~~amount ~~period~~of as$29,000 weinto ~~were~~income, ~~not~~with ~~able~~no tosimilar ~~retire~~results ~~our~~in ~~obligations~~the ascurrent ~~they~~three ~~became~~months ~~due~~ended March 31, 2018.

Investing Activities

There were no investing activities during the ~~nine~~three-month period ended ~~September~~March 3031, ~~2017~~2018 and ~~2016~~2017.

Financing Activities

Net cash provided by financing activities was $5620,~~500~~000 for the ~~nine~~three-month period ended ~~September~~March 3031, ~~2017~~2018 compared to $8341,500 of cash provided in the same period in ~~2016~~2017. ~~Amounts~~ ~~reported~~All ~~for~~amounts ~~the~~relate ~~nine~~to ~~months ended fiscal 2016 include loans of $12,000 from a related party and proceeds from~~ convertible notes ofpayable ~~$71,500,~~entered ~~where~~into asin ~~during~~the ~~fiscal~~respective ~~2017 our cash based financing activities were limited to proceeds from convertible notes of $56,500~~periods.

Going Concern

~~For the nine months ended September 30, 2017, the~~ Company ~~used net cash in operations of $52,952. In addition, the Company~~ had a working capital deficit as of ~~September~~March 3031, ~~2017~~2018. The Company believes that its existing capital resources may not be adequate to enable it to ~~fully~~ execute its business plan~~, and while we are increasing our revenues period over period, we still do not have sufficient income to meet our operational costs as they come due~~. These conditions raise substantial doubt as to the Company's ability to ~~reach profitable operations and~~ continue as a going concern. The Company estimates that it will require additional cash resources during ~~2017~~2018 based on its current operating plan and condition. The Company expects cash flows from operating activities to improve, primarily as a result of an increase in revenue and a decrease in certain operating expenses, although there can be no assurance thereof. The accompanying condensed consolidated financial statements do not include any adjustments that might be necessary should we be unable to continue as a going concern. If we fail to generate positive cash flow or obtain additional financing, when required, we may have to modify, delay, or abandon some or all of our business and expansion plans.

Off-Balance Sheet Arrangements

We have no material off-balance sheet arrangements that will have a current or future effect on our financial condition and changes in financial condition.

Critical Accounting Policies and Estimates

The preparation of our financial statements 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. On an on-going basis, management evaluates its estimates and judgments which are based on historical experience and on various other factors that are believed to be reasonable under the circumstances. The results of their evaluation form the basis for making judgments about the carrying values of assets and liabilities. Actual results may differ from these estimates under different assumptions and circumstances. Our significant accounting policies are more fully discussed in the Notes to our Financial Statements. Refer to Note 2 of the Financial Statements included in our Annual Report on Form 10-K as filed with the Securities and Exchange Commission ~~onDecember~~on 29June 8, ~~2017~~2018.

Recent Accounting Pronouncements

InThe ~~January~~Company ~~2017,~~has ~~the~~reviewed ~~FASB~~all ~~issued~~recently ~~ASU 2017-01~~issued, ~~"Clarifying~~but ~~the~~not ~~Definition~~yet of a Business" with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. This guidance is effective ~~for annual periods beginning after December 15~~, ~~2017,~~accounting pronouncements and ~~interim~~does ~~periods~~not ~~within~~believe ~~those~~the ~~fiscal~~future ~~years with early~~ adoption ~~permitted.~~of ~~This~~any ~~guidance~~such pronouncements will behave ~~applied~~a ~~prospectively~~material toimpact ~~any~~on ~~transactions~~its ~~occurring~~financial ~~within~~condition or the ~~period~~results of ~~adoption~~its operations.

In January 2017, the FASB issued ASU 2017-04, "Simplifying the Test for Goodwill Impairment" that eliminates the requirement to calculate the implied fair value of goodwill (i.e., Step 2 of the current goodwill impairment test) to measure a goodwill impairment charge. Instead, an impairment charge will be based on the excess of a reporting unit's carrying amount over its fair value (i.e., measure the charge based on Step 1 of the current goodwill impairment test). This guidance is effective for annual and interim impairment tests performed in periods beginning after December 15, 2019, with early adoption permitted for annual and interim goodwill impairment testing dates after January 1, 2017. This guidance will be adopted on a prospective basis.

In March 2017, the FASB issued ASU 2017-08, "Premium Amortization on Purchased Callable Debt Securities" that shortens the amortization period for the premium on certain purchased callable debt securities to the earliest call date. This guidance is effective for annual periods beginning after December 15, 2018, and interim periods within those fiscal years with early adoption permitted. This guidance will be adopted using a modified retrospective transition approach. The adoption of this guidance is not expected to materially impact our results of operations, financial condition or liquidity.

In May 2017, the FASB issued ASU No. 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting. The new guidance provides clarity and reduces both (1) diversity in practice and (2) cost and complexity when applying the guidance in Topic 718, Compensation—Stock Compensation, to a change to the terms or conditions of a share-based payment award. The accounting standard update will be effective for The Company beginning January 1, 2018 on a prospective basis, and early adoption is permitted. The Company has not yet selected a transition method and is currently evaluating the effect that the updated standard will have on the consolidated financial statements.

In August of 2017, the FASB issued guidance to better align the financial reporting related to hedging activities with the economic objectives of those activities and to simplify the application of current hedge accounting guidance. Entities are required to apply the guidance using a modified retrospective method as of the period of adoption. This guidance is effective for annual and interim periods beginning after December 31, 2018. Early adoption is permitted. Management is evaluating

The Company has reviewed all other recently issued, but not yet effective, accounting pronouncements and does not believe the future adoption of any such pronouncements will have a material impact on its financial condition or the results of its operations.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We are a smaller reporting company and are not required to provide this information.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports filed under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms, and that such information is accumulated and communicated to our management, including our president (our principal executive officer, principal financial officer and principal accounting officer) to allow for timely decisions regarding required disclosure.

As of the end of our quarter covered by this report, we carried out an evaluation, under the supervision and with the participation of our president (our principal executive officer, principal financial officer and principal accounting officer), of the effectiveness of the design and operation of our disclosure controls and procedures. Based on the foregoing, our president (our principal executive officer, principal financial officer and principal accounting officer) concluded that our disclosure controls and procedures were not effective as of the end of the period covered by this quarterly report.

Changes in Internal Control over Financial Reporting

During the period covered by this report, there were no changes in our internal controls over financial reporting 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

The Company is not a party to any legal proceedings and is not aware of any pending legal proceedings as of the date of this Form 10-Q.

ITEM 1A. RISK FACTORS

The Company is a smaller reporting company and is not required to provide this information.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

~~The~~There ~~following~~were ~~shares~~no ofunregistered ~~common~~securities ~~stock~~to report which were sold or issued by the Company without the registration of these securities under the Securities Act of 1933 in reliance on exemptions from such registration requirements, within the ~~nine~~period ~~months~~covered ~~ended~~by ~~September~~this 30report, ~~2017~~which have not been previously included in a Quarterly Report on Form 10-Q or a Current Report on Form 8-K.

Issuance Date		Conversion Price/FMV ($)		Number of shares issued		Amount ($)
January 6, 2017	Conversion of debt		0.000312		16,025,641		5,000
January 10, 2017	Conversion of debt		0.00020		26,455,479		5,291
January 11, 2017	Conversion of debt		0.00020		26,478,054		5,296
January 11, 2017	Conversion of debt		0.000260		27,307,692		7,100
January 13, 2017	Conversion of debt		0.000156		31,397,436		4,898
January 17, 2017	Conversion of debt		0.000156		32,961,538		5,142
January 18, 2017	Conversion of debt		0.00012		21,883,561		2,626
January 19, 2017	Conversion of debt		0.00008		35,495,753		2,840
January 19, 2017	Conversion of debt		0.000156		34,608,974		5,399
January 20, 2017	Conversion of debt		0.000104		35,692,308		3,712
January 23, 2017	Conversion of debt		0.0000936		40,980,235		3,836
January 26, 2017	Conversion of debt		0.0000936		43,015,491		4,026
January 26, 2017	Conversion of debt		0.00008		42,779,794		3,422
January 27, 2017	Conversion of debt		0.00007799		28,197,821		2,199
January 31, 2017	Conversion of debt		0.00006		48,334,703		2,900
February 3, 2017	Conversion of debt		0.00006		50,981,735		3,059
February 3, 2017	Conversion of debt		0.00006		50,992,328		3,060
February 6, 2017	Conversion of debt		0.00006		51,002,922		3,060
February 8, 2017	Conversion of debt		0.00006		58,086,027		3,485
February 10, 2017	Conversion of debt		0.00006		58,110,136		3,486
February 13, 2017	Conversion of debt		0.00006		64,286,666		3,857
February 16, 2017	Conversion of debt		0.00006		67,438,767		4,046
February 21, 2017	Conversion of debt		0.00006		70,9943,83		4,260
March 24, 2017	Conversion of debt		0.00008		69,911,301		5,593
March 27, 2017	Conversion of debt		0.00008		36,635,273		2,931
Total					1,070,054,018		100,524

In respect of the aforementioned shares issued to an investor the Company will claim an exemption from the registration requirements of the Securities Act of 1933, as amended, for the issuance of the shares pursuant to Section 4(2) of the Act and/or Rule 506 of Regulation D promulgated thereunder since, among other things, the transaction does not involve a public offering, the purchasers are "accredited investors" and/or qualified institutional buyers, the purchasers have access to information about the Company and its purchase, the purchasers will take the securities for investment and not resale.

Other than as disclosed above, there were no unregistered securities to report which were sold or issued by the Company without the registration of these securities under the Securities Act of 1933 in reliance on exemptions from such registration requirements, within the period covered by this report, which have not been previously included in a Quarterly Report on Form 10-Q or a Current Report on Form 8-K.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

The Company does not have any senior securities as of the date of this Form 10-Q.

ITEM 4. MINE SAFETY DISCLOSURES

Not Applicable

ITEM 5. OTHER INFORMATION

None .

ITEM 6. EXHIBITS

Exhibit Description	Filed herewith	~~Form~~Exhibit	~~Exhibit~~Incorporated by reference Filing Date	~~Incorporated by reference Filing Date~~
Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act	X	31.1	~~31.1~~
Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act	X	31.2	~~31.2~~
Certification of Principal Executive and Financial Officer, pursuant to Section 906 of the Sarbanes-Oxley Act	X	32.1	~~32.1~~
Interactive Data files (1)			101
Interactive Data files	X	101

~~(1) To be filed by amendment~~8

SIGNATURES

In accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, there unto duly authorized.

	EPOXY, INC.
Date: March 5, 2018	By:	/s/ David Gasparine
Date: June 22, 2018	By:	/s/ David Gasparine
	Name:	David Gasparine
	Title:	Chief Executive Officer (Principal Executive Officer), Treasurer, (Principal Financial Officer) Secretary, and Director

119

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