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~~March 3031, ~~2015~~2016

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ____________ to _____________

Commission File Number 000-54354

AF OCEAN INVESTMENT MANAGEMENT COMPANY

(Exact name of registrant as specified in its charter)

	Florida	14-1877754
	(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No)
11015 Gatewood Drive Unit 103 Lakewood Ranch, FL 34211
3904 US-301, Ellenton, Florida 34222
(Address of principal executive offices, including zip code)
(212) 729-4951
(Registrant’s telephone number, including area code)
15500 Roosevelt Boulevard Suite 305 Clearwater, FL 33760
11015 Gatewood Drive Unit 103 Lakewood Ranch, FL 34211
(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 ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§229.405 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 ☐

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

Large accelerated filer.☐ Accelerated filer. ☐☑ Non-accelerated filer. ☐ (Do not check if a smaller reporting company) Smaller reporting company. ☑☐

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

As of ~~November~~May 1615, ~~2015~~2016 there were 298,007,767 shares of common stock outstanding.

TABLE OF CONTENTS

Cautionary Note Regarding Forward-Looking Statements		1
PART I - Financial Information
Item 1.	Financial Statements	2
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	11
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	16
Item 4.	Controls and Procedures	16
PART II – Other Information
Item 5.	Other Information	17
Item 6.	Exhibits	17
Signatures		18

Cautionary Note Regarding Forward-Looking Statements

PART I - Financial Information

Item 1.Financial Statements	2
Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations	10
Item 3.Quantitative and Qualitative Disclosures about Market Risk	13
Item 4.Controls and Procedures	13

PART II - Other Information

Item 1. Legal Proceedings	15
Item 2. Unregistered Sales of Equity Securities And Use Of Proceeds	15
Item 3. Defaults Upon Senior Securities	15
Item 4. Mine Safety Disclosures	15
Item 5. Other information	15
Item 6. Exhibits	15

Signatures	16

Table of Contents

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended, (the “Exchange Act”). These forward-looking statements are generally located in the material set forth under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations” but may be found in other locations as well. These forward-looking statements are subject to risks and uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from the results, performance or achievements expressed or implied by the forward-looking statements. You should not unduly rely on these statements.

We identify forward-looking statements by use of terms such as “may,” “will,” “expect,” “anticipate,” “estimate,” “hope,” “plan,” “believe,” “predict,” “envision,” “intend,” “will,” “continue,” “potential,” “should,” “confident,” “could” and similar words and expressions, although some forward-looking statements may be expressed differently. You should be aware that our actual results could differ materially from those contained in the forward-looking statements.

Forward-looking statements are based on information available at the time the statements are made and involve known and unknown risks, uncertainties and other factors that may cause our results, levels of activity, performance or achievements to be materially different from the information expressed or implied by the forward-looking statements in this report. These factors include, among others:

our ability to raise capital;

our ability to execute on our growth strategies;

our ability to find partners on favorable terms;

declines in general economic conditions in the markets where we may compete;

our anticipated needs for working capital; and

significant competition in the markets where we may operate.

Where we express an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis.

Forward-looking statements speak only as of the date of this report or the date of any document incorporated by reference in this report. Except to the extent required by applicable law or regulation, we do not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date of this report or to reflect the occurrence of unanticipated events.

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PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

AF OCEAN INVESTMENT MANAGEMENT COMPANY

CONSOLIDATED BALANCE SHEETS

	September 30, 2015 (unaudited)			December 31, 2014 (audited)
	March 31,			December 31,
ASSETS	2016			2015
Current Assets
Current assets
Cash	$	~~81,030~~-		$	~~247~~60,~~478~~741
Cash Held For Related Party		429,702			837,296
Cash held for Related Party		346,886			355,615
Prepaid Expenses		11,016			12,536
Management Fee Receivable (Related Party)		130,522			130,522
Interest on Notes Receivable		311			-
Prepaid Expenses		4,814			2,752
Related Party Loan		5,500			-
Due from Related Party		16,693			16,693
Total Current Assets		527,559			1,097,310
Interest (Related Party Loan)		622			467
Accounts Receivable		45,989			-
Total Current Assets		545,526			566,790
Other Assets
Property & Equipment, Net of Depreciation of $20,549 and $16,299		7,948			12,199
Property & equipment, net of depreciation of $23,384 and $28,498		5,114			6,531
Intangibles		294,193			294,193
Note Receivable – Related Party		9,600			-
Technology		1,000			1,000
Deposits		8,481			28,~~020~~481
Total Other Assets		~~320~~308,~~222~~788			~~308~~310,~~412~~205
Total Assets	$	~~847~~854,~~781~~314		$	1876,~~405,722~~995
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Current liabilities
Accounts Payable	$	~~639~~31		$	~~3,847~~816
Accrued Expenses		~~1,500~~-			101,~~605~~407
Unearned Revenue		6,350			-
Cash Due to Related Party		356,005			355,615
Cash Due to Related Party		429,702			837,296
Total Current Liabilities		356,036			357,838
Total Current Liabilities		438,191			851,748
Total Liabilities		356,036			357,838
Total Liabilities		438,191			851,748
Stockholders’ Equity
Preferred Stock, no par value, 5,000,000 shares authorized, 5,000,000 shares issued and outstanding		750,000			750,000
Preferred Stock, no par value, 5,000,000 shares issued and outstanding		1,000			1,000
Common Stock, $.01 par value, 5,000,000,000 shares authorized; 259,211,789 shares and 259,201,789 shares issued and outstanding		2,592,118			2,592,018
Common Stock, $.01 par value, 5,000,000,000 shares authorized; 298,007,767 shares and 298,007,767shares issued and outstanding		2,980,078			2,980,078
Subscription Receivable		-			(74,093	)
Additional Paid-In Capital		513,848			513,848
Additional Paid-In Capital		113,012			113,012
Other Comprehensive Income		3,199			1,732
Accumulated Other Comprehensive Income		2,731			3,161
Accumulated deficit		(2,999,847	)		(2,977,501	)
Accumulated Deficit		(3,048,271	)		(2,830,124	)
Total stockholders’ equity		498,278			519,157
Total Stockholders’ Equity		409,590			553,974
Total liabilities and stockholders’ equity	$	854,314		$	876,995
Total Liabilities and Stockholders’ Equity	$	847,781		$	1,405,722

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

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AF OCEAN INVESTMENT MANAGEMENT COMPANY

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

For the Nine Month Period Ended September 30, 2015 and 2014

	Three Month Period Ended March 31, (unaudited)
	2016			2015
Revenue
Management Fee US – Related Party	$	67,269		$	38,100
Consulting Fee Income		400			-
Total Revenue		67,669			38,100

Expenses
General & Administrative		88,782			115,273
Depreciation & Amortization		1,417			1,417
Total Operating Expenses		90,199			116,690

Operating (Loss) Income		(22,530	)		(78,590	)

Other Income (Expense)
Interest Expense		-			-
Interest income (Shanghai & US)		184			141
Total Other Income (Expense), net		184			141

Net (Loss) Income		(22,346	)		(78,449	)
Foreign Currency Gain (Loss)		(1,467	)		(72	)
Comprehensive Income	$	(23,813	)	$	(78,521	)

Earnings (loss) per share - basic and dilutive	$	(0.00	)	$	(0.00	)
Weighted average shares		298,007,767			259,210,122

	Nine Months Ended September 30, (unaudited)						Three Months Ended September 30, (unaudited)
	2015			2014			2015			2014
Revenue
Management Fee US – Related Party	$	169,355		$	50,800		$	74,961		$	38,100
Management Fee Shanghai – Related Party		-			130,648			-			32,315
Total Revenue		169,355			181,448			74,961			70,415
Expenses
Marketing Expense		-			959,098			-			959,098
General & Administrative		86,188			98,252			31,330			29,950
Payroll		166,996			159,471			57,411			50,122
Professional Fees		114,659			171,431			40,623			55,907
Value Added Tax China		15,926			-			-			-
Depreciation & Amortization		4,251			4,974			1,417			1,742
Total Operating Expenses		388,020			1,393,226			130,781			1,096,819
Operating (Loss) Income		(218,665	)		(1,211,778	)		(55,820	)		(1,026,404	)
Other Income (Expense)
Interest Expense		-			(391	)		-			-
Interest income (Shanghai & US)		518			(243	)		207			(490	)
Total Other Income (Expense), net		518			(634	)		207			(490	)
Net (Loss) Income		(218,147	)		(1,212,412	)		(55,613	)		(1,026,894	)
Foreign Currency Gain (Loss)		(1,766	)		3,975			(1,062	)		5,190
Comprehensive Income	$	(219,913	)	$	(1,208,437	)	$	(56,675	)	$	(1,021,704	)
Earnings (loss) per share - basic and dilutive	$	(0.00	)	$	(0.017	)	$	(0.00	)	$	(0.006	)
Weighted average shares		259,211,240			68,831,601			259,211,789			163,694,995

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

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AF OCEAN INVESTMENT MANAGEMENT COMPANY

CONSOLIDATED STATEMENTS OF CASH FLOWS

	Nine Months Ended September 30, (unaudited)
	Three Month Period Ended March 31, (unaudited)
	2015			2014
	2016			2015
Cash Flows From Operating Activities
Net Income (Loss)	$	(~~218~~22,~~147~~346	)	$	(178,~~212,411~~449	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Stock Issued For Services		~~100~~-			~~959,938~~100
Depreciation and Amortization Expense		41,~~251~~417			41,~~974~~416
Bad Debt		-			20,000
Changes in Operating Assets and Liabilities:
Escrow Funds held by Related Party		~~407~~(346,~~594~~886	)		1(373,~~304,460~~223	)
Note Receivable – Related Party		(9,600	)		(137,383	)
Accounts Receivable		(45,989	)		-
Accounts Receivable		-			122,300
Accounts Payable		(785	)		(782	)
Accounts Payable		(3,208	)		1,165
Interest on Note Receivable (Related Party)		(155	)		(45	)
Interest on Note Receivable		(311	)		-
Cash Due To Related Party		356,005			373,223
Other Current Asset		(6,461	)		(2,555	)
Prepaid Expenses		(2,062	)		3,727
Deferred Revenue		6,350			-
Payroll Liabilities and Other Accrued Expenses		(1,407	)		(6,523	)
Cash Due To Related Party		(407,594	)		(1,304,460	)
Total Adjustments		(39,862	)		(2,107	)
Related Party Payable		-			8,056
Net cash (used in) provided by operating activities		(62,208	)		(80,556	)
Prepaid Expenses		1,520			9,940
Payroll Liabilities and Other Accrued Expenses		(9,105	)		(15,508	)
Total Adjustments		(16,464	)		970,927
Net cash (used in) provided by operating activities		(234,611	)		(241,484	)
Cash Flows From Investing Activities
Purchase of property and equipment		-			~~(3,476~~-	)
Net cash (used in) provided by investing activities		-			~~(3,476~~-	)
Cash flows from financing activities
(Repayments to) advances from related parties		~~(5,500~~-	)		(218,~~400~~000	)
Repayment of Note Payable – ICM		-			(100,000	)
Subscription Receivable		-			74,093
Subscription receivable		74,093			-
Net cash (used in) provided by financing activities		-			56,093
Net cash (used in) provided by financing activities		68,593			(102,400	)
Foreign Currency Gain (Loss)		1,467			(72	)
Foreign Currency Gain (Loss)		(430	)		3,448
Net increase (decrease) in cash		(60,741	)		(24,535	)
Net increase (decrease) in cash		(166,448	)		(343,912	)
Cash at beginning of year		60,741			247,478
Cash at beginning of year		247,478			569,825
Cash at end of year	$	-		$	222,943
Cash at end of year	$	81,030		$	225,913
Supplemental disclosures of cash flow information:
Cash paid during the year for:
Interest	$	-		$	-
NON-CASH DISCLOSURES
Non-cash financing activities	$	-		$	-

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

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AF OCEAN INVESTMENT MANAGEMENT COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

For the Three ~~and Nine~~ Month Period Ended ~~September~~March 3031, ~~2015~~2016 and ~~2014~~2015

NOTE 1. NATURE OF BUSINESS

Organization.

AF Ocean Investment Management Company was incorporated under the laws of the State of Florida on April 2, 2003. We have one wholly-owned subsidiary, AF Ocean Investment Management Company (Shanghai Ltd.) (the “Subsidiary”), which we acquired as of July 6, 2012. AF Ocean Investment Management Company (together with the Subsidiary, the “Company”, “AF Ocean” “our” or “we”) promotes business relations and exchanges between Chinese and U.S. companies, facilitating international mergers and acquisitions, and increasing co-operation between Chinese companies and Wall Street financial institutions. Our mission is to help Wall Street investors identify and work with respectable and reputable Chinese counterparts and companies and assist Chinese corporations to understand that the only way to benefit from the world’s biggest capital market is through strict and consistent adherence to the rules and regulations that govern companies listed on U.S. stock exchanges. However, we are in the process of a strategic change in operations due to our acquisition in July 2014 of non-patented technology relating to a new energy electric vehicle based on electromagnetic induction (the “Technology”). We believe that our primary business enterprise going forward will be based on the Technology.

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation and Use of Estimates.

In the opinion of management, all adjustments consisting of normal recurring adjustments necessary for a fair statement of (a) the result of operations for the three ~~and nine~~ month period ended ~~September~~March 3031, ~~2015~~2016 and ~~2014~~2015; (b) the financial position at ~~September~~March 3031, ~~2015~~2016; and (c) cash flows for the ~~nine~~three month period ended ~~September~~March 3031, ~~2015~~2016 and ~~2014~~2015, have been made. Management believes that these estimates are reasonable and have been discussed with the Board of Directors; however, actual results could differ from those estimates. Operating results for the three ~~and nine~~ month period ended ~~September~~March 3031, ~~2015~~2016 are not necessarily indicative of the results that may be expected for the year ended December 31, ~~2015~~2016.

The accompanying unaudited financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. For further information regarding the Company's significant accounting policies, refer to the audited consolidated financial statements and footnotes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, ~~2014~~2015 filed with the Securities and Exchange Commission on ~~March~~April 3114, ~~2015~~2016.

Cash and Cash Equivalents.

The majority of cash for our Subsidiary is maintained with a major financial institution in Shanghai, China. There are also funds held in the United States. Deposits with these banks may exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed on demand and, therefore, bear minimal risk. The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. All amounts referenced in these financial statements and this report are in U.S. Dollars unless otherwise stated.

Property and Equipment.

Property and equipment is stated at cost. Depreciation is computed by the straight-line method over estimated useful lives. The carrying amount of all long-lived assets is evaluated periodically to determine if adjustment to the depreciation and amortization period or the unamortized balance is warranted. Based upon its most recent analysis, the Company believes that no impairment of property and equipment exists at ~~September~~March 3031, ~~2015~~2016.

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Foreign Currency Gain (Loss).

The Company addressed the effect of the exchange rate differences resulting from the translation of the consolidated financial statements of the Subsidiary into the consolidated corporate statements on the Balance Sheet with an Exchange rate loss of ($1,~~062~~467) during the three month ended ~~September~~March 3031, ~~2015~~2016. The effect of the foreign currency translation is recorded in comprehensive income. The relative value of the Chinese CNY to the United States USD remained relatively constant during the ~~nine~~three month period ended ~~September~~March 3031, ~~2015~~2016 ranging from .~~1612~~151 ~~on July 1, 2015~~ to .~~1573 on September 30~~155, ~~2015,~~ CNY to the USD.

Impairment of Long-lived Assets.

Long-lived assets such as property, equipment and identifiable intangibles are reviewed for impairment whenever facts and circumstances indicate that the carrying value may not be recoverable. When required, impairment losses on assets to be held and used are recognized based on the fair value of the asset. The fair value is determined based on estimates of future cash flows, market value of similar assets, if available, or independent appraisals, if required. If the carrying amount of the long-lived asset is not recoverable from its undiscounted cash flows, an impairment loss is recognized for the difference between the carrying amount and fair value of the asset. When fair values are not available, the Company estimates fair value using the expected future cash flows discounted at a rate commensurate with the risk associated with the recovery of the assets. We did not recognize any impairment losses for any periods presented.

Revenue Recognition.

Revenue from consulting and management services is recognized according to the terms of the consulting and management services agreements. Generally, consulting and management services revenue will be recognized over the term of the agreement. At times deposits or prepayments may result in deferred income which will be recognized into income as the services are performed. During the ~~nine~~three month period ended ~~September~~March 3031, ~~2015~~2016 we had deferred income of $~~6,350~~0.

Share-based Compensation.

The Company may issue stock options whereby all share-based payments to employees, including grants of employee stock options are recognized as compensation expense in the consolidated financial statements based on their fair values. That expense is recognized over the period during which an employee is required to provide services in exchange for the award, known as the requisite service period (usually the vesting period). The Company had no common stock options or common stock equivalents granted or outstanding for all periods presented.

The Company accounts for stock-based instruments issued to employees in accordance with ASC Topic 718. ASC Topic 718 requires companies to recognize in the statement of operations the grant-date fair value of stock options and other equity based compensation issued to employees. The value of the portion of an award that is ultimately expected to vest is recognized as an expense over the requisite service periods using the straight-line attribution method. The Company accounts for non-employee share-based awards in accordance with the measurement and recognition provisions ASC Topic 505-50. The Company estimates the fair value of stock options at the grant date by using the Black-Scholes option-pricing model.

The Company may issue restricted stock for various business and administrative services. Cost for these transactions are measured at the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable. The value of the common stock is measured at the earlier of (i) the date at which a firm commitment for performance by the counterparty to earn the equity instruments is reached; or (ii) the date at which the counterparty’s performance is complete.

During the nine month period ended September 30, 2015, the Company issued 10,000 shares at par value in the form of share-based compensation.

Advertising.

Our advertising expenses are recognized as incurred. There ~~were~~was no$25 marketing expenses during the ~~nine~~three month period ended ~~September~~March 3031, ~~2015~~2016.

Income Taxes.

The Company accounts for income taxes pursuant to the provisions of ASC 740-10, “Accounting for Income Taxes,” which requires, among other things, an asset and liability approach to calculating deferred income taxes. The asset and liability approach requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. A valuation allowance is provided to offset any net deferred tax assets for which management believes it is more likely than not that the net deferred asset will not be realized.

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Earnings per Share.

In accordance with ASC 260-10, “Earnings Per Share”, basic net earnings (loss) per common share is computed by dividing the net earnings (loss) for the period by the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per share are computed using the weighted average number of common and dilutive common stock equivalent shares outstanding during the period. Diluted earnings (loss) per share calculations are determined by dividing net income (loss) by the weighted average number of shares plus the effect of the dilutive potential common shares outstanding during the period using the treasury stock method.

Diluted income per share includes the dilutive effects of stock options, warrants, and stock equivalents. To the extent stock options, stock equivalents and warrants are anti-dilutive; they are excluded from the calculation of diluted income per share.

Segment Information.

In accordance with the provisions of ASC 280-10, “Disclosures about Segments of an Enterprise and Related Information”, the Company is required to report financial and descriptive information about its reportable operating segments which meet the quantitative thresholds delineated. The Company has one reporting segment that does not meet any of the quantitative thresholds to require separate reporting. However, see Note 129 for limited disclosure.

Recent Accounting Pronouncements.

The Company reviews new accounting standards as issued. No new standards had any material effect on these consolidated financial statements. The accounting pronouncements issued subsequent to the date of these consolidated financial statements that were considered significant by management were evaluated for the potential effect on these consolidated financial statements. Management does not believe any of the subsequent pronouncements will have a material effect on these consolidated financial statements as presented.

NOTE 3. GOING CONCERN

The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As of ~~September~~March 3031, ~~2015~~2016, current assets exceeded current liabilities by $89189,~~368~~490. Total assets decreased from $1876,~~405,722~~995 at December 31, ~~2014~~2015 to $~~847~~854,~~781~~314 at ~~September~~March 3031, ~~2015~~2016, and total liabilities decreased from $~~851~~357,~~748~~838 at December 31, ~~2014~~2015 to $~~438~~356,~~191~~036 at ~~September~~March 3031, ~~2015~~2016.

We had revenue from management services fees of $~~169~~67,~~355~~669 and a net loss of ($~~218~~22,~~147~~346) for the ~~nine~~three month period ended ~~September~~March 3031, ~~2015~~2016 as compared to revenue of $~~181~~38,~~448~~100 and a net loss of ($178,~~212,412~~449) for the ~~nine~~three month period ended ~~September~~March 3031, ~~2014~~2015. These factors raise substantial doubt about our ability to continue as a going concern for a reasonable period of time. The consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

The consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

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NOTE 4. PROPERTY & EQUIPMENT

Fixed Assets Summary

The following table provides the fixed assets and accumulated depreciation results for the Company and the Subsidiary for the ~~nine~~three month period ended ~~September~~March 3031, ~~2015~~2016, as compared to the fiscal year ended December 31, ~~2014~~2015.

Fixed Assets Summary	~~September~~March 3031, ~~2015~~2016 (unaudited)			December 31, ~~2014~~2015 (audited)
	2015			2014
	2016			2015
U.S. Fixed Assets	$	19,508		$	19,508
U.S. Accumulated Depreciation	$	(1214,~~344~~608	)	$	(813,~~948~~476	)
Total U.S. Assets	$	74,~~164~~890		$	106,~~560~~032
Foreign Subsidiary Fixed Assets	$	8,989		$	8,989
Foreign Subsidiary Accumulated Depreciation	$	(8,~~205~~775	)	$	(78,~~350~~490	)
Total Foreign Subsidiary Assets	$	~~784~~214		$	~~1,639~~499
Total Combined Assets		75,~~948~~114			126,~~199~~531

Assets are depreciated over their useful lives when placed in service. Depreciation expense was $41,~~251~~417 and $41,~~974~~416 for the ~~nine~~three month period ended ~~September~~March 3031, ~~2015~~2016 and ~~2014~~2015, respectively.

Depreciation expense for the three month period ended September 30, 2015 and 2014 is $1,417 and $1,742.

NOTE 5. INTANGIBLE ASSETS

Intangible assets of $294,193 consist of business licenses in the Peoples’ Republic of China and goodwill acquired in an acquisition during 2012. Management has determined that these assets have unlimited lives and will not be amortized. The company reviews the intangible assets for impairment at the end of each year.

NOTE 6. RELATED PARTY TRANSACTIONS

On December 23, 2013, the Subsidiary entered into a management agreement with ChinAmerica Andy Movie Entertainment Media Company, a Florida corporation (“ChinAmerica”), for the collection and maintenance of all funds received in the People's Republic of China on behalf of ChinAmerica. All deposits received in China incur a management fee of ten percent (10%) due to the Subsidiary. ~~There were no payments received during the nine month period ended September 30, 2015.~~ As of ~~September~~March 3031, ~~2015~~2016, the current balance in the account held on behalf of ChinAmerica is $~~429~~346,~~702~~886.

OnCommencing ~~February~~on 23May 1, 2015, the ~~related~~Company ~~party~~renewed ~~subscription~~for ~~receivable~~one ~~due~~year ~~from~~the agreement with ChinAmerica and Sichuan Leaders Petrochemical Company to provide management services. ChinAmerica pays the ~~majority~~Company ~~shareholder~~$20,000 inand Sichuan Leaders pays the ~~amount~~Company $1,996 per month for management and accounting related services including, without limitation, preparing periodic and other reports required to be filed under the Securities Exchange Act of ~~$74~~1934,~~093~~ ~~was~~preparing ~~paid~~financial inreports, ~~full~~bookkeeping, managing their websites, handling previous employee matters, and ~~has~~related governmental filings, handling advertising matters, and processing payables. As of March 31, 2016, payments totaling $67,269 had been ~~satisfied~~received from both companies for these management services.

~~Commencing~~As onof ~~May~~March 131, ~~2015~~2016, wethere ~~renewed~~is ~~the management services agreement with ChinAmerica and Sichuan Leaders Petrochemical Company (“Sichuan”) for~~ an ~~additional~~outstanding ~~year. We share the same Chief Executive Officer and controlling shareholder as ChinAmerica and Sichuan. Both~~ related ~~parties~~party ~~pay~~receivable ~~the Company a monthly management fee for a combined total~~ of $215,~~787 per month for access to and use of the Company’s leased office space~~500, ~~legal~~compared ~~services, management and accounting related services including, without limitation, preparing periodic and other reports required~~ to ~~be filed under the Securities Exchange Act of 1934~~$5,500 ~~preparing~~at ~~financial~~December ~~reports~~31, ~~bookkeeping, managing their websites, handling previous employee matters, and related governmental filings, handling advertising matters, and processing payables~~2015. Interest ~~(collectively,~~accrued ~~the~~on ~~“Services”). During~~ the ~~nine~~related ~~month~~party ~~period~~receivable ~~ended~~is ~~September~~$622 ~~30,~~as ~~2015,~~of ~~payments~~March ~~totaling $169~~31,~~355~~ ~~have been received from both companies for these management services~~2016.

~~Commencing~~As onof ~~July~~March 131, ~~2015,~~2016 wethere ~~entered~~is ~~into~~an aoutstanding ~~management~~receivable ~~services~~due ~~agreement~~to ~~with~~the ~~Sarasota~~Company ~~Pack~~from ~~and~~a ~~Ship,~~related ~~Inc.~~party in the amount of $911,~~600~~193 to handle management and accounting related services including the bookkeeping, managing their websites, handling employee matters, and related governmental filings, processing payables and payroll. There is a second outstanding related party receivable in the amount of $5,500 as of March 31, 2016. On April 15, 2016 a payment was received on the $5,500 note receivable, leaving a balance of $1,500.

NOTE 7. STOCKHOLDERS’ EQUITY

Common Stock

OnAs ~~January~~of 12March 31, 2016 and December 31, 2015, the Company ~~issued~~had 10298,~~000~~007,767 ~~shares~~and as298,007,767 ~~stock~~shares ~~based~~of ~~compensation~~common @stock aissued ~~par~~and ~~value~~outstanding, ~~of $0~~respectively.~~01.~~

~~As of September 30, 2015 and December 31, 2014, the Company had 259,211,789 and 259,201,789 shares of common stock issued and outstanding, respectively.~~8

NoTable ~~shares~~of ~~were issued during the three month period ended September 30, 2015.~~Contents

No shares were issued during the three month period ended March 31, 2016.

The Company has no options or warrants issued or outstanding.

Series A Convertible Preferred Stock

As of ~~September~~March 3031, ~~2015~~2016, the Company had 5,000,000 shares of Series A Convertible Preferred Stock issued and outstanding, reflecting no change since December 31, ~~2014~~2015.

NOTE 8. ~~CORRECTION~~ COMMITMENTS AND ~~RESTATEMENT OF QUARTER ENDING SEPTEMBER 2014 FINANCIALS~~CONTINGENCIES

~~For~~On ~~presentation~~December ~~purposes~~23, ~~only;~~2013, the ~~Company~~Subsidiary ~~recategorized~~entered ~~stock~~into ~~purchases~~a ~~from~~management ~~the~~agreement ~~nine~~with ~~month~~ChinAmerica. ChinAmerica ~~period~~has ~~ended~~operations' ~~September~~in ~~30,~~China ~~2014~~and bywill ~~putting~~be ~~them~~receiving payment for such operations in China. Because China employs strict currency regulations that are designed to prevent large amounts of currency moving out of the ~~proper~~country, ~~period~~ChinAmerica ~~they~~retained ~~were~~the ~~issued~~Subsidiary into manage the money it receives from its Chinese operations. ~~The~~All ~~sole~~deposits ~~purpose~~received isin toChina ~~correct~~incur a management fee of ten percent (10%) due to the ~~September~~Subsidiary. 30As of March 31, ~~2014~~2016, ~~presentation~~the current balance in the account held on behalf of ChinAmerica is $346,886.

~~For~~Commencing May 1, 2015, the ~~nine~~Company ~~months~~renewed ~~ended~~the ~~September~~management ~~30,~~services ~~2014~~agreement ~~marketing~~with ~~expense~~ChinAmerica ~~was~~and ~~decreased~~Sichuan ~~from~~to ~~$95~~provide management services for an additional year to both related parties. All of the revenue received during the three month period ended March 31,~~909~~ 2016,~~826~~ tototaling $~~959~~67,~~098~~269 was from management services fees paid by ChinAmerica and Sichuan.

For the nine months ended September 30, 2014 general and administrative expense was decreased from $186,386 to $98,252.

For the three months ended September 30, 2014 marketing expense was decreased from $95,909,826 to $959,098.

For the three months ended September 30, 2014 general and administrative was decreased from $75,245 to $29,950.

As of nine months ended September 30, 2014 net loss was decreased from $96,242,325 to $1,212,412.

For the three months ended September 30, 2014 net loss was decreased from $96,020,647 to $1,026,894.

NOTE 9. RECLASSIFICATION

Certain items have been reclassified during the nine month period ended September 30, 2014 for presentation purposes.

NOTE 10. VALUE ADDED TAXES

During the nine month period ended September 30, 2015, the Subsidiary incurred $15,926 in value added tax at a rate of 25% paid to the Chinese government.

NOTE 11. COMMITMENTS AND CONTINGENCIES

On December 23, 2013, the Subsidiary entered into a management agreement with ChinAmerica. ChinAmerica has operations' in China and will be receiving payment for such operations in China. Because China employs strict currency regulations that are designed to prevent large amounts of currency moving out of the country, ChinAmerica retained the Subsidiary to manage the money it receives from its Chinese operations. All deposits received in China incur a management fee of ten percent (10%) due to the Subsidiary. As of September 30, 2015, the current balance in the account held on behalf of ChinAmerica is $429,702.

Commencing May 1, 2015, the Company renewed the management services agreement with ChinAmerica and Sichuan to provide management services for an additional year to both related parties. All of the revenue received during the nine month period ended September 30, 2015, totaling $169,355 was from management services fees paid by ChinAmerica and Sichuan.

The amounts and terms of the above transaction may not necessarily be indicative of the amounts and terms that would have been incurred had comparable transactions been entered into with independent third parties.

~~Commencing~~NOTE ~~on July 1, 2015, we entered into a management services agreement with Sarasota Pack and Ship, Inc. in the amount of $~~9,600 to handle management and accounting related services including the bookkeeping, managing their websites, handling employee matters, and related governmental filings, processing payables and payroll. SEGMENT REPORTING

10The Company acquired one operating segment, the Subsidiary, during the third quarter of 2012. We intend to develop a provider of business services to Chinese individuals who have investments in U.S. companies. There was no revenue during the three month period ended March 31, 2016. The following are the expenses attributed to the Subsidiary for the three month period ended March 31, 2016. At this time, the operating segment does not meet any of the quantitative thresholds which would require separate reporting of its operations, however, management believes that the following information about the segment would be useful to readers of the consolidated financial statements.

NOTE 12. SEGMENT REPORTING

AF Ocean Investment Management Company (Shanghai Ltd.) Segment	March 31, 2016 (unaudited)
Net income, (net loss)	$	(43,360	)
Total Assets (not including accumulated depreciation)	$	8,989

~~The~~NOTE ~~Company~~10. ~~acquired~~SUBSEQUENT one operating segment, the Subsidiary, during the third quarter of 2012. We intend to develop a provider of business services to Chinese individuals who have investments in U.S. companies. There was no revenue during the nine month period ended September 30, 2015. The following are the expenses attributed to the Subsidiary for the nine month period ended September 30, 2015. At this time, the operating segment does not meet any of the quantitative thresholds which would require separate reporting of its operations, however, management believes that the following information about the segment would be useful to readers of the consolidated financial statements.EVENTS

AF Ocean Investment Management Company (Shanghai Ltd.) Segment	September 30, 2015 (unaudited)
Net income, (net loss)	$	(126,803	)
Total Assets	$	8,989

On April 15, 2016 a payment was received in the amount of $4,000 from a related party. Management has evaluated subsequent events through May 16, 2016 the date the consolidated financial statements were available to be issued. Management is not aware of any other significant events that occurred subsequent to the balance sheet date that would have a material effect on the consolidated financial statements thereby requiring adjustment or disclosure.

~~NOTE 13. SUBSEQUENT EVENTS~~9

OnTable ~~November 9, 2015, the Company issued 38,795,978 shares~~ of common stock to 987 people, all of whom are residents of China, in connection with various promotions in China regarding the Technology. The forgoing 38,795,978 shares are referred to as the “Promotional Shares.” Because there is no “established trading market” for our common stock, the Promotional Shares were valued at par value of $0.01 per share. The aggregate value of the Promotional Shares is $38,795.98. We did not receive any cash consideration in connection with the issuance of the Promotional Shares. The offering and issuance of the Promotional Shares were not registered under the Securities Act, but were made in reliance upon the exemptions from the registration requirements of the Securities Act set forth in Section 4(2) and Rule 903 of Regulation S promulgated thereunder, insofar as the Promotional Shares were offered and sold in an "offshore transaction" and there were no "directed selling efforts" in or into the United States of the Promotional Shares, all within the meaning of Rule 902 of Regulation S. Furthermore, no recipient of the Promotional Shares is a United States citizen; nor did any recipient acquire the Promotional Shares for the account or benefit of a United States citizen; and the Promotional Shares are restricted pursuant to Rule 144 under the Securities Act. Management has evaluated subsequent events through October 31, 2015, the date the consolidated financial statements were available to be issued. Management is not aware of any other significant events that occurred subsequent to the balance sheet date that would have a material effect on the consolidated financial statements thereby requiring adjustment or disclosure.Contents

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis of financial condition and results of operations should be read in conjunction with our consolidated financial statements and related notes included elsewhere in this report. This discussion contains forward-looking statements that involve risks, uncertainties and assumptions. See “Cautionary Note Regarding Forward-Looking Statements.” Our actual results could differ materially from those anticipated in the forward-looking statements as a result of certain factors discussed elsewhere in this report.

Overview and Going Concern

AF Ocean Investment Management Company was incorporated under the laws of the State of Florida on April 2, 2003. We have one wholly-owned subsidiary, AF Ocean Investment Management Company (Shanghai Ltd.) (the “Subsidiary”), which we acquired as of July 6, 2012. AF Ocean Investment Management Company and the Subsidiary are hereinafter collectively referred to as the “Company”, “we” or “our.” We promote business relations and exchanges between Chinese and U.S. companies, facilitating international mergers and acquisitions, and increasing co-operation between Chinese companies and Wall Street financial institutions. Our mission is to help Wall Street investors identify and work with respectable and reputable Chinese counterparts and companies and assist Chinese corporations to understand that the only way to benefit from the world’s biggest capital market is through strict and consistent adherence to the rules and regulations that govern companies listed on U.S. stock exchanges. We believe we can and will continue to do so during the next twelve months. However, we are in the process of a strategic change in operations due to our acquisition in July 2014 of non-patented technology relating to a new energy electric vehicle based on electromagnetic induction (the “Technology”). We believe that our primary business enterprise going forward will be based on this Technology.

The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As of ~~September~~March 3031, ~~2015~~2016, current assets exceeded current liabilities by $89189,~~368~~490. Total assets decreased from $1876,~~405,722~~995 at December 31, ~~2014~~2015 to $~~847~~854,~~781~~314 at ~~September~~March 3031, ~~2015~~2016, and total liabilities ~~decreased~~increased from $~~851~~357,~~748~~838 at December 31, ~~2014~~2015 to $~~438~~356,~~191~~036 at ~~September~~March 3031, ~~2015~~2016.

The ability to continue as a going concern is dependent upon us generating profitable operations in the future and/or obtaining the necessary financing to meet our obligations and repay our liabilities arising from normal business operations when they come due. No assurance can be given that we will be successful in these efforts.

In the event we are unable to generate sufficient funds to continue our business efforts or if we are pursued by a larger company for a business combination, we will analyze all strategies to continue the Company and maintain or increase shareholder value. Under these circumstances, we would consider a merger, acquisition, joint venture, strategic alliance, a roll-up, or other business combination for the purposes of continuing the business and maintaining or increasing shareholder value. Management believes its responsibility to maintain shareholder value is of paramount importance, which means we should consider the aforementioned alternatives in the event funding is not available on favorable terms to us when needed.

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Results of Operations

~~Nine~~Three Month Period Ended ~~September~~March 3031, ~~2015~~2016 and ~~2014~~2015

The following table provides a comparison of a summary of our results for ~~nine~~three month period ended ~~September~~March 3031, ~~2015~~2016 and ~~2014~~2015.

	Nine Months Ended September 30, (unaudited)
	Three Months Ended March 31, (unaudited)
	2015			2014			% Change
	2016			2015			% Change
Revenue From Operations	$						$
Management Fee U.S. – Related Party		~~169~~67,~~355~~269			5038,~~800~~100			~~234~~-77	%
Management Fee Shanghai – Related Party		-			130,648			100	%
Consulting Fee Income		400			-			100	%
Total Revenue		~~169~~67,~~355~~669			~~181~~38,~~448~~100			7-78	%
Expenses
Marketing Expense		-			959,098			100	%
General and Administrative Expenses	$	88,782		$	115,273			-8	%
General and Administrative Expenses	$	86,188		$	98,252			13	%
Depreciation and amortization	$	1,417		$	1,417			0	%
Payroll		166,996			159,471			-5	%
Total Expenses		90,199			116,690			-8	%
Professional Fees		114,659			171,431			34	%
Income (Loss) From Operations	$	(22,530	)	$	(78,590	)		-72	%
Value Added Tax China		15,926			-			100	%
Interest Expense	$	-		$	-			0	%
Depreciation and amortization	$	4,251		$	-			100	%
Interest Income (Shanghai & US)	$	184		$	141			30	%
Total Expenses		388,020			1,393,226			76	%
Total Other Income (Expense), net	$	184		$	141			30	%
Income (Loss) From Operations	$	(218,665	)	$	(1,211,778	)		82	%
Net Income (Loss)		(22,346	)		(78,449	)		-72	%
Other Income (Expense)
Foreign Currency Gain (Loss)	$	(1,467	)	$	(72	)		1938	%
Interest Payable Expense	$	-		$	-
Comprehensive Income	$	(23,813	)	$	(78,521	)		-70	%
Interest Expense	$	-		$	(391	)		100	%
Interest Income (Shanghai & US)	$	518		$	(243	)		314	%
Total Other Income (Expense), net	$	518		$	(634	)		182	%
Net Income (Loss)		(218,147	)		(1,212,412	)		82	%
Foreign Currency Gain (Loss)	$	(1,766	)	$	3,975			145	%
Comprehensive Income	$	(219,913	)	$	(1,208,437	)		19	%
Income (Loss) Per Share: Basic and Diluted	$	(0.00	)	$	(0.00	)

Revenue From Operations. For the ~~nine~~three month period ended ~~September~~March 3031, ~~2015~~2016, total revenue was $~~169~~67,~~355~~669 as compared to $~~181~~38,~~448~~100 for the ~~nine~~three month period ended ~~September~~March 3031, ~~2014~~2015. Loss from operations was ($~~218~~22,~~665~~530) for the ~~nine~~three month period ended ~~September~~March 3031, ~~2015~~2016 as compared to ($178,~~211,778~~590) for the ~~nine~~three month period ended ~~September~~March 3031, ~~2014~~2015. The decrease in revenue is attributable to aan ~~loss~~absence of ~~management~~employment ~~fee~~contracts ~~income~~and the ~~Company~~reduction ~~receives~~in ~~when~~management afees ~~deposit~~paid isby ~~received~~ChinAmerica onfor ~~behalf~~management ofservices ~~ChinAmerica~~in ~~Andy~~Shanghai ~~Movie~~during ~~Entertainment~~three ~~Media~~month ~~Company~~period ~~(“ChinAmerica”)~~ended March 31, 2016. All of our revenue for the ~~nine~~three month period ended ~~September~~March 3031, ~~2015~~2016 was from management services fees paid by ChinAmerica and Sichuan Leaders Petrochemical Company (“Sichuan”) in the U.S, except $400 related to consulting fees to an unrelated party. We received the $~~169~~67,~~355~~269 from ChinAmerica and Sichuan in connection with management services agreements.

Expenses. Total expenses decreased by $126,~~005,206~~491 to $~~388~~90,~~020~~199 for the ~~nine~~three month period ended ~~September~~March 3031, ~~2015~~2016 as compared to $1116,~~393,226~~690 for the ~~nine~~three month period ended ~~September~~March 3031, ~~2014~~2015. The decrease was directly attributable to the ~~marketing~~legal ~~expense that was recorded to account for the promotional shares issued on July 28, 2014~~fees.

Net Income (Loss). As a result of the decrease in ~~marketing~~legal ~~expenses~~fees as explained above, and decrease in revenues, our net loss decreased by $~~994~~56,~~265~~103 to ($~~218~~22,~~147~~346) for the ~~nine~~three month period ended ~~September~~March 3031, ~~2015~~2016 as compared to ($178,~~212,412~~449) for the ~~nine~~three month period ended ~~September~~March 3031, ~~2014~~2015.

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~~Three~~Table ~~Month~~of ~~Period Ended September 30, 2015 and 2014~~Contents

The following table provides a comparison of a summary of our results for three month period ended September 30, 2015 and 2014.

	Three Months Ended September 30, (unaudited)
	2015			2014			% Change
Revenue From Operations
Management Fee US – Related Party	$	74,961		$	38,100			-97	%
Management Fee Shanghai – Related Party		-			32,315			100	%
Total Revenue		74,961			70,415			-7	%
Expenses
Marketing Expense		-			959,098			100	%
General and Administrative Expenses		31,330			29,950			59	%
Payroll		57,411			50,122			-15	%
Professional Fees		40,623			55,907			28	%
Depreciation and amortization		1,417			-			100	%
Total Expenses		130,781			1,096,819			88	%
Income (Loss) From Operations	$	(55,820	)	$	(1,026,404	)		95	%
Other Income (Expense)
Interest Income (Shanghai & US)		207			(490	)		143	%
Total Other Income (Expense), net		207			(490	)		143	%
Net Income (Loss)	$	(55,613	)	$	(1,026,894	)		95	%
Foreign Currency Gain (Loss)		(1,062	)		5,190			121	%
Comprehensive Income	$	(56,675	)	$	(1,021,704	)		95	%
Income (Loss) Per Share: Basic and Diluted	$	(0.00	)	$	(0.00	)

Revenue From Operations. For the three month period ended September 30, 2015, total revenue was $74,961 as compared to $70,415 for the three month period ended September 30, 2014. Loss from operations was ($55,820) for the three month period ended September 30, 2015 as compared to ($1,026,404) for the three month period ended September 30, 2014. The slight increase in revenue is attributable to the combination of the management services agreement between the Company and ChinAmerica and Sichuan as well as the lack of management income for Shanghai during the three month ended September 30, 2015.

Expenses. Total expenses decreased by $966,038 to $130,781 for the three month period ended September 30, 2015 as compared to $1,096,819 for the three month period ended September 30, 2014. The decrease is directly attributable to the marketing expense that was recorded to account for the promotional shares issued on July 28, 2014.

Net Income (Loss). As a result of the decrease in expenses as explained above, our net loss decreased by $971,281 to ($55,613) for the three month period ended September 30, 2015 as compared to ($1,026,894) for the three month period ended September 30, 2014.

Liquidity and Capital Resources

General. As of ~~September~~March 3031, ~~2015~~2016, wethere ~~had~~is ~~cash~~an ~~and~~additional ~~cash~~$9,119 ~~equivalents~~that ofis ~~$81,030~~due to “funds held by related party” as compared to cash and cash equivalents of $~~225~~60,~~913~~741 as of ~~September~~March 3031, ~~2014~~2015. We have met our cash needs through consulting and management services fees. Our cash requirements are generally for professional services and general and administrative activities. We do not believe that our cash balance and expected consulting and management services fees are sufficient to finance our cash requirements for expected operational activities going forward, and therefore we will require additional funding through either loans or the sale of equity, or both.

Operating Activities. Our operating activities used cash of ($~~234~~62,~~611~~208) for the ~~nine~~three month period ended ~~September~~March 3031, ~~2015~~2016 as compared to cash used of ($~~241~~80,~~484~~556) for the ~~nine~~three month period ended ~~September~~March 3031, ~~2014~~2015.

Investing Activities. Our investing activities provided cash of $0 for the ~~nine~~three month period ended ~~September~~March 3031, ~~2015~~2016, as compared to cash used of ($~~3,476)~~0 for the ~~nine~~three month period ended ~~September~~March 3031, ~~2014~~2015.

Financing Activities. Our financing activities provided cash of $~~68,593~~0 for the ~~nine~~three month period ended ~~September~~March 3031, ~~2015~~2016 as compared to cash used of ($~~102~~56,~~400)~~093 for the ~~nine~~three month period ended ~~September~~March 3031, ~~2014~~2015.

Cash Flow. The following table provides a summary of our cash flows for the ~~nine~~three month period ended ~~September~~March 3031, ~~2015~~2016 and ~~2014~~2015.

	Nine Month Ended September 30, (unaudited)
	Three Month Ended March 31, (unaudited)
	2015			2014
	2016			2015
Cash used in operating activities	$	(~~234~~62,~~611~~208	)	$	(~~241~~80,~~484~~556	)
Cash used in investing activities		-			~~(3,476~~-	)
Cash (used in) provided by financing activities		~~68,593~~-			~~(102~~56,~~400~~093	)
Foreign currency (loss) gain		~~(430~~1,467	)		~~3,448~~(72	)
Net increase (decrease) in cash	$	(~~166~~60,~~448~~741	)	$	(~~343~~24,~~912~~535	)

Value Added Taxes

Annual charge levied on both earned income and unearned income. In addition to financing a government’s operations, progressive income taxation is designed to distribute wealth more evenly in a population, and to serve as automatic fiscal stabilizer to cushion the effects of economic cycles. Presence of tax loopholes whose number increases in direct proportion to the complexity of tax code may allow some wealthy persons to escape higher taxes without violating the letter of the tax laws. During the nine month period ended September 30, 2015 The Subsidiary incurred $15,926 in value added tax at a rate of 25%.

Income Taxes

At this time there is not an income tax expense to report. However, at the end of each fiscal quarter we evaluate income tax liability under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the consolidated financial statements. Under this method, deferred tax assets and liabilities are determined based on temporary differences between the consolidated financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date.

We record net deferred tax assets to the extent we believe these assets will more likely than not be realized. In making such determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and recent financial operations. In the event we were to determine that we would be able to realize our deferred income tax assets in the future in excess of their net recorded amount, we would make an adjustment to the valuation allowance, which would reduce the provision for income taxes.

Impairment of Long-lived Assets

Long-lived assets such as property, equipment and identifiable intangibles are reviewed for impairment whenever facts and circumstances indicate that the carrying value may not be recoverable. When required impairment losses on assets to be held and used are recognized based on the fair value of the asset. The fair value is determined based on estimates of future cash flows, market value of similar assets, if available, or independent appraisals, if required. If the carrying amount of the long-lived asset is not recoverable from its undiscounted cash flows, an impairment loss is recognized for the difference between the carrying amount and fair value of the asset. When fair values are not available, we estimate fair value using the expected future cash flows discounted at a rate commensurate with the risk associated with the recovery of the assets. We did not recognize any impairment losses for any periods presented.

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Inflation

Inflation does not materially affect our business or the results of our operations.

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements.

Critical Accounting Policies

We prepare our consolidated financial statements in accordance with generally accepted accounting principles of the United States (“GAAP”). GAAP represents a comprehensive set of accounting and disclosure rules and requirements. The preparation of our consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Our actual results could differ from those estimates. We use historical data to assist in the forecast of our future results. Deviations from our projections are addressed when our financials are reviewed on a monthly basis. This allows us to be proactive in our approach to managing our business. It also allows us to rely on proven data rather than having to make assumptions regarding our estimates.

Management does not believe that our actual results are related to any sensitivity in estimates made by management. The year-end consistency of our results has shown that our prior year’s historical data is the best projector of our future results.

Recent Accounting Pronouncements

We have reviewed all the recently issued, but not yet effective, accounting pronouncements and we do not believe any of these pronouncements will have a material impact on our consolidated financial statements.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

WeThe ~~are a “smaller reporting~~ company” asdoes ~~defined~~not byown ~~Item~~any ~~10(f)(1)~~market ofsensitive ~~Regulation~~financial ~~S-K~~instruments, ~~and~~subject ~~as such are not required~~ to ~~provide~~market ~~the~~risk ~~information~~as ~~contained~~identified in ~~this~~Reg ~~item~~S-K, ~~pursuant to~~ Item 305 ~~of Regulation S-K~~.

ITEM 4. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

We maintain disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) that are designed to ensure that information required to be disclosed in our reports filed under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms and that such information is accumulated and communicated to our management, as appropriate, to allow timely decisions regarding required disclosure.

~~Our~~ With ~~management~~respect ~~has~~to ~~evaluated~~ the ~~effectiveness~~period ofending ~~our~~March ~~disclosure~~31, ~~controls~~2016, ~~and~~under ~~procedures~~the assupervision ofand with the ~~end~~participation of ~~the~~our ~~period~~management, ~~covered~~we byconducted ~~this~~an ~~report. Based upon that~~ evaluation, ~~management has concluded that, as~~ of the ~~end~~effectiveness of the ~~period~~design ~~covered~~and byoperations ~~this~~of ~~report,~~ our disclosure controls and procedures, ~~were~~as ~~effective~~defined in Rules 13a-15(e) and 15d-15(e) promulgated under the Securities Exchange Act of 1934.

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Based upon our evaluation regarding the period ending March 31, 2016, the Company’s management, including its Principal Executive Officer and Principal Financial Officer, has concluded that its disclosure controls and procedures were not effective due to the Company’s limited internal resources and lack of ability to have multiple levels of transaction review. Material weaknesses noted are lack of an audit committee, lack of a majority of outside directors on the board of directors, resulting in ineffective oversight in the establishment and monitoring of required internal controls and procedures; and management is dominated by two individuals, without adequate compensating controls. However, through the review process, management believes that the financial statements and other information presented herewith are materially correct.

The Company’s disclosure controls and procedures are designed to provide reasonable assurance of achieving their objectives. However, the Company’s management, including its Principal Executive Officer and Principal Financial Officer, does not expect that its disclosure controls and procedures will prevent all error and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefit of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting that occurred during our most recently completed fiscal quarter that has materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II – OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

We were not subject to any legal proceedings during the three months ended March 31, 2016, nor to the best of our knowledge and belief are any threatened or pending.

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

We did not sell any unregistered equity securities during the three months ended March 31, 2016.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

No senior securities were issued and outstanding during the three months ended March 31, 2016.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable to our Company.

ITEM 5. OTHER INFORMATION

~~On November 9, 2015, the Company issued 38,795,978 shares of common stock to 987 people, all of whom are residents of China, in connection with various promotions in China regarding the Technology~~None. The forgoing 38,795,978 shares are referred to as the “Promotional Shares.” Because there is no “established trading market” for our common stock, the Promotional Shares were valued at par value of $0.01 per share. The aggregate value of the Promotional Shares is $38,795.98. We did not receive any cash consideration in connection with the issuance of the Promotional Shares. The offering and issuance of the Promotional Shares were not registered under the Securities Act, but were made in reliance upon the exemptions from the registration requirements of the Securities Act set forth in Section 4(2) and Rule 903 of Regulation S promulgated thereunder, insofar as the Promotional Shares were offered and sold in an "offshore transaction" and there were no "directed selling efforts" in or into the United States of the Promotional Shares, all within the meaning of Rule 902 of Regulation S. Furthermore, no recipient of the Promotional Shares is a United States citizen; nor did any recipient acquire the Promotional Shares for the account or benefit of a United States citizen; and the Promotional Shares are restricted pursuant to Rule 144 under the Securities Act.

ITEM 6. EXHIBITS

Exhibit No.	Description
3.1	Amended and Restated Articles of Incorporation *
3.2	Articles of Amendment to Articles of Incorporation **
3.3	Articles of Amendment to Articles of Incorporation ***
3.4	Articles of Amendment to Articles of Incorporation ****
3.5	Bylaws *
31	Certification of Principal Executive Officer and Principal Financial Officer filed pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 Filed herewith
32	Certification of Chief Executive Officer and Chief Financial Officer furnished pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 Furnished herewith
101	Consolidated financial statements for the quarterly report on Form 10-Q of AF Ocean Investment Management Company for the fiscal quarter ended ~~September~~March 3031, ~~2015~~2016, formatted in XBRL: (i) the Consolidated Balance Sheets; (ii) the Consolidated Statements of Operations and Comprehensive Income; (iii) the Consolidated Statements of Cash Flows; and (iv) the Notes to Consolidated Financial Statements Filed herewith

* Incorporated herein by reference to AF Ocean Investment Management Company’s Registration Statement on Form S-1 filed with the SEC on February 4, 2011.

** Incorporated herein by reference to AF Ocean Investment Management Company’s Current Report on Form 8-K filed with the SEC on October 5, 2011.

*** Incorporated herein by reference to AF Ocean Investment Management Company’s Quarterly Report on Form 810-KQ filed with the SEC on ~~October~~November 514, ~~2011~~2012.

*** * Incorporated herein by reference to AF Ocean Investment Management Company’s ~~Quarterly~~Current Report on Form 8-K filed with the SEC on July 24, 2014.

~~Form 10-Q filed with the SEC on November 14, 2012.~~15

**** IncorporatedTable ~~herein~~of ~~by reference to AF Ocean Investment Management Company’s Current Report on~~Contents

Form 8-K filed with the SEC on July 24, 2014.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		AF OCEAN INVESTMENT MANAGEMENT COMPANY
Dated: November 17, 2015	By:	/s/ Andy Fan
Dated: May 16, 2016	By:	/s/ Andy Fan
		Andy Z. Fan Chief Executive Officer
		(Principal Executive Officer)

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Filing Compare · AF OCEAN INVESTMENT MANAGEMENT Co