UNITED ~~STATES~~STATESSECURITIES AND EXCHANGE COMMISSION

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

~~FORM~~Form 10-Q

~~X .~~ QUARTERLY REPORT ~~UNDER~~PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For ~~the~~Quarter ~~quarterly~~Ended: ~~period~~March ~~ended September 30~~31, ~~2016~~2017

.Commission ~~TRANSITION~~File ~~REPORT~~Number ~~UNDER SECTION 13 OR 15 (d) OF THE EXCHANGE ACT~~333-175146

~~For~~PROTO ~~the~~SCRIPT ~~transition~~PHARMACEUTICAL ~~period~~CORP. ~~from~~(Exact ~~_________~~name toof ~~_________~~registrant as specified in its charter)

Commission File Number: 333-175146

Nevada		99-0363803
(State or other jurisdiction		(I.R.S. Employer
of incorporation or organization)		Identification No.)

~~PROTO~~9830 ~~SCRIPT~~6th ~~PHARMACEUTICAL~~Street, ~~CORP.~~Suite 103

~~(Name~~Rancho ofCucamonga, ~~Small~~CA ~~Business Issuer in its charter)~~91730

Nevada	99-0363803
(state or other jurisdiction of incorporation or organization)	(I.R.S. Employer I.D. No.)
9830 6th Street, Suite 103 Rancho Cucamonga, California	91730
(Address of principal executive offices)	(Zip Code)

(Address of principal executive offices) (Zip Code)

(855) 476-7679

(Registrant’'s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the ~~past~~preceding 12 months (or for such shorter period that the registrant was ~~require~~required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.: Yes X x . No ¨.

Indicate by check mark whether the registrant ishas asubmitted ~~large~~electronically ~~accelerated~~and ~~filer,~~posted anon ~~accelerated~~its ~~filer,~~corporate aWeb ~~non-accelerated filer~~site, orif aany, ~~smaller~~every ~~reporting~~Interactive ~~company.~~Data ~~See~~File ~~definition~~required ofto ~~“large~~be ~~accelerated~~submitted ~~filer”,~~and ~~“accelerated~~posted ~~filer”~~pursuant ~~and~~to ~~“smaller~~Rule ~~reporting~~405 ~~company”~~of inRegulation ~~Rule 12b~~S-2T (§232.405 of this chapter) during the ~~Exchange~~preceding ~~Act.~~12 months (~~Check~~or ~~one~~for such shorter period that the registrant was required to submit and post such files):. Yes x No ¨

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

~~Indicate~~Large byaccelerated ~~check~~filer ~~mark~~¨ ~~whether~~Accelerated ~~the~~filer ~~registrant~~¨ isNon-accelerated afiler ~~shell~~¨ Smaller reporting company x (asDo ~~defined~~not incheck ~~Rule~~if ~~12b-2~~a ofsmaller ~~the~~reporting ~~Exchange Act~~company). ~~Yes .~~Emerging ~~No X~~growth .company ¨

~~APPLICABLE~~Indicate ~~ONLY~~by TOcheck ~~CORPORATE~~mark ~~ISSUERS~~whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ¨ Yes x No

AsThe number of ~~December~~shares ~~30,~~of ~~2016~~ the registrant's ~~had~~only ~~330,480,000~~class ~~shares~~ of common stock issued and outstanding as of November 21, 2017 was 49,139,998 shares.

PROTO SCRIPT PHARMACEUTICAL CORP.

TABLE OF CONTENTS

			Page
PART I FINANCIAL INFORMATION		~~PART I FINANCIAL INFORMATION~~
Item 1.	Financial Statements	~~Financial Statements~~	3
		Condensed Consolidated Balance Sheets as of September 30, 2016 (Unaudited) and December 31, 2015	4
	Condensed Consolidated Balance Sheets as of March 31, 2017 (Unaudited) and December 31, 2016			3
		Condensed Consolidated Statements of Operations (Unaudited) for the three and nine months ended September 30, 2016 and 2015	5
	Condensed Consolidated Statements of Operations (Unaudited) for the three months ended March 31, 2017 and 2016			4
		Condensed Consolidated Statements of Cash Flows (Unaudited) for the nine months ended September 30, 2016 and 2015	6
	Condensed Consolidated Statements of Cash Flows (Unaudited) for the three months ended March 31, 2017 and 2016			5
	Notes to Condensed Consolidated Financial Statements (Unaudited)	~~Notes to Condensed Consolidated Financial Statements (Unaudited)~~	7	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	~~Management’s Discussion and Analysis of Financial Condition and Results of Operations~~	16	15
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	~~Quantitative and Qualitative Disclosures about Market Risk~~	20	18
Item 4.	Controls and Procedures	~~Controls and Procedures~~	20	18
PART II OTHER INFORMATION
Item 1.	Legal Proceedings	~~Legal Proceedings~~	21	19
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	~~Unregistered Sales of Equity Securities and Use of Proceeds~~	21	19
Item 3.	Defaults Upon Senior Securities	~~Defaults Upon Senior Securities~~	21	19
Item 4.	Mine Safety Disclosures	~~Mine Safety Disclosures~~	21	19
Item 5.	Other Information	~~Other Information~~	21	19
Item 6.	Exhibits	~~Exhibits~~	21	20
Signatures			22	21

PART I – FINANCIAL INFORMATION

PROTO SCRIPT PHARMACEUTICAL CORP.
Condensed Consolidated Balance Sheets

	March 31, 2017			December 31, 2016
	(unaudited)
ASSETS
Current assets
Cash	$	56,363		$	3,507
Accounts receivable, net		104,796			140,000
Other current assets		35,011			1,139
Total current assets		196,170			144,646

Property and equipment, net		32,915			25,545
Intangible assets, net		-			-
TOTAL ASSETS	$	229,085		$	170,191

LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
Current liabilities
Bank overdraft	$	-		$	51,290
Accounts payable		131,188			157,490
Accrued liabilities		22,671			-
Accrued compensation		160,500			75,000
Payroll liabilities		29,606			21,406
Other payables		127,286			167,411
Due to related party		17,330			17,330
Convertible notes, net of debt discount of $259,357		69,143			-
Derivative liability		496,965			-
Total current liabilities		1,054,689			489,927

STOCKHOLDERS’ EQUITY (DEFICIT)
Preferred stock: authorized 100,000,000 shares, $0.001 par, 1,500,000 and 0 issued and outstanding	$	1,500			-
Common stock: authorized 500,000,000 common shares, $0.001 par, 49,139,998 and 344,139,998 issued and outstanding		49,140			344,140
Additional paid-in capital		7,246,439			6,952,939
Accumulated deficit		(8,122,683	)		(7,616,815	)
TOTAL STOCKHOLDERS' EQUITY (DEFICIT)		(825,604	)		(319,736	)
TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY (DEFICIT)	$	229,085		$	170,191

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

Table of Contents

PROTO SCRIPT PHARMACEUTICAL CORP.
Condensed Consolidated Statements of Operations
(unaudited)

	Three Months Ended March 31,
	2017			2016

Sales, net	$	138,281		$	343,212

Cost of goods sold		30,940			28,721

Gross profit		107,341			314,491

Operating expenses
Selling, general and administrative		369,075			165,403
Total operating expenses		369,075			165,403

Operating income (loss)		(261,734	)		149,088

Other income (expense)
Interest and financing costs		(411,593	)		-
Change in fair value of derivative liability		167,459			-
Total other income (expense)		(244,134	)		-

Net income (loss)	$	(505,868	)	$	149,088

Earnings (loss) per share - basic and diluted	$	(0.00	)	$	(0.00	)

Weighted average common shares - basic and diluted	$	150,751,109		$	300,000,000

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

Table of Contents

PROTO SCRIPT PHARMACEUTICAL CORP.

Financial Statements

September 30, 2016

(Expressed in US dollars)

(unaudited)

Condensed Consolidated Balance Sheets (unaudited)

Condensed Consolidated Statements of Operations (unaudited)

Condensed Consolidated Statements of Cash Flows (unaudited)

Notes to the Condensed Consolidated Financial Statements (unaudited)

PROTO SCRIPT PHARMACEUTICAL CORP.

Condensed Consolidated Balance Sheets

(Expressed in US dollars)

(Unaudited)

PROTO SCRIPT PHARMACEUTICAL CORP.
Condensed Consolidated Balance Sheets
(unaudited)
					September 30,		December 31,
					2016		2015
ASSETS
	Current assets
		Cash		$	5,796	$	9,090
		Accounts receivable, net			247,326		174,053
		Other current assets			1,139		357
			Total current assets		254,261		183,500
	Property and equipment, net				14,865		15,441
	Intangible assets, net				-		-
TOTAL ASSETS				$	269,126	$	198,941
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
	Current liabilities
		Bank overdraft		$	82,234	$	36,159
		Accounts payable			14,688		23,944
		Payroll liabilities			19,214		10,770
		Other payables			75,826		65,826
		Due to related party			99,290		-
			Total current liabilities		291,252		136,699
STOCKHOLDERS’ EQUITY (DEFICIT)
	Common stock: authorized 500,000,000 common shares, $0.001 par, 330,480,000 and 300,000,000 issued and outstanding				330,480		300,000
	Retained deficit				(352,606)		(237,758)
	TOTAL STOCKHOLDERS' EQUITY (DEFICIT)				(22,126)		62,242
TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY (DEFICIT)				$	269,126	$	198,941
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

PROTO SCRIPT PHARMACEUTICAL CORP.

Condensed Consolidated Statements of Operations

(Expressed in US dollars)

(unaudited)

PROTO SCRIPT PHARMACEUTICAL CORP.
Condensed Consolidated Statement of Operations
(unaudited)
			Three Months Ended September 30,				Nine Months Ended September 30,
			2016		2015		2016		2015
Sales, net		$	213,826	$	122,269	$	688,611	$	667,700
Cost of goods sold			39,396		6,215		124,758		161,750
Gross profit			174,430		116,054		563,853		505,950
Operating expenses
	Selling, general and administrative		174,281		173,795		482,366		582,371
Total operating expenses			174,281		173,795		482,366		582,371
Net income (loss)		$	149	$	(57,741)	$	81,487	$	(76,421)
Earnings (loss) per share - basic and diluted		$	0.00	$	(0.00)	$	0.00	$	(0.00)
Weighted average common shares - basic and diluted		$	330,480,000	$	300,000,000	$	310,345,401	$	300,000,000
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

PROTO SCRIPT PHARMACEUTICAL CORP.

Condensed Consolidated Statements of Cash Flows

~~(Expressed in US dollars)~~Unaudited

(unaudited)

	Three Months Ended March 31,
	2017			2016

CASH FLOW FROM OPERATING ACTIVITIES:
Net loss	$	(505,868	)	$	149,088
Adjustments to reconcile loss to cash (used in) provided by operating activities:
Depreciation and amortization expense		2,006			1,169
Allowance for doubtful accounts		(6,549	)		-
Amortization of debt discount		69,143			-
Change in fair value of derivative liability		(167,459	)		-
Financing costs		335,924			-
Changes in operating assets and liabilities:
Accounts receivable		41,753			(110,596	)
Other current assets		(33,872	)		(510	)
Accounts payable		(26,302	)		(12,799	)
Accrued compensation		85,500			-
Accrued liabilities		22,671			250
Payroll liabilities		8,200			1,479
Other payables		(40,125	)		-
Net cash (used in) provided by operating activities		(214,978	)		28,081

CASH FLOW FROM INVESTING ACTIVITIES:
Purchase of property and equipment		(9,376	)		-
Net cash used in investing activities		(9,376	)		-

CASH FLOW FROM FINANCING ACTIVITIES:
Cash overdraft		(51,290	)		9,149
Distributions to stockholder		-			(34,544	)
Proceeds from convertible notes		328,500			-
Advances from non-related party		-			10,000
Net cash provided by (used in) financing activities		277,210			(15,395	)

Net decrease in cash		52,856			12,686
Cash at beginning of period		3,507			9,090
Cash at end of period	$	56,363		$	21,776

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid for interest	$	-		$	-
Cash paid for income taxes	$	-		$	-

Non-cash investing and financing activities:

Conversion of common stock to preferred stock	$	295,000		$	-
Debt discount for conversion feature of convertible note	$	328,500		$	-

PROTO SCRIPT PHARMACEUTICAL CORP.
Condensed Consolidated Statements of Cash Flows
(unaudited)
					Nine Months Ended September 30,
					2016		2015
CASH FLOW FROM OPERATING ACTIVITIES:
	Net income (loss)			$	81,487	$	(76,421)
	Adjustments to reconcile net income (loss) to cash
	provided by operating activities:
		Depreciation and amortization expense			3,576		61,928
		Changes in operating assets and liabilities:
			Accounts receivable		(73,273)		85,931
			Other current assets		(782)		(607)
			Accounts payable		(16,228)		(31,507)
			Accrued liabilities		-		(900)
			Payroll liabilities		8,444		3,198
		Net cash provided by operating activities			3,224		41,622
CASH FLOW FROM INVESTING ACTIVITIES:
	Purchase of property and equipment				(3,000)		(3,364)
		Net cash used in investing activities			(3,000)		(3,364)
CASH FLOW FROM FINANCING ACTIVITIES:
	Cash overdraft				46,075		4,840
	Distributions to stockholder				(59,593)		(74,249)
	Advances from non-related party				10,000		-
		Net cash used in financing activities			(3,518)		(69,409)
Net decrease in cash					(3,294)		(31,151)
Cash at beginning of period					9,090		31,151
Cash at end of period				$	5,796	$	-
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
	Cash paid for interest			$	-	$	-
	Cash paid for income taxes			$	-	$	-
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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

65 Table of Contents

PROTO SCRIPT PHARMACEUTICAL CORP.

Notes to Condensed Consolidated Financial Statements

For the ~~Nine~~Three Months Ended ~~September~~March 3031, ~~2016~~2017 and ~~2015~~2016

(unaudited)

Note 1 - Organization and Basis of Presentation

Organization and Line of Business

Proto Script Pharmaceutical Corp. (formerly Yanex Group, Inc.) (the “Company” or “Proto Script”) was incorporated under the laws of the State of Nevada on November 18, 2010. On October 13, 2016, the Company changed its name from Yanex Group, Inc. to Proto Script Pharmaceutical Corp.

Proto-Script Pharmaceuticals, Corp. (“PSPC”) was incorporated under the laws of the state of California on June 27, 2001 and currently operates as PSP Homecare (dba). PSPC has contracts with Medicare, Medi-Cal, IEHP and various other state and governmental insurance providers. These contracts provide PSPC the right to sell and repair durable medical equipment (“DME”). PSP bills the insurance providers for payment. PSPC’s primary business is to repair power wheelchairs and scooters which are classified as DME products and reimbursable by healthcare insurance providers.

Effective June 29, 2016, the Company and PSPC entered into a share exchange agreement whereby the Company acquired 100% of the issued and outstanding shares of common stock of PSPC, in exchange for 300,000,000 shares of the Company’s common stock. Upon completion of the transaction, the Company had an aggregate of 330,480,000 shares of common stock issued and outstanding. As a result of the share exchange agreement, PSPC is now a wholly owned subsidiary of the Company.

The exchange of shares with PSPC was accounted for as a reverse acquisition under the purchase method of accounting since the Company had no net monetary assets and PSPC obtained control of the Company. Accordingly, the merger of PSPC into the Company was recorded as a recapitalization of PSPC, PSPC being treated as the continuing entity. The historical financial statements presented are the financial statements of PSPC. The equity of PSPC is presented as the equity of the combined company and the capital stock account of PSPC is adjusted to reflect the par value of the outstanding and issued common stock of the legal acquirer (Proto Script) after giving effect to the number of shares issued in the share exchange agreement. The share exchange agreement has been treated as a recapitalization and not as a business combination; therefore, no pro forma information is disclosed. At the date of this transaction, the net liabilities of the legal acquirer, Proto Script, were $106,262.

The Company’s health care insurance contracts allow it the ability to service patients nationally. The Company is seeking to expand its market through additional contracts and open several repair facilities throughout the continental United States. Currently the Company has repair facilities in Las Vegas, Nevada, Rancho-Cucamonga, and Anaheim, California.

The unaudited interim condensed consolidated financial statements have been prepared by us pursuant to the rules and regulations of the Securities and Exchange Commission. The information furnished herein reflects all adjustments (consisting of normal recurring accruals and adjustments) which are, in the opinion of management, necessary to fairly present the operating results for the respective periods. Certain information and footnote disclosures normally present in the annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted pursuant to such rules and regulations. These unaudited condensed consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements and notes for the year ended December 31, ~~2015~~2016. The results of the ~~six~~three months ended ~~June~~March 3031, 2017 and 2016 are not necessarily indicative of the results to be expected for the full year ending December 31, 2017 and 2016.

Stock Split

On October 13, 2016, the Company affected a 10 for 1 forward stock split. All share and per share information has been retroactively restated to reflect this forward stock split.

76 Table of Contents

PROTO SCRIPT PHARMACEUTICAL CORP.

Notes to Condensed Consolidated Financial Statements

For the ~~Nine~~Three Months Ended ~~September~~March 3031, ~~2016~~2017 and ~~2015~~2016

(unaudited)

Going Concern

The accompanying condensed 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. The Company has sustained net losses of $505,868 and $7,182,722 for the three months ended March 31, 2017 and for the year ended December 31, 2016, respectively and at March 31, 2017 and December 31, 2016 had a stockholders’ deficit of $825,604 and $319,736, respectively. The Company’s ability to continue as a going concern for the next twelve (12) months is dependent upon its ability to generate sufficient cash flows from operations to meet its obligations. These factors, among others, raise substantial doubt about the ability of the Company to continue as a going concern for a reasonable period of time. The 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.

Management plans to raise equity capital to the Company as necessary to fund expenditures until the Company’s planned principal operations can generate sufficient cash flows to sustain operations. No assurance can be made that these efforts will be successful and sustain the Company for a reasonable period of time.

Note 2 – Summary of Significant Accounting Policies

Accounting Method

The Company’s financial statements are prepared using the accrual method of accounting. The Company has elected a fiscal year ending on December 31.

Principles of Consolidation

The accompanying consolidated financial statements include the accounts of the Company, its wholly-owned subsidiary, PSPC, and PSPC’s wholly-owned subsidiary, Proto-Script Pharmaceuticals, Corp., a Nevada Corporation, and have been prepared in conformity with accounting principles generally accepted in the United States of America. All significant intercompany transactions and balances have been eliminated.

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. It is possible that accounting estimates and assumptions may be material to the Company due to the levels of subjectivity and judgment involved.

Cash

Cash and cash equivalents include cash on hand and cash in time deposits, certificates of deposit and all highly liquid debt instruments with original maturities of three months or less. As of ~~September~~March 3031, ~~2016~~2017 and December 31, ~~2015~~2016, the Company did not have any cash equivalents.

Concentration of Risk

The Company maintains various bank accounts at financial institutions located in California and Nevada. Accounts at each bank are temporarily insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000. As of ~~September~~March 3031, ~~2016~~2017 and December 31, ~~2015~~2016, the Company had no uninsured cash balances. The Company experienced no losses from such accounts and management believes it places its cash on deposit with financial institutions that are financially stable.

~~Accounts~~7 ~~Receivable~~Table of Contents

Trade accounts receivable are stated at the amount the Company expects to collect. The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. Past due balances over 90 days and other higher risk amounts are reviewed individually for collectability. If the financial condition of the Company’s customers were to deteriorate, adversely affecting their ability to make payments, additional allowances would be required. Based on management’s assessment, the Company provides for estimated uncollectible amounts through a charge to earnings and a credit to a valuation allowance. Balances that remain outstanding after the Company has used reasonable collection efforts are written off through a charge to the valuation allowance and a credit to accounts receivable. Bad debt expense (loss recovery) for the nine months ended September 30, 2016 and 2015 was $0 and $0, respectively.

PROTO SCRIPT PHARMACEUTICAL CORP.

Notes to Condensed Consolidated Financial Statements

For the ~~Nine~~Three Months Ended ~~September~~March 3031, ~~2016~~2017 and ~~2015~~2016

(unaudited)

Accounts Receivable

Trade accounts receivable are stated at the amount the Company expects to collect. The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. Past due balances over 90 days and other higher risk amounts are reviewed individually for collectability. If the financial condition of the Company’s customers were to deteriorate, adversely affecting their ability to make payments, additional allowances would be required. Based on management’s assessment, the Company provides for estimated uncollectible amounts through a charge to earnings and a credit to a valuation allowance. Balances that remain outstanding after the Company has used reasonable collection efforts are written off through a charge to the valuation allowance and a credit to accounts receivable. Bad debt expense (loss recovery) for the three months ended March 31, 2017 and 2016 was $(6,549) and $0, respectively.

Collectability

The Company is governed by Medicare standards and therefore agrees to accept the Medicare-approved amounts as the total payment for the service or item. The Company also agrees to bill Medicare and other or suppliers directly on behalf of the patient.

We report patient accounts receivable net of estimated allowances for doubtful accounts and adjustments. Patient accounts receivable are uncollateralized and primarily consist of amounts due from Medicare, other third-party payers and patients. Our process for estimating the allowance for doubtful accounts is based upon our assessment of historical and expected net collections and trends in reimbursement.

Revenue Recognition

The Company’s revenue recognition policies comply with FASB ASC Topic 605, “Revenue Recognition.” The Company recognizes revenue when it ~~provided~~provides the services, ~~shipped~~ships the products and ~~billed~~bills its customers, insurance companies, and government agencies, and no other significant obligations of the Company exist and collectability is reasonably assured. The Company’s billings are subject to insurance company and government regulatory agency adjustments. The Company revises the amount of revenue recognized when the insurance company and government regulatory adjustments are known to the Company. No historical adjustments are used. The adjustments to the amounts the Company can bill are changed approximately every five years when the government asks companies to submit a new bid. There is approximately one year between the time the Company is notified of any price changes until the time the new amounts come into effect.

Inventory

The Company purchases inventory from third party vendors, which consists of wheelchairs and scooters. Inventory, when carried if at all, represents finished goods, which is stated at lower of cost or market. The Company periodically reviews the value of items held in inventory and provides for write-downs or write-offs based on its assessment of market conditions. Write-downs and write-offs are charged to cost of goods sold. The Company generally purchases product when it has a firm ~~sales~~sale or service order. At ~~September~~March 3031, ~~2016~~2017 and December 31, ~~2015~~2016, the Company had no inventory on hand.

Long-Lived Assets

The Company applies the provisions of ASC Topic 360, Property, Plant, and Equipment, which addresses financial accounting and reporting for the impairment or disposal of long-lived assets. The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of these assets is determined by comparing the forecasted undiscounted net cash flows of the operation to which the assets relate to the carrying amount. If the operation is determined to be unable to recover the carrying amount of its assets, then assets are written down first, followed by other long-lived assets of the operation to fair value. Fair value is determined based on discounted cash flows or appraised values, depending on the nature of the assets. As ~~September~~March 3031, ~~2016~~2017 and December 31, ~~2015~~2016, there were no impairment losses recognized for long-lived assets.

~~Property~~8 ~~and~~Table ~~Equipment~~of Contents

Property and equipment are stated at cost. Expenditures for maintenance and repairs are charged to earnings as incurred; additions, renewals and betterments are capitalized. When property and equipment are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the respective accounts, and any gain or loss is included in operations. Depreciation is computed on the straight-line basis over 60 months, the estimated useful life.

PROTO SCRIPT PHARMACEUTICAL CORP.

Notes to Condensed Consolidated Financial Statements

For the ~~Nine~~Three Months Ended ~~September~~March 3031, ~~2016~~2017 and ~~2015~~2016

(unaudited)

Property and Equipment

Property and equipment consists of:

		September 30,		December 31,
		March 31,			December 31,
		2016		2015
		2017			2016
Computers & Equipment	$	~~2,300~~$	$2,300	~~2,300~~	$	2,300
Furniture & Fixtures		~~1,584~~	18,686	~~1,584~~		13,810
Machinery & Equipment		~~4,430~~	8,930	~~4,430~~		4,430
Truck & Auto		~~18,282~~	18,282	~~15,282~~		18,282
Total		~~26,596~~	48,198	~~23,596~~		38,822
Less accumulated depreciation		~~(11,71)~~	(15,283	~~(8,155~~)		(13,277	)
Property and equipment, net	$	~~14,865~~$	$32,915	~~15,441~~	$	25,545

For the ~~nine~~three months ended ~~September~~March 3031, ~~2016~~2017 and 2015, the Company recognized $32,~~576~~006 and $21,~~762~~169 in depreciation expense, respectively.

Intangible assets

Intangible assets with finite lives are amortized over their estimated useful life. The Company monitors conditions related to these assets to determine whether events and circumstances warrant a revision to the remaining amortization period. The Company tests its intangible assets with finite lives for potential impairment whenever management concludes events or changes in circumstances indicate that the carrying amount may not be recoverable. The original estimate of an asset's useful life and the impact of an event or circumstance on either an asset's useful life or carrying value involves significant judgment.

During 2012, the Company purchased a competitor patient list for $230,000. The purchase price consisted of a cash payment of $35,000 and an installment purchase obligation of $195,000. At December 31, 2013, the installment purchase obligation was paid in full. The Company ~~amortizes~~amortized the patient list over its estimated useful life of 36 months. The patient list was fully amortized as of December 31, 2016.

During 2014, the Company purchased a competitor customer list for $10,000. Purchase price consisted of a cash payment of $10,000. The Company amortizes the customer list over its estimated useful life of 12 months.

~~Intangible~~9 ~~assets~~Table ~~consist~~ of: Contents

		September 30,		December 31,
		2016		2015
Patient list	$	230,000	$	230,000
Customer list		10,000		10,000
Total		240,000		240,000
Less accumulated amortization		(240,000)		(240,000)
Intangible assets, net	$	-	$	-

For the nine months ended September 30, 2016 and 2015, the Company recognized $0 and $59,166 in amortization expense, respectively.

PROTO SCRIPT PHARMACEUTICAL CORP.

Notes to Condensed Consolidated Financial Statements

For the ~~Nine~~Three Months Ended ~~September~~March 3031, ~~2016~~2017 and ~~2015~~2016

(unaudited)

Intangible assets consist of:

	March 31,			December 31,
	2017			2016

Patient list	$	230,000		$	230,000
Customer list		10,000			10,000
Total		240,000			240,000
Less accumulated amortization		(240,000	)		(240,000	)
Intangible assets, net	$	-		$	-

For the three months ended March 31, 2017 and 2016, the Company recognized $0 and $0 in amortization expense, respectively.

Derivative Financial Instruments

The Company evaluates all of its agreements to determine if such instruments have derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in the statements of operations. For stock-based derivative financial instruments, the Company uses a weighted average Black-Scholes-Merton option pricing model to value the derivative instruments at inception and on subsequent valuation dates. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative instrument could be required within 12 months of the balance sheet date. As of March 31, 2017, the Company’s only derivative financial instrument was an embedded conversion feature associated with convertible notes payable due to certain provisions that allow for a change in the conversion price based on a percentage of the Company’s stock price at the date of conversion.

Fair Value of Financial Instruments

For certain of the Company’s financial instruments, including cash and equivalents, restricted cash, accounts receivable, advances to suppliers, accounts payable, accrued liabilities and short-term debt, the carrying amounts approximate their fair values due to their short maturities.

FASB ASC Topic 820, Fair Value Measurements and Disclosures, requires disclosure of the fair value of financial instruments held by the Company. FASB ASC Topic 825, Financial Instruments, defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The carrying amounts reported in the balance sheets for receivables and current liabilities each qualify as financial instruments and are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. The three levels of valuation hierarchy are defined as follows:

· Level 1 inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets. · Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets in inactive markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. · Level 3 inputs to the valuation methodology use one or more unobservable inputs which are significant to the fair value measurement.

Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets in inactive markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

Level 3 inputs to the valuation methodology us one or more unobservable inputs which are significant to the fair value measurement.

The Company analyzes all financial instruments with features of both liabilities and equity under FASB ASC Topic 480, Distinguishing Liabilities from Equity, and FASB ASC Topic 815, Derivatives and Hedging.

As10 Table of ~~September 30, 2016 and December 31, 2015, respectively, the Company did not identify any assets and liabilities required to be presented on the balance sheet at fair value.~~Contents

Income Taxes

The Company accounts for income taxes in accordance with ASC Topic 740, Income Taxes. ASC 740 requires a company to use the asset and liability method of accounting for income taxes, whereby deferred tax assets are recognized for deductible temporary differences, and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion, or all of, the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

Under ASC 740, a tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The adoption had no effect on the Company’s financial statements.

PROTO SCRIPT PHARMACEUTICAL CORP.

Notes to Condensed Consolidated Financial Statements

For the ~~Nine~~Three Months Ended ~~September~~March 3031, ~~2016~~2017 and ~~2015~~2016

(unaudited)

~~Prior~~As toof ~~the~~December ~~transaction~~31, ~~described in Note 1~~2016, ~~PSPC was taxed as an S corporation for income tax purposes as provided for under §1362 of~~ the ~~Internal~~Company ~~Revenue~~did ~~Code~~not ofidentify ~~1986,~~any asassets ~~amended.~~and ~~Therefore,~~liabilities ~~all income is~~ required to be ~~reported~~presented on the ~~individual~~balance ~~stockholder’s~~sheet ~~income~~at ~~tax~~fair ~~returns.~~value; Anhowever Sat ~~corporation~~March is31, ~~not a taxpaying entity for federal income tax purposes. Accordingly~~2017, nothe ~~federal~~Company ~~income~~identified ~~tax~~the ~~expense~~following ~~has~~liabilities ~~been~~that ~~recorded~~are inrequired ~~the~~to ~~financial~~be ~~statements~~presented ~~prior~~on to the ~~June~~balance ~~29,~~sheet ~~2016.~~at fair value:

	Fair Value		Fair Value Measurements at
	As of		March 31,
Description	March 31, 2017		2017 Using Fair Value Hierarchy
			Level 1		Level 2	Level 3
Conversion feature on convertible notes	$	496,965	$	-	$	$	496,965

Total	$	496,965	$	-	$	$	496,965

Income Taxes

The Company accounts for income taxes in accordance with ASC Topic 740, Income Taxes. ASC 740 requires a company to use the asset and liability method of accounting for income taxes, whereby deferred tax assets are recognized for deductible temporary differences, and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion, or all of, the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

Prior to the transaction described in Note 1, PSPC was taxed as an S corporation for income tax purposes as provided for under §1362 of the Internal Revenue Code of 1986, as amended. Therefore, all income is required to be reported on the individual stockholder’s income tax returns. An S corporation is not a taxpaying entity for federal income tax purposes. Accordingly, no federal income tax expense has been recorded in the financial statements prior to June 29, 2016.

Basic and Diluted Earnings Per Share

Earnings per share is calculated in accordance with ASC Topic 260, Earnings Per Share. Basic earnings per share (“EPS”) is based on the weighted average number of common shares outstanding. Diluted EPS is based on the assumption that all dilutive convertible shares and stock warrants were converted or exercised. Dilution is computed by applying the treasury stock method. Under this method, options and warrants are assumed to be exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period. The only dilutive instruments outstanding in 2017 are the common shares underlying the conversion of the convertible notes and preferred A shares. The conversion price is 39%-40 % of the share price at the time of conversion, therefore, numbers of common stock issued at conversion cannot be calculated at this time. There were no potentially dilutive securities outstanding during 2016. ~~and~~Due ~~2015~~to the net loss incurred during all the periods presented, any dilutive security would be anti-dilutive; therefore, basic and diluted ~~earnings (~~loss) per share are the same. As of March 31, 2017 the Company had 33,858,586 common stock equivalents that were not included in the calculation of dilutive earnings per share as there effect is anti-dilutive.

~~Recent~~11 ~~Accounting~~Table ~~Pronouncements~~of Contents

In May 2014, the FASB issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers, which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP. This pronouncement is effective for annual reporting periods beginning after December 15, 2016, and is to be applied using one of two retrospective application methods, with early application not permitted. The Company is currently evaluating the impact of the pending adoption of ASU 2014-09 on its financial statements.

In January 2015, the FASB issued ASU No. 2015-01 (Subtopic 225-20) - Income Statement - Extraordinary and Unusual Items. ASU 2015-01 eliminates the concept of an extraordinary item from GAAP. As a result, an entity will no longer be required to segregate extraordinary items from the results of ordinary operations, to separately present an extraordinary item on its income statement, net of tax, after income from continuing operations or to disclose income taxes and earnings-per-share data applicable to an extraordinary item. However, ASU 2015-01 will still retain the presentation and disclosure guidance for items that are unusual in nature and occur infrequently. ASU 2015-01 is effective for periods beginning after December 15, 2015. The adoption of ASU 2015-01 is not expected to have a material effect on the Company’s financial statements. Early adoption is permitted.

In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis. ASU 2015-02 provides guidance on the consolidation evaluation for reporting organizations that are required to evaluate whether they should consolidate certain legal entities such as limited partnerships, limited liability corporations, and securitization structures (collateralized debt obligations, collateralized loan obligations, and mortgage-backed security transactions). ASU 2015-02 is effective for periods beginning after December 15, 2015. The adoption of ASU 2015-02 is not expected to have a material effect on the Company’s financial statements. Early adoption is permitted.

PROTO SCRIPT PHARMACEUTICAL CORP.

Notes to Condensed Consolidated Financial Statements

For the ~~Nine~~Three Months Ended ~~September~~March 3031, ~~2016~~2017 and ~~2015~~2016

(unaudited)

InRecent ~~September~~Accounting ~~2015,~~Pronouncements the FASB issued ASU No. 2015-16, Business Combinations (Topic 805). Topic 805 requires that an acquirer retrospectively adjust provisional amounts recognized in a business combination, during the measurement period. To simplify the accounting for adjustments made to provisional amounts, the amendments in the Update require that the acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amount is determined. The acquirer is required to also record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. In addition an entity is required to present separately on the face of the income statement or disclose in the notes to the financial statements the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. ASU 2015-16 is effective for fiscal years beginning December 15, 2015. The adoption of ASU 2015-016 is not expected to have a material effect on the Company’s financial statements.

In ~~November 2015~~January 2017, the Financial Accounting Standards Board (“FASB”) issued ~~ASU~~an ~~No.~~Accounting ~~2015~~Standards Update (“ASU”) 2017-1701, ~~Balance~~Business ~~Sheet~~Combinations ~~Classification~~(Topic 805) Clarifying the Definition of ~~Deferred~~a ~~Taxes~~Business. The ~~new~~amendments ~~guidance~~in ~~requires~~this ~~that~~update ~~all~~clarify ~~deferred~~the ~~tax~~definition ~~assets~~of ~~and~~a ~~liabilities,~~business ~~along~~with the objective of adding guidance to assist entities with ~~any~~evaluating ~~related~~whether ~~valuation~~transactions ~~allowance,~~should be ~~classified~~accounted for as ~~noncurrent~~acquisitions onor ~~the~~disposals ~~balance~~of ~~sheet~~assets or businesses. ~~This~~The ~~update~~definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The guidance is effective for interim and annual periods beginning after December 15, ~~2016~~2017 and ~~interim~~should ~~periods~~be ~~within~~applied ~~those~~prospectively ~~annual~~on ~~periods~~or after the effective date. The Company ~~does~~is ~~not~~in ~~anticipate~~ the ~~adoption~~process of ~~this~~evaluating ~~ASU~~the ~~will have a significant~~ impact ~~on its financial position, results~~ of ~~operations,~~this oraccounting ~~cash~~standard ~~flows~~update.

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The guidance in ASU No. 2016-02 supersedes the lease recognition requirements in ASC Topic 840, Leases (FAS 13). ASU 2016-02 requires an entity to recognize assets and liabilities arising from a lease for both financing and operating leases, along with additional qualitative and quantitative disclosures. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating the effect this standard will have on its financial statements.

In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share Based Payment Accounting, to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The guidance will be effective for annual periods beginning after December 15, 2016 and interim periods within those annual periods. Early adoption is permitted, including adoption in an interim period. The Company is currently evaluating the impact of the adoption of this newly issued guidance to its financial statements.

Other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company's present or future financial statements.

Note 3 – Other Payables

~~During~~The ~~the year ended December 31, 2014, the~~ Company received ~~$65,826~~funds from two non-related parties, in order to fund working capital expenses. In addition, ~~during~~a ~~the~~non-related ~~nine~~party ~~months~~also ~~ended~~has ~~September~~paid ~~30,~~of ~~2016,~~professional ~~the~~fees ~~Company~~on ~~received~~behalf ~~and~~of ~~additional~~the ~~$10,000 from a non-related party~~Company. The amounts are unsecured and carry no interest rate or repayment terms. ~~One of the non-related parties purchased a controlling interest in a publicly traded company.~~ At ~~September~~March 3031, ~~2016~~2017 and December 31, ~~2015~~2016, the amount outstanding was $75127,~~826~~286 and $65167,~~826~~411, respectively.

13Note 4 - Convertible Notes

Convertible notes at March 31, 2017 and December 31, 2016 consist of the following:

	March 31,			December 31,
	2017			2016
Convertible note payable to Power Up Lending Group, Ltd dated January 31, 2017, interest accrues at 12% per annum; due on November 3, 2017. The note is convertible into shares of the Company's common stock at 60% of the average of the 3 lowest trading prices 10 days prior to conversion.	$	203,500		$	-
Convertible note payable to JSJ Investments, Inc. dated February 3, 2017, interest accrues at 12% per annum; due on November 3, 2017. The note is convertible into shares of the Company's common stock at 60% of the lowest trading price 20 days prior to conversion.		125,000			-
Total convertible notes payable		328,500			-
Unamortized debt discount		(259,357	)		-
Convertible notes payable	$	69,143		$	-

A roll-forward of the convertible note from December 31, 2016 to March 31, 2017 is below:

Convertible notes, December 31, 2016	$	-
Issued for cash		328,500
Debt discount related to new convertible notes		(328,500	)
Amortization of debt discounts		69,143
Convertible notes, March 31, 2017	$	69,143

Table of Contents

PROTO SCRIPT PHARMACEUTICAL CORP.

Notes to Condensed Consolidated Financial Statements

For the ~~Nine~~Three Months Ended ~~September~~March 3031, ~~2016~~2017 and ~~2015~~2016

(unaudited)

Note 45 –- ~~Related~~Derivative ~~Party Transactions~~Liability

The convertible notes payable discussed in Note 4 has a conversion price that can be adjusted based on the Company’s stock price which results in the conversion feature being recorded as a derivative liability.

The fair value of the derivative liability is recorded and shown separately under current liabilities. Changes in the fair value of the derivative liability is recorded in the statement of operations under other income (expense).

The Company uses a weighted average Black-Scholes-Merton option pricing model with the following assumptions to measure the fair value of derivative liability at March 31, 2017:

Stock price	$	0.06
Risk free rate		1.03	%
Volatility		333	%
Conversion/ Exercise price	$	0.033-0.034
Dividend rate		0	%
Term (years)		0.59

The following table represents the Company’s derivative liability activity for the three months ended March 31, 2017:

Derivative liability balance, December 31, 2016	$	-
Issuance of derivative liability during the period		664,424
Change in derivative liability during the period		(167,459	)
Derivative liability balance, March 31, 2017	$	496,965

Note 6 – Related Party Transactions

Loan to stockholder

~~The~~During ~~Company~~the ~~advances~~year ~~and~~ended ~~borrows money from time to time to/from a related party. As of~~ December 31, ~~2014~~2016, the Company ~~was~~made ~~owed~~distributions ~~$161,770 from the Company’s CEO and stockholder. These advances are unsecured and carry no interest or repayment terms. Provision for loan~~ to stockholder ~~at December 31, 2014 was $135,973 resulting in a net balance~~ of $2559,~~797~~593.

AtThe ~~September~~loan ~~30, 2015, the balance owed~~ to ~~the Company from its CEO was $100,046. At September 30, 2015, the Company’s board of directors approved such amount outstanding as a distribution to~~ stockholder inbalance ~~compensation~~at ~~for~~March ~~services provided by the CEO. In addition, during the quarter ended December~~ 31, ~~2015,~~2017 ~~the Company advanced the CEO~~ and ~~additional $15,980. At~~ December 31, ~~2015,~~2016 ~~the~~was ~~Company’s~~$0 ~~board~~and ~~of directors approved~~ $150,~~980~~ ~~as a distribution to stockholder in compensation for services provided by the CEO~~respectively.

~~During~~At ~~the~~March ~~nine~~31, ~~months~~2017 ~~ended~~and ~~September~~December 3031, 2016, $45,000 and $45,000, respectively, of the ~~Company~~accrued ~~made~~compensation ~~distributions~~was due to ~~stockholder~~the ofCompany’s ~~$59,593~~CEO and majority stockholder.

The loan to stockholder balance at September 30, 2016 and December 31, 2015 was $0 and $0, respectively.

Due to related party

At ~~September~~March 3031, 2017 and December 31, 2016, $9917,~~290~~330 is due to a former director of the Company. The amount is unsecured, non-interest bearing and due on demand.

Note 57 – Stockholders’ Equity and Preferred Shares

In connection with the reverse merger transaction described in Note 1, the Company issued 30,480,000 shares for net liabilities of $106,262.

The Company prior to the reverse merger made a distribution to its sole stockholder of $59,593. Also $83,987 was reclassified from retained earnings to additional paid in capital as a result of PSPCs S corporation status being terminated.

On October 13, 2016, the Company affected a 10 for 1 forward stock split. All share and per share information has been retroactively restated to reflect this forward stock split.

~~Note~~On 6September –15, ~~Commitments~~2016, the Board of Directors of the corporation authorized the designation of 10,000,000 shares of the corporation’s preferred stock as series A Preferred Stock. Series A Preferred shares have no dividend rights and ~~Contingencies~~can be converted at a ratio of 1:20. The holders of shares of Series A Preferred Stock can vote on an as converted basis or twenty votes for each share of preferred owned. The preferred shares have liquidation preference over common shares, and have no redemption option.

~~The~~On ~~Company~~January ~~leases~~31, 2017, the company entered into a Share Exchange Agreement with its ~~office/warehouse~~sole ~~space~~director, ~~from~~Michelle ~~various~~Rico ~~third~~to ~~parties~~exchange 295,000,000 shares of common stock that she owns into 1,500,000 shares of Series A Preferred stock.

·13 Table of Contents

Rancho Cucamonga, California - $2,700/month. Combined office and warehouse space of approximately 4,000 sq. ft. The lease has expired and the Company continues to lease the office and warehouse space on a month-to-month basis.

Las Vegas, Nevada - $1,370/month. Combined office and warehouse space of approximately 1,600 sq. ft. The lease has expired and the Company continues to lease the office and warehouse space on a month-to-month basis.

Anaheim, California - $1,222/month. Combined office and warehouse space of approximately 950 sq. ft. The lease has expired and the Company continues to lease the office and warehouse space on a month-to-month basis.

For the nine months ended September 30, 2016 and 2015, the Company recognized $68,791 and $50,377, respectively, in rental or lease expense included in selling, general and administrative expense.

PROTO SCRIPT PHARMACEUTICAL CORP.

Notes to Condensed Consolidated Financial Statements

For the ~~Nine~~Three Months Ended ~~September~~March 3031, ~~2016~~2017 and ~~2015~~2016

(unaudited)

Note 8 – Commitments and Contingencies

The Company leases its office/warehouse space from various third parties.

	·	Rancho Cucamonga, California - $2,700/month. Combined office and warehouse space of approximately 4,000 sq. ft. The lease has expired and the Company continues to lease the office and warehouse space on a month-to-month basis.
	·	Las Vegas, Nevada - Combined office and warehouse space of approximately 1,600 sq. ft. The lease term is from May 1, 2016 to April 30, 2019. The base rent per month is as follows: May 1, 2016 to April 30, 2017-$1,352 per month; May 1, 2017 to April 30, 2018 -$1,393 per month; May 1, 2018 to April 30, 2019 - $1,435 per month. Future minimum rental payments on this non-cancelable lease are approximately: 2017-$16,600; 2018 - $17,000; 2019-5,800.
	·	Anaheim, California - $1,222/month. Combined office and warehouse space of approximately 950 sq. ft. The lease has expired and the Company continues to lease the office and warehouse space on a month-to-month basis.

For the three months ended March 31, 2017 and 2016, the Company recognized $23,245 and $23,239, respectively, in rental or lease expense included in selling, general and administrative expense.

Litigation

The Company is subject to other potential liabilities under government regulations and various claims and legal actions that may be asserted. Matters may arise in the ordinary course and conduct of the Company’s business, as well as through its acquisition of certain intangible assets. Claim estimates that are probable and can be reasonably estimated are reflected as liabilities of the Company. The ultimate resolution of these matters is subject to many uncertainties. It is reasonably possible that matters, which may be asserted, could ultimately be decided unfavorably for the Company. During the ~~nine~~three months ended ~~September~~March 3031, ~~2016~~2017 and ~~2015~~2016, the Company did not face any new claims or litigation.

15In November 2016, the company was sued by Independent Medical for amount owing to them of ($26,013). They subsequently garnished the company’s bank account for the same amount. Lawsuit was dropped.

~~Item~~In 2July 2017, Power Up Lending Group filed a suit against the Company for failing to file Form 10-K for the period ending December 31, 2016. The plaintiff was demanding immediate payment of $305,250together with interest and default interest, plus legal costs. Since then the plaintiff has not moved the case forward. If the company files all delinquent reports with SEC, it is believed that this case will be dropped.

~~Management's~~Note ~~Discussion~~9- ~~and~~Subsequent ~~Analysis of Financial Condition and Results of Operations~~Events

~~Safe~~There ~~Harbor~~are ~~Statement~~no material subsequent events to be reported

~~This~~14 ~~report~~Table ~~on Form 10-Q contains certain forward-looking statements. All statements other than statements~~ of historical fact are “forward-looking statements” for purposes of these provisions, including any projections of earnings, revenues, or other financial items; any statements of the plans, strategies, and objectives of management for future operation; any statements concerning proposed new products, services, or developments; any statements regarding future economic conditions or performance; statements of belief; and any statement of assumptions underlying any of the foregoing. Such forward-looking statements are subject to inherent risks and uncertainties, and actual results could differ materially from those anticipated by the forward-looking statements.Contents

~~These~~Item ~~forward-looking~~2. ~~statements~~Management's ~~involve~~Discussion ~~significant risks~~ and ~~uncertainties,~~Analysis ~~including, but not limited to, the following: competition, promotional costs, and risk~~ of ~~declining~~Financial ~~revenues.~~Condition Our actual results could differ materially from those anticipated in such forward-looking statements as a result of a number of factors. These forward-looking statements are made as of the date of this filing, and weResults ~~assume no obligation to update such forward-looking statements. The following discusses our financial condition and results~~ of operations based upon our financial statements which have been prepared in conformity with accounting principles generally accepted in the United States. It should be read in conjunction with our financial statements and the notes thereto included elsewhere herein.Operations

The following discussion should be read in conjunction with our financial statements, including the notes thereto, appearing elsewhere in this Form 10-Q. The discussions of results, causes and trends should not be construed to imply any conclusion that these results or trends will necessarily continue into the future.Safe Harbor

~~Overview~~This Quarterly Report on Form 10-Q contains forward-looking statements that involve risks and uncertainties. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology including, "could" "may", "will", "should", "expect", "plan", "anticipate", "believe", "estimate", "predict", "potential" and the negative of these terms or other comparable terminology. These statements are only predictions. Actual events or results may differ materially.

~~Proto~~While ~~Script~~these ~~Pharmaceutical~~forward-looking ~~Corp.~~statements, ~~(formerly~~and ~~Yanex~~any ~~Group~~assumptions upon which they are based, ~~Inc.)~~are ~~(“we”~~made orin ~~“Proto~~good ~~Script”)~~faith ~~was~~and ~~incorporated~~reflect ~~under~~our ~~the~~current ~~laws~~judgment ofregarding the ~~State~~direction of ~~Nevada~~our onbusiness, ~~November~~actual ~~18,~~results ~~2010.~~will Onalmost ~~October~~always 13vary, ~~2016~~sometimes materially, wefrom ~~changed~~any ~~our~~estimates, ~~name~~predictions, ~~from~~projections, ~~Yanex~~assumptions ~~Group,~~or ~~Inc.~~other tofuture ~~Proto~~performance ~~Script~~suggested ~~Pharmaceutical~~in ~~Corp.~~this Quarterly Report.

~~Effective~~Our ~~June~~primary ~~29,~~source ~~2016,~~of werevenue ~~and~~comes ~~PSPC~~from ~~entered~~the ~~into~~repair aand ~~share~~rental ~~exchange~~of ~~agreement~~power ~~whereby~~wheelchairs weand ~~acquired~~scooters. ~~100%~~We ofdeal ~~the~~with ~~issued~~federal, state and ~~outstanding~~private ~~shares~~insurance ofproviders ~~common~~such ~~stock~~as ofMedicare, ~~PSPC~~Medi-Cal, inNevada ~~exchange~~Care ~~for~~and ~~300,000,000~~Blue ~~shares~~Cross ofamong ~~our~~several ~~common~~others. ~~stock~~We have very limited dealings with non-insured cash patients. ~~Upon~~We ~~completion~~have tangible assets comprised of ~~the~~company ~~transaction~~delivery vehicles, weloaner ~~had~~wheelchairs, office equipment and furniture. Inventory is purchased on an ~~aggregate~~as ofneeded ~~330~~basis,~~480,000~~ ~~shares~~typically ofwhen ~~common~~patients/customers ~~stock~~are ~~issued~~approved ~~and~~for ~~outstanding~~coverage by their insurance provider. AsIntangible aassets ~~result~~comprise of its current patient list and working relationships with the ~~share~~various ~~exchange~~insurance ~~agreement,~~providers ~~PSPC~~who isrefer ~~now~~their ~~our~~clients ~~wholly~~to ~~owned~~us ~~subsidiary~~for their repair and rental needs.

~~The~~Results ~~exchange~~ of shares with PSPC was accounted for as a reverse acquisition under the purchase method of accounting since we had no net monetary assets and PSPC obtained control of us. Accordingly, the merger of PSPC into us was recorded as a recapitalization of PSPC, PSPC being treated as the continuing entity. The historical financial statements presented are the financial statements of PSPC. The equity of PSPC is presented as the equity of the combined company and the capital stock account of PSPC is adjusted to reflect the par value of the outstanding and issued common stock of the legal acquirer (Proto Script, formerly Yanex) after giving effect to the number of shares issued in the share exchange agreement. The share exchange agreement has been treated as a recapitalization and not as a business combination; therefore, no pro forma information is disclosed. At the date of this transaction, the net liabilities of the legal acquirer, Proto Script (formerly Yanex), were $106,262. Operations

~~Our~~Comparison ~~health~~of ~~care~~Results ~~insurance~~of ~~contracts~~Operations ~~allow~~for us the ~~ability~~Three toMonths ~~service~~Ended ~~patients~~March nationally. We are seeking to expand our market through additional contracts and open several repair facilities throughout the continental United States. Currently we have repair facilities in Las Vegas31, ~~Nevada,~~2017 ~~Rancho-Cucamonga,~~ and ~~Anaheim, California.~~2016

Our independent registered public accountant has issued an audit opinion which includes a statement expressing substantial doubt as to our ability to continue as a going concern during the audit of our financial statements for the year ended December 31, 2015. Our common stock trades on the OTC Pink Sheets under the symbol “PSCR”.Sales

~~Our~~For ~~principal~~the ~~office~~three ismonths ~~located~~ended atMarch ~~9830~~31, ~~6th~~2017, ~~Street~~our net sales were $138,281 ~~Suite~~a ~~103~~decrease of $204,931 ~~Rancho~~compared ~~Cucamonga~~to net sales of $343,212 ~~California~~for ~~91730~~the same period in 2016. ~~Our~~The ~~telephone~~decrease ~~number~~in sales is ~~(855)~~due ~~476-7679~~to competitive bidding process introduced by Medicare in 2016. ~~Our~~This ~~fiscal~~reduced ~~year~~the ~~end~~prices isthat ~~December~~we 31were getting in the previous years significantly. Medicare also cut their rates. To compensate we have hired an additional sales representative to increase our sales but we do not expect sales to reach previous levels for foreseeable future.

16Cost of goods sold and gross profit

~~Recent~~For ~~Developments~~the three months ended March 31, 2017, our cost of goods sold were $30,940 an increase of $2,219 compared to $28,721for the same period in 2016. The increase is due to the expected change in reimbursement rates.

OnFor ~~April 28, 2016, we were awarded a contract by~~ the ~~Center~~three ~~for~~months ~~Medicare~~ended &March ~~Medicaid~~31, ~~Services~~2017, ~~that~~our ~~begins~~gross onprofit ~~July~~was 1$107,341 ~~2016~~a ~~and~~decrease ~~expires~~of ~~on December 31~~$207,150 ~~2018. The~~compared ~~contract requires us~~ to ~~furnish certain items of Durable Medical Equipment~~$314,491 ~~Prosthetics,~~for ~~Orthotics and Supplies (DMEPOS) under~~ the ~~Medicare~~same ~~DMEPOS~~period ~~Competitive~~in ~~Bidding Program~~2016. ~~Our~~The ~~revenue~~decrease is ~~expected~~due to ~~increase~~a ~~because~~decrease ofin ~~the~~sales ~~contract~~as described above.

~~Results~~Operating ~~of Operations~~expenses

~~Comparison~~For ofthe ~~Results~~three months ended March 31, 2017, our operating expenses were $369,075 an increase of ~~Operations~~$203,672 compared to $165,403 for the ~~Three~~same ~~Months~~period ~~Ended~~in ~~September~~2016. ~~30,~~The ~~2016~~increase is due to increased compensation costs and ~~2015~~professional fees.

~~Sales~~Other expense

For the three months ended ~~September~~March 3031, ~~2016~~2017, ~~our~~other ~~net~~expense ~~sales~~was ~~were~~ $~~213~~244,~~826~~134 ~~an increase of $91,557~~ compared to ~~net sales of~~ $~~122,269~~0 for the same period in ~~2015~~2016. The increase in other expense is due to athe ~~new~~financing ~~contract~~cost ~~that~~of ~~were~~$335,924 weand ~~awarded~~amortization ~~that~~of ~~began~~the ondebt ~~July~~discount, 1both associated with the issuance of convertible notes, ~~2016.~~offset, in part, by a change in derivative liability of $167,459 associated with the conversion feature embedded in the convertible notes.

~~Cost~~15 Table of ~~goods sold~~Contents

~~For~~Net ~~the~~income ~~three months ended September 30, 2016, our cost of goods sold were $39,396 an increase of $33,181 compared to $6,215 for the same period in 2015. The increase is due to the increase in net sales.~~ (loss)

~~Operating~~We ~~expenses~~generated a net loss of $505,868 for the three months ended March 31, 2017, compared to net income of $149,088 for the same period in 2016. This change in a result of the factors described above.

~~For~~Liquidity ~~the~~and ~~three~~Capital ~~months ended September 30, 2016, our operating expenses were $174,281 an increase of $486 compared to $173,795 for the same period in 2015. The increase is not significant.~~ Resources

~~Net~~As ~~income~~of ~~(loss)~~March 31, 2017, we had $56,363 in cash.

WeAt ~~generated~~March ~~net~~31, ~~income~~2017, we had current assets of $~~149~~196,170 ~~for~~and ~~the~~current ~~three~~liabilities ~~months~~of ~~ended~~$1,054,689 ~~September~~resulting 30in a working capital deficit of $858,519. At December 31, 2016, ~~compared~~we tohad current assets of $144,646 and current liabilities of $489,927 resulting in a ~~net~~working ~~loss~~capital deficit of $57345,~~741~~281. ~~for~~The change in working capital is principally a result of the ~~same~~convertible ~~period~~notes inand ~~2015.~~the ~~This~~derivative ~~increase~~liability ~~was~~associated ~~due~~with tothe anembedded ~~increase~~conversion feature in ~~sales.~~the convertible notes.

~~Comparison~~Net ofcash ~~Results~~used in operating activities was $214,978 during the three months ended March 31, 2017, compared to net cash provided by operating activities of ~~Operations~~$28,081 ~~for~~during the ~~Nine~~three ~~Months~~months ~~Ended~~ended ~~September~~March 3031, 2016. The decrease is principally due to the increased net loss and ~~2015~~changes in operating assets and liabilities.

~~Sales~~Cash flows used in investing activities were $9,376 during the three months ended March 31, 2017 compared to $0 during the three months ended March 31, 2016. The increase in cash used in investing activities is due to the purchases of property and equipment.

~~For~~Cash ~~the~~flows ~~nine~~provided ~~months~~by ~~ended~~financing ~~September~~activities ~~30,~~were ~~2016~~$277,210 ~~our~~during ~~net~~the ~~sales~~three ~~were~~months ~~$688,611~~ended anMarch ~~increase of $20~~31,~~911~~ 2017 compared to ~~net~~cash ~~sales~~used in financing activities of $~~667~~15,~~700~~395 ~~for~~during the ~~same~~three ~~period~~months inended ~~2015~~March 31, 2016. The increase isin ~~due~~cash tofrom afinancing ~~new~~activities ~~contract~~is ~~that~~due ~~were~~to wethe ~~awarded~~issuance ~~that~~of ~~began~~convertible ~~on July 1, 2016~~notes.

~~Cost of goods sold~~Inflation

~~For~~The amounts presented in the ~~nine~~financial ~~months~~statements ~~ended~~do ~~September~~not ~~30,~~provide ~~2016,~~for ~~our~~the ~~cost~~effect of ~~goods~~inflation ~~sold~~on ~~were~~our ~~$124,758~~operations aor ~~decrease~~financial ofposition. ~~$36,992~~The ~~compared~~net tooperating ~~$161,750~~losses ~~for~~shown would be greater than reported if the ~~same~~effects ~~period~~of ininflation ~~2015.~~were ~~The~~reflected ~~decrease~~either ~~lower~~by ~~product~~charging operations with amounts that represent replacement costs. or by using other inflation adjustments.

~~Operating~~Off-Balance ~~expenses~~Sheet Arrangements

~~For~~As ~~the~~of ~~nine~~March ~~months ended September 30~~31, ~~2016~~2017, ~~our~~we ~~operating~~had ~~expenses~~no ~~were~~off-balance ~~$482,366~~sheet atransactions ~~decrease~~that ofhave ~~$100,005~~or ~~compared~~are toreasonably ~~$582,371~~likely ~~for~~to ~~the~~have ~~same~~a ~~period~~current inor ~~2015.~~future ~~The~~effect ~~decrease~~on isour ~~due~~financial tocondition, achanges ~~decrease~~ in ~~amortization~~our ~~expense~~financial ~~related~~condition, torevenues ~~our~~or ~~intangible~~expenses, ~~assets~~results ~~and~~of aoperations, ~~decrease~~liquidity, incapital ~~payroll~~expenditures ~~and~~or ~~related~~capital ~~costs.~~ resources

~~Net~~Critical ~~income~~Accounting ~~(loss)~~Estimates

WeThe ~~generated~~discussion ~~net~~and ~~income~~analysis of ~~$81~~our financial condition and results of operations are based upon our financial statements,~~487~~ ~~for~~which have been prepared in accordance with accounting principles generally accepted in the ~~nine~~United ~~months~~States. ~~ended~~The ~~September~~preparation 30of these financial statements requires us to make estimates and judgments that affect the amounts of assets, ~~2016~~liabilities, ~~compared~~revenues toand aexpenses, ~~net~~and ~~loss~~related disclosure of ~~$76~~contingent assets and liabilities. On an on-going basis,~~421~~ we evaluate our estimates based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the ~~same~~carrying ~~period~~values inof ~~2015~~assets and liabilities that are not readily apparent from other sources. ~~This~~Actual ~~increase~~results ~~was~~may ~~due~~differ from these estimates under different assumptions or conditions. The following represents a summary of our critical accounting policies, defined as those policies that we believe are the most important to ~~lower~~the ~~cost~~portrayal of ~~sales~~our financial condition and ~~lower~~results ~~operating~~of ~~expenses.~~operations and that require management's most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effects of matters that are inherently uncertain.

1716 Table of Contents

~~Liquidity~~Use ~~and~~of ~~Capital~~Estimates ~~Resources~~

AsThe preparation of ~~September~~financial ~~30,~~statements ~~2016,~~in weconformity ~~had~~with ~~$5,796~~generally inaccepted ~~cash~~accounting principles requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. It is possible that accounting estimates and assumptions may be material to the Company due to the levels of subjectivity and judgment involved.

AtAccounts September 30, 2016, we had current assets of $254,261 and current liabilities of $291,252 resulting in a working capital deficit of $36,991. We had a working capital surplus of $46,801 at December 31, 2015. The change in working capital is principally a result of approximately $106,000 liabilities assumed in the reverse merger transaction. See Note 1 to the financial statements.Receivable

~~Net~~Trade ~~cash~~accounts ~~provided~~receivable byare ~~operating~~stated ~~activities~~at ~~was~~the ~~$3,224~~amount ~~during~~the Company expects to collect. The Company maintains allowances for doubtful accounts for estimated losses resulting from the ~~nine~~inability ~~months~~of ~~ended~~its ~~September~~customers ~~30,~~to ~~2016~~make required payments. Past due balances over 90 days and other higher risk amounts are reviewed individually for collectability. If the financial condition of the Company’s customers were to deteriorate, ~~compared~~adversely affecting their ability to ~~$41~~make payments,~~622~~ inadditional ~~net~~allowances ~~cash~~would ~~used~~be ~~during~~required. Based on management’s assessment, the ~~nine~~Company ~~months~~provides ~~ended~~for ~~September~~estimated ~~30,~~uncollectible ~~2015~~amounts through a charge to earnings and a credit to a valuation allowance. ~~The~~Balances ~~decrease~~that inremain ~~cash~~outstanding ~~provided~~after bythe ~~operating~~Company ~~activities~~has isused ~~due~~reasonable collection efforts are written off through a charge to ~~changes~~the invaluation allowance and a credit to accounts receivable. Bad debt expense (loss recovery) for the three months ended March 31, 2017 and 2016 was $6,549 and $0, respectively.

Cash flows used in investing activities were $3,000 during the nine months ended September 30, 2016 compared to $3,364 during the nine months ended September 30, 2015. The decrease in cash used in investing activities is fewer purchases of property and equipment. Collectability

~~Cash~~The ~~flows~~Company ~~used~~is ingoverned ~~financing~~by ~~activities~~Medicare ~~were~~standards ~~$3,518~~and ~~during~~therefore ~~the~~agrees ~~nine~~to ~~months~~accept ~~ended~~the ~~September~~Medicare-approved ~~30,~~amounts ~~2016~~as ~~compared~~the tototal ~~$69,409~~payment ~~during~~for the ~~nine~~service ~~months~~or ~~ended September 30, 2015~~item. The ~~decrease~~Company inalso ~~cash~~agrees ~~used~~to inbill ~~financing~~Medicare ~~activities is due an increase in cash overdraft~~ and ~~advances~~other ~~from~~suppliers ~~non-related~~directly ~~party~~on ~~offset~~behalf byof athe ~~reduction in distributions to stockholder~~patient.

~~Inflation~~We report patient accounts receivable net of estimated allowances for doubtful accounts and adjustments. Patient accounts receivable are uncollateralized and primarily consist of amounts due from Medicare, other third-party payers and patients. Our process for estimating the allowance for doubtful accounts is based upon our assessment of historical and expected net collections and trends in reimbursement.

~~The~~Revenue amounts presented in the financial statements do not provide for the effect of inflation on our operations or financial position. The net operating losses shown would be greater than reported if the effects of inflation were reflected either by charging operations with amounts that represent replacement costs or by using other inflation adjustments.Recognition

~~Off-Balance~~The ~~Sheet~~Company’s ~~Arrangements~~revenue recognition policies comply with FASB ASC Topic 605, “Revenue Recognition.” The Company recognizes revenue when it provides the services, ships the products and bills its customers, insurance companies, and government agencies, and no other significant obligations of the Company exist and collectability is reasonably assured. The Company’s billings are subject to insurance company and government regulatory agency adjustments. The Company revises the amount of revenue recognized when the insurance company and government regulatory adjustments are known to the Company. The adjustments to the amounts the Company can bill are changed approximately every five years when the government asks companies to submit a new bid. There is approximately one year between the time the Company is notified of any price changes until the time the new amounts come into effect.

~~As of September 30, 2016, we had no off~~Long-~~balance~~Lived sheet transactions that have or are reasonably likely to have a current or future effect on our financial condition, changes in our financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources Assets

~~Critical~~The ~~Accounting~~Company ~~Estimates~~applies the provisions of ASC Topic 360, Property, Plant, and Equipment, which addresses financial accounting and reporting for the impairment or disposal of long-lived assets. The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of these assets is determined by comparing the forecasted undiscounted net cash flows of the operation to which the assets relate to the carrying amount. If the operation is determined to be unable to recover the carrying amount of its assets, then assets are written down first, followed by other long-lived assets of the operation to fair value. Fair value is determined based on discounted cash flows or appraised values, depending on the nature of the assets. As March 31, 2017 and December 31, 2016, there were no impairment losses recognized for long-lived assets.

~~The~~17 ~~discussion~~Table ~~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. The preparation of these financial statements requires us to make estimates and judgments that affect the amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an on-going basis, we evaluate our estimates based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. The following represents a summary of our critical accounting policies, defined as those policies that we believe are the most important to the portrayal of our financial condition and results of operations and that require management's most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effects of matters that are inherently uncertain.Contents

~~Use~~Income ofTaxes ~~Estimates~~

The ~~preparation~~Company ofaccounts ~~financial~~for ~~statements~~income taxes in ~~conformity~~accordance with ~~generally~~ASC ~~accepted~~Topic ~~accounting~~740, ~~principles~~Income Taxes. ASC 740 requires ~~management~~a company to ~~make~~use ~~estimates~~the asset and ~~assumptions.~~liability ~~These~~method ~~estimates~~of ~~and~~accounting ~~assumptions~~for ~~affect~~income ~~the~~taxes, ~~reported~~whereby ~~amounts~~deferred oftax assets ~~and~~are ~~liabilities~~recognized ~~and~~for ~~disclosure~~deductible oftemporary ~~contingent~~differences, ~~assets~~ and deferred tax liabilities atare ~~the~~recognized ~~date~~for oftaxable ~~the~~temporary ~~financial~~differences. ~~statements~~Temporary ~~and~~differences are the differences between the reported amounts of ~~revenues~~assets and ~~expenses~~liabilities ~~during~~and ~~the~~their ~~reporting~~tax ~~period~~bases. ~~Actual~~Deferred ~~results~~tax ~~could~~assets ~~differ~~are ~~from~~reduced ~~those~~by ~~estimates.~~a Itvaluation allowance when, in the opinion of management, it is ~~possible~~more likely than not that ~~accounting~~some ~~estimates~~portion, ~~and~~or ~~assumptions~~all ~~may~~of, the deferred tax assets will not be ~~material~~realized. toDeferred ~~the~~tax ~~Company~~assets ~~due~~and toliabilities are adjusted for the ~~levels~~effects of ~~subjectivity~~changes in tax laws and ~~judgment~~rates ~~involved~~on the date of enactment.

18Under ASC 740, a tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The adoption had no effect on the Company’s financial statements.

~~Accounts~~Prior ~~Receivable~~to the transaction described in Note 1, PSPC was taxed as an S corporation for income tax purposes as provided for under §1362 of the Internal Revenue Code of 1986, as amended. Therefore, all income is required to be reported on the individual stockholder’s income tax returns. An S corporation is not a taxpaying entity for federal income tax purposes. Accordingly, no federal income tax expense has been recorded in the financial statements prior to the June 29, 2016.

~~Trade~~ITEM ~~accounts receivable are stated at the amount the Company expects to collect~~3. ~~The~~QUANTITATIVE ~~Company~~AND ~~maintains~~QUALITATIVE ~~allowances~~DISCLOSURES ~~for~~ABOUT ~~doubtful~~MARKET ~~accounts for estimated losses resulting from the inability of its customers to make required payments~~RISK. Past due balances over 90 days and other higher risk amounts are reviewed individually for collectability. If the financial condition of the Company’s customers were to deteriorate, adversely affecting their ability to make payments, additional allowances would be required. Based on management’s assessment, the Company provides for estimated uncollectible amounts through a charge to earnings and a credit to a valuation allowance. Balances that remain outstanding after the Company has used reasonable collection efforts are written off through a charge to the valuation allowance and a credit to accounts receivable. Bad debt expense (loss recovery) for the nine months ended September 30, 2016 and 2015 was $0 and $0, respectively.

~~Collectability~~We are a smaller reporting company and are not required to provide the information under this item pursuant to Regulation S-K.

~~The~~ITEM ~~Company is governed by Medicare standards and therefore agrees to accept the Medicare-approved amounts as the total payment for the service or item~~4. ~~The~~CONTROLS ~~Company~~AND ~~also agrees to bill Medicare and other or suppliers directly on behalf of the patient~~PROCEDURES.

WeEvaluation ~~report patient accounts receivable net~~ of ~~estimated~~disclosure ~~allowances~~controls ~~for doubtful accounts~~ and ~~adjustments~~procedures. Patient accounts receivable are uncollateralized and primarily consist of amounts due from Medicare, other third-party payers and patients. Our process for estimating the allowance for doubtful accounts is based upon our assessment of historical and expected net collections and trends in reimbursement.

~~Revenue~~As ~~Recognition~~of March 31, 2017, the Company's Chief Executive Officer and Chief Financial Officer conducted an evaluation regarding the effectiveness of the Company's disclosure controls and procedures (as defined in Rules 13a-15(e) or 15d-15(e) under the Exchange Act. Based upon the evaluation of these controls and procedures, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were not effective.

~~The~~Changes ~~Company’s~~in ~~revenue~~internal ~~recognition policies comply with FASB ASC Topic 605, “Revenue Recognition~~controls.” The Company recognizes revenue when it provided the services, shipped the products and billed its customers, insurance companies, and government agencies, and no other significant obligations of the Company exist and collectability is reasonably assured. The Company’s billings are subject to insurance company and government regulatory agency adjustments. The Company revises the amount of revenue recognized when the insurance company and government regulatory adjustments are known to the Company. The adjustments to the amounts the Company can bill are changed approximately every five years when the government asks companies to submit a new bid. There is approximately one year between the time the Company is notified of any price changes until the time the new amounts come into effect.

~~Long-Lived~~During ~~Assets~~the period covered by this report, no changes occurred in our internal control over financial reporting that materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

~~The~~18 ~~Company~~Table ~~applies the provisions~~ of ASC Topic 360, Property, Plant, and Equipment, which addresses financial accounting and reporting for the impairment or disposal of long-lived assets. The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of these assets is determined by comparing the forecasted undiscounted net cash flows of the operation to which the assets relate to the carrying amount. If the operation is determined to be unable to recover the carrying amount of its assets, then assets are written down first, followed by other long-lived assets of the operation to fair value. Fair value is determined based on discounted cash flows or appraised values, depending on the nature of the assets. As September 30, 2016 and December 31, 2015, there were no impairment losses recognized for long-lived assets.Contents

~~Income~~PART ~~Taxes~~II. OTHER INFORMATION

~~The~~ITEM ~~Company accounts for income taxes in accordance with ASC Topic 740, Income Taxes~~1. ~~ASC~~LEGAL 740 requires a company to use the asset and liability method of accounting for income taxes, whereby deferred tax assets are recognized for deductible temporary differences, and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion, or all of, the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.PROCEEDINGS

~~Under~~In ~~ASC~~November ~~740~~2016, ~~a tax position is recognized as a benefit only if it is “more likely than not” that~~ the ~~tax~~company ~~position~~was ~~would~~sued beby ~~sustained~~Independent inMedical afor ~~tax~~amount ~~examination,~~owing ~~with a tax examination being presumed~~ to ~~occur.~~them ~~The amount recognized is the largest amount~~ of ~~tax benefit that is greater than 50% likely of being realized on examination~~($26,013.01). ~~For~~They ~~tax~~subsequently ~~positions~~garnished ~~not meeting~~ the ~~“more~~company’s ~~likely~~bank ~~than~~account ~~not”~~for ~~test,~~the nosame ~~tax benefit is recorded~~amount. ~~The~~Lawsuit ~~adoption~~was ~~had no effect on the Company’s financial statements~~dropped.

19In July 2017, Power Up Lending Group filed a suit against the Company for failing to file Form 10-K for the period ending December 31, 2016. The plaintiff was demanding immediate payment of $305,250.00 together with interest and default interest, plus legal costs. Since then the plaintiff has not moved the case forward. If the company files all delinquent reports with SEC, it is believed that this case will be dropped.

~~Prior~~ITEM ~~to the transaction described in Note 1, PSPC was taxed as an S corporation for income tax purposes as provided for under §1362 of the Internal Revenue Code of 1986, as amended~~2. ~~Therefore,~~UNREGISTERED ~~all~~SALES ~~income~~OF isEQUITY ~~required~~SECURITIES toAND beUSE ~~reported~~OF on the individual stockholder’s income tax returns. An S corporation is not a taxpaying entity for federal income tax purposes. Accordingly, no federal income tax expense has been recorded in the financial statements prior to the June 29, 2016. PROCEEDS

~~ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.~~None

WeITEM ~~are~~3. aDEFAULTS ~~smaller~~UPON ~~reporting~~SENIOR ~~company and are not required to provide the information under this item pursuant to Regulation S-K.~~SECURITIES

~~ITEM 4. CONTROLS AND PROCEDURES.~~None

~~Management's~~ITEM ~~Report~~4. onMINE ~~Internal~~SAFETY ~~Control over Financial Reporting.~~DISCLOSURES

~~Our~~Not Internal control over financial reporting is a process that, under the supervision of and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, was designed to provide reasonable assurances regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. Our internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect our transactions and dispositions of our assets; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that our receipts and expenditures are being made only in accordance with authorizations of our management and our trustees; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of our assets that could have a material effect on our financial statements.applicable

~~Because~~ITEM ~~of its inherent limitations, internal control over financial reporting August not prevent or detect misstatements~~5. ~~Also,~~OTHER projections of any evaluation of effectiveness to future periods are subject to the risk that our controls August become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures August deteriorate.INFORMATION

AsNot management, it is our responsibility to establish and maintain adequate internal control over financial reporting. As of September 30, 2016, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we evaluated the effectiveness of our internal control over financial reporting using criteria established in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO"). Based on our evaluation, we concluded that the Company maintained effective internal control over financial reporting as of September 30, 2016, based on criteria established in the Internal Control Integrated Framework issued by the COSO.applicable

~~This~~19 ~~quarterly~~Table ~~report does not include an attestation report~~ of the company's registered public accounting firm regarding internal control over financial reporting. Management's report was not subject to attestation by the company's registered public accounting firm pursuant to temporary rules of the Securities and Exchange Commission that permit the company to provide only management's report in this quarterly report.Contents

~~Evaluation~~ITEM ~~of disclosure controls and procedures~~6. EXHIBITS

As of September 30, 2016, the Company's Chief Executive Officer and Chief Financial Officer conducted an evaluation regarding the effectiveness of the Company's disclosure controls and procedures (as defined in Rules 13a-15(e) or 15d-15(e) under the Exchange Act. Based upon the evaluation of these controls and procedures, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of the date of filing this annual report applicable for the period covered by this report.

EXHIBIT
NUMBER		DESCRIPTION

31.1		Certification pursuant to Exchange Act Rules 13a-15(e) and 15d-15(e), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32.1		Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101.INS		XBRL Instance Document*

101.SCH		XBRL Taxonomy Extension Schema Document*

101.CAL		XBRL Taxonomy Extension Calculation Linkbase Document*

101.DEF		XBRL Taxonomy Extension Definition Linkbase Document*

101.LAB		XBRL Taxonomy Extension Label Linkbase Document*

101.PRE		XBRL Taxonomy Extension Presentation Linkbase Document*

~~Changes~~20 inTable ~~internal~~of ~~controls.~~Contents

During the period covered by this report, no changes occurred in our internal control over financial reporting that materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.SIGNATURES

20Pursuant to the requirements of Section 12 of the Securities and Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized on November 21, 2017.

~~PART~~PROTO IISCRIPT PHARMACEUTICAL CORP. ~~OTHER~~By: ~~INFORMATION~~/s/ Michelle Rico Michelle Rico Principal Executive Officer By: /s/ Michelle Rico Michelle Rico Principal Financial Officer and Principal Accounting Officer

~~ITEM 1. LEGAL PROCEEDINGS~~21

None

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

None

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable

ITEM 5. OTHER INFORMATION

Not applicable

ITEM 6. EXHIBITS

EXHIBIT
NUMBER		DESCRIPTION
31.1		Certification pursuant to Exchange Act Rules 13a-15(e) and 15d-15(e), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1		Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS		XBRL Instance Document*
101.SCH		XBRL Taxonomy Extension Schema Document*
101.CAL		XBRL Taxonomy Extension Calculation Linkbase Document*
101.DEF		XBRL Taxonomy Extension Definition Linkbase Document*
101.LAB		XBRL Taxonomy Extension Label Linkbase Document*
101.PRE		XBRL Taxonomy Extension Presentation Linkbase Document*

SIGNATURES

Pursuant to the requirements of Section 12 of the Securities and Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized on January 5, 2017.

PROTO SCRIPT PHARMACEUTICAL CORP. By: /s/ Michelle Rico Michelle Rico , Principal Executive Officer By: /s/ Michelle Rico Michelle Rico , Principal Financial Officer and Principal Accounting Officer

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