Vape Holdings, Inc.

[1]	Stock-based compensation was $0 and $34,800 for the years ended September 30, 2017 and 2016, respectively.
[2]	Stock-based compensation was $0 and $32,889 for the years ended September 30, 2017 and 2016, respectively.

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
Consolidated Statements of Cash Flows - USD ($)	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities:
Net loss	$ (2,438,321)	$ (6,093,948)
Adjustments to reconcile net loss to net cash used in operating activities:
Impairment on intangible assets		123,150
Depreciation		161,427
Accretion of debt discounts	862,230	1,752,743
Loss from effects of derivative liabilities	831,838	2,507,067
Gain on settlements, net		(175,769)
Common stock issued for services		67,689
Other		(223,798)
Changes in operating assets and liabilities:
Accounts receivable	2,010	70,391
Inventory	18,254	240,762
Other assets	4,922	32,460
Accounts payable	(163,232)	357,716
Accrued expenses	614,159	672,556
Net cash used in operating activities	(268,140)	(507,554)
Cash flows from investing activities:
Capital expenditures		(43,100)
Net cash used in investing activities		(43,100)
Cash flows from financing activities:
Net proceeds from issuance of convertible notes payable	273,500	312,150
Net proceeds from issuances of related party convertible notes payable		50,000
Repayments on convertible notes payable		(85,400)
Net cash provided by financing activities	273,500	276,750
Net change in cash	5,360	(273,904)
Cash, beginning of period		273,904
Cash, end of period	5,360
Cash paid during the period for:
Interest
Taxes		800
Non-cash investing and financing activities:
Conversion of notes payable, accrued interest, and derivative liabilities	$ 2,064,600	$ 4,341,660

Consolidated Balance Sheets - USD ($)	Sep. 30, 2017	Sep. 30, 2016
Current assets:
Cash	$ 5,360
Accounts receivable, net		2,010
Inventory		18,254
Other current assets	3,297	8,219
Total current assets	8,657	28,483
TOTAL ASSETS	8,657	28,483
Current liabilities:
Accounts payable	264,500	473,654
Accrued expenses	1,096,453	555,994
Related party convertible notes payable, net of unamortized discount of $262,500 and $0, respectively	87,500	300,000
Convertible notes payable, net of unamortized discounts of $88,449 and $119,680, respectively	1,064,803	537,291
Related party notes payable	15,000	15,000
Settlement liability	100,000	422,000
Related party derivative liabilities	258,422
Derivative liabilities	2,567,821	2,755,544
Total current liabilities	5,454,499	5,059,483
Long term liabilities:
Convertible notes payable, long-term, net of unamortized discounts of $0		41,121
Total liabilities	5,454,499	5,100,604
Commitments and contingencies
Stockholders' deficit:
Common stock, $0.00001 par value - authorized 1,000,000,000 shares; 867,887,137 issued at September 30, 2017, 866,861,512 outstanding at September 30, 2017 and 589,422,978 issued at September 30, 2016, 588,397,353 outstanding at September 30, 2016	8,668	5,883
Additional paid-in capital	32,381,080	30,319,265
Treasury stock, 1,025,625 shares at September 30, 2017 and 2016	(372,601)	(372,601)
Accumulated deficit	(37,462,989)	(35,024,668)
Total stockholders' deficit	(5,445,842)	(5,072,121)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	8,657	28,483
Series A Convertible Preferred stock
Stockholders' deficit:
Preferred stock, value
Total stockholders' deficit
Series B Convertible Preferred stock
Stockholders' deficit:
Preferred stock, value