NOTE 13- FORMATION OF SUBSIDIARIES

WellMetris, LLC

During the year ended December 31, 2013, the Company formed WellMetris, LLC, a Delaware Limited Liability Company for the purpose of developing, manufacturing and marketing a non-invasive urinary wellness test. WellMetris is 100% owned by Zivo Bioscience, Inc.  As discussed in Note 11 – Stockholder’s Deficiency, Purchase of Assets, the Company bought the Assets of Wellness from Essex.  Concurrently, the Company transferred the Intellectual Property (patent applications pending) to WellMetris.  As of December 31, 2014, the Company evaluated the circumstances related to the Patent Applications Pending relating to the acquisition of asset of Wellness Indicators in August 2013.  The Company has filed / drafted an additional eight patents applications around the intellectual property acquired.  The Company has determined that the new patents applications redefine and protect its intellectual property better than the original purchased patent applications.  As such, the Company has abandoned the patent applications purchased and recorded a loss on abandonment of $1,391,281 for the year ended December 31, 2014.

Zivo Biologic, Inc.

During the year ended December 31, 2013, the Company formed Zivo Biologic, Inc., a Delaware Corporation, for the purpose of manufacturing and commercialization of proprietary ingredients for non-medicinal animal health applications. Zivo Biologic is 100% owned by Zivo Bioscience, Inc.