NOTE 1 – BASIS OF PRESENTATION

The accompanying unaudited condensed consolidated financial statements include the accounts of Zivo Bioscience, Inc. and its wholly-owned subsidiaries (collectively, the “Company”).  All significant intercompany accounts and transactions have been eliminated in consolidation. In the opinion of the Company’s management, the financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary to present fairly the information set forth therein. These consolidated financial statements are condensed, and therefore do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s December 31, 2015 consolidated audited financial statements and Notes thereto included in the Annual Report on Form 10-K filed with the SEC on March 29, 2016.

The results of operations for the six months ended June 30, 2016 are not necessarily indicative of the results to be expected for the fiscal year ending December 31, 2016, or any other period.

The Company had a net loss of $3,687,047 and $3,296,862 for the six months ended June 30, 2016 and 2015, respectively.  In addition, the Company had a working capital deficiency of $6,276,692 and a stockholders’ deficit of $11,114,812 at June 30, 2016. For the six months ended June 30, 2016 and 2015, the Company had no revenue, and was entirely dependent on debt issuance and capital raising to fund its operations. These factors continue to raise substantial doubt about the Company's ability to continue as a going concern.  During the first six months of 2016, the Company raised $1,250,000 from the issuance of Convertible Debt and $42,316 from net loans payable to related parties.  There can be no assurance that the Company will be able to raise additional capital.

The accompanying condensed consolidated financial statements do not include any adjustments related to the recoverability or classification of asset-carrying amounts or the amounts and classifications of liabilities that may result should the Company be unable to continue as a going concern.