INTERIM FINANCIAL STATEMENTS. (Unaudited - See Notice to Reader) VMS REHAB SYSTEMS, INC. June 30, (Expressed in Canadian Dollars)

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1 INTERIM FINANCIAL STATEMENTS June 30, 2017 Notice to Reader 1 Interim Balance Sheet 2 Interim Statement of Loss and Deficit 3 Interim Statement of Cash Flows 4 Notes to Interim Financial Statements 5

2 NOTICE TO READER This interim financial information for VMS Rehab Systems, Inc has been prepared by management from the records of the Company and has not been further reviewed or audited. Readers are cautioned that this interim financial information may not be suitable for their purposes.

3 INTERIM BALANCE SHEET (Unaudited See Notice to Reader) June 30 December ASSETS CURRENT ASSETS Accounts receivable $ 10,022 $ 60,189 Taxes receivable 1,083 - Inventory 2,454 1,298 13,559 61,487 INVESTMENT IN BIOPHARMCOR BV Note B 233, ,466 PROPERTY, PLANT AND EQUIPMENT--Note C 1,512 1,913 $ 248,537 $ 296,866 LIABILITIES AND SHAREHOLDERS' DEFICIT CURRENT LIABILITIES Bank overdraft $ 28,486 $ 26,840 Accounts payable and accrued liabilities 13,918 62,770 Due to related parties--note D 412, , , ,748 CONVERTIBLE DEBT, NET OF AMORTIZED DISCOUNT--Note E 202, , , ,645 SHAREHOLDERS' DEFICIT Capital stock--note F 283, ,613 Deficit (692,215) (616,392) (409,015) (407,779) $ 248,537 $ 296,866 APPROVED ON BEHALF OF THE BOARD: The accompanying notes are an integral part of the Interim Financial Statements -2-

4 Director INTERIM STATEMENT OF LOSS AND DEFICIT For the Six Months Ended June 30 June REVENUE $ 22,470 $ 27,767 Cost of Sales 28,333 34,092 GROSS INCOME (LOSS) (5,863) (6,325) EXPENSES Amortization Automotive 1,832 7,065 Bank charges and interest 1,336 1,361 Insurance Interest on long-term debt 22,937 20,421 Meals and entertainment Office 8,963 1,469 Professional fees 5,188 8,119 Memberships and dues 11,789 10,367 Rent 1,498 4,958 Subcontractors 8,606 17,344 Telephone 3,648 3,842 Travel 3,272 7,078 69,960 65,680 LOSS BEFORE INCOME TAXES (75,823) (72,005) Provision for income taxes - - NET LOSS (75,823) (72,005) COMPREHENSIVE LOSS for six months (75,823) (72,005) The accompanying notes are an integral part of the Interim Financial Statements -3-

5 INTERIM STATEMENT OF CASH FLOWS For the Six Months Ended June 30 June 30 CASH PROVIDED BY (USED FOR): CASH FLOWS FROM OPERATING ACTIVITIES Net (loss) income $ (75,823) $ Adjustments for: (72,005) Amortization Accounts and taxes receivable 49,084 (2,174) Due from Argus Holdings N.V. - 85,586 Inventory (1,156) 2,486 Accounts payable and accrued liabilities (48,852) (5,046) (76,346) 9,095 CASH FLOWS FROM INVESTING ACTIVITIES Net decrease in investments - - Additions to property, plant and equipment - (2,005) CASH FLOWS FROM FINANCING ACTIVITIES (2,005) Share capital issuance 74,587 - Convertible debt increase (decrease) 16,730 - (Repayment of) Advances from related parties (16,617) (5,091) 74,700) (5,091) NET INCREASE IN CASH AND CASH EQUIVALENTS (1,646) 1,999 The accompanying notes are an integral part of the Interim Financial Statements -4-

6 Cash and cash equivalents at beginning of year (26,840) (22,091) CASH AND CASH EQUIVALENTS AT END OF PERIOD $ (28,486) $ (20,092) Cash and cash equivalents consist of bank indebtedness. The accompanying notes are an integral part of the Interim Financial Statements -5-

7 NOTES TO INTERIM FINANCIAL STATEMENTS June 30, 2017 NOTE A--SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES General: The Company was incorporated under the Ontario Business Corporations Act on March 26, The Company specializes in the manufacture and sale of products for the rehab segment of the health industry in North America and is focused on the development and sale of a high performance line of orthopaedic seat cushions. Inventory: Inventory is valued at lower of cost and estimated net realizable value. Investment: The investment, which consists of shares in Biopharmcor B.V are stated at the lower of cost and estimated net realizable value. Property, Plant and Equipment: property, plant and equipment is recorded at cost. Amortization is computed using the declining balance method at the following annual rates: Computer equipment 55% Website 3yrs In the year of acquisition, property, plant and equipment purchases are amortized at one-half of the normal annual rate. NOTE B--INVESTMENTS IN BIOPHARMCOR B.V The investment consists of 17,000,000 Class A Shares and 50,000 Class B Shares of Biopharmcor B.V. Subsequent to June 30, 2017 the Class A and Class B Shares of Biopharmcor were transferred to a significant shareholder of the Company in settlement of outstanding liabilities owed by the Company to that significant shareholder. NOTE C--PROPERTY, PLANT AND EQUIPMENT Accumulated Net Book Value Cost Amortization Computer equipment $ 1,647 $ 1,472 $ 175 $ 389 Website 2, ,504 1,905 $ 3,652 $ 2,140 $ 1,512 $ 2,294 NOTE D--DUE TO RELATED PARTIES The balance due to the related parties are amounts due to the President of the Company and to companies controlled by the President of the Company. They are non-interest bearing with no fix terms of repayment, unsecured and due on demand. See also Note B

8 -5- NOTES TO INTERIM FINANCIAL STATEMENTS June 30, 2017 NOTE E--CONVERTIBLE DEBT At June 30, 2017 the convertible debt consists of $248,266 ( $185,897) due to the President of the Company and to a company controlled by the President of the Company net of amortized discount of $45,639 ( $62,369). The debenture is unsecured, bearing interest at 5% per annum paid semi-annually, due September 30, NOTE F--CAPITAL STOCK Authorized 100 Class A Common shares Unlimited number of Class B Common Shares Issued 100 Class A Common shares $ 769 $ ,457,980 Class B Common shares (December 31, 2016: 163,912,890 Class B) 282, ,844 $ 283,200 $ 208,613 During the period Argus Holdings N.V. ( Argus ) exercised part of its derivative stock option package and was issued 3,545,090 Class B common shares at an average option price of $0.021 cents per share. During the period ended June 30, 2017 the Company cancelled 120,000,000 Class B common shares issued during the year ended December 31, NOTE G --PRIOR PERIOD CORRECTION During the period, it was discovered that the accounts payable balance was not properly recorded in the 2016 financial statements. As a result, the deficit balance as of January 1, 2017 has been increased by $9,338 the accounts payable increased by $9,338 and the 2016 financial statements have been restated. NOTE H--COMPARATIVE FIGURES Certain of the prior year's figures have been reclassified in order to conform with the current year's financial statement presentation. -6-

9 NOTES TO INTERIM FINANCIAL STATEMENTS June 30, 2017 NOTE I--GOING CONCERN These financial statements have been prepared on a going concern basis which contemplates the realization of assets and the payment of liabilities in the ordinary course of business. Should the Company be unable to continue as a going concern, it may be unable to realize the carrying value of its assets and to meet its liabilities as they become due. As at June 30, 2017, the Company had a working capital deficit of $441,366 and an accumulated deficit of $692,215. Furthermore, operating losses have been sustained in the period and four preceding years. The continued operations of the Company are dependent on its ability to generate future cash flows or obtain additional financing. Management is of the opinion that sufficient working capital will be obtained from external financing to meet the Company's liabilities and commitments as they become due, although there is a risk that additional financing will not be available on a timely basis or on terms acceptable to the Company. These factors indicate the existence of a material uncertainty that may cast significant doubt on the Company's ability to continue as a going concern. These financial statements do not reflect any adjustments that may be necessary if the Company is unable to continue as a going concern. See also Note B -7-