PART I

Item 1. Financial Statements.

GREENESTONE HEALTHCARE CORPORATION

INDEX TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in US$ unless otherwise indicated)  

GREENESTONE HEALTHCARE CORPORATION INDEX TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Expressed in US$ unless otherwise indicated) PAGE Condensed Consolidated Balance Sheets as of March 31,June 30, 2016 (unaudited) and December 31, 2015 2 1 Unaudited Condensed Consolidated Statements of Operations for the three months and six months ended March 31,June 30, 2016 and 2015. 3 2 Unaudited Condensed Consolidated Statements of changes in Stockholders Deficit. 4 3 Unaudited Condensed Consolidated Statements of Cash Flows for the threesix months ended March 31,June 30, 2016 and 2015. 5 4 Notes to the unaudited Condensed Consolidated Financial Statements 6 5   Table of Contents 1   GREENESTONE HEALTHCARE CORPORATION GREENESTONE HEALTHCARE CORPORATION           CONDENSED CONSOLDATED BALANCE SHEETS               June 30, 2016   December 31, 2015     Unaudited     ASSETS           Current assets                 Cash   $ 49,037     $ 174   Accounts receivable, net     237,409       183,582   Prepaid expenses     101,302       15,489   Depost on real estate     207,158       —     Related party Receivables     15,863       —     Total current assets     610,769       199,245   Non-current assets                 Cash - Restricted     76,870       72,250   Deposits     —         8,217   Fixed assets, net     163,437       193,131   Total non-current assets     240,307       273,598   Total assets   $ 851,076     $ 472,843                     LIABILITIES AND STOCKHOLDERS' DEFICIT                                   Current liabilities                 Bank overdraft   $ 31,635       15,801   Accounts payable and accrued liabilities     306,530       606,274   Taxes payable     2,722,094       2,490,506   Deferred revenue     179,193       181,075   Current portion of loan payable     7,273       6,684   Short-term loan     167,121       21,675   Related party payables     443,631       274,496   Total current liabilities     3,857,477       3,596,511   Non-current liabilities                 Loan payable     5,673       8,788   Total liabilities     3,863,150       3,605,299                     Stockholders' deficit                 Preferred stock - Series A; $0.01 par value, 3,000,000 authorized, nil outstanding as of June 30, 201t6 and December 31, 2015.     —         —     Preferred Stock - Series B; $0.01 par value, 10,000,000 authorized, nil outstanding as of June 30, 2016 and December 31 2015.     —         —     Common stock; $0.01 par value, 500,000,000 shares authorized; 48,738,855 and 47,738,855 shares issued and outstanding  as of June 30, 2016 and December 31, 2015, respectively.     487,389       477,389   Additional paid-in capital     16,290,778       16,177,534   Accumulated other comprehensive income     718,550       933,826   Accumulated deficit     (20,508,791 )     (20,721,205 ) Total stockholders' deficit     (3,012,074 )     (3,132,456 ) Total liabilities and stockholders' deficit   $ 851,076     $ 472,843                                     CONDENSED CONSOLDATED BALANCE SHEETS     March 31, 2016   December 31, 2015     Unaudited     ASSETS                                   Current assets                 Cash   $ 3,543     $ 174   Accounts receivable, net     263,793       183,582   Prepaid expenses     23,405       15,489   Related party Receivables     75,190       —     Total current assets     365,931       199,245   Non-current assets                 Cash - Restricted     77,100       72,250   Deposits     —         8,217   Fixed assets, net     177,797       193,131   Total non-current assets     254,897       273,598   Total assets   $ 620,828     $ 472,843                     LIABILITIES AND STOCKHOLDERS' DEFICIT                                   Current liabilities                 Bank overdraft   $ 44,909       15,801   Accounts payable and accrued liabilities     442,470       606,274   Taxes payable     2,697,464       2,490,506   Deferred revenue     98,996       181,075   Current portion of loan payable     7,213       6,684   Short-term loan     41,332       21,675   Related party payables     492,930       274,496   Total current liabilities     3,825,314       3,596,511   Non-current liabilities                 Loan payable     7,544       8,788   Total liabilities     3,832,858       3,605,299                     Stockholders' deficit                 Preferred stock - Series A; $0.01 par value, 3,000,000 authorized, nil outstanding as of March 31, 2016 and December 31, 2015.     —         —     Preferred Stock - Series B; $0.01 par value, 10,000,000 authorized, nil outstanding as of March 31, 2016 and December 31 2015.     —         —     Common stock; $0.01 par value, 500,000,000 shares authorized; 47,738,855 shares issued and outstanding  as of March 31, 2016 and December 31, 2015.     477,389       477,389   Additional paid-in capital     16,177,534       16,177,534   Accumulated other comprehensive income     710,722       933,826   Accumulated deficit     (20,577,675 )     (20,721,205 ) Total stockholders' deficit     (3,212,030 )     (3,132,456 )                   Total liabilities and stockholders' deficit   $ 620,828     $ 472,843   The accompanying notes are an integral part of the unaudited condensed consolidated financial statements Table of Contents  2 1   GREENESTONE HEALTHCARE CORPORATION GREENESTONE HEALTHCARE CORPORATION                   UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS         Three months ended June 30, 2016       Three months ended June 30, 2015       Six months ended June 30, 2016       Six months ended June 30, 2015                                     Revenues   $ 1,024,384     $ 947,934     $ 1,847,222     $ 1,628,646                                     Operating expenses                                 Depreciation     15,412       26,446       30,746       47,440   General and administrative     243,981       120,702       407,100       418,903   Management fees     46,577       48,337       46,577       96,705   Professional fees     53,545       73,983       81,189       157,994   Rent     105,721       90,637       180,112       179,392   Salaries and wages     438,464       469,234       832,981       913,705   Total operating expenses     903,700       829,339       1,578,705       1,814,139                                     Operating income (loss)     120,684       118,595       268,517       (185,493 )                                   Other Income (expense)                                 Other income     33,549       —         33,549       —     Interest expense     (45,658 )     (39,401 )     (83,846 )     (90,942 ) Debt discount     (33,262 )     —         (33,262 )     —     Foreign exchange movements     (6,394 )     (72,419 )     27,455       (72,419 ) Net income (loss) before taxation     68,920       6,775       212,414       (348,854 ) Taxation     —         —         —         —     Net income (loss)     68,920       6,775       212,414       (348,854 ) Accumulated other comprehensive income (loss)                                 Foreign currency translation adjustment     7,789       15,709       (215,276 )     330,887                                     Total comprehensive income (loss)   $ 76,709     $ 22,484     $ (2,862 )   $ (17,967 )                                   Basic Income (loss) per common share   $ 0.00     $ 0.00     $ 0.00     $ (0.01 ) Diluted Income (loss) per common share   $ 0.00     $ 0.00     $ 0.00     $ (0.01 )                                   Weighted average common shares outstanding - Basic     47,991,602       47,389,404       47,865,229       46,938,730   Weighted average common shares outstanding - Diluted     49,192,552       47,389,404       49,066,179       46,938,730                                     The accompanying notes are an integral part of the unaudited condensed consolidated financial statements UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Table of Contents 2 GREENESTONE HEALTHCARE CORPORATION                           UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' DEFICIT                                 Common       Additional                                 Shares       Amount       Paid in Capital       Comprehensive Income       Accumulated Deficit       Total                                                     Balance as of January 1, 2016     47,738,855       477,389       16,177,534       933,826       (20,721,205 )     (3,132,456 )                                                   Foreign currency translation     —         —         —         (215,276 )     —         (215,276 ) Stock issued for services     1,000,000       10,000       40,000       —        —        50,000   Fair value of warrants issued     —         —         73,244       —         —         73,244   Net Income     —         —         —         —         212,414       212,414   Balance as of June 30, 2016     48,738,855       487,389       16,290,778       718,550       (20,508,791 )     (3,012,074 ) The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.       Three months ended March 31, 2016   Three months ended March 31, 2015                   Revenues   $ 822,837     $ 680,712                     Operating expenses                 Depreciation     15,333       20,994   General and administrative     163,120       298,201   Management fees     —         48,368   Professional fees     27,644       84,011   Rent     74,392       88,755   Salaries and wages     394,517       444,471   Total operating expenses     675,006       984,800                     Operating income (loss)     147,831       (304,088 )                   Other expense                 Interest expense     (38,188 )     (51,541 ) Foreign exchange movements     33,887       —     Net income (loss) before taxation     143,530       (355,629 ) Taxation     —         —     Net income (loss)     143,530       (355,629 ) Accumulated other comprehensive (loss) income                 Foreign currency translation adjustment     (223,104 )     315,179                     Total comprehensive loss   $ (79,574 )   $ (40,450 )                   Basic Income (loss) per common share   $ 0.00     $ (0.01 ) Diluted Income (loss) per common share   $ 0.00     $ (0.01 )                   Weighted average common shares outstanding - Basic     47,738,855       46,388,120   Weighted average common shares outstanding - Diluted     48,005,555       46,388,120   Table of Contents 3 GREENESTONE HEALTHCARE CORPORATION           UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS       Six months ended June 30, 2016   Six months ended June 30, 2015 Operating activities                 Net Income (loss)   $ 212,414     $ (348,854 ) Adjustment to reconcile net income (loss) to net cash provided by (used in) operating activities:                 Depreciation     30,746       47,440   Non cash debt discount movements     33,262       —     Stock issued for services     50,000       56,906   Other foreign exchange movements     (979 )     10,803   Non cash movement in deposits     8,217       —     Amortization of beneficial conversion feature     —         12,709   Changes in operating assets and liabilities                 Accounts receivable     (53,827 )     88,050   Prepaid expenses     (85,813 )     12,184   Accounts payable and accrued liabilities     (292,787 )     (269,867 ) Taxes payable     231,588       (12,093 ) Deferred revenue     (1,882 )     17,719   Net cash provided by (used in) operating activities     130,939       (385,003 )                   Investing activities                 Purchase of fixed assets     (1,053 )     (13,406 ) Investment in deposits     (207,158 )     —     Net cash used in investing activities     (208,211 )     (13,406 )                   Financing activities                 Increase in bank overdraft     15,834       10,282   Repayment of loan payable     (3,443 )     (5,358 ) Proceeds from short-term notes     283,386       —     Repayment of short-term notes     (107,639 )     (34,350 ) Proceeds from related party notes     153,273       9,488   Net cash provided by (used in) financing activities     341,411       (19,938 )                   Effect of exchange rate on cash     (215,276 )     330,887                     Net change in cash     48,863       (87,460 ) Beginning cash balance     174       88,152   Ending cash balance   $ 49,037     $ 692                     Supplemental cash flow information                 Cash paid for interest   $ 7,548     $ 7,511   Cash paid for income taxes   $ —       $ —                       Non cash investing and financing activities                 Common stock issued on conversion of convertible notes   $ —       $ 8,117                     The accompanying notes are an integral part of the unaudited condensed consolidated financial statements Table of Contents  3 4   GREENESTONE HEALTHCARE CORPORATION UNAUDUTED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' DEFICIT     Common   Additional Paid in   Comprehensive   Accumulated         Shares   Amount   Capital   Income   Deficit   Total                           Balance as of January 1, 2016     47,738,855     $ 477,389     $ 16,177,534     $ 933,826     $ (20,721,205 )   $ (3,132,456 )                                                   Foreign currency translation     —         —         —         (223,104 )     —         (223,104 ) Net income for the three months end March 31, 2016     —         —         —         —         143,530       143,530   Balance as of March 31, 2016     47,738,855     $ 477,389     $ 16,177,534     $ 710,722     $ (20,577,675 )   $ (3,212,030 ) The accompanying notes are an integral part of the unaudited condensed consolidated financial statements Table of Contents 4 GREENESTONE HEALTHCARE CORPORATION UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS     Three months ended March 31, 2016   Three months ended March 31, 2015 Operating activities                 Net Income (loss)   $ 143,530     $ (355,629 ) Adjustment to reconcile net income (loss) to net cash provided by (used in) operating activities:                 Depreciation     15,333       20,994   Provision for bad debts     —         10,442   Stock issued for services     —         56,906   Other foreign exchange movements     (1,460 )     (207 ) Non cash movement in deposits     8,217       —     Amortization of beneficial conversion feature     —         9,609   Changes in operating assets and liabilities                 Accounts receivable     (80,211 )     (31,088 ) Prepaid expenses     (7,916 )     14,633   Accounts payable and accrued liabilities     (161,538 )     (109,310 ) Taxes payable     206,958       (72,685 ) Deferred revenue     (82,079 )     34,196   Net cash provided by (used in) operating activities     40,834       (422,139 )                   Investing activities                 Purchase of fixed assets     —         (9,613 ) Net cash used in investing activities     —         (9,613 )                   Financing activities                 Decrease in restricted cash     —         7,350   Increase in bank overdraft     29,108       9,758   Repayment of loan payable     (1,658 )     (3,938 ) Proceeds from short-term notes     36,815       —   Repayment of short-term notes     (21,870 )     (18,685 ) Proceeds from related party notes     143,244       25,398   Net cash provided by financing activities     185,639       19,883                     Effect of exchange rate on cash     (223,104 )     329,230                     Net change in cash     3,369       (82,639 ) Beginning cash balance     174       88,152   Ending cash balance   $ 3,543     $ 5,513                     Supplemental cash flow information                 Cash paid for interest   $ 1,263     $ 38,190   Cash paid for income taxes   $ —       $ —                       Non cash investing and financing activities                 Common stock issued on conversion of convertible notes   $ —       $ 8,117   The accompanying notes are an integral part of the unaudited condensed consolidated financial statements Table of Contents 5 GREENESTONE HEALTHCARE CORPORATION NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS   1.Nature of Business 1. Nature of Business   GreeneStone Healthcare Corporation (the “Company”) was incorporated under the laws of the state of Colorado, USA, on April 1, 1993. Effective May 2012, the Company changed its corporate name to GreeneStone Healthcare Corporation from Nova Natural Resources Corporation. As at March 31,June 30, 2016, the Company owns 100% of the outstanding shares of Greenstone Clinic Muskoka Inc., which was incorporated in 2010 under the laws of the Province of Ontario, Canada. Greenstone Clinic Muskoka Inc. provides medical services to various patients in clinics located in the regional municipality of Muskoka, Ontario, Canada.   The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim consolidated financial information and Rule 8-03 of Regulation S-X. Accordingly, these unaudited condensed consolidated financial statements do not include all of the information and disclosures required by accounting principles generally accepted in the United States of America for complete financial statements.   All adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included in these unaudited condensed consolidated financial statements. Operating results for the three and six month period presented are not necessarily indicative of the results that may be expected for any other interim periodsperiod or for the full year. The balance sheet at December 31, 2015 has been derived from audited consolidated financial statements. The unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and footnotes thereto for the year ended December 31, 2015.   2. Summary of Significant Accounting Policies 2. Summary of Significant Accounting Policies   a)Financial Reporting The Company prepares its financial statements in conformity with accounting principles generally accepted in the United States of America. Revenues and expenses are reported on the accrual basis, which means that income is recognized as it is earned and expenses are recognized as they are incurred. Management further acknowledges that it is solely responsible for adopting sound accounting practices, establishing and maintaining a system of internal accounting control and preventing and detecting fraud. The Company's system of internal accounting control is designed to assure, among other items, that i) recorded transactions are valid; ii) valid transactions are recorded; and iii) transactions are recorded in the proper period in a timely manner to produce financial statements which present fairly the financial condition, results of operations and cash flows of the Company for the respective periods being presented. b) Use of Estimates a) Use of Estimates   The preparation of unaudited condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that 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 periods. Actual results could differ from those estimates.   c) Principals of consolidation and foreign currency translation b) Principals of consolidation and foreign currency translation   The accompanying unaudited condensed consolidated financial statements include the accounts of the Company, its subsidiary. All inter-inter company transactions and balances have been eliminated on consolidation. Table of Contents 6 GREENESTONE HEALTHCARE CORPORATION NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 2. Summary of Significant Accounting Policies(continued) c) Principals of consolidation and foreign currency translation (continued)   The Company’s subsidiary’s functional currency is the Canadian dollar, while the Company’s reporting currency is the U.S. dollar. All transactions initiated in Canadian dollars are translated into US dollars in accordance with ASC 830, “Foreign Currency Translation" as follows: Monetary assets and liabilities at the rate of exchange in effect at the balance sheet date. Equity at historical rates. Revenue and expense items at the average rate of exchange prevailing during the period. Adjustments arising from such translations are deferred until realization and are included as a separate component of stockholders’ deficit as a component of accumulated other comprehensive income or loss. Therefore, translation adjustments are not included in determining net income (loss) but reported as other comprehensive income (loss).   For foreign currency transactions, the Company translates these amounts to the Company’s functional currency at the exchange rate effective on the invoice date. If the exchange rate changes between the time of purchase and the time actual payment is made, a foreign exchange transaction gain or loss results which is included in determining net income for the period.   The relevant translation rates are as follows: For the threesix months ended March 31,June 30, 2016; a closing rate of CAD$1.0000 equals US$0.77100.7687 and an average exchange rate of CAD$1.0000 equals US$0.7290.0.7530. Table of Contents 5 GREENESTONE HEALTHCARE CORPORATION   d) Revenue RecognitionNOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 2. Summary of Significant Accounting Policies (continued) c) Revenue Recognition   The Company recognizes revenue from the rendering of services when they are earned; specifically, when all of the followingconditions are met:   the significant risks and rewards of ownership are transferred to customers and the Company retains neither continuing involvement nor effective control; there is clear evidence that an arrangement exists; the amount of revenue and related costs can be measured reliably; and it is probable that the economic benefits associated with the transaction will flow to the Company.   In particular, the Company recognizes:   Fees for out-patientoutpatient counselling, coaching, intervention, psychological assessments and other related services when patients receive the service; and Fees for in-patientinpatient addiction treatments proportionately over the term of the patient’s treatment.   Deferred revenue represents monies deposited by the patients for future services to be provided by the Company. Such monies will be recognized into revenue as the patient progresses through their treatment term.   Table of Contents 7d) Cash and cash equivalents GREENESTONE HEALTHCARE CORPORATION NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 2. Summary of Significant Accounting Policies(continued) e) Non-monetary transactions The Company’s policy is to measure an asset exchanged or transferred in a non-monetary transaction at the more reliable measurement of the fair value of the asset given up and the fair value of the asset received, unless: The transaction lacks commercial substance; The transaction is an exchange of a product or property held for sale in the ordinary course of business for a product or property to be sold in the same line of business to facilitate sales to customers other than the parties to the exchange; Neither the fair value of the asset received nor the fair value of the asset given up is reliably measurable; or The transaction is a non-monetary, non-reciprocal transfer to owners that represents a spin-off or other form of restructuring or liquidation. f)Cash and cash equivalents   The Company's policy is to disclose bank balances under cash, including bank overdrafts with balances that fluctuate frequently from being positive to overdrawn and term deposits with a maturity period of three months or less from the date of acquisition.   The Company has $77,100$76,870 (CAD$100,000) in restricted cash held by their bank to cover against the possibility of credit card charge backs, for services not performed.   g) Accounts receivable The Company provides an allowance for doubtful accounts equal to the estimated uncollectible amounts. The Company’s estimate is based on historical collection experience and a review of the current status of trade accounts receivable. It is reasonably possible that the Company’s estimate of the allowance for doubtful accounts will change. At March 31, 2016 and December 31, 2015, the Company has a $0 and $0 allowance for doubtful accounts, respectively. h) Financial instruments The Company initially measures its financial assets and liabilities at fair value, except for certain non-arm's length transactions. The Company subsequently measures all its financial assets and financial liabilities at amortized cost. Financial assets measured at amortized cost include cash and accounts receivable. Financial liabilities measured at amortized cost include bank indebtedness, accounts payable and accrued liabilities, harmonized sales tax payable, withholding taxes payable, convertible notes payable, loan payable and related party notes. Financial assets measured at cost are tested for impairment when there are indicators of impairment. The amount of the write-down is recognized in net income. The previously recognized impairment loss may be reversed to the extent of the improvement, directly or by adjusting the allowance account, provided it is no greater than the amount that would have been reported at the date of the reversal had the impairment not been recognized previously. The amount of the reversal is recognized in net income. The Company recognizes its transaction costs in net income in the period incurred. However, financial instruments that will not be subsequently measured at fair value are adjusted by the transaction costs that are directly attributable to their origination, issuance or assumption. Table of Contents 8e) Recent accounting pronouncements GREENESTONE HEALTHCARE CORPORATION NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 2. Summary of Significant Accounting Policies(continued) h) Financial instruments(continued) FASB ASC 820 defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles, and expands disclosures about fair value measurements. ASC 820 establishes a three tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1. Observable inputs such as quoted prices in active markets; Level 2. Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and Level 3. Unobservable inputs in which there is little or no market data, which requires the reporting entity to develop its own assumptions. The Company does not have assets or liabilities measured at fair value on a recurring basis at March 31, 2016 and December 31, 2015. The Company did not have any fair value adjustments for assets and liabilities measured at fair value on a non- recurring basis during the three months ended March 31, 2016 and 2015. i) Fixed assets Fixed assets are recorded at cost. Depreciation is calculated on the declining balance method at the following annual rates: Computer Equipment 30 % Computer Software 100 % Furniture and Equipment 30 % Medical Equipment 25 % Vehicles 30 % Leasehold improvements are depreciated using the straight-line method over the term of the lease. Half rates are used for all fixed assets in the year of acquisition. j) Leases Leases are classified as either capital or operating leases. Leases that transfer substantially all of the benefits and inherent risks of ownership of property to the Company are accounted for as capital leases. At the time a capital lease is entered into, an asset is recorded together with its related long-term obligation to reflect the acquisition and financing. Equipment recorded under capital leases is amortized on the same basis as described above. Payments under operating leases are expensed as incurred. Table of Contents 9 GREENESTONE HEALTHCARE CORPORATION NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 2.Summary of Significant Accounting Policies(continued) k) Income taxes The Company accounts for income taxes under the provisions of ASC Topic 740,“Income Taxes”.Under ASC Topic 740, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred income taxes are provided using the liability method. Under this method, deferred income taxes are recognized for the tax consequences of temporary differences by applying enacted statutory rates applicable to future years to differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. The tax basis of an asset or liability is the amount attributed to that asset or liability for tax purposes. The effect on deferred taxes of a change in tax rates is recognized in income in the period of change. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more likely than not that some portion of, or all of, the deferred tax assets will not be realized. ASC Topic 740 contains a two-step approach to recognizing and measuring uncertain tax positions taken or expected to be taken in a tax return. The first step is to determine if the weight of available evidence indicates that it is more likely than not that the tax position will be sustained in an audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. The Company recognizes interest and penalties accrued on unrecognized tax benefits within general and administrative expense. To the extent that accrued interest and penalties do not ultimately become payable, amounts accrued will be reduced and reflected as a reduction in general and administrative expenses in the period that such determination is made. The tax returns for fiscal 2001, through 2013 are subject to audit or review by the US tax authority, whereas fiscal 2010 through 2013 are subject to audit or review by the Canadian tax authority. l)Income (Loss) per share information Basic net income (loss) per share is computed on the basis of the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share is computed on the basis of the weighted average number of common shares and common share equivalents outstanding. Dilutive securities having an anti-dilutive effect on diluted net loss per share are excluded from the calculation (See Note 11, below). Dilution is computed by applying the treasury stock method for options and warrants. 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 shares at the average market price during the period. Dilution is computed by applying the if-converted method for convertible preferred shares. Under this method, convertible preferred stock is assumed to be converted at the beginning of the period (or at the time of issuance, if later), and preferred dividends (if any) will be added back to determine income applicable to common stock. The shares issuable upon conversion will be added to weighted average number of common shares outstanding. Conversion will be assumed only if it reduces earnings per share (or increases loss per share). Table of Contents 10 GREENESTONE HEALTHCARE CORPORATION NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 2. Summary of Significant Accounting Policies(continued) m) Stock based compensation ASC 718-10 "Compensation - Stock Compensation" prescribes accounting and reporting standards for all stock based payments awarded to employees, including employee stock options, restricted stock, employee stock purchase plans and stock appreciation rights that may be classified as either equity or liabilities. The Company should determine if a present obligation to settle the share based payment transaction in cash or other assets exists. A present obligation to settle in cash or other assets exists if: (a) the option to settle by issuing equity instruments lacks commercial substance or (b) the present obligation is implied because of an entity's past practices or stated policies. If a present obligation exists, the transaction should be recognized as a liability; otherwise, the transaction should be recognized as equity. The Company accounts for stock based compensation issued to non-employees and consultants in accordance with the provisions of ASC 505-50 "Equity - Based Payments to Non-Employees". Measurement of share based payment transactions with non-employees shall be based on the fair value of whichever is more reliably measurable: (a) the goods or services received; or (b) the equity instruments issued. The fair value of the share based payment transaction should be determined at the earlier of performance commitment date or performance completion date. n) Legal proceedings The costs of prosecuting and defending legal actions are expensed as incurred. o) Accounting for uncertainty in income taxes The Financial Accounting Standards Board has issued guidance on Accounting for Uncertainty in Income Taxes, FASB ASC 740, Income Taxes which prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. The amount recognized is measured as the largest amount of benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. Management has concluded that the Company has taken no uncertain tax positions that require adjustment to the financial statements to comply with the provisions of this guidance. When applicable, the Company will include interest and penalties related to uncertain tax positions in income tax expense. p)Derivatives The Company evaluates embedded conversion features within convertible debt under ASC 815 “Derivatives and Hedging” to determine whether the embedded conversion feature should be bifurcated from the host instrument and accounted for as a derivative at fair value with changes in fair value recorded in earnings. The Company uses a Black- Scholes Option Pricing model to estimate the fair value of convertible debt conversion features at the end of each applicable reporting period. Changes in the fair value of these derivatives during each reporting period are included in the statements of operations. Inputs into the Black Scholes Option Pricing model require estimates, including such items as estimated volatility of the Company’s stock, risk-free interest rate and the estimated life of the financial instruments being fair valued. If the conversion feature does not require derivative treatment under ASC 815, the instrument is evaluated under ASC 470-20 “Debt with Conversion and Other Options” for consideration of any beneficial conversion feature. Table of Contents 11 GREENESTONE HEALTHCARE CORPORATION NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 2. Summary of Significant Accounting Policies(continued) q) Recent accounting pronouncements   In January 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (ASU) 2016-01, which amends the guidance in U.S. GAAP on the classification and measurement of financial instruments. Changes to the current guidance primarily affect the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. In addition, the ASU clarifies guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. The new standard is effective for fiscal years and interim periods beginning after December 15, 2017, and upon adoption, an entity should apply the amendments by means of a cumulative effectcumulative-effect adjustment to the balance sheet at the beginning of the first reporting period in which the guidance is effective. Early adoption is not permitted except for the provision to record fair value changes for financial liabilities under the fair value option resulting from instrument specificinstrument-specific credit risk in other comprehensive income. The Company is currently evaluating the impact of adopting this guidance. In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (ASU) 2016-02, which amends the guidance in U.S. GAAP on accounting for operating leases, a lessee will be required to recognize assets and liabilities for operating leases with lease terms of more than 12 months on the balance sheet. The new standard is effective for fiscal years and interim periods beginning after December 15, 2018., and upon adoption, an entity should apply the amendments by means of a cumulative-effect adjustment to the balance sheet at the beginning of the first reporting period in which the guidance is effective. Early adoption is not permitted. The Company is currently evaluating the impact of adopting this guidance. Table of Contents 6 GREENESTONE HEALTHCARE CORPORATION NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 2. Summary of Significant Accounting Policies (continued) e) Recent accounting pronouncements In March 2016, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) “ASU 2016 – 09 Improvements to Employee Share-Based Payment Accounting” which is intended to improve the accounting for employee share-based payments. The ASU simplifies several aspects of the accounting for share-based payment award transactions, including; the income tax consequences, classification of awards as either equity or liabilities, and the classification on the statement of cash flows. The new standard is effective for fiscal years and interim periods beginning after December 15, 2016., and upon adoption, an entity should apply the amendments by means of a cumulative-effect adjustment to the balance sheet at the beginning of the first reporting period in which the guidance is effective. Early adoption is permitted. The Company is currently evaluating the impact of adopting this guidance.  In April 2016, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) “ASU 2016 – 10 Revenue from Contract with Customers: identifying Performance Obligations and Licensing”. The amendments in this Update clarify the two following aspects (a) contracts with customers to transfer goods and services in exchange for consideration and (b) determining whether an entity’s promise to grant a license provides a customer with either a right to use the entity’s intellectual property (which is satisfied at a point in time) or a right to access the entity’s intellectual property (which is satisfied over time). The amendments in this Update are intended to reduce the degree of judgement necessary to comply with Topic 606. This guidance has no effective date as yet. The Company is currently evaluating the impact of adopting this guidance.   Any new accounting standards, not disclosed above, that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the financial statements upon adoption.   r) Financial instruments f) Financial instruments   The Company is exposed to various risks through its financial instruments. The following analysis provides a measure of the Company’s risk exposure and concentrations at the balance sheet date, March 31,June 30, 2016 and December 31, 2015.   I) Credit risk i. Credit risk   Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. Financial instruments that subject the Company to credit risk consist primarily of accounts receivable.   Credit risk associated with accounts receivable of Greenestone Clinic Muskoka Inc. is mitigated due to balances from many customers, as well as through credit checks and frequent reviews of receivables to ensure timely collection. In addition, there is no concentration risk with the Greenestone Clinic Muskoka Inc. accounts receivable balance since balances are due from many customers.   In the opinion of management, credit risk with respect to accounts receivable is assessed as low, not material and remains unchanged from the prior year.   II) Liquidity risk ii. Liquidity risk   Liquidity risk is the risk the Company will not be able to meet its financial obligations as they fall due. The Company is exposed to liquidity risk through its working capital deficiency of $(3,459,383)$(3,246,708) and accumulated deficit of $(20,577,675)$(20,508,791). As disclosed in note 3, the Company will be dependent upon the raising of additional capital in order to implement its business plan. There is no assurance that the Company will be successful with future financing ventures, and the inability to secure such financing may have a material adverse effect on the Company’s financial condition. In the opinion of management, liquidity risk is assessed as high, material and remains unchanged from the prior year.   Table of Contents  12 7   GREENESTONE HEALTHCARE CORPORATION NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS   2. Summary of Significant Accounting Policies(continued) 2. Summary of Significant Accounting Policies (continued)   r) Financial instruments(continued) f) Financial instruments (continued)   III) Market risk iii. Market risk   Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises of three types of risk: interest rate risk, currency risk, and other price risk. The Company is exposed to interest rate risk and currency risk.   i.Interest rate risk iv. Interest rate risk   Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is exposed to minimal interest rate risk on its bank indebtedness as there is a balance of $44,909$31,635 at March 31,June 30, 2016. This liability is based on floating rates of interest that have been stable during the current reporting period. In the opinion of management, interest rate risk is assessed as low, not material and remains unchanged from the prior year.   ii. Currency risk v. Currency risk   Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company is subject to currency risk as its subsidiaries operate in Canada and are subject to fluctuations in the Canadian dollar. Most of the Company’s financial assets and liabilities are denominated in Canadian dollars. Based on the net exposures at March 31,June 30, 2016, a 5% depreciation or appreciation of the Canadian dollar against the U.S. dollar would result in an approximate $11,600$15,754 increase or decrease in the Company’s after-tax net income (loss) from operations.continuing operation. The Company has not entered into any hedging agreements to mediate this risk. In the opinion of management, currency risk is assessed as low, material and remains unchanged from the prior year.   iii. Other price risk vi. Other price risk   Other price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices (other than those arising from interest rate risk or currency risk), whether those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting all similar financial instruments traded in the market. In the opinion of management, the Company is not exposed to this risk and remains unchanged from the prior year. Table of Contents  13 8   GREENESTONE HEALTHCARE CORPORATION NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS   3. Going Concern 3. Going Concern   The Company’s unaudited condensed consolidated financial statements have been prepared in accordance with US GAAP applicable to a going concern, which assumes that the Company will be able to meet its obligations and continue its operations in the normal course of business. As at March 31,June 30, 2016 the Company has a working capital deficiency of $(3,459,383)$(3,246,708) and accumulated deficit of $(20,577,675)$(20,508,791). Management believes that current available resources will not be sufficient to fund the Company’s planned expenditures, including past due payroll and sales tax payments, as well as estimated penalties and interest, over the next 12 months. Accordingly, the Company will be dependent upon the raising of additional capital through placement of common shares, and, or debt financing in order to implement its business plan, and, or generating sufficient revenue in excess of costs. If the Company raises additional capital through the issuance of equity securities or securities convertible into equity, stockholders will experience dilution, and such securities may have rights, preferences or privileges senior to those of the holders of common stock or convertible senior notes. If the Company raises additional funds by issuing debt, the Company may be subject to limitations on its operations, through debt covenants or other restrictions. If the Company obtains additional funds through arrangements with collaborators or strategic partners, the Company may be required to relinquish its rights to certain geographical areas, or techniques that it might otherwise seek to retain. There is no assurance that the Company will be successful with future financing ventures, and the inability to secure such financing may have a material adverse effect on the Company’s financial condition. These unaudited condensed consolidated financial statements do not include any adjustments to the amounts and classifications of assets and liabilities that might be necessary should the Company be unable to continue operations.   These factors create substantial doubt about the Company’s ability to continue as a going concern. These unaudited condensed consolidated financial statements do not include any adjustments relating to the recoverability or classification of recorded assets and liabilities or other adjustments that may be necessary should the Company not be able to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company generating cash from the sale of its common stock or obtaining debt financing and attaining future profitable operations. Management's plans include selling its equity securities and obtaining debt financing to fund its capital requirement and ongoing operations; however, there can be no assurance the Company will be successful in these efforts.   4. Accounts receivable The accounts receivable balance consists primarily of amounts due from the following parties:     March 31, 2016   December 31, 2015     Unaudited     Treatment program   $ 263,793     $ 183,582   Allowance for doubtful accounts     —         —         $ 263,793     $ 183,582   5. Due from sale of subsidiary 4. Due from sale of subsidiary   A net amount of CAD$617,960 is due to the Company on the sale of the Endoscopy Clinic in December 2014. This debt is in the form of an interest bearing note with a coupon of 5% per annum. The note was originally due on June 30, 2015 which was recently extended to December 31, 2015. The amount outstanding of CAD$617,960 was revalued at US$476,477475,026 as of March 31,June 30, 2016 and US$446,476 as of December 31, 2015. Management evaluated this receivable as of MarchDecember 31, 20162015 and a provision for the full value of the note was raised as of March 31,June 30, 2016 and December 31, 2015.   Table of Contents 145. Plant and equipment GREENESTONE HEALTHCARE CORPORATION NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS   5. Due from sale of subsidiary(continued) The amount due on the sale of subsidiary is summarized as follows:     March 31, 2016   December 31, 2015     Unaudited     Principal outstanding   $ 476,447     $ 446,476   Accrued interest     —         —           476,447       446,476   Provision raised     (476,447 )     (446,476 )     $ —       $ —     6.Fixed assets Fixed assetsPlant and equipment consists of the following:         Cost     Accumulated depreciation   Net book value March 31, 2016   Net book value December 31, 2015       Cost       Accumulated depreciation     Net book value June 30, 2016     Net book value December 31, 2015             Unaudited       Unaudited   Computer equipment   $ 21,278     $ 15,779     $ 5,498     $ 5,945   $ 21,278   $ 16,225   $ 5,053   $ 5,945   Computer software     9,848       6,155       3,693       4,924     9,848   7,386   2,462   4,924   Furniture and equipment     352,379       264,827       87,552       94,651     353,431   272,005   81,426   94,651   Leasehold improvement     142,793       82,315       60,478       65,382     142,793   87,219   55,574   65,382   Medical equipment     4,491       3,508       983       1,047     4,491   3,574   917   1,047   Vehicles     64,175       44,582       19,593       21,182     64,175     46,170     18,005     21,182     $ 594,964     $ 417,166     $ 177,797     $ 193,131   $ 596,016 $ 432,579   $ 163,437   $ 193,131     Depreciation expense for the three months ended March 31,June 30, 2016 and 2015 was $15,333$15,412 and $20,994, respectively 7.Taxation Payable The Company has$26,446 and for the following outstanding tax liabilities: a) Harmonized Sales taxes This represents sales tax liabilities in Canada, these taxes were never paid, management intends paying these taxation liabilities together with interest and penalties thereon, when sufficient funds are raised to do so.As of March 31, 2016 the balance due to the Canadian tax authorities amounted to $327,690. b) Payroll taxes The Company is delinquent in filing its payroll tax returns resulting in taxes, interest and penalties payable at March 31,six months ended June 30, 2016 and December 31, 2015. As of March 31, 20162015 was $30,746 and December 31, 2015 as part of Taxes Payable, the Company has payroll tax liabilities of approximately $2,169,775 and $1,780,052, respectively, due to various taxing authorities. If the Company does not satisfy these liabilities, the taxing authorities may place liens on its bank accounts which would have a negative impact on its ability to operate. Further, the actual liability may be higher due to interest or penalties assessed by the taxing authorities. $47,440, respectively. Table of Contents  15 9   GREENESTONE HEALTHCARE CORPORATION NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 7. Taxation Payable(continued) c) US taxation and penalties The Company has assets and operates a business in Canada and is required to disclose these operations to the US taxation authorities, the requisite disclosure has not been made and management has reserved the maximum penalty due to the IRS in terms of non-disclosure. This non-compliance with US disclosure requirements is currently being addressed. The taxes and penalties due as of March 31, 2016 and December 31, 2015 is as follows:     March 31, 2016   December 31, 2015     Unaudited     Payroll Taxes and harmonized sales taxes   $ 2,497,464     $ 2,290,506   US taxes and penalties     200,000       200,000       $ 2,697,464     $ 2,490,506   8.Loans payable 6. Loans payable   The Company has an automobile loan payable bearing interest at 4.49% with blended monthly payments of $835 that matures in March 2018. The loan is secured by the vehicle with a net book value as at March 31,June 30, 2016 of $14,767.$13,715.     March 31, 2016   December 31, 2015   June 30, 2016   December 31, 2015   Unaudited       Unaudited     Automobile loan                               �� Current portion   $ 7,213     $ 6,684     $ 7,273     $ 6,684   Long-term portion     7,544       8,788       5,673       8,788     $ 14,757     $ 15,472     $ 12,946     $ 15,472     Estimated principal payments are as follows:     Amount   Amount         Within 1 year     7,213       7,273   1 to 2 years   $ 7,544     $ 5,673     $ 14,757     $ 12,946   7. Short term notes   9. Related Party TransactionsThe Company entered into a Securities Purchase Agreement with JMJ Financial on April 13, 2016, in terms of the agreement the Company borrowed $200,000 in terms of an unsecured convertible promissory note with a maturity date of seven months from the closing date. The principal amount due under the promissory note is $220,000, inclusive of an Original Issue discount and a further 10% once-off interest charge of $20,000 is due in terms of this note. The note is only convertible upon a repayment default, at the lower of $0.03 per share of 60% of the lowest traded price over the preceding 25 day trading period. The Company also issued 3,703,700 warrants exercisable over common shares at $0.03 per share, which warrants contain a cashless exercise option, in terms of the financing arrangement.   GreeneStoneShort term notes consist of the following at June 30, 2016: Description   Interest Rate   Maturity   June 30, 2016                           JMJ Financial                         Principal     10 %     November 13, 2016       220,000   Accrued interest                     7,103   Unamortized debt discount                     (59,982 )                       167,121   Table of Contents 10 GREENESTONE HEALTHCARE CORPORATION NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 8. Related Party Transactions Greenstone Clinic Inc. As of March 31, 2016 and December 31, 2015, the Company had a receivable of $67,297 and a payable of $(5,284), respectively. GreeneStone$5,284. Greenstone Clinic Inc., is controlled by one of the Company’s directors. The balance receivable and payable is non-interestnoninterest bearing, not secured and has no specific repayment terms.   The balance owing from Greenstone Clinic, Inc., on June 30, 2016 was offset against the amount owing to Shawn E. Leon. The Company incurred management fees from GreeneStoneGreenstone Clinic, Inc., totaling $0$46,577 and $48,368$48,337 and $46,577 and $96,705 for the three months and six months ended March 31,June 30, 2016 and 2015, respectively. Table of Contents 16 GREENESTONE HEALTHCARE CORPORATION NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS   9. Related Party Transactions (continued) 1816191 Ontario As of March 31,June 30, 2016 and December 31, 2015, the Company had a receivable of $7,893$15,863 and a payable of $(22,305), respectively, to 1816191 Ontario, the Endoscopy Clinic, which was sold at the end of the prior year. The receivable and payable is non-interestnoninterest bearing, and has no specific repayment terms.   Shawn E. Leon As of March 31,June 30, 2016 and December 31, 2015 the Company had a payable of $159,551.$135,006 and $159,551, respectively to Shawn E. Leon, a director and CEO of the Company. The balance payable is non-interestnoninterest bearing and have no fixed repayment terms. The balance owing from Greenstone Clinic, Inc., on June 30, 2016 was offset against the amount owing to Shawn E. Leon.   Cranberry Cove Holdings Ltd. The Company entered into an agreement to lease premises from Cranberry Cove Holdings Ltd. at market related terms. The Company had rental expense amounting to CAD $96,045$105,721 and CAD $96,600$168,469 and $180,112 and $179,392 for the three months and six months ended March 31,June 30, 2016 and 2015, respectively. Cranberry Cove Holdings Ltd. is related to the Company by virtue of its shareholder owning 1816191 Ontario.   As of March 31,June 30, 2016 and December 31, 2015, the Company owed Cranberry Cove holdings $333,380(CAD $432,399)Holdings $308,625 (CAD $401,490) and $87,356 (CAD$120,908) in accrued rent and utility charges.   All related party transactions occur in the normal course of operations and in terms of agreements entered into between the parties. 10. Stockholders’ deficit   9. Stockholders’ deficit a) Common shares Authorized   a) Common shares The Company has the authority to issue to 500,000,000issued 1,000,000 common shares valued at $50,000 to a par valuethird party in terms of $0.01 per share. Issued and outstanding The Company has a total of 47,738,855 common shares with a par value of $0.01 each, issued and outstanding as of March 31, 2016 and December 31, 2015. b) Preferred shares Authorized The Company has the authority to issue 3,000,000 series A convertible preferred shares and 10,000,000 Series B convertible preferred shares with a par value of $0.01 per share. Issued and outstanding The Company had no issued and outstanding preferred shares as at March 31, 2016 and December 31, 2015. c) Warrants No warrants were issued or exercised for the period under review. Warrants over 4,500,000 shares of common stock expiredan investor relations consulting agreement entered into on January, 19,June 17, 2016.   Table of Contents  17 11   GREENESTONE HEALTHCARE CORPORATION NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS   9. Stockholders’ deficit (continued) 10. Stockholders’ deficit(continued)   c) Warrants (continued) b) Warrants In terms of the short term loan entered into, as disclosed under note 7 above, on April 13, 2016, the Company issued 3,703,700 five year warrants exercisable at $0.03 per share, these warrants have a cashless exercise option.   The movement in warrants outstanding is summarized below:       Number of warrants outstanding   Weighted average exercise price per share                         Outstanding at January 1, 2015       6,300,000     $ 0.143     Granted       —         —       Cancelled/forfeited       —         —       Exercised       —         —       Outstanding at December 31, 2015       6,300,000       0.143     Granted       —         —       Cancelled/forfeited       (4,500,000 )     0.150     Exercised       —         —       Outstanding at March 31, 2016     $ 1,800,000     $ 0.126       Number of warrants outstanding   Weighted average exercise price per share                         Outstanding at January 1, 2015       6,300,000     $ 0.143     Granted       —         —       Cancelled/forfeited       —         —       Exercised       —         —       Outstanding at December 31, 2015       6,300,000       0.143     Granted       3,703,700       0.030     Cancelled/forfeited       (4,500,000 )     0.150     Exercised       —         —       Outstanding at June 30, 2016     $ 5,503,700     $ 0.041     The following table summarizes information about warrants outstanding at March 31,June 30, 2016   Exercise Price     Number of warrants   Weighted average remaining life   Weighted average exercise price Exercise Price Exercise Price     Number of warrants   Weighted average remaining life   Weighted average exercise price                                                         $ 0.003       300,000       *     $ 0.003   0.003       300,000       *     $ 0.003   $ 0.150       1,500,000       0.72       0.150   0.030       3,703,700       4,79       0.030   $ 0.150       1,500,000       0.47       0.150           1,800,000             $ 0.126           5,503,700       3.35     $ 0.041     * * In terms of an agreement entered into with an investor relations company, 300,000 warrants were to be issued as part of the Investor Relations Agreement. These warrants have not been issued as yet, therefore the warrant terms are uncertain.   As of March 31,June 30, 2016 the 6,300,0005,503,700 warrants were all vested, there were no unrecognized compensation costs related to these warrants and the intrinsic value of the warrants as of March 31,June 30, 2016 is $8,001.$48,038. Table of Contents 12 GREENESTONE HEALTHCARE CORPORATION   d) Stock optionsNOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 9. Stockholders’ deficit (continued) c) Stock options   Our board of directors adopted the GreeneStone Healthcare Corporation 2013 Stock Option Plan (the “Plan”) to promote our long-term growth and profitability by (i) providing our key directors, officers and employees with incentives to improve stockholder value and contribute to our growth and financial success and (ii) enable us to attract, retain and reward the best available persons for positions of substantial responsibility. A total of 10,000,000 shares of our common stock have been reserved for issuance upon exercise of options granted pursuant to the Plan. The Plan allows us to grant options to our employees, officers and directors and those of our subsidiaries; provided that only our employees and those of our subsidiaries may receive incentive stock options under the Plan. We have granted a total of 480,000 options as of March 31,June 30, 2016 under the Plan.   No options were issued, exercised or cancelled for the period under review.   Table of Contents 18 GREENESTONE HEALTHCARE CORPORATION NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 10. Stockholders’ deficit(continued) d)Stock options (continued) The movement in options outstanding is summarized below.     Number of options outstanding   Weighted average exercise price per share                         Outstanding at January 1, 2015       480,000     $ 0.12     Granted       —         —       Cancelled/forfeited       —         —       Exercised       —         —       Outstanding at December 31, 2015       480,000       0.12     Granted       —         —       Cancelled/forfeited       —         —       Exercised       —         —       Outstanding at March 31, 2016     $ 480,000     $ 0.12   The following table summarizes information about options outstanding at March 31,June 30, 2016.       Exercise Price   Number of options outstanding   Number of options exercisable   Weighted average remaining life   Weighted average exercise price                                       $ 0.12       480,000       340,000       3.59     $ 0.12   The Company agreed to issue Stock options to a former officer vesting over a 24-month period commencing on November 1, 2014 expiring on October 31, 2019, a formal option agreement has not been issued as yet, as such the terms of these options are uncertain.     Exercise Price   Number of options outstanding     Number of options exercisable     Weighted average remaining life     Weighted average exercise price                             $0.12   480,000     400,000     3.34   $ 0.12     As of March 31,June 30, 2016 there was no unrecognized compensation costs related to these options and the intrinsic value of the options is $0.   11. Net income (loss) per common share Basic income (loss) per share is based on the weighted-average number of common shares outstanding during each period. Diluted income (loss) per share is based on basic shares as determined above plus the incremental shares that would be issued upon the assumed exercise of “in-the-money” stock options and warrants using the treasury stock method and the inclusion of all convertible securities, including preferred stock and convertible notes, assuming these securities were converted at the beginning of the period or at the time of issuance, if later. The computation of diluted net income (loss) per share does not assume the issuance of common shares that have an anti-dilutive effect on net income (loss) per share. Table of Contents 1910. Net income (loss) per common share GREENESTONE HEALTHCARE CORPORATION NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 11. Net income (loss) per common share(continued)   For the three months ended March 31,June 30, 2016 the computation of basic and diluted earnings per share is as follows:       Income   Number of shares   Per share amount       Income     Number of shares     Per share amount                                 Net income   $ 143,530                     $ 68,920                                                     Basic earnings per share     143,350       47,738,855     $ 0.00     68,920 47,991,602   $ 0.00                                         Effect of dilutive securities                                       Warrants     —         266,700             -   1,200,950       Options     —         —               -   -                                                 Diluted earnings per share   $ 143,350       48,005,555     $ 0.00     $ 68,920   49,192,552   $ 0.00   Table of Contents 13 GREENESTONE HEALTHCARE CORPORATION NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 10. Net income (loss) per common share (continued) For the six months ended June 30, 2016 the computation of basic and diluted earnings per share is as follows:           Income     Number of shares     Per share amount                         Net income   $ 212,414                                     Basic earnings per share     212,414     47,865,229   $ 0.00                         Effect of dilutive securities                     Warrants     -     1,200,950         Options     -     -                               Diluted earnings per share   $ 212,414     49,066,179   $ 0.00     For the three months and six months ended March 31,June 30, 2016, options to purchase 480,000 shares of common stock and warrants to purchase 1,500,000 shares of common stock were excluded from the calculation of diluted earnings per share as the option and warrant exercise prices were greater than the average market price of the common shares.   For the three months and six months ended March 31,June 30, 2015, the following options and warrants and convertible preferred stock were excluded from the computation of diluted net loss per shares as the result of the computation was anti-dilutive:           Three months and six months ended June 30, 2015     Three months ended March 31, 2015       Options to purchase shares of common stock   $ 480,000         $ 480,000   Warrants to purchase shares of common stock     6,300,000         6,300,000   Outstanding at March 31, 2015   $ 6,780,000   Outstanding at June 30, 2015       $ 6,780,000   12. Commitments and contingencies   11. Commitments and contingencies a. Operating leases a) Operating leases   The Company has entered into a lease agreement for the rental of premises operated by GreeneStone Clinic Muskoka Inc. which term initially expires on March 31, 2019. The Company has an option to extend the lease for an additional three terms, each term being an additional three years. The Company also has an option to purchase the property for $10,000,000, which option must be exercised in writing, accompanied by a $250,000 deposit and must be closed within 30 days of exercising the option. The Company also has a right of first refusal should the landlord receive an acceptable offer for the premises, the Company would be entitled to acquire the premises on the same terms and conditions of the acceptable offer, provided the Company has met certain covenants. The rental expense for the three months ended March 31, 2016 was $70,018 (CAD $96,045). Table of Contents 20 GREENESTONE HEALTHCARE CORPORATION NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 12. Commitments and contingencies (continued) a. Operating leases(continued) The future minimum annual rental payments under the operating lease are estimated as follows, using the quarter end exchange rate of CAD $1 equals US $0.7710:$0.7687:           Amount                 2016       $ 200,052   2017         419,443   2018         465,882   2019         119,434           $ 1,204,811   Table of Contents 14   11. Commitments and contingencies (continued)     Amount   2016     $ 285,145     2017       412,513     2018       458,926     2019       117,662           $ 1,274,246     b. Contingency related to outstanding tax liabilities b) Contingency related to outstanding tax liabilities   The Company is delinquent in paying harmonized sales tax, filing and paying payroll taxes and may also be subject to US taxation and penalties as fully disclosed in note 7 above.penalties.   As of March 31,June 30, 2016, the Company had estimated Canadian tax liabilities outstanding of $2,497,464,$2,522,094, which may result in the Canadian tax authorities placing liens on the Company bank accounts which would impact on the Company’s ability to operate. The Company has also provided for US tax liabilitiespenalties of $200,000 due to non-compliancenoncompliance with the filing of certain required returns. The actual liability may be higher due to interest and penalties assessed by these taxing authorities.   c. Other c) Other   From time to time, the Company and its subsidiaries enter into legal disputes in the ordinary course of business. The Company believes there are no material legal or administrative matters pending that are likely to have, individually or in the aggregate, a material adverse effect on its business or results of operations.   Table of Contents 15 13.Income taxesGREENESTONE HEALTHCARE CORPORATION NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 12. Income taxes   The Company is not current in its tax filings as of March 31,June 30, 2016.   13. Subsequent events As at December 31, 2015, On May 17, 2016 the Company entered into an Asset Purchase Agreement (the “Purchase Agreement”), a Management Services Agreement (the “Management Agreement” and a Commercial Real Estate Contract to acquire the business and substantially all of the assets of Seastone of Delray, LLC (“Seastone”). Seastone’s business is primarily the practice of providing addiction treatment health care services. Pursuant to the terms of the Management Agreement, the Company began operating Seastone’s Business for a 90 day period commencing on July 1, 2016. During the Management Period, the Company is in arrears on filing its statutory income tax returnsentitled to the revenues from the Business and will pay Seastone $20,000 per month to cover certain costs related to the amounts presented above are based on estimates.Business, which shall increase to $28,000 per month if the Management Agreement is extended beyond 90 days. The actual losses available could differ from these estimates. In addition,Management Agreement may be terminated by either party if the Company could be subject to penalties for these unfiled tax returns During the year ended December 31, 2015, the Company has accrued and expensed $200,000 (2014: $150,000) in penalties and interest attributable to delinquent information returns which the Company is required to file in the US. Management believes the Company has adequately provided for any ultimate amounts that are likely to be due once these information returns are filed. The Company operates in foreign jurisdictions and is subject to auditPurchase Agreement does not close by taxing authorities. These audits may result in the assessment of amounts different than the amounts recorded in the consolidated financial statements. The Company liaises with the relevant authorities in these jurisdictions in regard to its income tax and other returns. Management believes the Company has adequately provided for any taxes, penalties and interest that may fall due. Table of Contents 21 GREENESTONE HEALTHCARE CORPORATION NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 14.Subsequent eventsSeptember 15, 2016.   The Company entered into a Securities Purchase Agreementcommercial real estate contract with JMJ Financial on April 13, 2016,Seastone Condominiums of Delray, LLC and 810 Andrews, LLC, both Florida limited liability companies to acquire certain real property. The purchase price for the Transaction is $6,150,000, which is being funded by a purchase money first mortgage in termsthe amount of $3,000,000 at 5% per annum payable at $15,000 per month for three years; and $3,150,000 in cash. The Company has deposited $60,000 in escrow. The closing of the agreementTransaction is anticipated to be September 15, 2016 and is contingent upon (i) the Company borrowed $200,000 in terms of an unsecured convertible promissory note with a maturity date of seven monthsobtaining the requisite licenses from the closing date. The principal amount due underappropriate governmental agencies for the promissory note is $220,000, inclusiveoperation of an Original Issue discount and a further 10% once-off interest charge ($22,000) is due in terms of this note. The note is only convertible upon a repayment default, at a price to be determined. The Company will also issue, in terms of the financing, 3,703,700 warrants exercisable over common shares at $0.03 per share, which warrants contain a cashless exercise option.Seastone’s Business.   Other than disclosed above, the Company has evaluated subsequent events through the date of the consolidated financial statements were available to be issued and has concluded that no such events or transactions took place that would require disclosure herein. Table of Contents  22 16   Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations. Forward-looking Statements   This quarterly report on Form 10-Q10Q and other reports filed by Greenestone Healthcare Corp. (“we,” “us,” “our,” or the “Company”) from time to time with the SEC contain or may contain forward-looking statements and information that are based upon beliefs of, and information currently available to, the Company’s management as well as estimates and assumptions made by Company’s management. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. When used in the filings, the words “anticipate,” “believe,” “estimate,” “expect,” “future,” “intend,” “plan,” or the negative of these terms and similar expressions as they relate to the Company or the Company’s management identify forward-looking statements. Such statements reflect the current view of the Company with respect to future events and are subject to risks, uncertainties, assumptions, and other factors. Should one or more of these risks or uncertainties materialize, or should the underlying assumptions prove incorrect, actual results may differ significantly from those anticipated, believed, estimated, expected, intended, or planned.   Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, the Company cannot guarantee future results, levels of activity, performance, or achievements. Except as required by applicable law, including the securities laws of the United States, the Company does not intend to update any of the forward-looking statements to conform these statements to actual results.   Our financial statements are prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). These accounting principles require us to make certain estimates, judgments, and assumptions. We believe that the estimates, judgments and assumptions upon which we rely are reasonable based upon information available to us at the time that these estimates, judgments, and assumptions are made. These estimates, judgments, and assumptions can affect the reported amounts of assets and liabilities as of the date of the financial statements as well as the reported amounts of revenues and expenses during the periods presented. Our financial statements would be affected to the extent there are material differences between these estimates. This discussion and analysis should be read in conjunction with the Company’s financial statements and accompanying notes to the financial statements for the year ended December 31, 2015.   Plan of Operation   During the next twelve months, the Company plans to continue and expand its operations as a provider of addiction and after-careaftercare treatment services. The Company plans to focus on the growth of its addiction and aftercare treatment units while simultaneously reducing costs in current operations.   The Company finalized the terms for the acquisition of the property currently leased by the Company. The property, which is the location of GreeneStone's Muskoka addiction treatment center, encompasses approximately 48,000 square feet of buildings on 43 acres and is adjacent to Lake Muskoka in Ontario. The Company expects this deal to close by the second quarter of the 2016 financial year, once the appropriate funding has been raised.   The company entered into an asset purchase, a management agreement and a commercial real estate agreement to acquire the business and substantially all of the assets of Seastone of Delray, LLC, primarily a practice providing addiction treatment health care services. Table of Contents 17 Results of Operations   For the three months ended March 31,June 30, 2016 and the three months ended March 31,June 30, 2015.   Revenue   Revenues amounted to $822,837$1,024,384 and $680,712$947,934 for the three months ended March 31,June 30, 2016 and 2015, respectively, an increase of $142,125$76,450 or 20.9%8.1%. We operate in Canada and our functional currency is the Canadian Dollar. Our revenue, in Canadian Dollars increased to CAD $1,319,764 from CAD$844,421 to CAD$1,128,708CAD $1,165,540 for the three months ended March 31,June 30, 2016 and 2015, respectively, an increase of $284,287CAD $154,224 or 33.7%13.27%. The increase in revenue in CAD $ terms is primarily due to the Canadian Government making use of the treatment facility to treat members of the armed forces for drug and alcohol addiction. The services offered by the facility is being utilized by several armed forces bases. The US $ has strengthened against the CAD $ over the comparative period in the prior year, from $0.8061$0.8136 to $0.7290$0.7762 resulting in a lower revenue growth in US $ terms compared to the revenue growth in CAD $ terms. The Company believes that revenue in CAD $ will continue its current trend over the prior year.   Table of Contents 23 Operating Expenses   Operating expenses amounted to $675,006$903,700 and $984,800$829,339 for the three months ended March 31,June 30, 2016 and 2015, respectively, a decreasean increase of $309,794$74,361 or 31.5%9.0%. The decrease in operating expenses in US$ terms is partially attributable to the relative strength of the US $ against the CAD $ during the current period, the average exchange rate between the CAD $ and the US $ has weakened from $0.8061 in the prior year to $0.7290 in the current period, a decrease in the average exchange rate of 9.6%. The decline in the currency exchange rate accounts for approximately $94,192 of the differential. The non-currency decrease is primarily attributed to a reduction in labor of CAD $18,425, the reduction in management fees of CAD $60,000, which were charged in the prior period and not in the current period and the reduction in professional service fees of US $86,953 over the prior year related to the restatement of the prior year results and investor relations expenditure which is non-recurring. · General and administrative expenses increased by $123,279, primarily due to an investor relations expense of $50,000 which represents the value of common shares issued to the investor relations company in consideration of the services to be rendered, and the reversal of management expenses of $60,000 in the prior period. · Rental expense increased by $15,084, primarily due to the rental escalating by $5,000 per month in terms of the lease agreement. · Offset by a reduction in professional fees of $20,438 and salaries and wages of $30,770 due to management’s efforts to reduce operating expenditure in these areas.   Operating income (loss)   The operatingOperating income (loss) amounted to $147,831$120,684 and $(304,088)$118,595 for the three months ended March 31,June 30, 2016 and 2015, respectively, a net increase of $451,919, primarily$2,089 or 1.8%, due to the improved revenues and the declineoffset by an increase in operating expenditure as discussed above.   Other income Other income of $33,549 in the current year represents proceeds received from an insurance claim relating to building damage and proceeds from the sale of legacy oil rights owned by the company prior to the change in the nature of its operations. Table of Contents 18 Interest expense   Interest expense amounted to $38,188$45,658 and $51,541$39,401 for the three months ended March 31,June 30, 2016 and 2015, respectively, a decreasean increase of $13,353$6,257 or 25.9%15.9%. The decline consists of an approximate decline of $4,930increase is due to a short term loan taken out during April 2016, the deterioration inbalance of the average exchange rate from $0.8061interest is primarily due to $0.7290 for the three months ended March 31, 2015 and 2016, respectively. The interest expense consists primarily of interest accrued on the outstanding Canadian tax liabilities. Debt Discount The debt discount of $33,262 represents the amortization of the value of the warrants issued in terms of the short term loan agreement entered into and an original issue discount attached to that loan.   Foreign exchange movements   Foreign exchange movements of $33,887, represent$6,394 and $72,419 for the three months ended June 30, 2016 and 2015 respectively, represents the realized exchange gainloss on monetary assets and liabilities settled during the current yeareach period as well as mark to market adjustments on monetary assets and liabilities reflected on the balance sheet and denominated in Canadian Dollars.   Net Income (Loss) Net Income amounted to $68,920 and $6,775for the three months ended June 30, 2016 and 2015, respectively, an increase of $62,145, primarily due to the reasons discussed above. For the six months ended June 30, 2016 and the six months ended June 30, 2015. Revenue Revenues amounted to $1,847,222 and $1,628,646 for the six months ended June 30, 2016 and 2015, respectively, an increase of $218,576 or 13.4%. We operate in Canada and our functional currency is the Canadian Dollar. Our revenue, in Canadian Dollars increased to CAD $2,448,472 from CAD $2,009,560 for the six months ended June 30, 2016 and 2015, respectively, an increase of CAD $438,912 or 21.8%. The increase in revenue in CAD $ terms is primarily due to the Canadian Government making use of the treatment facility to treat members of the armed forces for drug and alcohol addiction. The services offered by the facility is being utilized by several armed forces bases. The US $ has strengthened against the CAD $ over the comparative period in the prior year, from $0.8099 to $0.7530 resulting in a lower revenue growth in US $ terms compared to the revenue growth in CAD $ terms. The Company believes that revenue in CAD $ will continue its current trend over the prior year. Table of Contents 19 Operating Expenses Operating expenses amounted to $1,578,705 and $1,814,139 for the six months ended June 30, 2016 and 2015, respectively, a decrease of $235,434 or 13.00%. · Management fees decreased by $50,128, primarily due to no management fee being charged in the first quarter of 2016 · Rental expense increased marginally by $$720, due to the increase in rental incurred during the second quarter of the current year being offset by a reduction in office rental during the current year for office space leased in Canada. · A reduction in professional fees and salaries and wages of $76,802 and 80,724, respectively due to management’s efforts to reduce operating expenditure in these areas. Operating income (loss) Operating income (loss) amounted to $268,517 and $(185,493) for the six months ended June 30, 2016 and 2015, respectively, a net increase of $454,010 or 244.8%, due to improved revenues and a reduction in overall operating expenditure as discussed above. Other income Other income of $33,549 in the current year represents proceeds received from an insurance claim relating to building damage and proceeds from the sale of legacy oil rights owned by the company prior to the change in the nature of its operations. Interest expense Interest expense amounted to $83,846 and $90.942 for the six months ended June 30, 2016 and 2015, respectively, a slight decrease of $7,096 or 7.8%. The decrease is due to interest on short term loans incurred in the prior year which were repaid. The balance of the interest is primarily due to interest accrued on the outstanding Canadian tax liabilities. Debt Discount The debt discount of $33,262 represents the amortization of the value of the warrants issued in terms of the short term loan agreement entered into and an original issue discount attached to that loan. Foreign exchange movements Foreign exchange movements of $27,455 and $(72,419) for the six months ended June 30, 2016 and 2015 respectively, represents the realized exchange loss on monetary assets and liabilities settled during each period as well as mark to market adjustments on monetary assets and liabilities reflected on the balance sheet and denominated in Canadian Dollars. Table of Contents 20 Net Income (loss)   Net Income (loss) amounted to $143,530$212,414 and $(355,629)$(348,854) for the threesix months ended March 31,June 30, 2016 and 2015, respectively, an increase of $501,159,$561,268, primarily due to the improvement in revenues and the decrease in operating expenses,reasons discussed above.   Contingency related to outstanding tax liabilities:   The Company is delinquent in filing previous payroll tax returns resulting in taxes, interest and penalties payable at March 31,June 30, 2016 and December 31, 2015. As of March 31,June 30, 2016 and December 31, 2015 as part of Taxes Payable, the Company has tax liabilities of approximately $2,697,464$2,722,094 and $2,490,506, respectively due to various taxing authorities on the consolidated balance sheets. If the Company does not satisfy these liabilities, the taxing authorities may place liens on its bank accounts which would have a negative impact on its ability to operate. Further, the actual liability may be higher due to interest or penalties assessed by the taxing authorities.   Table of Contents 24 Liquidity and Capital Resources   The following table summarizes working capital at March 31,June 30, 2016 and December 31, 2015.     June 30, 2016   December 31, 2015   Increase (decrease)   March 31, 2016   December 31, 2015   Increase (decrease)                         Current Assets     365,931       199,245     $ 166,686       610,769       199,245     $ 411,254   Current Liabilities     (3,825,314 )     (3,596,511 )     (228,803 )     (3,857,477 )     (3,596,511 )     (260,966 ) Working capital deficit   $ (3,459,383 )     (3,397,266 )   $ (62,117 ) Working capital Deficit   $ (3,246,708 )     (3,397,266 )   $ 150,558   Over The Company borrowed $200,000 in short term loans to fund working capital requirements as revenue continues to grow over prior periods. This loan is repayable in 5 months, therefore over the next twelve months we estimate that the company will require approximately $3.5million to cover the working capital deficit and properly market and promote the company. The company will have to raise equity or secure debt. There is no assurance that the Company will be successful with future financing ventures, and the inability to secure such financing may have a material adverse effect on the Company’s financial condition. In the opinion of management, the Company’s liquidity risk is assessed as high and remains unchanged from the prior year.   Table of Contents  25 21   PART II   Item 1. Legal Proceedings.   We are currently not involved in any litigation that we believe could have a material adverse effect on our financial condition or results of operations. There is no action, suit, proceeding, inquiry or investigation before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the executive officers of our company or any of our subsidiaries, threatened against or affecting our company, our common stock, any of our subsidiaries or of our companies or our subsidiaries’ officers or directors in their capacities as such, in which an adverse decision could have a material adverse effect.   Item 1A. Risk Factors.   Not applicable because we are a smaller reporting company.   Item 2. Unregistered sales of equity securities and use of proceeds   None.The Company issued 1,000,000 shares in terms of a consulting agreement entered into. For this issuance, we relied on the exemption from federal registration under Section 4(a)(2) of the Securities Act of 1933, based on our belief that the offer and sale of the common stock has not and will not involve a public offering as the parties are both “accredited investors” as defined under Section 501 promulgated under the Securities Act and no general solicitation has been involved in the offering.   Item 3. Defaults upon senior securities   None.   Item 4. Mine Safety Disclosures.   None.   Item 5. Other Information.   Not applicable. Table of Contents 22   Item 6. Exhibits   Exhibit No.     Description 31.1   31.1   Certification of Principal Executive Officer and Principal Financial Officer, pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 302 of 2002 *       32.1   Certification of Principal Executive Officer and Principal Financial Officer, pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 *       101.INS   XBRL Instance *       101.SCH   XBRL Taxonomy Extension Schema *       101.CAL   XBRL Taxonomy Extension Calculation *       101.DEF   Taxonomy Extension Definition *       101.LAB   Taxonomy Extension Labels *     101.PRE   Taxonomy Extension Presentation * * filed herewith * filed herewith Table of Contents  26 23   SIGNATURES   Pursuant to the requirements of Section 13 or 15(d) of the Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.   GREENESTONE HEALTHCARE CORP.   Date: May 13,August 9, 2016     By:/s/ Shawn E. Leon   Name: Shawn E. Leon     Title: Chief Executive Officer and Chief     Financial Officer (Principal Executive     Officer and Principal Financial Officer)   Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.   Name Position Date   /s/Shawn E. Leon   Chief Executive Officer (Principal Executive Officer),   May 13,August 9, 2016 Shawn Leon Chief Financial Officer (Principal Financial Officer), President and Director   /s/ John O’Bireck Director May 13,August 9, 2016 John O’Bireck     /s/ Gerald T. Miller Director May 13,August 9, 2016 Gerald T. Miller       Table of Contents  27 24