x	QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

	For the quarter ~~ended~~ ~~MARCH 31,~~ended: SEPTEMBER 30, 2015

¨	TRANSITION REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

	For the transition period from ~~_______to_______~~____________ to ____________

ALUMIFUEL POWER CORPORATION

(Exact Name of Registrant as Specified in its Charter)

Wyoming		88-0448626
(State or other jurisdiction of incorporation or organization)		(IRS Employer Identification No.)

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months, and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨

Indicate by a check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.

Large accelerated filer	¨	Accelerated filer	¨
Non-accelerated filer	¨	Smaller reporting company	x

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No x

Number of shares of common stock outstanding at ~~May 5,~~November 10, 2015: ~~1,430,437,555~~

			Page

Item 1.	Financial Statements

	Condensed Consolidated Balance Sheets at ~~March 31,~~September 30, 2015 (Unaudited) and December 31, 2014			3	2


	Condensed Consolidated Statement of Operations for the ~~Three Months~~three and nine months ended ~~March 31,~~September 30, 2015 and 2014 (Unaudited)			3
		4

	Condensed Consolidated Statement of Changes in Shareholders' Deficit for the ~~Three~~nine months ended ~~March 31,~~September 30, 2015 (Unaudited)			4
		5

	Condensed Consolidated Statements of Cash Flows for the ~~Three Months~~nine months ended ~~March 31,~~September 30, 2015 and 2014 (Unaudited)			5
		6

	Notes to Condensed Consolidated Unaudited Financial Statements			6
		7

Item 2.	~~Management’s~~Management's Discussion and Analysis of Financial Condition and Results of Operations			23
		24

~~Item 3.~~	~~Quantitative and Qualitative Disclosures About Market Risk~~			26

Item 4T.	Controls and Procedures			26
		27

Part II – Other Information
			28

Item 1.	Legal Proceedings			27
		28

Item 2.	Unregistered Sales of Equity Securities			27
		28

Item 3.	Defaults upon Senior Securities			27
		28

Item 4.	Mine Safety Disclosures			27
		28

Item 5.	Other Information			28
		28

Item 6.	Exhibits			28
		28

Item 7.	Signatures			29	29

	September 30,			December 31,
	2015			2014
	(Unaudited)

Assets

Cash	$	716		$	972

Total current assets		716			972

Deferred debt issuance costs (Note 4)		6,414			4,473

Total long-term assets		6,414			4,473

Total assets	$	7,130		$	5,445

Liabilities and Shareholders' Deficit
Current liabilities:
Accounts and notes payable:
Bank ovedraft	$	2,068			-
Accounts payable, related party (Note 3)		596,495		$	467,759
Accounts payable		512,725			518,349
Derivative liability, convertible notes payable (Note 3)		671,193			567,905
Notes payable, related parties (Note 4)		14,561			21,461
Notes payable, other (Note 3)		402,948			392,953
Convertible notes payable, net of discount of $72,772 (2015) and $114,211 (2014) (Note 4)		587,817			548,301
Payroll liabilities (Note 5)		162,446			150,059
Accrued expenses (Note 5)		800,000			700,000
Dividends payable (Note 7)		134,572			110,395
Accrued interest payable:
Interest payable, convertible notes (Note 4)		162,888			129,386
Interest payable, related party notes (Note 3)		9,172			8,310
Interest payable, notes payable other (Note 4)		96,650			89,724

Total current liabilities		4,153,535			3,704,602

Series B preferred stock obligation, net (Note 7)		718,151			661,648

Commitments and contingencies (Note 5)

Shareholders' deficit: (Notes 1 & 7)
Preferred stock, $.001 par value; unlimited shares authorized		-			-
Common stock, $.001 par value; unlimited shares authorized, 2,228,481,617 (2015) and 23,463,415 (2014) shares issued and outstanding, respectively		2,228,481			23,463
Additional paid-in capital		14,549,102			16,303,784
Accumulated deficit		(25,569,093	)		(24,663,547	)

Total shareholders' deficit of the Company		(8,791,510	)		(8,336,300	)

Non-controlling interest (Note 1)		3,926,954			3,975,495

Total shareholders' deficit		(4,864,556	)		(4,360,805	)

Total liabilities and shareholders' deficit	$	7,130		$	5,445

See accompanying notes to unaudited condensed consolidated financial statements.

	Three months			Three months			Three months			Three months			Nine months			Nine months
	ended			ended			ended			ended			ended			ended
	March 31,			March 31,			September 30,			September 30,			September 30,			September 30,
	2015			2014			2015			2014			2015			2014

Revenue	$	-		$	-		$	-		$	-		$	-		$	-
Total revenue		-			-

Operating costs and expenses:
Selling, general and administrative expenses
Management fees related parties (Note 3)		83,510			84,407			82,995			82,750			249,005			250,257
Depreciation		-			84			-			28			-			196
Other (Note 6)		80,750			118,446
General and administrative								15,450			42,672			178,333			269,619

Total operating costs and expenses		(164,260	)		(202,937	)		(98,445	)		(125,450	)		(427,338	)		(520,072	)

Loss from operations		(164,260	)		(202,937	)		(98,445	)		(125,450	)		(427,338	)		(520,072	)

Other (expense)
Stock based compensation (Note 9)		(16,000	)		-
Other income (expense):
Interest expense, amortization of convertible note discounts (Note 4)		(108,979	)		(159,048	)		(48,517	)		(147,634	)		(231,313	)		(550,705	)
Interest expense (Notes 3 & 4)		(54,833	)		(258,109	)		(54,776	)		(25,798	)		(162,488	)		(325,623	)
Fair value adjustment of derivative liabilities (Note 4)		(32,839	)		(199,903	)		(97,431	)		150,871			(132,948	)		33,940

		(212,651	)		(617,060	)		(200,724	)		(22,561	)		(526,749	)		(842,388	)

Loss before income taxes		(376,911	)		(819,997	)		(299,169	)		(148,011	)		(954,087	)		(1,362,460	)

Income tax provision (Note 8)		-			-
Income tax provision (Note 6)								-			-			-			-

Net loss	$	(376,911	)	$	(819,997	)	$	(299,169	)	$	(148,011	)	$	(954,087	)	$	(1,362,460	)

Net loss attributable to non-controlling interest (Note 1)		16,349			16,231			16,108			16,563			48,541			49,304

Net loss attributable to Company	$	(360,562	)	$	(803,766	)	$	(283,061	)	$	(131,448	)	$	(905,546	)	$	(1,313,156	)

Basic and diluted loss per common share	$	(0.00	)	$	(0.14	)	$	(0.00	)	$	(0.02	)	$	(0.00	)	$	(0.11	)

Weighted average common shares outstanding (Notes 1 & 9)		240,911,996			5,738,464
Weighted average common shares outstanding (Notes 1 & 7)								2,072,644,134			7,858,179			968,962,520			12,354,900

See accompanying notes to unaudited condensed consolidated financial statements.

	Common stock				Additional paid-in			Accumulated			Non-controlling			Total shareholders
	Shares		Par value		capital			deficit			interest			deficit

Balance at December 31, 2014		23,463,415	$	23,463	$	16,303,784		$	(24,663,547	)	$	3,975,495		$	(4,360,805	)

January through September 2015, issuance of common stock upon conversion of convertible debt and accrued interest (Notes 4 & 7)		2,201,018,202		2,201,018		(1,986,202	)		-			-			214,816

Reclassification of derivative liabilities upon conversion of convertible debt (Note 4)		-		-		219,520			-			-			219,520

January through September 2015, issuance of common stock for services (Note 7)		4,000,000		4,000		12,000			-			-			16,000

Net loss		-		-		-			(905,546	)		(48,541	)		(954,087	)

Balance at September 30, 2015		2,228,481,617	$	2,228,481	$	14,549,102		$	(25,569,093	)	$	3,926,954		$	(4,864,556	)

See accompanying notes to unaudited condensed consolidated financial statements.

	Nine months			Nine months
	ended			ended
	September 30,			September 30,
	2015			2014

Cash flows from operating activities:
Net loss	$	(954,087	)	$	(1,362,460	)
Adjustments to reconcile net loss to net cash used in operating activities:
Non-cash interest expense		-			369,123
Stock based compensation (Note 7)		16,000			-
Amortization of debt issuance costs (Note 4)		9,559			9,598
Beneficial conversion feature		-			197,539
Accretion of Series B preferred stock (Note 7)		56,503			-
Depreciation and amortization (Note 1)		-			196
Change in fair value of derivative liability (Note 4)		132,948			(403,063	)
Amortization of discount on debentures payable (Note 4)		231,313			550,705
Changes in operating assets and liabilities:
Accounts payable and accrued expenses		95,267			112,096
Related party payables (Note 3)		128,736			13,481
Dividends payable (Note 7)		24,177			24,177
Interest payable		67,265			137,685
Net cash used in operating activities		(192,320	)		(350,923	)

Cash flows from financing activities:
Proceeds from convertible notes (Note 4)		150,500			315,000
Proceeds from notes payable, other (Note 4)		67,600			70,800
Prodeeds from notes payable, related (Note 3)		2,200			3,000
Payments on notes payable (Note 4)		(9,704	)		(7,910	)
Payments on notes payable, related (Note 3)		(9,100	)		(27,907	)
Payments to placement agents (Note 4)		(11,500	)		(11,000	)
Net cash provided by financing activities		189,996			341,983

Net change in cash and cash equivalents		(2,324	)		(8,940	)

Cash and cash equivalents:
Beginning of year		972			9,872

End of period	$	(1,352	)	$	932

Supplemental disclosure of cash flow information:
Cash paid during the period for:
Income taxes	$	-		$	-
Interest	$	15,914		$	5,949

Noncash financing transactions:
Notes and interest payable converted to stock	$	214,816		$	479,656
Reclassification of derivative liabilities upon conversion of convertible debt	$	219,520		$	-

See accompanying notes to unaudited condensed consolidated financial statements.

The interim unaudited condensed consolidated financial statements presented herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ~~(“SEC”~~("SEC") and for the three and nine month periods ended ~~March 31,~~September 30, 2015 and 2014 include the condensed consolidated financial statements of AlumiFuel Power Corporation (the ~~“Company”~~"Company") and its subsidiaries HPI Partners, LLC ~~(“HPI”~~("HPI"), AlumiFuel Power, Inc. ~~(“API”~~("API"), AlumiFuel Power Technologies, Inc. ("APTI"), Novofuel, Inc. ("Novofuel"), and 58% owned subsidiary AlumiFuel Power International, Inc. ("AFPI").

Effective September 5, 2014, the Company changed isits state of Domicile from Nevada to Wyoming. On September 18, 2014, the Company received notice that the Wyoming Secretary of State had accepted an amendment to its articles of incorporation through which the number of shares of authorized common and preferred stock of the Company went from 3,500,000,000 shares of $0.001 par value common stock and 10,000,000 shares of $0.001 par value preferred stock, to unlimited shares of $0.001 par value common stock and unlimited shares of $0.001 par value preferred stock.

On November 19, 2014, the Company effected a 1 for 250 reverse split of its common stock following which a total of 3,840,199,334 shares of issued and outstanding pre-split common stock became 15,360,797 shares of post-split common stock. As a result of the reverse split, the number of shares outstanding and per share information for all prior periods presented have been retroactively restated to reflect the new capital structure.

Certain information and footnote disclosures normally included in unaudited financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. All of the intercompany accounts have been eliminated in ~~consolidation. The~~consolidation.The interim unaudited condensed consolidated financial statements should be read in conjunction with the ~~Company’s~~Company's annual financial statements for the year ended December 31, 2014, notes and accounting policies thereto included in the ~~Company’s~~Company's Annual Report on Form 10-K.

In the opinion of management, all adjustments (consisting only of normal recurring adjustments) which are necessary to provide a fair presentation of operating results for the interim periods presented have been made. The results of operations for the periods presented are not necessarily indicative of the results to be expected for the year.

The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As shown in the accompanying condensed consolidated financial statements, the Company had no revenue during the ~~three~~nine months ended ~~March 31,~~September 30, 2015, and has an accumulated deficit of ~~$25,040,458~~$25,569,093 from its inception through that date. These factors ~~among others, may indicate~~raise substantial doubt about the Company's ability to continue as a going concern. These unaudited condensed consolidated financial statements do not include any adjustments that might be necessary should the Company ~~will~~ be unable to continue as a going ~~concern for a reasonable period of time.~~concern.

In February 2010, the Company formed its subsidiary, AFPI. The total number of AFPI shares outstanding at December 31, 2014 and ~~March 31,~~September 30, 2015 was 68,114,864.

The value of all shares of AFPI held by the Company have been eliminated on consolidation of the financial statements at ~~March 31,~~September 30, 2015 as intercompany accounts. At ~~March 31,~~September 30, 2015 there were 28,511,985 shares held by shareholders other than the Company representing 42% of the outstanding common shares of AFPI as of that date. A non-controlling interest in AFPI that totaled ~~$3,977,356~~$3,926,954 is included in the ~~Company’s~~Company's condensed consolidated balance sheet at ~~March 31,~~September 30, 2015. In addition, ~~$16,349~~$48,541 of the net loss of AFPI of ~~$39,056~~$115,958 for the ~~three~~nine months ended ~~March 31,~~September 30, 2015 has been attributed to the non-controlling interest of those stockholders.

The preparation of financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

The Company considers all highly liquid securities with original maturities of three months or less when acquired to be cash equivalents. Cash equivalents at ~~March 31,~~September 30, 2015 were $-0-.

The Company has certain stock option plans approved by its stockholders, and also grants options and warrants to consultants outside of its stock option plan pursuant to individual agreements.

The Company accounts for compensation expense for its stock-based employee compensation plans and issuances of options and warrants to consultants in accordance with ASC Topic 718 – Compensation – Stock Compensation. See Note 5.7. Capital Stock for further information on the Company's stock-based compensation.

The costs related to the issuance of debt are capitalized and amortized to interest expense using the straight-line method over the lives of the related debt. The straight-line method results in amortization that is not materially different from that calculated under the effective interest method.

The estimated fair value of financial instruments has been determined by the Company using available market information and appropriate methodologies; however, considerable judgment is required in interpreting information necessary to develop these estimates. Accordingly, the ~~Company’s~~Company's estimates of fair values are not necessarily indicative of the amounts that the Company could realize in a current market exchange.

The fair values of cash and cash equivalents ~~current non-related party accounts receivable,~~ and accounts payable approximate their carrying amounts because of the short maturities of these instruments.

The fair values of notes and loans payable to non-related parties approximate their carrying values because of the short maturities of these instruments. The fair value of long-term debt to non-related parties approximates carrying values, net of discounts applied, based on market rates currently available to the Company.

Loss per share of common stock is computed based on the weighted average number of common shares outstanding during the period. Common stock underlying stock options, warrants, and convertible promissory notes are not considered in the calculations of diluted loss per share for the periods ended ~~March 31,~~September 30, 2015 and 2014, as the impact of the potential common shares, which totaled approximately ~~12,728,734,175 (March 31,~~13,695,657,600 (September 30, 2015) and ~~6,249,922 (March 31,~~45,442,800 (September 30, 2014), would be anti-dilutive. Therefore, diluted loss per share presented for the nine month periods ended ~~March 31,~~September 30, 2015 and 2014 is equal to basic loss per share.

Accounting for obligations and instruments potentially settled in the ~~Company’s~~Company's common stock

In connection with any obligations and instruments potentially to be settled in the Company's stock, the Company accounts for the instruments in accordance with ASC Topic 815, "Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in a ~~Company’s~~Company's Own Stock". This issue addresses the initial balance sheet classification and measurement of contracts ~~thatare~~thatare indexed to, and potentially settled in, the Company's ~~stock.Under~~stock.Under this pronouncement, contracts are initially classified as equity or as either assets or liabilities, depending on the situation. All contracts are initially measured at fair value and ~~subsequentlyaccounted~~subsequentlyaccounted for based on the then current classification. Contracts initially classified as equity do not recognize subsequent changes in fair value as long as the contracts continue to be classified as~~equity.~~asequity. For contracts classified as assets or liabilities, the Company reports changes in fair value in earnings and discloses these changes in the financial statements as long as the contracts ~~remainclassified~~remainclassified as assets or liabilities. If contracts classified as assets or liabilities are ultimately settled in shares, any previously reported gains or losses on those contracts continue to be included in~~earnings.~~inearnings. The classification of a contract is reassessed at each balance sheet date.

In connection with the issuances of equity instruments or debt, the Company may issue options or warrants to purchase common stock. In certain circumstances, these options or warrants may be classified as liabilities, rather than as equity. In addition, the equity instrument or debt may contain embedded derivative instruments, such as conversion options or listing requirements, which in certain circumstances may be required to be bifurcated from the associated host instrument and accounted for separately as a derivative liability instrument. The Company accounts for derivative instruments under the provisions of ASC Topic 815, ~~“Derivatives~~"Derivatives and Hedging".

Management reviewed accounting pronouncements issued during the nine months ended ~~March 31,~~September 30, 2015, and no pronouncements were adopted.

The Board of Directors has estimated the value of management services for the Company at the monthly rate of $8,000 and $2,000 for the president and secretary/treasurer, respectively. The estimates were determined by comparing the level of effort to the cost of similar labor in the local market and this expense totaled ~~$30,000~~$90,000 for each of the ~~three~~nine months ended ~~March 31,~~September 30, 2015 and 2014. In addition, beginning October 1, 2010 the Company's president and treasurer were accruing a management fee of $7,500 and $3,500, respectively, for their services as managers of AFPI. This amount totaled ~~$33,000~~$99,000 for each of the ~~three~~nine months ended ~~March 31,~~September 30, 2015 and 2014. As of ~~March 31,~~September 30, 2015 and 2014, the Company owed ~~$432,142~~$512,692 and ~~$377,892,~~$342,392, respectively to its officers for management services.

In September 2009, the Company's board directors authorized a bonus program for the Company's officers related to their efforts raising capital to fund the Company's operations. Accordingly, the Company's president and secretary are eligible to receive a bonus based on 50% of the traditional "Lehman Formula" whereby they will receive 2.5% of the total proceeds of the first $1,000,000 in capital raised by the Company, 2.0% of the next $1,000,000, 1.5% of the next $1,000,000, 1% of the next $1,000,000 and .5% of any proceeds above $4,000,000. The amount is capped at $150,000 per fiscal year. During the ~~three~~nine month periods ended ~~March 31,~~September 30, 2015 and 2014, the Company recorded ~~$1,010~~$1,505 and ~~$1,907,~~$2,757, respectively to a corporation owned in part by ~~Messrs. Fong and Olson~~the Company's Secretary under this bonus program. At ~~March 31,~~September 30, 2015 and 2014, respectively, there was ~~$1,420~~$1,915 and ~~$4,955~~$250 payable under the bonus plan.

In the ~~three~~nine month periods ended ~~March 31,~~September 30, 2015 and 2014, APTI paid a management fee of $6,500 per month to a company owned by the ~~Company’s~~Company's officers for services related to its bookkeeping, accounting and corporate governance functions. For each of the ~~three~~nine month periods ended ~~March 31,~~September 30, 2015 and 2014, these management fees totaled ~~$19,500.~~$58,500. As of ~~March 31,~~September 30, 2015 and 2014, the Company owed ~~$21,685~~$28,335 and ~~$10,770,~~$18,485, respectively, in accrued fees and related expenses.

The Company rented office space, including the use of certain office machines, phone systems and long distance fees, from a company owned by its officers at $1,500 per ~~month in 2014 and $1,200 per month in 2014.~~month. This fee is month-to-month and is based on the amount of space occupied by the Company and includes the use of certain office equipment and services. Rent expense totaled $13,500 for the ~~three~~nine months ended ~~March 31,~~September 30, 2015 and ~~$10,800 for the same period in~~ 2014. A total of ~~$1,500~~$0 and ~~$10,000~~$500 in rent expense was accrued but unpaid at ~~March 31,~~September 30, 2015 and 2014, respectively.

Accounts payable to related parties consisted of the following at ~~March 31,~~September 30, 2015:

Management fees, rent and bonus payable to officers		$	467,032
Management fees, rent and bonus payable to officers and their affiliates				$	560,527

Accrued expenses payable to subsidiary officer	Accrued expenses payable to subsidiary officer		33,645		35,968

	Total accounts payable, related party	$	500,677
Total accounts payable, related party				$	596,495

The Company issues promissory notes to its officers, and entities affiliated with its officers, from time-to-time. These notes all bear interest at 8% per annum and are due on demand. The following table outlines activity related to issuances and payment on these notes for the ~~three~~nine months ended ~~March 31,~~September 30, 2015 and 2014:

Principal balance December 31, 2014	$	21,461
Notes issued during the nine months ended September 30, 2015		100
Notes repaid during the nine months ended September 30, 2015		(7,000	)
Principal balance September 30, 2015	$	14,561

In 2009, various notes issued by HPI were converted to equity by its officers. Following those conversions, $235 in interest remained due and payable, which was outstanding at both ~~March 31,~~September 30, 2015 and 2014.

Total notes and interest payable to related parties consisted of the following at ~~March 31,~~September 30, 2015 and December 31 2014:

		March 31, 2015			December 31, 2014	September 30, 2015		December 31, 2014
Notes payable to officers; interest at 8% and due on demand	Notes payable to officers; interest at 8% and due on demand	$	1,511	$	1,511	$	1,511	$	1,511

Notes payable to affiliates of Company officers; interest at 8% and due on demand	Notes payable to affiliates of Company officers; interest at 8% and due on demand		12,950		19,950		13,050		19,950

	Notes payable, related party		14,461		21,461
Notes payable, related party							14,561		21,461

Interest payable related party	Interest payable related party		8,588		8,310		9,172		8,310

	Total principal and interest payable, related party	$	23,049	$	29,771
Total principal and interest payable, related party						$	23,733	$	29,771

At ~~March 31,~~September 30, 2015 and 2014, the Company owed ~~$67,005~~$97,000 and ~~$105,405,~~$87,205, respectively, to ~~an unaffiliated entity,~~ the Gulfstream 1998 Irrevocable Trust, at an interest rate of 8% and due on demand. During the ~~three~~nine months ended ~~March 31,~~September 30, 2015, the trust loaned the Company ~~$16,000;~~$67,600; and sold ~~$26,000~~$47,900 in principal on these notes to ~~unaffiliated~~ third parties that became convertible debentures. Please see convertible notes below and Note ~~9 “Capital Stock”~~7 "Capital Stock" below for further information on these transactions. Also during the nine month period ended September 30, 2015, the Company paid $8,704 in principal and $12,034 in interest payable on these notes. There was ~~$13,126~~$4,760 and $20,091 in accrued interest payable on these notes at ~~March 31,~~September 30, 2015 and December 31, 2014, respectively.

At both ~~March 31,~~September 30, 2015 and 2014, the Company owed $32,732 ~~to an unaffiliated third party~~ with interest payable at 8% and due on demand. There was ~~$8,845~~$10,158 and $6,227 in accrued interest payable on these notes at ~~March 31,~~September 30, 2015 and December 31, 2014, respectively.

At ~~March 31,~~September 30, 2015 and 2014, the Company owed ~~an unaffiliated third party $43,086.~~$43,086 on a note payable. These notes are due on demand and carry an interest rate of 8%. There was ~~$10,613~~$12,342 and $8,199 in accrued interest payable at ~~March 31,~~September 30, 2015 and December 31, 2014, respectively.

At ~~March 31,~~September 30, 2015 and 2014, the Company owed ~~an unaffiliated third party $13,000.~~$13,000 on a note payable due in 2012. There was ~~$113,000~~$13,000 payable on these notes at December 31, 2014. These notes carry current interest rates of 8% per annum. As of ~~March 31,~~September 30, 2015 and December ~~312014,~~31, 2014, there was ~~$20,839~~$21,362 and $20,583 in accrued interest payable on these notes, respectively.

During the year ended December 31, 2010 a note payable in the amount of $30,000 was issued and repaid ~~to an unaffiliated third party~~ leaving an interest balance due of $57. This amount remained unpaid as of both ~~March 31,~~September 30, 2015 and December 31, 2014.

AlumiFuel Power, Inc. owes $1,050 in unpaid interest on notes issued and settled prior to 2015.

At ~~March 31,~~September 30, 2015 and December 31, 2014, the company owed $217,130 ~~from unaffiliated third parties~~that was paid in Euros totaling 164,250. These notes are due one year from issuance with an interest rate of 10% and may be converted to AFPI common stock after six months outstanding and if AFPI's common stock begins trading again. A majority of these notes are beyond their maturity date and are therefore in default. As of ~~March 31,~~September 30, 2015 and December 31, 2014, there was a total of ~~$35,378~~$46,274 and $29,329, respectively, in interest payable on these notes.

In 2009, various notes issued by HPI were converted to ~~equity by third parties.~~equity. Following those conversions, $647 in interest remained due and payable, which was outstanding at both ~~March 31,~~September 30, 2015 and December 31, 2014.

Notes and interest payable to others consisted of the following at ~~March 31,~~September 30, 2015 and December 31, 2014:

		2015		2014		September 30, 2015		December 31, 2014
Notes payable, non-affiliates; interest at 8% and due on demand	Notes payable, non-affiliates; interest at 8% and due on demand	$	155,823	$	175,823	$	185,818	$	175,823

Notes payable, non-affiliates; interest at 10% and due in March 2014-July 2015	Notes payable, non-affiliates; interest at 10% and due in March 2014-July 2015		217,130		217,130		217,130		217,130

	Notes payable		372,953		392,953
Notes payable							402,948		392,953

Interest payable, non-affiliates	Interest payable, non-affiliates		90,562		89,724		96,650		89,724

	Total principal and interest payable, other	$	463,515	$	482,677
Total principal and interest payable, other						$	499,598	$	482,677

Certain of our demand promissory notes ~~issued to unaffiliated third parties~~ contain provisions for conversion to common stock at market price on the date of conversion.

From time-to-time, the Company issues convertible promissory notes and debentures with conversion features that we have determined represent an embedded derivative as they are convertible into a variable number of shares upon conversion. Accordingly, these notes are not considered to be conventional debt under EITF 00-19 and the embedded conversion feature must be bifurcated from the debt host and accounted for as a derivative liability. The Company believes that the aforementioned embedded derivatives meet the criteria of ASC 815 (formerly SFAS 133 and EITF 00-19), and should be accounted for separately as derivatives with a corresponding value recorded as a liability. Accordingly, the fair value of these derivative instruments are recorded as a liability on the consolidated balance sheet with the corresponding amount recorded as a discount to the notes in the period in which they are issued. Such discount is capitalized and amortized over the life of the notes. The change in the fair value of the liability for derivative contracts is credited to other income (expense) in the consolidated statements of operations at the end of each quarter. The face amount of the corresponding notes are stripped of their conversion feature due to the accounting for the conversion feature as a derivative, which is recorded using the residual proceeds to the conversion option attributed to the debt.

In September 2009 through January 2010 we issued $435,000 of 6% unsecured convertible debentures in transactions with private investors (the ~~“Debentures”~~"Debentures"). Of that amount, $10,000 of these debentures remained unpaid as of ~~March 31,~~September 30, 2015.

The beneficial conversion feature (an embedded derivative) included in the Debentures resulted in an initial debt discount of $435,000 and an initial loss on the valuation of derivative liabilities of $71,190 for a derivative liability balance of $506,190 at issuance.

Among other terms of the offering, the Debentures were originally due in January 2013, but were extended to December 31, 2013. The Debentures are convertible at a conversion price equal to 75% of the lowest closing bid price per share of the ~~Company’s~~Company's common stock for the twenty (20) trading days immediately preceding the date of conversion.

At ~~March 31,~~September 30, 2015, the Company revalued the derivative liability balance of the remaining outstanding ~~Debentures. For the Three months ended March 31, 2015, the Company has recorded an expense and increased the previously recorded liabilities by $9~~Debentures resulting in a derivative liability balance of ~~$5,003~~$5,103 at ~~March 31,~~September 30, 2015.

In January 2012 we issued two convertible notes of $25,000 each for a total of $50,000 to ~~an unaffiliated third party investor.~~J&J Potatoes. These notes were due six months from issuance, carry interest at 10% per annum and are convertible at $0.0012 per share. The Company has determined that the conversion feature does not represent an embedded derivative as the conversion price was known and was not variable making it conventional. The Company determined there was a beneficial conversion feature related to the January 2012 Convertible Notes based on the difference between the conversion price of $0.0012 and the market price of the ~~Company’s~~Company's common stock on the issue dates and recorded as interest expense $4,167 with an offset to additional paid-in capital. In January 2014, the Company agreed to allow the investor to convert $1,700 of this note to stock at a discount to market of 50%. Accordingly, 34,000,000 shares were issued at a conversion price of $0.00005 per share leaving a principal balance due of $48,300 at ~~March~~December 31, 2014. During the nine month period ended September 30, 2015, these notes were sold to More Capital and agreed to change the conversion terms to reflect a 50% discount to the lowest trading price of ~~$48,300.~~the Company's common stock for the ten day period immediately preceding conversion. This resulted in an initial loss on the valuation and a corresponding derivative liability expense of $50,715.

During the nine month period ended September 30, 2015 More Capital converted $4,696 in principal on these notes to 93,916,856 shares of common stock at $0.00005 per share and resulting in a principal balance of $43,604 at September 30, 2015.

At September 30, 2015 the Company revalued the derivative liability balance of the remaining outstanding notes resulting in a derivative liability balance of $45,784 at September 30, 2015.

In January 2014, the Company entered into a note agreement with an institutional investor for the issuance of a convertible promissory note in the aggregate amount of $22,500.

The 2014 Asher Convertible Note is convertible at 50% of the average of the lowest three closing bid prices per share of the ~~Company’s~~Company's common stock for the ten (10) trading days immediately preceding the date of conversion and carries an interest rate of 8% per annum.

We received net proceeds from the 2014 Asher Convertible Note of $20,000 after debt issuance costs of $2,500 paid for lender legal fees. These debt issuance costs were amortized over the nine month term of the 2014 Asher Convertible Note and as of December 31, 2014, all of these costs had been expensed as debt issuance costs.

The beneficial conversion feature (an embedded derivative) included in the 2014 Asher Convertible Note resulted in total initial debt discounts of $22,500 and a total initial loss on the valuation of derivative liabilities of $1,800 for a derivative liability balance of $24,300 total at issuance.

During the year ended December 31, 2014, the holder converted a total of $21,000 in face value of the note to 840,000 shares of our common stock, or $0.025 per share. As a result of this transaction, the Company recorded a decrease to the derivative liability of $22,680 and the balance due on the notes was $1,500.

At ~~March 31,~~September 30, 2015 the Company revalued the derivative liability balance of the remaining outstanding 2014 Asher Note resulting in a derivative liability balance of ~~$2,240~~$2,539 at ~~March 31,~~September 30, 2015.

During the year ended December 31, 2014, an institutional investor, CareBourn Capital, converted $100,000 in promissory notes due from the Company into a convertible note due September 30, 2014. In addition, our president, converted $85,000 in fees due him from our subsidiary AFPI into convertible notes due February 1, 2014 ($50,000) and October 2, 2014 ($35,000), which were acquired by this investor. This investor also loaned the Company an additional $70,000 that is due August 2014 through July 2015. These notes total $255,000 (together the ~~“2014~~"2014 CareBourn Notes) bear interest at 8%-12% per annum and are convertible at a conversion price for each share of common stock equal to 50% of the average of the lowest three closing prices per share of the ~~Company’s~~Company's common stock for the ten (10) trading days immediately preceding the date of conversion.

The beneficial conversion feature (an embedded derivative) included in the 2014 CareBourn Notes resulted in an initial debt discount of $205,000 and an initial loss on the valuation of derivative liabilities of $72,950 for a derivative liability balance of $277,950 at issuance.

During the year ended December 31, 2014, the note holders converted a total of $4,711 in face value of the 2014 CareBourn Notes to 2,021,000 shares of our common stock, or $0.002 per share. As a result of the conversion of these notes, the Company recorded a decrease to the derivative liability and as of December 31, 2014, the total face value of the 2014 CareBourn Notes outstanding was $250,289.

During the ~~period~~nine months ended ~~March 31,~~September 30, 2015, the note holders converted a total of ~~$35,048~~$60,536 in principal and ~~$2,770~~$3,712 in interest of the 2014 CareBourn Notes to ~~174,403,015~~703,051,247 shares of our common stock, or ~~$0.0002~~$0.00009 per share. As a result of the conversion of these notes, the Company recorded a decrease to the derivative liability and as of ~~March 31,~~September 30, 2015, the total face value of the 2014 CareBourn Notes outstanding was ~~$215,241.~~$189,753.

At ~~March 31,~~September 30, 2015, the Company revalued the derivative liability balance of the remaining outstanding 2014 CareBourn ~~Notes. For the three months ended March 31, 2015 there was no change in the fair value of the previously recorded liabilities~~Notes resulting in a derivative liability balance of ~~$242,363~~$239,733 at ~~March 31, 2015.~~that date.

In May 2013 we issued a $20,000 8% unsecured convertible note with a private investor (the ~~“Bohn~~"Bohn Convertible ~~Note”~~Note"). The Bohn Convertible Note is due in November at a conversion price of 75% of the lowest trading price per share of the ~~Company’s~~Company's common stock for the ten (10) trading days immediately preceding the date of conversion.

The beneficial conversion feature (an embedded derivative) included in the Bohn Convertible Note resulted in an initial debt discount of $20,000 and an initial loss on the valuation of derivative liabilities of $11,429 for a derivative liability balance of $31,429 at issuance.

At ~~March 31,~~September 30, 2015 the Company revalued the derivative liability balance of the remaining outstanding Bohn Convertible ~~Note. Therefore, for the period from their issuance to March 31, 2015, the Company has recorded increased the derivative liabilities by $3,000~~Note resulting in a derivative liability balance of ~~$23,000~~$23,814 at ~~March 31,~~September 30, 2015.

In May 2013, we issued a $75,000 convertible note that remains outstanding to the former landlord of API as part of a settlement agreement with respect to a Judgment by Confession entered against ~~API in the Court of Common Pleas Philadelphia County in Philadelphia as described more fully in Note 7 - Commitments and Contingencies below.~~API. This note was due in May 2014 and carries an interest rate of 8% per annum. This note may be converted at any time beginning on November 30, 2013 into shares of our common stock at the average of the lowest three (3) Trading Prices for the common stock during the ten trading days prior to the Conversion Date. As this note is convertible at market, there is no imbedded derivative and therefore no corresponding derivative liability.

During the nine months ended September 30, 2014, WHC purchased notes totaling $101,300 from one of our third party note holders and issued new notes in the amount of $45,000 for a total of $146,300 in amounts due (the "WHC 2014 Notes"). The WHC 2014 Notes may be converted at any time at a discount to market of 50% of the lowest closing price per share of the ~~Company’s~~Company's common stock for the ten (10) trading days immediately preceding the date of conversion as adjusted for splits and other events. This notes have an interest rate of 8% per annum and are due in March through July 2015.

The beneficial conversion feature (an embedded derivative) included in the WHC 2014 Notes resulted in an initial debt discount of $146,300 and an initial loss on the valuation of derivative liabilities of $66,901 for a derivative liability balance of $213,201 at issuance.

During the year ended December 31, 2014, the note holders converted a total of $57,565 in face value and $234 in interest due on the WHC 2014 Notes to 1,891,356 shares of our common stock, or $0.03 per share. As a result of these transactions, the Company recorded a decrease to the derivative liability totaling $51,645 and as of December 31, 2014, the total face value of the WHC 2014 Notes outstanding was $88,736.

During the ~~three~~nine months ended ~~March 31,~~September 30, 2015, the note holders converted a total of ~~$10,378~~$20,614 in face value on the WHC 2014 Notes to ~~44,315,300~~249,053,338 shares of our common stock, or ~~$0.0002~~$0.00008 per share. As a result of these transactions, the Company recorded a decrease to the derivative liability and as of ~~March 31,~~September 30, 2015, the total face value of the WHC 2014 Notes outstanding was ~~$78,358.~~$68,122.

At ~~March 31,~~September 30, 2015 the Company revalued the derivative liability balance of the remaining outstanding WHC 2014 ~~Notes. For the three months ended March 30, 2015, the Company has decreased the derivative liabilities by $11,623~~Notes resulting in a derivative liability balance of ~~$87,761~~$76,462 at ~~March 31,~~September 30, 2015.

In December 2013 we issued a $15,000 8% unsecured convertible note ~~with~~to a private investor, ~~and~~ in January 2014 we issued an additional $10,000 note under the same terms and in July 2015 a third note was issued under the same terms (together the ~~“Schaper Notes”~~"Schaper Notes"). The Schaper Notes are due in August and October 2014, and July 2015 and have a conversion price of 50% of the lowest three trading prices per share of the ~~Company’s~~Company's common stock for the ten (10) trading days immediately preceding the date of conversion.

The beneficial conversion feature (an embedded derivative) included in the Schaper Notes resulted in an initial debt discount of ~~$25,000~~$41,500 and an initial loss on the valuation of derivative liabilities of ~~$15,000~~$16,320 for a derivative liability balance of ~~$40,000~~$57,820 at issuance.

At ~~March 31,~~September 30, 2015 the Company revalued the derivative liability balance of the remaining outstanding Schaper ~~Notes. For the three months ended March 31, 2015, the Company has increased the previously recorded liabilities by $1,029~~Notes resulting in a derivative liability balance of ~~$27,529~~$46,352 at ~~March 31,~~September 30, 2015.

In February 2014 the Company issued a $25,000 12% unsecured convertible note with a private investor (the ~~“JSJ~~"JSJ Convertible ~~Note”~~Note"). This note was due on August 14, 2014 and is convertible into common stock at 50% of the lowest three closing bid prices for the twenty (20) days immediate preceding the date of conversion.

The beneficial conversion feature (an embedded derivative) included in the JSJ Convertible Note resulted in an initial debt discount of $25,000 and an initial loss on the valuation of derivative liabilities of $1,500 for a derivative liability balance of $26,500 at issuance.

During the year ended December 31, 2014, the note holders converted a total of $18,377 in face value of the JSJ Notes to 2,066,015 shares of our common stock, or $0.009 per share. As a result of these transactions the total face value of the JSJ Notes outstanding was $6,623.

During the ~~quarter~~nine months ended ~~March 31,~~September 30, 2015, the note holders converted a total of $6,623 in principal and ~~$898~~$2,102 in interest of the JSJ Notes to ~~84,636,499~~108,708,299 shares of our common stock, or ~~$0.0009~~$0.0008 per share. As a result of these transactions the ~~total face value of~~amounts payable on the JSJ Notes outstanding was $0 ~~with $1,204 in accrued interest payable.~~at September 30, 2015.

In February 2014 we issued a $40,000 8% unsecured convertible note with a private investor. This note was due on February 15, 2015 and is convertible into common stock at 50% of the lowest closing bid price for the ten (10) days immediate preceding the date of conversion. In June 2014 we issued an additional $25,000 note to this same investor with the same terms and conditions (the ~~“LG~~"LG Convertible ~~Notes”~~Notes").

We received net proceeds from the LG Convertible Note of $61,500 after debt issuance costs of $3,500. These debt issuance costs will be amortized over the terms of the LG Convertible Notes or such shorter period as the Notes may be outstanding. As of December 31, 2014, $2,567 of these costs had been expensed as debt issuance costs.

The beneficial conversion feature (an embedded derivative) included in the LG Convertible Notes resulted in an initial debt discount of $65,000 and an initial loss on the valuation of derivative liabilities of $5,200 for a derivative liability balance of $70,200 at issuance.

During the year ended December 31, 2014, the note holders converted a total of $10,600 in face value and $452 in accrued interest of the LG Funding Notes to 884,141 shares of our common stock, or $0.0125 per share. As a result of these transactions, the Company recorded a decrease to the derivative liability of $11,448 and as of December 31, 2014, the total face value of the LG Funding Notes outstanding was $54,400.

During the ~~quarter~~nine months ended ~~March 31,~~September 30, 2015, the note holders converted a total of ~~$20,340~~$33,135 in face value and ~~$1,508~~$2,666 in accrued interest of the LG Funding Notes to ~~884,141~~327,367,979 shares of our common stock, or ~~$0.0125~~$0.0001 per share. As a result of these transactions, the Company recorded a decrease to the derivative liability and as of ~~March 31,~~September 30, 2015, the total face value of the LG Funding Notes outstanding was ~~$34,060.~~$21,265.

At ~~March 31,~~September 30, 2015 the Company revalued the derivative liability balance of the remaining outstanding LG Convertible ~~Notes. Therefore, for the period from their issuance to March 31, 2015, the Company has decreased the previously recorded liabilities by $56,226~~Notes resulting in a derivative liability balance of ~~$38,774~~$23,749 at ~~March 31,~~September 30, 2015.

In February 2014 the Company issued a $27,500 5% unsecured convertible note with a private investor (the ~~“Iconic~~"Iconic Convertible ~~Note”~~Note"). This note is due on February 26, 2015 and is convertible into common stock at 50% of the lowest trading price for the twenty-five (25) days immediate preceding the date of conversion.

The Company received net proceeds from the Iconic Convertible Note of $25,000 after debt issuance costs of $2,500. These debt issuance costs will be amortized over the terms of the Iconic Convertible Notes or such shorter period as the Notes may be outstanding. As of December 31, 2014, $2,135 of these costs had been expensed as debt issuance costs.

The beneficial conversion feature (an embedded derivative) included in the Iconic Convertible Note resulted in an initial debt discount of $27,500 and an initial loss on the valuation of derivative liabilities of $1,375 for a derivative liability balance of $28,875 at issuance.

In November 2014 the lender declared an event of default on the note for failure to maintain sufficient shares of the ~~Company’s~~Company's common stock in reserve for issuance under the note. As a result, the Company incurred $9,664 in default fees that are added to the principal balance of the note. In addition, the interest rate for the remaining balance of the note increased to 20%.

During the three months ended December 31, 2014, the note holder converted a total of $1,350 in face value of the Iconic Notes to 1,928,571 shares of our common stock, or $0.0007 per share. As a result of these transactions, the Company recorded a decrease to the derivative liability of $1,418 and as of December 31, 2014, the total face value of the Iconic Notes outstanding was $35,814.

During the ~~three~~nine months ~~March 31,~~September 30, 2015, the note holder converted a total of $35,814 in face value and $1,503 in accrued interest of the Iconic Notes to 130,147,427 shares of our common stock, or $0.0003 per share. As a result of these transactions, the Company recorded a decrease to the derivative liability of $55,000 and as of ~~March 31,~~September 30, 2015, the total face value of the Iconic Notes outstanding was $0.

On June 30, 2013 the Company issued a $25,000 8% unsecured convertible note with a private investor (the ~~“ADAR~~"ADAR Convertible ~~Note”~~Note"). This note is due on February 20, 2015 and is convertible into common stock at 50% of the lowest closing bid price for the ten (10) days immediate preceding the date of conversion.

The Company received net proceeds from the ADAR Convertible Note of $23,500 after debt issuance costs of $1,500. These debt issuance costs will be amortized over the terms of the ADAR Convertible Notes or such shorter period as the Notes may be outstanding. As of December 31, 2014, $1,238 of these costs had been expensed as debt issuance costs.

The beneficial conversion feature (an embedded derivative) included in the ADAR Convertible Note resulted in an initial debt discount of $25,000 and an initial loss on the valuation of derivative liabilities of $2,000 for a derivative liability balance of $27,000 at issuance.

During the year ended December 31, 2014, the note holder converted a total of $7,500 in face value of the Adar Convertible Notes to 600,000 shares of our common stock, or $0.0125 per share. As a result of these transactions, the Company recorded a decrease to the derivative liability of $8,100 and as of December 31, 2014, the total face value of the Adar Notes outstanding was $17,500.

At ~~March 31,~~September 30, 2015 the Company revalued the derivative liability balance of the remaining outstanding ADAR Convertible Note resulting in a derivative liability balance of ~~$18,900~~$19,914 at ~~March 31,~~September 30, 2015.

In November 2014 the Company issued a $16,000 unsecured convertible note with a private investor (the ~~“Beaufort Note”~~"Beaufort Note"). This note is due in May 2015 and is convertible into common stock at 50% of the lowest closing bid price for the ten (10) days immediate preceding the date of conversion. In addition, this investor also purchased $15,100 in promissory notes from the Gulfstream Trust for a total amount of notes outstanding of $31,100, which is convertible into common stock at 60% of the lowest closing bid price for the ten (10) days immediate preceding the date of ~~conversion.~~conversion.. The Beaufort Note accrues 5% interest only if it remains unpaid at maturity and only for the amount then owing at maturity through the payment date.

The Company received net proceeds from the Beaufort Note of $12,500 after debt issuance costs of $3,500. These debt issuance costs will be amortized over the terms of the Beaufort Note or such shorter period as the Note may be outstanding. As of December 31, 2014, $583 of these costs had been expensed as debt issuance costs.

The beneficial conversion feature (an embedded derivative) included in the Beaufort Notes resulted in an initial debt discount of $31,100 and an initial loss on the valuation of derivative liabilities of $1,244 for a derivative liability balance of $32,344 at issuance.

During the year ended December 31, 2014, the note holders converted a total of $1,739 in face value of the LG Funding Notes to 2,728,000 shares of our common stock, or $0.0006 per share. As a result of these transactions, the Company recorded a decrease to the derivative liability of $1,656 and as of December 31, 2014, the total face value of the Beaufort Notes outstanding was $29,361.

During the ~~three~~nine months ended ~~March 31,~~September 30, 2015, the note holders converted a total of $13,361 in face value of the Beaufort Notes to 62,295,857 shares of our common stock, or $0.0002 per share. As a result of these transactions, the Company recorded a decrease to the derivative liability and as of ~~March 31,~~September 30, 2015, the total face value of the Beaufort Notes outstanding was $16,000.

At ~~March 31,~~September 30, 2015 the Company revalued the derivative liability balance of the remaining outstanding Beaufort Notes resulting in a derivative liability balance of $16,640 at ~~March 31,~~September 30, 2015.

During the quarter ended ~~March 31,~~June 30, 2015, ~~an unaffiliated institutional investor~~Pure Energy 714 purchased a note totaling $21,000 in principal and ~~3,360~~$3,360 in accrued interest from one of our third party note holders and issued a new note in the amount of ~~$24,360 (the~~$24,360; during the quarter ended September 30, 2015 Pure Energy 714 purchased an additional note totaling $11,900 in principal and $1,139 in interest and issued a new note in the amount of $13,039 (together the "Pure Energy 2015 ~~Note"~~Notes"). The Pure Energy 2015 Note may be converted at any time at a discount to market of 60% and 55%, respectively, of the lowest closing price per share of the ~~Company’s~~Company's common stock for the thirty (30) and twenty (20) trading days, respectively, immediately preceding the date of conversion as adjusted for splits and other events. ~~This~~These notes have an interest rate of 8% per annum and are due in July 2015 and August 2015.

The beneficial conversion feature (an embedded derivative) included in the Pure Energy 2015 ~~Note~~Notes resulted in an initial debt discount of $24,360 and an initial loss on the valuation of derivative liabilities of ~~$974~~$14,655 for a derivative liability balance of ~~$25,334~~$39,025 at issuance.

During the ~~three~~nine months ended ~~March 31,~~September 30, 2015, the note holders converted a total of ~~$12,150~~$23,160 in face value of the Pure Energy 2015 ~~Note~~Notes to ~~113,407,736~~388,657,736 shares of our common stock, or ~~$0.0001~~$0.00006 per share. As a result of these transactions, the Company decreased the derivative liability and as of ~~March 31,~~September 30, 2015, the total face value of the Pure Energy 2015 ~~Note~~Notes outstanding was ~~$12,210.~~$14,239.

At ~~March 31,~~September 30, 2015 the Company revalued the derivative liability balance of the remaining outstanding Pure Energy 2015 ~~Notes. Therefore, for the period from their issuance to March 30, 2015, the Company decreased the previously recorded liabilities by $12,636~~Notes resulting in a derivative liability balance of ~~$12,698~~$15,374 at ~~March 31,~~September 30, 2015.

During the quarter ended March 31, 2015, an ~~unaffiliated~~ institutional investor purchased notes totaling $15,000 in principal from one of our third party note holders and issued a new note in the amount of $15,000. In addition, this investor loaned the Company an additional $5,000 through a convertible note. These two notes together comprise a principal balance of $20,000 (together the ~~“Black~~"Black Forest Capital 2015 ~~Notes”~~Notes"). The Pure Energy 2015 Notes may be converted at any time at a discount to market of 50% of the lowest closing price per share of the ~~Company’s~~Company's common stock for the twenty (20) trading days immediately preceding the date of conversion as adjusted for splits and other events. This notes have an interest rate of 10% per annum and are due in March 2016.

The beneficial conversion feature (an embedded derivative) included in the Black Forest Capital 2015 Notes resulted in an initial debt discount of $20,000 and an initial loss on the valuation of derivative liabilities of $1,100 for a derivative liability balance of $21,100 at issuance.

The Company received net proceeds from the Black Forest Capital 2015 Notes of $19,000 after debt issuance costs of $1,000. These debt issuance costs will be amortized over the terms of the Black Forest Capital 2015 Notes or such shorter period as the Notes may be outstanding. As of ~~March 31,~~September 30, 2015, ~~$83~~$583 of these costs had been expensed as debt issuance costs.

During the ~~three~~nine months ended ~~March 31,~~September 30, 2015, the note holders converted a total of ~~$1,413~~$6,894 in face value of the Black Forest Capital 2015 Notes to ~~28,260,000~~137,880,000 shares of our common stock, or $0.00005 per share. As a result of these transactions, the Company decreased the derivative liability and as of ~~March 31,~~September 30, 2015, the total face value of the Black Forest Capital 2015 Note outstanding was ~~$18,587.~~$13,106.

At ~~March 31,~~September 30, 2015 the Company revalued the derivative liability balance of the remaining outstanding Black Forest Capital ~~Notes. Therefore, for the period from their issuance to March 30, 2015, the Company has recorded an expense and decreased the previously recorded liabilities by $1,470~~Notes resulting in a derivative liability balance of ~~$19,630~~$14,174 at ~~March 31,~~September 30, 2015.

During the ~~three month period~~quarter ended March 30, 2015 we issued a total of ~~$65,600~~$64,500 in two 12% ~~unsecured~~ convertible notes with a private investor and in the quarter ended September 30, 2015 an additional $33,000 in a third 12% convertible note (together the ~~“CareBourn~~"CareBourn 2015 ~~Notes”~~Notes"). The CareBourn 2015 Notes are due in December 2015 and May 2016 and have a conversion price of 50% of the lowest trading price per share of the ~~Company’s~~Company's common stock for the ten (10) trading days immediately preceding the date of conversion.

The beneficial conversion feature (an embedded derivative) included in the CareBourn 2015 Notes resulted in an initial debt discount of ~~$64,500~~$97,500 and an initial loss on the valuation of derivative liabilities of ~~$4,354~~$7,324 for a derivative liability balance of ~~$68,854~~$104,824 at issuance.

The Company received net proceeds from the CareBourn 2015 Notes of ~~$58,500~~$88,500 after debt issuance costs of ~~$6,000.~~$9,000. These debt issuance costs will be amortized over the terms of the CareBourn 2015 Notes or such shorter period as the Notes may be outstanding. As of ~~March 31,~~September 30, 2015, ~~$333~~$3,500 of these costs had been expensed as debt issuance costs.

At ~~March 31,~~September 30, 2015 the Company revalued the derivative liability balance of the remaining outstanding CareBourn 2015 ~~Notes. There was no change for the period from its issuance to March 31, 2015,~~Notes resulting in a derivative liability balance of ~~$68,854~~$106,274 at ~~March 31,~~September 30, 2015.

During the ~~three month period~~quarter ended March ~~30,~~31, 2015 we issued a $31,500 8% unsecured convertible note with a private investor (the ~~“LG~~"LG 2015 ~~Note”~~Note"). The LG 2015 Note are due in February 2016 and have a conversion price of 50% of the lowest trading price per share of the ~~Company’s~~Company's common stock for the twenty (20) trading days immediately preceding the date of conversion.

The beneficial conversion feature (an embedded derivative) included in the LG 2015 Note resulted in an initial debt discount of $31,500 and an initial loss on the valuation of derivative liabilities of $3,780 for a derivative liability balance of $35,280 at issuance.

The Company received net proceeds from the LG 2015 Note of $30,000 after debt issuance costs of $1,500. These debt issuance costs will be amortized over the terms of the LG 2015 Note or such shorter period as the Notes may be outstanding. As of ~~March 31,~~September 30, 2015, ~~$250~~$1,000 of these costs had been expensed as debt issuance costs.

At ~~March 31,~~September 30, 2015 the Company revalued the derivative liability balance of the remaining outstanding LG 2015 ~~Note. There was no change for the period from its issuance to March 31, 2015,~~Note resulting in a derivative liability balance of $35,280 at ~~March 31,~~September 30, 2015.

Convertible notes payable, net of discounts; and interest payable consisted of the following at ~~March 31,~~September 30, 2015:

	September 30, 2015

Convertible debentures; non-affiliates; interest at 6% and due December 2013; outstanding principal of $10,000 face value; net of discount of $0	$	10,000
January 2012 Convertible Notes (More Capital); non-affiliate; interest at 8% due January 2013; outstanding principal of $43,604 face value		43,604
2014 Asher Convertible Notes; non-affiliate, interest at 8%; due May 2012; $1,500 face value net of discount of $0		1,500
2014 CareBourn Notes; non-affiliate; interest at 8%-12; due August 14 through July 2015; $189,753 face value net of discount of $0		189,753
Bohn Convertible Note; non-affiliate; interest at 8%; $20,000 face value net of discount of $0		20,000
Wexford Convertible Note; non-affiliate; interest at 8%; $75,000 face value net of discount of $0		75,000
WHC Convertible Notes; non-affiliate; interest at 8%; $68,122 face value net of discount of $0		68,122
Schaper Notes; non-affiliate; interest at 8%; due August 2014 and July 2016; face value $41,500 net of discount of $46,056		29,125
LG Funding Notes; non-affiliate; interest at 8%; due February 2015; face value $21,265 net of discount of $0		21,265
ADAR Notes; non-affiliate; interest at 8%; due February 2015; face value $17,500 net of discount of $0		17,500
CareBourn 2015 Notes; non-affiliate; interest at 12%; due December 2015; $97,500 face value net of discount of $40,056		51,444
Black Forest Capital 2015 Notes; non-affiliate; interest at 10%; due March 2016; $13,106 face value net of discount of $3,841		9,265
LG Capital 2015 Notes; non-affiliate; interest at 8%; due February 2016; $31,500 face value net of discount of $10,500		21,000
Pure Energy 2015 Notes; non-affiliate; interest at 8%; due July 2015 and August; $14,239 face value net of discount of $0		14,239
Beaufort Notes; non-affiliate; interest at 8%; due May 2015; face value $16,000 net of discount of $0		16,000
Total convertible notes, net of discount		587,817

Discount on convertible notes		72,772

Total convertible notes payable		660,589

Interest payable, convertible notes		162,888

Total convertible notes payable and accrued interest payable	$	823,477

At March 31, 2015 there was $56,753 in loans due the Company from FastFunds Financial Corporation (“FFFC”), an affiliate in which the Company is a minority stockholder, to assist FFFC in payment of its ongoing payment obligations and protect the Company's investment. This amount included $22,000 in new loans made during the quarter ended December 31, 2015 and $34,753 made in periods several years prior. As of March 31, 2014, FFFC owed the Company $138,853 and paid $13,500 against these notes. Given the uncertainty of payments on the older notes, if payments are received they are considered recovery of allowed for debt in the case of principal and recorded in "other income (expense)" in our statements of operations while interest income is offset against interest expense. During the three months ended March 31, 2015, FFFC was able to repay $28,100 in principal on these loans. Management of the Company evaluated the likelihood of payment on the older notes and has determined that an allowance of the entire balance due is appropriate. The Company has allowed for all interest due on these notes and did not record any interest receivable during the three month period ended March 31, 2015.

As of March 31, 2015, the Company had $8,000 due from an affiliated publicly traded company. This note carries interest at 8% per annum and is due on demand. The entire principal balance of $8,000 plus $1,222 in accrued interest remained receivable and has been allowed for given management’s assessment that recovery of these amounts is unlikely.

~~Other expense for the three and nine month periods ended March 31, 2015 and 2014 consisted of the following:~~

Following the formation of API in May 2008, HPI hired certain former employees of Hydrogen Power, Inc. and maintained an office in Seattle, Washington for a period of approximately five months. During that time, API paid wages to these employees without the benefit of a payroll management service. Upon API's move from Seattle to Philadelphia, Pennsylvania in October 2008, the Company retained the services of a payroll management service to handle its payroll functions. During the period from May to October 2008, the Company recorded $52,576 in payroll liabilities due from wages paid to its employees and has been recording estimated penalties and interest quarterly on the balance for an estimated balance due at December 31, 2014 of $150,059. During the ~~three~~nine months ended ~~March 31,~~September 30, 2015 an additional expense of ~~$4,057~~$12,397 was recorded for a total accrued balance of ~~$154,152~~$162,446 as of that date. This amount is included on the balance sheets at ~~March 31,~~September 30, 2015 as ~~“payroll liabilities”~~"payroll liabilities".

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~In previous years we had been accruing a salary of $200,000 per year for the president and chief executive officer of our subsidiaries API and Novofuel, David Cade. The board and Mr. Cade agreed this amount would be reduced to $100,000 for 2015, which was accrued as of June 30, 2015; and reviewed in future periods. This expense therefore totaled $100,000 for the nine month period ended September 30, 2015. There was $800,000 and $700,000 payable to Mr. Cade as of September 30, 2015 and December 31, 2014, respectively.

The Company records its income taxes in accordance with Statement of Financial Accounting Standard No. 109, ~~“Accounting~~"Accounting for Income ~~Taxes”~~Taxes". The Company has incurred significant net operating losses since inception resulting in a deferred tax asset, which was fully allowed for; therefore, the net benefit and expense resulted in $-0- income taxes.

During the ~~three~~nine month period ended ~~March 31,~~September 30, 2015, we issued a total of ~~685,772,412~~2,201,018,202 shares of our common stock on the conversion of ~~$141,806~~$214,816 in principal and interest on our various convertible promissory notes. In addition to the converted principal and interest on the notes, the Company ~~reclassed $141,225~~re-classified $219,520 of derivative liabilities ~~for~~ to additional paid-in capital upon conversion of the related convertible debt.

During the ~~three~~nine month period ended ~~March 31,~~September 30, 2015, we issued 4,000,000 shares of our common ~~stock in~~ stock for services valued at $16,000 based on the $0.004 market price for our common stock on the date of grant.

In August 2011, the Company authorized the issuance of up to 750,000 shares of $0.001 par value Series B Preferred Stock (the "Series B Preferred"). The Series B Preferred has a stated value of $1.00 and pays a dividend of 8% payable quarterly in our common stock. In the event of a liquidation of the Company, the holders of Series B Preferred then outstanding will be entitled to receive a liquidation preference, before any distribution is made to the holders of our common stock, in an aggregate amount equal to the par value of their shares of Series B Preferred. Each share of Series B Preferred is convertible into that number of shares of common stock on terms that are equal to (i) 100% of the Stated Value divided by (ii) 52% of the average of the three lowest day closing bid prices of the ~~Company’s~~Company's common stock for the 10 trading days immediately preceding the conversion. There is a Mandatory Conversion Date of July 12, 2016. At any time after the date of issuance of the Series B Preferred until the Mandatory Conversion Date, we may redeem, in cash, the Series B Preferred in accordance with the following: (a) if prior to or on the first anniversary of the date of issue at 105% of the Stated Value thereof and (b) if after the first anniversary of the date of issue and prior to the Mandatory Conversion Date at 110% of the Stated Value thereof (the ~~“Redemption Price”~~"Redemption Price").

There were 404,055 shares of our Series B Preferred Stock outstanding at ~~March 31,~~September 30, 2015 and December 31, 2014. There were ~~$118,365~~$134,572 and ~~$86,042~~$110,395 in dividends payable on our Series B Preferred stock at ~~March~~September 30, 2015 and December 31, ~~2013~~2014, respectively, including ~~$7,970~~$24,177 in dividends accrued in ~~each of~~ the ~~three~~nine month ~~periods then ended.~~period ended September 30, 2015.

The Company previously recorded the value of the preferred stock in equity and has determined that liability classification is required because the Series B Preferred Stock is convertible into a variable number of shares based on a fixed dollar amount. Accordingly, ~~$18,835~~$56,501 in accretion was recorded as interest expense for the ~~three~~nine month period ended ~~March 31,~~September 30, 2015.

A summary of the activity of the Company's outstanding warrants at December 31, 2014 and September 30, 2015 is as follows:	Warrants			Weighted-average exercise price		Weighted-average grant date fair value

Outstanding and exercisable at December 31, 2014		4,520		$	107	$	17.50

Expired		(600	)				80.00

Outstanding and exercisable at September 30, 2015		3,920		$	105	$	7.58

~~A summary of the activity of the Company’s outstanding warrants at December 31, 2014 and March 31, 2015 is as follows:~~

The following table sets forth the exercise price range, number of shares, weighted average exercise price and remaining contractual lives of the warrants by groups as of ~~March 31,~~September 30, 2015:

Exercise price range	Number of options outstanding		Weighted-average exercise price		Weighted-average remaining life		Number of warrants outstanding		Weighted-average exercise price		Weighted-average remaining life

$2.50		160	$	2.50		1.2 years		160	$	2.50	0.7 years

$75.00 - $200.00		4,200		96.43		1.8 years		3,600		92.00	1.6 years

$500.00		160		500.00		1.7 years		160		500.00	1.2 years

		4,520	$	107.00		1.7 years		3,920	$	105.00	1.3 years

During the period from April 1, 2015 to May 5, 2015, the Company issued 717,201,728 shares of common stock upon the conversion of $34,285 in principal and interest on convertible promissory notes issued by the Company.

Management has determined that there are no further events subsequent to the balance sheet date that should be disclosed in these financial statements.

Item 2. ~~Management’s~~Management's Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the ~~Company’s~~Company's consolidated financial statements and notes thereto for the years ended December 31, 2014 and 2013.

The independent ~~auditors’~~auditors' reports on our financial statements for the years ended December 31, 2014 and 2013 include a ~~“going concern”~~"going concern" explanatory paragraph that describes substantial doubt about our ability to continue as a going concern. ~~Management’s~~Management's plans in regard to the factors prompting the explanatory paragraph are discussed below and also in Note 1 to the audited consolidated financial statements for the year ended December 31, 2014.

While we have prepared our financial statements on the basis that we are a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business over a reasonable length of time, ~~our auditors have raised a~~there is substantial doubt about our ability to continue as a going ~~concern in their audit reports for the years ended December 31, 2014 and 2013.~~

We have completed the design and engineering modifications necessary and have begun limited production of our Portable Balloon Inflation Systems. In September 2012, the Company received a purchase order from the U.S. Air Force to make certain modifications to a PBIS-2000 previously delivered in 2012. The unit was returned to the Air Force in the first quarter of 2013 and we booked $13,440 in revenue received for this work. We have not sold any units since 2012.

During 2013, we transferred all of the assets related to our hydrogen generation business to a new wholly owned subsidiary, Novofuel, Inc. ("Novofuel") in exchange for 12,000,000 shares of Novofuel common stock. Novofuel was formed as a separate entity in anticipation of executing a transaction with Genport, SrL of Italy. In November 2013, the Company signed an agreement with Genport, SrL of Italy to combine and integrate their technologies, assets and operations into NovoFuel, contingent upon closing of private financing of up to $4,500,000 for the venture. While the NovoFuel and Genport continue to work together, to date no private financing has been received and no combination or integration of NovoFuel and Genport has taken place. There is no assurance this will take place and the Company is moving forward with its plans assuming it will note occur.concern.

NovoFuel's principal technology continues to be hydrogen generation on-site and on demand for such applications as feeding fuel cells to provide electricity, filling weather balloons for upper atmosphere readings, and providing power for unmanned undersea vehicle propulsion and surveillance operations. Government users typically are the early adopters of new technologies, and that is the case with NovoFuel's technology. However, with recent federal budget cuts, the procurement process and new technology R&D funding relating to NovoFuel's systems have come to a ~~virtual~~ standstill. This has caused the company to focus on backup power applications for selected commercial applications, where there is a real demand and funding available for renewable energy solutions. Two notable examples are 5kW backup power hydrogen fuel cells for telecom rooftop cell towers, and a hybrid array of renewable energy components for medical cannabis cultivation -- now the fastest growing market in North America, surpassing mobile phones.

Renewable Energy ~~Applications.~~Applications. The Company believes most promising initiative currently being pursued by NovoFuel involves the integration of hybrid Renewable Energy Systems (RES) to support medical cannabis cultivation. NovoFuel's RES Power Station application is intended to include wind turbines, solar panels, large format lithium-ion batteries, hydrogen fuel cells when necessary, and a real-time energy management and control module. The initial thrust into this market focuses on establishing a pilot site in Michigan for proof of concept, which is presently being developed.

At the present time, cannabis growing for medicinal purposes is legalized in 23 U.S. states, and there is pending legislation to follow suit in approximately 10 other states. Cannabis growing is legalized throughout Canada. This has become a major growth industry, with billions of dollars expected to be expended over the next several years. This rapid growth and energy intensive profile have triggered a serious problem regarding the use of local grid power to assure successful cultivation – involving special lights, heat, air conditioning, dehumidifiers, driers and other ancillary equipment for indoor locations. Even a typical one room indoor facility can use up to 10kW of power daily, which can be a tremendous burden on the local power utilities.

Renewable Energy Systems are the fastest growing power source globally (6% per year) -- expected to increase by 40% and comprise 25% of gross power generation by 2018. (See "Renewable Energy Medium-Term Market Report 2013 -- Market Trends and Projections to 2018", International Energy Agency, 2013; and "Solar Energy Use in U.S. Agriculture", USDA, April 2011).

Although we have done the work necessary to locate a pilot site in Oceana County, Michigan to build an operating RES system, there is no assurance we will be able to raise the funds necessary to complete installation of the necessary components or if we do, that the system will function as intended such that a commercially viable product will be produced.

PATENT APPROVAL. NovoFuel was notified by the U.S. Patent and Trademark office (USPTO) that the provisional patent on its hydrogen generation technology has been allowed, and U.S. Patent No. 8,974,765 was issued on March 10, 2015. The omnibus provisional patent application, "METHODS AND APPARATUS FOR CONTROLLED PRODUCTION OF HYDROGEN USING ALUMINUM-BASED WATER-SPLIT REACTIONS", was filed in 2009, and went through a comprehensive review by the USPTO. The approved patent embodies 48 specific claims which are applications-oriented, focusing on the practical aspects of controlling the aluminum powder-water reaction in NovoFuel's cartridge-based hydrogen generation system used in such applications as feeding fuel cells for backup power and filling weather balloons.

To address the going concern situation addressed in our financial statements at December 31, 2014 and 2013, we anticipate we will require over the next twelve months approximately ~~$800,000~~$500,000 of additional capital to fund the ~~Company’s~~Company's operations. This amount does not include any amounts that may be necessary to pay off existing debt or accrued expenses. We presently believe the source of funds will primarily consist of several components that include: debt financing, which may include further loans from our officers or directors as detailed more fully in the accompanying unaudited condensed consolidated financial statements; the sale of our equity securities in private placements or other equity offerings or instruments. As in 2014, during 2015 and for the foreseeable future we anticipate our primary source of capital resources will come from convertible debt instruments. These instruments contain a significant discount to the market value of our common stock of up to 60% causing the issuance of shares below market value prices causing substantial and continual dilution to our stockholders.

We can make no assurance that we will be successful in raising the funds necessary for our working capital requirements as suitable financing may not be available and we may not have the ability to sell either equity or debt securities under acceptable terms or in amounts sufficient to fund our needs. Our inability to access various capital markets or acceptable financing could have a material adverse effect on our commercialization efforts, results of operations and deployment of our business strategies and severely threaten our ability to operate as a going concern.

During the remainder of our fiscal year and for the foreseeable future, we will be concentrating on raising the necessary working capital through debt instruments and equity financing to insure the operation of our business. To the extent that additional capital is raised through the sale of equity or equity related securities such as convertible notes, which is expected to be our primary source of capital, the issuance of such securities has resulted, and will continue to result, in significant ~~continued~~sustained dilution to our current shareholders.

For both of the nine month periods ended September 30, 2015 and 2014, our total revenue was $0. The loss from operations for the nine month period ended September 30, 2015 was $427,338 versus $520,072 in the nine month period ended September 30, 2014. This decrease in 2015 was primarily the result of a decrease in "general and administrative" expense as described more fully below. The losses included $249,005 and $250,257 in 2015 and 2014, respectively, comprised of related party expense that included officer and key employee compensation as well as rent paid to related parties.

~~(b) Results~~A total of ~~Operations~~$178,333 and $269,619 for "general and administrative" operating expenses in the nine month periods ended September 30, 2015 and 2014, respectively, was comprised of the following:

	Nine months ended September 30, 2015			Nine months ended September 30, 2014
General and administrative	$	65,168		$	62,965
Salaries and employee benefits		120,840			173,231
Legal and accounting		19,755			39,587
Recovery of allowed for debt		(63,530	)		(82,500	)
Stock based compensation		16,000			-
Professional services		20,100			76,336
	$	178,333		$	269,619

General and administrative expense during the nine months ended September 30, 2015 decreased approximately $91,286 from the same period in 2014. One significant factor in the lower expense in 2015 versus 2014 is approximately $42,000 in lower salaries in the 2015 period with the cap on the salary of the President of our operating subsidiary at $100,000 in 2015 versus $200,000 in 2016. This took effect in the third quarter of 2015 and therefore will continue in the fourth quarter of 2015 as well. Legal and accounting expense was also significantly lower in 2015 versus 2014 resulting primarily from lower legal costs; as was professional services, which decreased by approximately $56,000 as the company scaled back payments for outside services in 2015. Stock based compensation increased by $16,000 for professional services paid with shares of common stock in the 2015 period.

The company recorded $526,749 in "other expense" during the nine months ended September 30, 2015 as compared to $842,388 in "other expense" for the nine months ended September 30, 2014. This significant decrease is the direct result of recording lower overall costs related to derivative liabilities related to the Company's convertible notes primarily from significantly lower interest expense and fair value adjustment of the derivative liabilities, as well as significantly fewer notes being issued in the 2015 period versus the 2014 period.

Three Month Period ended ~~March 31,~~September 30, 2015 vs ~~March 31,~~September 30, 2014

For both the three month periods ended ~~March 31,~~September 30, 2015 and 2014, our total revenue was $0. The loss from operations for the three month period ended ~~March 31,~~September 30, 2015 was ~~$164,260~~$98,445 versus ~~$202,937~~$125,450 in the three month period ended ~~March 31,~~September 30, 2014. This decrease in 2015 was primarily the result of a decrease in ~~“other”~~"general and administrative" expense as described more fully below. The losses included ~~$83,510~~$82,995 and ~~$84,407~~$82,750 in 2015 and 2014, respectively, comprised of related party expense that included officer and key employee compensation as well as rent paid to related parties.

A total of ~~$80,750~~$15,450 and ~~$118,446~~$42,672 for ~~“Other”~~"general and administrative" operating expenses in the three month periods ended ~~March 31,~~September 30, 2015 and 2014, respectively, was comprised of the following:

	Three months ended March 31, 2015			Three months ended March 31, 2014			Three months ended September 30, 2015			Three months ended September 30, 2014
General and administrative	$	31,249		$	31,504		$	16,204		$	17,611
Salaries and employee benefits		53,846			53,846			6,946			59,463
Legal and accounting		3,655			17,050			3,000			5,573
Bad debt expense		-			-
Recovery of allowed for debt		(28,100	)		(13,500	)		(10,700	)		(44,000	)
Professional services		20,100			29,546			-			4,025
	$	80,750		$	118,446		$	15,450		$	42,672

The ~~“other”~~"general and administrative" operating expense during the three months ended ~~March 31,~~September 30, 2015 ~~included virtually no change~~decreased by approximately $27,222. This decrease was primarily the result of approximately $52,500 in ~~general~~lower salaries in the 2015 period with the cap on the salary of the President of our operating subsidiary at $100,000 in 2015 versus $200,000 in 2016. This took effect in the third quarter of 2015 and ~~administrative and salaries and employee benefits expenses. The~~therefore will continue in the fourth quarter of 2015 as well. This was partially offset as the Company recovered ~~$14,600~~$10,700 in ~~increased~~ bad debt expense from payments received on related party notes receivable from affiliate FastFunds Financial Corporation in 2015 ~~which also contributed to the lower expense. Legal and accounting expense was significantly lower~~versus $44,000 in 2015 versus 2014 resulting primarily from lower legal costs. Professional services was also slightly lower due in part to approximately $16,000 in services paid for with shares of the Company’s common stock and included in “stock based compensation” in “other expense” below.2014.

The company recorded ~~$212,651~~$200,724 in ~~“other expense”~~"other expense" during the three months ended ~~March 31,~~September 30, 2015 as compared to ~~$617,060~~$22,561 in ~~“other expense”~~"other expense" for the three months ended ~~March 31,~~September 30, 2014. This significant ~~decrease~~increase is the direct result of ~~recording lower overall costs related to~~a significant decrease in the fair value of the Company's derivative liabilities related to ~~the Company’s~~ convertible notes ~~primarily from significantly~~in the 2014 versus the 2015 period. This was partially offset by lower ~~interest expense and fair value adjustment~~amortization of discount on the ~~derivative liabilities.~~notes in 2015 with fewer note issuances in 2015 versus 2014.

Market risk is the potential loss arising from adverse changes in market rates and prices, such as interest rates and a decline in the stock market. We do not enter into derivatives or other financial instruments for trading or speculative purposes. We have limited exposure to market risks related to changes in interest rates. We do not currently invest in equity instruments of public or private companies for business or strategic purposes.

The principal risks of loss arising from adverse changes in market rates and prices to which we are exposed relate to interest rates on debt. We have only fixed rate debt. We had approximately $1,055,000 of debt outstanding as of March 31, 2015 including convertible debentures and notes with a face value totaling $667,756, which has been borrowed at fixed rates ranging from 8% to 12%. All of this fixed rate debt is due on demand or is due within one year of issuance.

A review and evaluation was performed by the Company's management, including the Company's Chief Executive Officer (the "CEO") who is also the Chief Financial Officer (the ~~“CFO”~~"CFO"), of the effectiveness of the design and operation of the Company's disclosure controls and procedures as of the end of the period covered by this quarterly report. Based on that review and evaluation, the CEO concluded that as of ~~March 31,~~September 30, 2015 disclosure controls and procedures, were not effective at ensuring that the material information required to be disclosed in our Exchange Act reports is recorded, processed, summarized and reported as required in the application of SEC rules and forms.

~~Management’s~~Management's Report on Internal Controls over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting. Internal control over financial reporting is a set of processes designed by, or under the supervision of, a ~~company’s~~company's principal executive and principal financial officers, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with GAAP and includes those policies and procedures that:

	·	Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect our transactions and dispositions of our assets;

	·	Provide reasonable assurance our transactions are recorded as necessary to permit preparation of our financial statements in accordance with GAAP, and that receipts and expenditures are being made only in accordance with authorizations of our management and directors; and

	·	Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the financial statement.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. It should be noted that any system of internal control, however well designed and operated, can provide only reasonable, and not absolute, assurance that the objectives of the system will be met. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Our CEO/CFO has evaluated the effectiveness of our internal control over financial reporting as described in Exchange Act Rules 13a-15(e) and 15d-15(e) as of the end of the period covered by this report based upon criteria established in ~~“Internal~~"Internal Control-Integrated ~~Framework”~~Framework" issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) to the extent possible given the limited personnel resources and technological infrastructure in place to perform the evaluation. Based upon our ~~management’s~~management's discussions with our auditors and other advisors, our CEO/CFO believe that, during the period covered by this report, such internal controls and procedures were not effective as described below.

Due to the small size and limited financial resources, our administrative assistant, corporate secretary and chief executive officer are the only individuals involved in the accounting and financial reporting. As a result, there is limited segregation of duties in the accounting function, leaving all aspects of financial reporting and physical control of cash primarily in the hands of two individuals. This limited segregation of duties represents a material weakness. We will continue to periodically review our disclosure controls and procedures and internal control over financial reporting and make modifications from time to time considered necessary or desirable.

This Quarterly Report does not include an attestation report of our independent registered public accounting firm regarding internal control over financial reporting. ~~Management’s~~Management's report was not subject to attestation by our independent registered public accounting firm pursuant to temporary rules of the SEC that permit us to provide only ~~management’s~~management's report in this annual report.

There have been no changes in the ~~Company’s~~Company's internal controls over financial reporting that have materially affected, or are reasonably likely to materially affect, the ~~Company’s~~Company's internal controls over financial reporting.

During the three month period ended ~~March 31,~~September 30, 2015, we issued a total of ~~685,772,412~~373,881,262 shares of our common stock on the conversion of ~~$141,806~~$17,517 in principal and interest on our various convertible promissory notes, or ~~$0.0002~~$0.00005 per share.

During the three month period ended March 31, 2015, we issued 4,000,000 shares of our common stock in stock for services valued at $16,000 based on the $0.004 market price for our common stock on the date of issuance.

We offered and sold the securities in reliance on an exemption from federal registration under Section 4(2) of the Securities Act of 1933 and Rule 506 promulgated thereunder. We relied on this exemption and rule based on the fact that there were a limited number of investors, all of whom were accredited investors and (i) either alone or through a purchaser representative, had knowledge and experience in financial and business matters such that each was capable of evaluating the risks of the investment, and (ii) we had obtained subscription agreements from such investors indicating that they were purchasing for investment purposes only. The securities were not registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. The disclosure contained herein does not constitute an offer to sell or a solicitation of an offer to buy any securities of the Company, and is made only as permitted by Rule 135c under the Securities Act.

Exhibits:

31.1		Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. Filed herewith.

32.1		Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Filed herewith.

101		XBRL Interactive Data ~~File.~~ ~~Filed herewith.~~Files

In accordance with the requirements of the Exchange Act, the Registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	ALUMIFUEL POWER CORPORATION
	(Registrant)

Date: ~~May 15,~~November 16, 2015	By:	/s/ Henry Fong
		Henry Fong
		Principal Executive Officer and Principal Financial Officer

		March 31, 2015

Convertible debentures; non-affiliates; interest at 6% and due December 2013; outstanding principal of $10,000 face value; net of discount of $0		$	10,000
January 2012 Convertible Notes; non-affiliate; interest at 8%; due January 2013			48,300
2014 Asher Convertible Notes; non-affiliate, interest at 8%; due May 2012; $1,500 face value net of discount of $250			1,500
2014 CareBourn Notes; non-affiliate; interest at 8%-12; due August 14 through July 2015; $215,241 face value net of discount of $11,111			204,130
Bohn Convertible Note; non-affiliate; interest at 8%; $20,000 face value net of discount of $0			20,000
Wexford Convertible Note; non-affiliate; interest at 8%; $75,000 face value net of discount of $0			75,000
WHC Convertible Notes; non-affiliate; interest at 8%; $78,358 face value net of discount of $15,656			62,702
Schaper Notes; non-affiliate; interest at 8%; due August 2014; face value $25,000 net of discount of $0			25,000
LG Funding Notes; non-affiliate; interest at 8%; due February 2015; face value $34,060 net of discount of $5,208			28,852
ADAR Notes; non-affiliate; interest at 8%; due February 2015; face value $17,500 net of discount of $0			17,500
CareBourn 2015 Notes; non-affiliate; interest at 12%; due December 2015; $64,500 face value net of discount of $61,556			2,944
Black Forest Capital 2015 Notes; non-affiliate; interest at 10%; due March 2016; $18,587 face value net of discount of $12,962			5,625
LG Capital 2015 Notes; non-affiliate; interest at 8%; due February 2016; $31,500 face value net of discount of $26,250			5,250
Pure Energy 2015 Notes; non-affiliate; interest at 8%; due July 2015; $12,210 face value net of discount of $7,530			4,680
Beaufort Notes; non-affiliate; interest at 8%; due May 2015; face value $16,000 net of discount of $5,333			10,667
	Total convertible notes, net of discount		522,150

	Discount on convertible notes		145,606

Total convertible notes payable			667,756

Interest payable, convertible notes			137,873

	Total convertible notes payable and accrued interest payable	$	791,908

	March 31,			December 31,
	2015			2014
	(Unaudited)

Assets
Cash	$	1,977		$	972
Notes receivable, related parties (Note 5)		23,220			—

Total current assets		25,197			972

Deferred debt issuance costs (Note 4)		9,310			4,473

Total long-term assets		9,310			4,473

Total assets	$	34,507		$	5,445

Liabilities and Shareholders’ Deficit
Current liabilities:
Accounts and notes payable:
Accounts payable, related party (Note 3)	$	500,677		$	467,759
Accounts payable, other		519,204			518,349
Derivative liability, convertible notes payable (Note 3)		599,879			567,905
Notes payable, related party (Note 4)		14,461			21,461
Notes payable, other (Note 3)		372,953			392,953
Convertible notes payable, net of discount of $145,606 (2015) and $114,211 (2014) (Note 4)		522,150			548,301
Payroll liabilities (Note 7)		154,152			150,059
Accrued expenses (Note 7)		753,846			700,000
Dividends payable (Note 9)		118,365			110,395
Accrued interest payable:
Interest payable, convertible notes (Note 4)		137,873			129,386
Interest payable, related party notes (Note 3)		8,588			8,310
Interest payable, notes payable other (Note 4)		90,562			89,724

Total current liabilities		3,792,710			3,704,602

Series B preferred stock obligation, net (Note 9)		680,482			661,648


Shareholders’ deficit: (Notes 1 & 9)
Preferred stock, $.001 par value; unlimited shares authorized, no shares outstanding		—			—
Common stock, $.001 par value; unlimited shares authorized, 713,237,827 (2015) and 23,463,415 (2014) shares issued and outstanding, respectively		713,236			23,463
Additional paid-in capital		15,911,181			16,303,784
Accumulated deficit		(25,040,458	)		(24,663,547	)

Total shareholders' deficit of the Company		(8,416,041	)		(8,336,300	)

Non-controlling interest (Note 1)		3,977,356			3,975,495

Total shareholders' deficit		(4,438,685	)		(4,360,805	)

Total liabilities and shareholders' deficit	$	34,507		$	5,445

	Common stock				Additional paid-in			Accumulated			Non-controlling			Total shareholders
	Shares		Par value		capital			deficit			interest			deficit
Balance at December 31, 2014		23,463,415	$	23,463	$	16,303,784		$	(24,663,547	)	$	3,975,495		$	(4,360,805	)

January through March 2015, issuance of common stock upon conversion of convertible debt (Notes 4 & 9)		685,772,412		685,773		(543,967	)		-			-			141,806

Reclassification of derivative liabilities upon conversion of convertible debt (Note 4)		-		-		141,225			-			-			141,225

January through March 2015, issuance of common stock for services (Note 9)		4,000,000		4,000		12,000			-			-			16,000

Equity of AlumiFuel Power International, Inc. subsidiary, net of non-controlling interest (Note 1)		-		-		(1,861	)		-			(14,488	)		(16,349	)

Net loss		-		-		-			(376,911	)		16,349			(360,562	)

Balance at March 31, 2015		713,235,827	$	713,236	$	15,911,181		$	(25,040,458	)	$	3,977,356		$	(4,438,685	)

Principal balance 12/31/14	$	21,461
Notes repaid quarter ended 3/31/15		(7,000	)
Principal balance 3/31/15	$	14,461

	Warrants		Weighted- average exercise price		Weighted- average grant date fair value
Outstanding and exercisable at December 31, 2014		4,520	$	107.00	$	17.50

Outstanding and exercisable at March 31, 2015		4,520	$	107.00	$	17.50