UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-Q

[X] Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended ~~October~~January 31, ~~2017~~2018

[ ] Transition Report pursuant to 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from __________ to ~~__________~~_________

Commission File Number: 333-196921

EVOLUTION BLOCKCHAIN GROUP INC. (FORMERLY GARMATEX HOLDINGS LTD.) (Exact name of registrant as specified in its charter)

Nevada	36-4752858
(State or other jurisdiction of incorporation	(I.R.S. Employer Identification No.)
or organization)
7458 Allison Place
Chilliwack, British Columbia, Canada	V4Z 1Z7
(Address of principal executive offices)	(Zip Code)

(778) 823-3104 Registrant’s telephone number, including area code

1853 King Beach Avenue, Las Vegas, Nevada	89123-4300
(Address of principal executive offices)	(Zip Code)

(360) 305-1368
Registrant’s telephone number, including area code

n/a
(Former name, former address and former fiscal year, if changed since last report)

Indicated 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 (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days
Yes [X] No [ ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 229.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
Yes [ ] No [X]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer [ ] Accelerated filer [ ] Non-accelerated filer [ ] (Do not check if a smaller reporting company) Smaller reporting company [X] Emerging growth company [X]

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Yes [ ] No [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]

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: As of ~~December~~January 2731, ~~2017~~2018, there were 38383,~~384,960~~855 shares of common stock outstanding.

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements

TABLE OF CONTENTS

Page PART I - FINANCIAL INFORMATION Item 1. Financial Statements 3 Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 4 Item 3. Quantitative and Qualitative Disclosures about Market Risk 6 Item 4. Controls and Procedures 6 PART II - OTHER INFORMATION Item 1. Legal Proceedings 7 Item 1A: Risk Factors 7 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 7 Item 3. Defaults upon Senior Securities 7 Item 4. Mine Safety Disclosures 7 Item 5. Other Information 7 Item 6. Exhibits 7 SIGNATURES 8

	Page
PART I - FINANCIAL INFORMATION

Item 1. Financial Statements	3
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	4
Item 3. Quantitative and Qualitative Disclosures about Market Risk	10
Item 4. Controls and Procedures	10

PART II - OTHER INFORMATION

Item 1. Legal Proceedings	11
Item 1A: Risk Factors	11
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	16
Item 3. Defaults upon Senior Securities	16
Item 4. Mine Safety Disclosures	16
Item 5. Other Information	16
Item 6. Exhibits	16

SIGNATURES	17

~~The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements~~ 2

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

Our consolidated financial statements included in this Form 10-Q are as follows:

F-1	Consolidated Balance Sheets as of ~~October~~January 31, ~~2017~~2018, (unaudited) and April 30, 2017;
F-2	Consolidated Statements of Operations for the three and ~~six~~nine months ended ~~October~~January 31, ~~2017~~2018 and ~~2016~~2017 (unaudited);
F-3	Consolidated Statements of Stockholders’ Equity (Deficit) for the ~~six~~nine months ended ~~October~~January 31, ~~2017~~2018 (unaudited);
F-4	Consolidated Statements of Cash Flows for the ~~six~~nine months ended ~~October~~January 31, ~~2017~~2018 and ~~2016~~2017 (unaudited);
F-4	Notes to Consolidated Financial Statements (unaudited).

These unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and the SEC instructions to Form 10-Q. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. Operating results for the interim period ended ~~October~~January 31, ~~2017~~2018 are not necessarily indicative of the results that can be expected for the full year.

~~The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements~~ 3

~~GARMATEX~~EVOLUTION ~~HOLDINGS~~BLOCKCHAIN ~~LTD.~~GROUP ~~INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS~~ INC.(~~EXPRESSED~~FORMERLY INGARMATEX HOLDINGS ~~US DOLLARS~~LTD.)

		October 31,			April 30,
		2017			2017
		(unaudited)
ASSETS
Current
Cash	$	-		$	27,880
Prepaid expenses					3,844
Due from related party – Note 4		-			85
Total current assets		-			31,809
Sublicenses - Note 3		1			1
Total assets	$	1		$	31,810
LIABILITIES
Current
Bank indebtedness	$	20		$	-
Accounts payable and accrued liabilities		106,590			34,155
Notes payable – Note 5		55,674			4,209
Due to related party – Note 4		-			2,576
Total current liabilities		162,284			40,940
Long term liabilities
Promissory notes payable – Note 5		40,700			40,700
Total long-term liabilities		40,700			40,700
Total liabilities		202,984			81,640
STOCKHOLDERS’ DEFICIT
Preferred stock, $0.001 par value
10,000,000 shares authorized, none issued and outstanding		-			-
Common stock, $0.001 par value – Note 6 1,125,000,000 shares authorized 38,384,960 and 35,627,934 shares issued and outstanding, respectively		38,404			35,628
Additional paid in capital		962,855			906,459
Obligation to issue shares		9,520			18,754
Accumulated deficit		(1,213,762	)		(1,010,671	)
Total stockholders’ deficit		(202,983	)		(49,830	)
Total liabilities & stockholders’ deficit	$	1		$	31,810

INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

~~The~~Three ~~accompanying~~and ~~notes~~Nine ~~are~~Months anEnded ~~integral~~January ~~part~~31, of2018 ~~these~~and ~~unaudited interim condensed consolidated financial statements~~ 2017

~~GARMATEX HOLDINGS LTD. INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS~~ (Unaudited)

		For the Three Months Ended						For the Six Months Ended
		October 31,						October 31,
		2017			2016			2017			2016
Operating expenses
Audit and accounting fees	$	13,606		$	5,387		$	20,784		$	8,561
Bank charges		72			147			378			160
Consulting fees		47,572			2,285			58,789			16,253
Investor relations		-			-			11,321			-
Foreign exchange loss		(1,750	)		13,510			(17	)		19,422
Legal fees		7,792			11,152			24,033			14,423
Marketing and social media		3,253			-			5,679			-
Transfer and filing fees		3,005			9,630			8,329			17,262
Total operating loss		(73,550	)		(42,111	)		(129,296	)		(76,081	)
Accretion expense – Note 5		28,206			-			50,411			-
Impairment on note receivable – Note 5		-			-			84			-
Interest income – Note 4		-			5,902			-			10,709
Interest expense – Note 5		1,937			(616	)		3,840			(1,231	)
Total other income (expense)		(30,143	)		(5,286	)		(54,335	)		(9,478	)
Net loss for the period	$	(103,693	)	$	(36,825	)	$	(183,631	)	$	(66,603	)
Basic and diluted net loss per common share	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.00	)
Weighted average number of common shares outstanding – basic and diluted		35,707,492			33,163,950			35,692,850			32,630,888

F-1

~~The~~EVOLUTION ~~accompanying~~BLOCKCHAIN ~~notes~~GROUP ~~are~~INC. an(FORMERLY ~~integral~~GARMATEX ~~part~~HOLDINGS ofLTD.) ~~these~~INTERIM ~~unaudited interim~~CONDENSED ~~condensed~~CONSOLIDATED ~~consolidated~~BALANCE ~~financial~~SHEETS ~~statements~~(EXPRESSED IN US DOLLARS)

GARMATEX HOLDINGS LTD. INTERIM CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ DEFICIT (Unaudited)

		January 31,			April 30,
		2018			2017
		(unaudited)
ASSETS

Current
Cash	$	3,144		$	27,880
Prepaid expenses		-			3,844
Due from related party – Note 4		-			85
Total current assets		3,144			31,809

Sublicenses - Note 3		1			1

Total assets	$	3,145		$	31,810


LIABILITIES

Current
Accounts payable and accrued liabilities	$	139,004		$	34,155
Notes payable – Note 5		121,683			4,209
Due to related party – Note 4		22,803			2,576
Total current liabilities		283,490			40,940

Long term liabilities
Promissory notes payable – Note 5		-			40,700
Total long-term liabilities		-			40,700

Total liabilities		283,490			81,640

STOCKHOLDERS’ DEFICIT

Preferred stock, $0.001 par value 100,000 shares authorized, none issued and outstanding		-			-
Common stock, $0.001 par value – Note 6 11,250,000 shares authorized 383,855and 356,284 shares issued and outstanding, respectively		384			356
Additional paid in capital		1,000,875			941,731
Obligation to issue shares		9,520			18,754
Accumulated deficit		(1,291,124	)		(1,010,671	)

Total stockholders’ deficit		(280,345	)		(49,830	)

Total liabilities & stockholders’ deficit	$	3,145		$	31,810

					Additional
					Paid in		Shares to be			Accumulated
	Common Shares				Capital		Issued			Deficit			Total
	Number		Amount
Balance, April 30, 2016	31,500,000	$	31,500	$	25,460	$	-		$	(109,268	)	$	(52,308	)
Shares issued for cash received by Garmatex	875,000		875		271,017		-			-			271,892
Shares issued for note payable	250,000		250		79,526		-			-			79,776
Shares issued for cash	2,877,934		2,878		391,652		-			-			394,530
Shares issued for convertible debt	125,000		125		38,804		-			-			38,929
Subscription received	-		-		-		18,754			-			18,754
Beneficial conversion feature	-		-		100,000		-			-			100,000
Net loss	-		-		-		-			(901,403	)		(901,403	)
Balance, April 30, 2017	35,627,934		35,628		906,459		18,754			(1,010,671	)		(49,830	)
Shares issued for cash – Note 6	62,500		62		18,692		(18,754	)		-			-
Shares issued for debt – Note 6	2,694,526		2,714		37,704		-			(19,460	)		20,958
Obligation to issue shares – Note 6	-		-		-		9,520			-			9,520
Net loss	-		-		-		-			(183,631	)		(183,631	)
Balance, October 31, 2017	38,384,960	$	38,404	$	962,855	$	9,520		$	(1,213,762	)	$	(202,983	)

The accompanying notes are an integral part of these unaudited interim condensed and consolidated interim financial statements

~~GARMATEX HOLDINGS LTD. INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)~~F-2

		For the Six Months Ended
		October 31,			October 31,
		2017			2016
Cash flows used in operating activities
Net loss for the period	$	(183,631	)	$	(66,603	)
Adjustments to reconcile net loss to net cash used in operating activities:
Impairment on notes receivable		84			-
Accretion of debt discount		50,411			-
Non-cash consulting		9,520			-
Unrealized foreign exchange		(2,087	)		-
Changes in operating assets and liabilities:
Accounts payable and accrued liabilities		94,407			44,218
Prepaid expenses		3,569			-
Interest receivable		-			(10,709	)
Accrued long term interest payable		3,840			1,231
Net cash used in operating activities		(23,887	)		(31,863	)
Cash flows used in investing activities
Advanced to related party		-			(182,310	)
Net cash used in investing activities		-			(182,310	)
Cash flows from financing activities
Cash received for common stock issuable		-			214,531
Proceeds from due to related party notes					-
Payment on note payable		(3,656	)		-
Net cash (used in) provided by financing activities		(3,656	)		214,531
Effect of foreign exchange rate changes on cash		(357	)		-
Change in cash during the period		(27,900	)		358
Cash, beginning of the period		27,880			51
Bank indebtedness, end of the period	$	(20	)	$	409
Interest and taxes paid in cash	$	-		$	-

EVOLUTION BLOCKCHAIN GROUP INC.

(FORMERLY GARMATEX HOLDINGS LTD.)

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(EXPRESSED IN US DOLLARS)

(Unaudited)

Supplemental Cash Flow Information - Note 7

		For the Three Months Ended						For the Nine Months Ended
		January 31,						January 31,
		2018			2017			2018			2017
Operating expenses
Audit and accounting fees	$	2,929		$	5,165		$	23,713		$	13,726
Bank charges		125			229			503			389
Consulting fees		30,000			2,271			88,789			18,524
Investor relations		-			-			11,321			-
Foreign exchange loss (gain)		2,707			(15,604	)		2,690			3,818
Legal fees		11,985			2,690			36,018			17,113
Marketing and social media		-			-			5,679			-
Office expense		3			-			3			-
Transfer and filing fees		2,471			1,196			10,800			18,458

Total operating loss		(50,220	)		4,053			(179,516	)		(72,028	)

Accretion expense – Note 5		(25,205	)		-			(75,616	)		-
Impairment on note receivable – Note 4		-			-			(84	)		-
Interest income – Note 4		-			7,977			-			18,686
Interest expense – Note 5		(1,937	)		(616	)		(5,777	)		(1,847	)
Total other income (expense)		(27,142	)		7,361			(81,477	)		16,839

Net income (loss) for the period	$	(77,362	)	$	11,414		$	(260,993	)	$	(55,189	)


Basic and diluted net loss per common share
	$	(0.20	)	$	0.03		$	(0.71	)	$	(0.16	)

Weighted average number of common shares outstanding – basic and diluted		383,855			349,144			365,364			334,878

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements

~~GARMATEX HOLDINGS LTD. Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) For the three and six months ended October 31, 2017 and 2016~~F-3

Note 1	Basis of Presentation
	While the information presented in the accompanying interim condensed consolidated financial statements for the three and six months ended October 31, 2017 and 2016 is unaudited, it includes all adjustments which are, in the opinion of management, necessary to present fairly the balance sheet, results of operations and cash flows for the interim period presented in accordance with the accounting principles generally accepted in the United States of America. In the opinion of management, all adjustments considered necessary for a fair presentation of the results of operations and financial position have been included and all such adjustments are of a normal recurring nature. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements (and notes thereto) for the years ended April 30, 2017 and 2016 included elsewhere in the Company’s 10K filed with the SEC on July 31, 2017.
	Operating results for the six months ended October 31, 2017 are not necessarily indicative of the results that can be expected for the year ending April 30, 2018.

EVOLUTION BLOCKCHAIN GROUP INC.

(FORMERLY GARMATEX HOLDINGS LTD.)

INTERIM CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ DEFICIT

(EXPRESSED IN US DOLLARS)

(Unaudited)

Note 2	Nature of Operations and Ability to Continue as a Going Concern
						Additional
	On August 15, 2016, the Company changed its corporate name from Oaxaca Resources Inc. to Garmatex Holdings Ltd. Oaxaca Resources Corp. (the “Company”) was incorporated in the State of Nevada, United States of America on April 9, 2014. The Company was formed for the purpose of acquiring and developing mineral properties. The Company’s year-end is April 30.
						Paid in		Shares to be			Accumulated
	These unaudited interim condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles applicable to a going concern, which assumes that the Company will be able to meet its obligations and continue its operations for its next fiscal year. Realization values may be substantially different from carrying values as shown and these interim unaudited consolidated financial statements do not give effect to adjustments that would be necessary to the carrying values and classification of assets and liabilities should the Company be unable to continue as a going concern. The Company has yet to achieve profitable operations, has an accumulated deficit of $1,213,762 and expects to incur further losses in the development of its business, all of which raises substantial doubt about the Company’s ability to continue as a going concern. The Company’s ability to continue as a going concern is dependent upon its ability to generate future profitable operations and/or to obtain the necessary financing from shareholders or other sources to meet its obligations and repay its liabilities arising from normal business operations when they come due. Management has no formal plan in place to address this concern but considers that the Company will be able to obtain additional funds by equity financing and/or related party advances, however there is no assurance of additional funding being available or on acceptable terms, if at all. The interim unaudited consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts of and classification of liabilities that might be necessary in the event the Company cannot continue in existence.
		Common Shares				Capital		Issued			Deficit			Total
		Number		Amount
Balance, April 30, 2016		315,000	$	315	$	56,645	$	-		$	(109,268	)	$	(52,308	)
Shares issued for cash received by Garmatex		8,750		9		271,883		-			-			271,892
Shares issued for note payable		2,500		2		79,774		-			-			79,776
Shares issued for cash		28,784		29		394,501		-			-			394,530
Shares issued for convertible debt		1,250		1		38,928		-			-			38,929
Subscription received		-		-		-		18,754			-			18,754
Beneficial conversion feature		-		-		100,000		-			-			100,000
Net loss		-		-		-		-			(901,403	)		(901,403	)
Balance, April 30, 2017		356,284		356		941,731		18,754			(1,010,671	)		(49,830	)
Shares issued for cash – Note 6		625		1		18,753		(18,754	)		-			-
Shares issued for debt – Note 6		26,946		27		40,391		-			(19,460	)		20,958
Obligation to issue shares – Note 6		-		-		-		9,520			-			9,520
Net loss		-		-		-		-			(260,993	)		(260,993	)
Balance, January 31, 2018		383,855	$	384	$	1,000,875	$	9,520		$	(1,291,124	)	$	(280,345	)

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements

On April 8, 2016, the Company entered into a definitive Arrangement Agreement with Garmatex Technologies, Inc., a private company incorporated under the laws of the Province of British Columbia, Canada ("Garmatex"), pursuant to which the Company has agreed to acquire all of the issued and outstanding securities of Garmatex in exchange for equivalent securities of the Company by way of a statutory arrangement (the “Arrangement”) pursuant to the Business Corporations Act (British Columbia). The purpose of the Arrangement is for the Company, through the acquisition of Garmatex, to engage in Garmatex’s business of developing and supplying scientificallyF-~~engineered fabric technologies. As of the date of this report, the Arrangement Agreement with Garmatex Technologies has expired as conditions of the merger had not yet been satisfied.~~4

OnEVOLUTION ~~March~~BLOCKCHAIN 8,GROUP ~~2017,~~INC. ~~the~~(FORMERLY ~~Company~~GARMATEX ~~executed an~~HOLDINGS amended, effective August 15, 2016, to the Arrangement, which allowed for an extension of the termination date to May 31, 2017 and settlement of all the loans issued under the previously entered Secured and Subordinated Loan Agreement, dated March 15, 2016, which in aggregate was CDN $953,988LTD.) ~~In consideration~~INTERIM ofCONDENSED ~~the~~CONSOLIDATED ~~settlement,~~STATEMENT ~~Garmatex~~OF ~~granted~~CASH aFLOWS ~~non-exclusive~~(EXPRESSED ~~technology Sublicense~~IN ~~Agreement,~~US ~~dated~~DOLLARS) ~~March 8, 2017, and a Garmatex Trademark and Technology License Agreement, dated March 9, 2017, to their trade secret formulae and trademarks~~ (~~note 3~~Unaudited).

Upon entering the Sublicense and License Agreements, management has determined that the Company ceased to be a shell company as defined in Rule 12b-2 promulgated under the Securities Exchange Act of 1934 because the Company is now able to fully exploit their intended business model.

		For the Nine Months Ended
		January 31,			January 31,
		2018			2017
Cash flows used in operating activities
Net loss for the period	$	(260,993	)	$	(55,189	)
Adjustments to reconcile net loss to net cash used in operating activities:
Impairment on notes receivable		84			-
Accretion of debt discount		75,616			-
Non-cash consulting		9,520			-
Unrealized foreign exchange		625			-
Changes in operating assets and liabilities:
Accounts payable and accrued liabilities		144,988			23,562
Prepaid expenses		3,569			-
Interest receivable		-			(18,686	)
Accrued long term interest payable		5,777			1,846
Net cash used in operating activities		(20,814	)		(48,467	)

Cash flows used in investing activities
Advanced to related party		-			(323,028	)
Net cash used in investing activities		-			(323,028	)

Cash flows from financing activities
Cash received for common stock		-			314,530
Cash received for common stock issuable		-			55,000
Payment on note payable		(3,656	)		-
Net cash (used in) provided by financing activities		(3,656	)		369,530

Effect of foreign exchange rate changes on cash		(266	)		3,752

Change in cash during the period		(24,736	)
					1,787
Cash, beginning of the period		27,880			51
Bank indebtedness, end of the period	$	3,144		$	1,838


Interest and taxes paid in cash	$	-		$	-

Effective August 15, 2016, the Company effected a forward stock split on the basis of 12.5:1. As such, the Company’s authorized capital was increased from 90,000,000 shares of common stock, par value $0.001 to 1,125,000,000 shares of common stock, par value $0.001 and all shares of common stock issued and outstanding were increased on the basis of twelve and one half new shares for each one old shares. These consolidated financial statements give retroactive effect to such forward split and all share and per share amounts have been adjusted accordingly.

Effective on September 15, 2017 the Arrangement Agreement has been terminated between the Company and Garmatex Technologies Inc.

Note 3	Technology Sublicensing Agreement
	The Company entered into a non-exclusive Sublicense Agreement, dated March 8, 2017 and a Garmatex Trademark & Technology License Agreement, dated March 9, 2017, (collectively, “Master Sublicense Agreement”) with Garmatex whereby the Company was granted various intellectual property rights related to the design, development and manufacturing of various scientifically-engineered fabric technologies and performance technologies; including a patented T3® design, Bact-Out®, CoolSkin®, WarmSkin®, Kottinu™, ColdSkin™, SteelSkin™, Satinu™, CamoSkin™, RecoverySkin™, SlimSkin™, AbsorbSkin™ and IceSkin™ (collectively the foregoing are referred to hereinafter as the “Products”).
	Pursuant to the terms of the agreement, the Company acquired the rights to further develop, commercialize, market and distribute certain proprietary inventions and know-how related to the Products. The term of the non-exclusive Sublicense Agreement will continue in perpetuity until the Arrangement Agreement, dated April 8, 2016, is fully completed and Garmatex becomes a wholly owned subsidiary of the Company. Should the Arrangement Agreement not be completed, the Sublicense Agreement will continue in perpetuity unless otherwise agreed upon or amended by both parties.

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements

F-5

EVOLUTION BLOCKCHAIN GROUP INC.

(FORMERLY GARMATEX HOLDINGS LTD.)

Notes to the Interim Condensed Consolidated Financial Statements

For the three and nine months ended January 31, 2018 and 2017

(Expressed in USD - Unaudited)

Note 1

Basis of Presentation

While the information presented in the accompanying interim condensed consolidated financial statements for the three and nine months ended January 31, 2018 and 2017 is unaudited, it includes all adjustments which are, in the opinion of management, necessary to present fairly the balance sheet, results of operations and cash flows for the interim period presented in accordance with the accounting principles generally accepted in the United States of America. In the opinion of management, all adjustments considered necessary for a fair presentation of the results of operations and financial position have been included and all such adjustments are of a normal recurring nature. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements (and notes thereto) for the years ended April 30, 2017 and 2016 included elsewhere in the Company’s 10K filed with the SEC on July 31, 2017.

These unaudited interim condensed consolidated financial statements were approved by the Board on March 15, 2018.

Operating results for the nine months ended January 31, 2018 are not necessarily indicative of the results that can be expected for the year ending April 30, 2018.

Note 2

Nature of Operations and Ability to Continue as a Going Concern

On February 13, 2018, the Company changed its name from Garmatex Holdings Ltd. to Evolution Blockchain Group Inc. (the “Company”). The Company was incorporated in the State of Nevada, United States of America on April 9, 2014. The Company was formed for the purpose of acquiring and developing mineral properties. The Company’s year-end is April 30.

These unaudited interim condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles applicable to a going concern, which assumes that the Company will be able to meet its obligations and continue its operations for its next fiscal year. Realization values may be substantially different from carrying values as shown and these interim unaudited consolidated financial statements do not give effect to adjustments that would be necessary to the carrying values and classification of assets and liabilities should the Company be unable to continue as a going concern. The Company has yet to achieve profitable operations, has an accumulated deficit of $1,291,124 and expects to incur further losses in the development of its business, all of which raises substantial doubt about the Company’s ability to continue as a going concern. The Company’s ability to continue as a going concern is dependent upon its ability to generate future profitable operations and/or to obtain the necessary financing from shareholders or other sources to meet its obligations and repay its liabilities arising from normal business operations when they come due. Management has no formal plan in place to address this concern but considers that the Company will be able to obtain additional funds by equity financing and/or related party advances, however there is no assurance of additional funding being available or on acceptable terms, if at all. The interim unaudited consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts of and classification of liabilities that might be necessary in the event the Company cannot continue in existence.

F-6

EVOLUTION BLOCKCHAIN GROUP INC.

(FORMERLY GARMATEX HOLDINGS LTD.)

Notes to the Interim Condensed Consolidated Financial Statements

For the three and nine months ended January 31, 2018 and 2017

(Expressed in USD - Unaudited)

Page 2

On April 8, 2016, the Company entered into an agreement with Garmatex Technologies, Inc., a private company incorporated under the laws of the Province of British Columbia, Canada ("Garmatex"), pursuant to which the Company has agreed to acquire all of the issued and outstanding securities of Garmatex in exchange for equivalent securities of the Company by way of a statutory arrangement (the “Arrangement”) pursuant to the Business Corporations Act (British Columbia). The purpose of the Arrangement is for the Company, through the acquisition of Garmatex, to engage in Garmatex’s business of developing and supplying scientifically-engineered fabric technologies. As of the date of this report, the Arrangement Agreement with Garmatex Technologies has expired as conditions of the merger had not yet been satisfied.

On March 8, 2017, the Company executed an amended, effective August 15, 2016, to the Arrangement, which allowed for an extension of the termination date to May 31, 2017. In consideration of the settlement, Garmatex granted a non-exclusive technology Sublicense Agreement, dated March 8, 2017, and a Garmatex Trademark and Technology License Agreement, dated March 9, 2017, to their trade secret formulae and trademarks (note 3).

Effective September 15, 2017, the Arrangement Agreement has been terminated between the Company and Garmatex Technologies Inc.

On January 25, 2018, the Company formed a wholly-owned subsidiary, Evolution Blockchain Group Inc., which was incorporated in the State of Nevada, United States.

Effective February 28, 2018, the Company completed a reverse stock split where the Company’s authorized capital was decreased from 1,125,000,000 shares of common stock to 11,250,000 shares of common stock and from 10,000,000 shares of preferred stock to 100,000 shares of preferred stock. The par value of common stock and preferred stock remain unchanged after the reverse stock split, which is $0.001. All shares of common stock issued and outstanding were decreased on the basis of on the basis of one (1) new share for each one hundred (100) old shares. These consolidated financial statements give retroactive effect to such reverse split and all share and per share amounts have been adjusted accordingly.

Note 3

Technology Sublicensing Agreement

The Company entered into a non-exclusive Sublicense Agreement, dated March 8, 2017 and a Garmatex Trademark & Technology License Agreement, dated March 9, 2017, (collectively, “Master Sublicense Agreement”) with Garmatex whereby the Company was granted various intellectual property rights.

Pursuant to the terms of the agreement, the Company acquired the rights to further develop, commercialize, market and distribute certain proprietary inventions and know-how related to the products. The term of the non-exclusive Sublicense Agreement will continue in perpetuity until the Arrangement Agreement, dated April 8, 2016, is fully completed and Garmatex becomes a wholly owned subsidiary of the Company. Should the Arrangement Agreement not be completed, the Sublicense Agreement will continue in perpetuity unless otherwise agreed upon or amended by both parties.

F-7

EVOLUTION BLOCKCHAIN GROUP INC.

(FORMERLY GARMATEX HOLDINGS LTD.)

Notes to the Interim Condensed Consolidated Financial Statements

For the three and nine months ended January 31, 2018 and 2017

(Expressed in USD - Unaudited)

Page 3

As consideration for entering into the Master Sublicense Agreement, the Company has agreed to the following terms and conditions: (i) the Parties shall enter into Amendment No. 1 to the Arrangement Agreement, pursuant to which, among other things, the term “Termination Date” will be amended to mean May 31, 2017, or such later date as may be mutually agreed to in writing by the Parties; and (ii) settlement of all the loans issued under the previously entered Secured and Subordinated Loan Agreement, dated March 15, 2016 which in aggregate was CDN $953,988 ($711,586).

The Company performed an analysis of the non-monetary transaction under ASC 845-10, and determined the fair value of the Master Sublicense Agreement to be equal to the book value of the loan, which the Company had written down to $1.00 due to the uncertainty of its recoverability and the uncertainty that the Company will be able to generate future revenues under the Master Sublicense Agreement.

Note 4	Related Party Transactions
	Management considers all directors, officers and persons with a significant influence over the operations of the Company to be related parties.
	On March 8, 2017, the Company executed an amendment, effective August 15, 2016, to the Arrangement Agreement dated April 8, 2016. The amendment has allowed for settlement of all the loans issued under the previously entered Secured and Subordinated Loan Agreement, dated March 15, 2016 which in aggregate was $953,988 CDN (US$711,586) including accrued interest. In return Garmatex granted a non-exclusive technology sublicense to the trade secret formulae and trademarks for the CoolSkin, RecoverySkin, SlimSkin, Kottinu, AbsorbSkin, ColdSkin, SteelSkin, WarmSkin, and IceSkin products. Due to the uncertainty in recoverability of the loans issued under the Secured and Subordinated Loan Agreement, the Company recorded an impairment to the loan receivable of $711,585, the remaining $1.00 was applied to the carrying value of the sublicense agreement.
	On April 19, 2017, the Company received a promissory note in the amount of CDN $60,000 ($45,159) and on April 21, 2017, the Company received a promissory note in the amount of CDN $20,000 ($15,108), both from Garmatex, pursuant to the secured and subordinated loan agreement dated April 8, 2016. The notes were bearing interest at 5% per annum and payable semi-annually prior to maturity. Repayment of the notes, together with all outstanding interest accrued, will be due and payable on the earlier of; (a) nine months from the advancement date, (b) the closing of the Arrangement Transactions, and (c) 90 calendar days from the termination of the LOI or any formal Arrangement Transaction agreement which supersedes the LOI. The lender at all times has right to convert any portion of the principal and interest outstanding into securities of the Borrower. Due to the uncertainty in recoverability of the loans issued under the Secured and Subordinated Loan Agreement, the Company recorded an impairment to the loan receivable of $58,576.
	During the six months ended October 31, 2017, the Company recorded interest income of $nil (2016 - $10,709) pursuant to the above notes receivable. Total accrued interest on all outstanding notes receivable as of October 31, 2017, was $nil (April 30, 2017 - $85). The Company recorded an impairment to the interest receivable of $85 due to the impairment recorded on the loan receivable as of April 30, 2017.

Note 4

Related Party Transactions

~~The~~Management ~~accompanying~~considers ~~notes~~all ~~are~~directors, officers anand ~~integral~~persons ~~part~~with ofa ~~these~~significant ~~unaudited~~influence over the operations of the ~~interim~~Company ~~condensed~~to ~~consolidated~~be ~~financial~~related ~~statements~~parties.

~~The~~On ~~Company~~March ~~has~~8, ~~performed~~2017, ~~an analysis of~~ the ~~related~~Company ~~party~~executed an ~~loan~~amendment, ~~balance~~effective ~~under~~August ~~ASC~~15, ~~810-10~~2016, ~~and~~to ~~determined~~ the ~~loan represents~~Arrangement aAgreement ~~variable~~dated April ~~interest~~8, ~~in Garmatex~~2016. ~~Garmatex~~The isamendment ahas ~~variable~~allowed ~~interest entity~~for ~~(“VIE”)~~settlement ~~and~~of ~~depends~~all onthe loans issued under the ~~Company,~~previously asentered ~~well~~Secured asand ~~additional~~Subordinated ~~parties~~Loan Agreement, ~~for~~dated ~~continuing~~March ~~financial~~15, ~~support~~2016 which in ~~order~~aggregate towas ~~maintain~~CDN ~~operations.~~$953,988 ~~However~~(US$711,586) ~~the~~including ~~Company~~accrued ~~cannot~~interest. ~~make~~In ~~key~~return ~~operating~~Garmatex ~~decisions~~granted ~~considered~~a non-exclusive technology sublicense to bethe ~~most~~trade ~~significant~~secret to formulae and trademarks for the ~~VIE~~CoolSkin, RecoverySkin, ~~and~~SlimSkin, isKottinu, ~~therefore~~AbsorbSkin, ~~not~~ColdSkin, ~~considered~~SteelSkin, toWarmSkin, beand IceSkin products. Due to the ~~primary~~uncertainty ~~beneficiary.~~in ~~The~~recoverability of the loans issued ~~Company’s~~under ~~maximum~~the ~~exposure~~Secured toand ~~loss~~Subordinated ~~approximates~~Loan Agreement, the Company recorded an impairment to the ~~carrying~~loan ~~value~~receivable of $711,585, the remaining $1.00 was applied ~~related~~to ~~party~~the ~~loan~~carrying ~~balance~~value atof ~~October~~the ~~31,~~sublicense ~~2017~~agreement.

AsOn ofApril ~~October 31~~19, 2017, the Company received ~~recorded~~a ~~due~~promissory tonote ~~related~~in ~~party~~the amount of CDN $~~nil~~60,000 ($45,159) and on April 3021, 2017, the -Company received a promissory note in the amount of CDN $220,~~576~~000 ($15,108), both ~~owing~~from Garmatex, pursuant to the secured and subordinated loan agreement ~~current~~dated ~~CEO~~April 8, ~~president~~2016. The notes were bearing interest at 5% per annum and payable semi-annually prior to maturity. Repayment of the notes, ~~chief~~together ~~financial~~with ~~officer~~all outstanding interest accrued, ~~treasurer~~will be due and payable on the earlier of; (a) nine months from the advancement date, (b) the closing of the Arrangement Transactions, and ~~sole~~(c) ~~director~~90 calendar days from the termination of the LOI or any ~~relating~~formal Arrangement Transaction agreement which supersedes the LOI. The lender at all times has right to ~~outstanding~~convert ~~management~~any ~~fees~~portion of the principal and ~~reimbursements~~interest outstanding into securities of the Borrower. Due to the uncertainty in recoverability of the loans issued under the Secured and Subordinated Loan Agreement, the Company recorded an impairment to the loan receivable of $58,576.

During the three and six months ended October 31, 2017 and 2016, the principal executive offices were provided at no cost by the Company’s current CEO, president, chief financial officer, treasurer, and sole director. F-8

OnEVOLUTION ~~October~~BLOCKCHAIN ~~30,~~GROUP ~~2017,~~INC. ~~the~~(FORMERLY ~~Company issued~~GARMATEX ~~2,694,526~~HOLDINGS ~~common~~LTD.) ~~shares~~Notes ofto the ~~Company~~Interim ~~with~~Condensed aConsolidated ~~fair~~Financial ~~value~~Statements ofFor ~~$40,418~~the ~~to settle~~three ~~services~~and ~~rendered~~nine ~~from~~months aended ~~significant~~January ~~shareholder~~31, 2018 and 2017 (~~Note~~Expressed 6in USD - Unaudited). Page 4

Note 5	Notes Payable
	On March 31, 2017, the Company issued a promissory note in the aggregate amount of CDN$5,000 for a legal retainer paid directly to, Harper Grey LLP, on behalf of the Company, totalling $3,656 (CDN$5,000) by a non-related party. The promissory note is unsecured, bears no interest, and matures on May 15, 2017. The Company repaid this promissory note on May 10, 2017.
	On April 28, 2017, the Company issued a convertible loan agreement in the aggregate principal amount of $100,000. This convertible loan agreement is unsecured, bears interest at 5% per annum, compounded annually, is convertible at $0.20 per common share, and is due in full including principal and accrued interest at its date of maturity on April 28, 2018. The Company recorded a debt discount of $100,000 related to the beneficial conversion feature. The expense was measured at the intrinsic value of the beneficial conversion feature at the commitment date and is being amortized as accretion expense over maturity using the effective interest method. For the six months ended October 31, 2017, the Company incurred $50,411 (2016 - $nil) in accretion expense pursuant to this debt discount.
	On July 28, 2017, the Company agreed to issue a promissory note, bearing interest at 5% per annum, in the aggregate amount of $2,210 (CDN $2,760) and $2,575 for amounts paid directly to Clark Wilson LLP and Malone Bailey LLP, respectively, on behalf of the Company to a non-related party.
	During the six months ended October 31, 2017, the Company charged interest expense of $3,840 (2016 - $1,231) pursuant to notes payable of $40,700 and convertible notes payable of $100,000. Total accrued interest on all outstanding notes payable as of October 31, 2017, was $9,941 (April 30, 2017 - $6,101).

During the nine months ended January 31, 2018, the Company recorded interest income of $nil (2016 - $10,709) pursuant to the above notes receivable. Total accrued interest on all outstanding notes receivable as of January 31, 2018, was $nil (April 30, 2017 - $85). The Company recorded an impairment to the interest receivable of $85 due to the impairment recorded on the loan receivable as of April 30, 2017.

The ~~accompanying~~Company ~~notes~~has ~~are~~performed an ~~integral~~analysis ~~part~~ of ~~these~~the ~~unaudited~~related ~~interim~~party ~~condensed~~loan ~~consolidated~~balance under ASC 810-10, and determined the loan represents a variable interest in Garmatex. Garmatex is a variable interest entity (“VIE”) and depends on the Company, as well as additional parties, for continuing financial ~~statements~~support in order to maintain operations. However, the Company cannot make key operating decisions considered to be most significant to the VIE, and is therefore not considered to be the primary beneficiary. The Company’s maximum exposure to loss approximates to the carrying value of the related party loan balance at January 31, 2018. As of September 15, 2017, the Arrangement Agreement was terminated, and the entity ceased to be a related party.

As of January 31, 2018, the Company recorded due to related party of $nil (April 30, 2017 - $2,576) owing to the current CEO, president, chief financial officer, treasurer, and sole director relating to outstanding management fees and reimbursements.

On April 28, 2017, the Company issued a convertible loan agreement with a beneficial shareholder in the aggregate principal amount of $100,000. This convertible loan agreement is unsecured, bears interest at 5% per annum, compounded annually, is convertible at $20.00 per common share, and is due in full including principal and accrued interest at its date of maturity on April 28, 2018. The Company recorded a debt discount of $100,000 related to the beneficial conversion feature. The expense was measured at the intrinsic value of the beneficial conversion feature at the commitment date and is being amortized as accretion expense over maturity using the effective interest method. For the nine months ended January 31, 2018, the Company incurred $75,616 (2016 - $nil) in accretion expense pursuant to this debt discount. The carrying value of the convertible note at January 31, 2018 was $76,164 (April 30, 2017 - $548).

On July 28, 2017, the Company agreed to issue a promissory note, bearing interest at 5% per annum, in the aggregate amount of $2,244 (CDN $2,760) and $2,575 for amounts paid directly to Clark Wilson LLP and Malone Bailey LLP, respectively, on behalf of the Company to a beneficial shareholder.

Included in due to related party at January 31, 2018 was $22,803 (CDN$28,049) relating to reimbursements and amounts paid directly to vendors on behalf of the Company totaling.

During the three and nine months ended January 31, 2018 and 2017, the principal executive offices were provided at no cost by the Company’s current CEO, president, chief financial officer, treasurer, and sole director.

On October 30, 2017, the Company issued 26,946 common shares of the Company with a fair value of $40,418 to settle services rendered from a significant shareholder (Note 6).

F-9

EVOLUTION BLOCKCHAIN GROUP INC.

(FORMERLY GARMATEX HOLDINGS LTD.)

Notes to the Interim Condensed Consolidated Financial Statements

For the three and nine months ended January 31, 2018 and 2017

(Expressed in USD - Unaudited)

Page 5

Note 5

Notes Payable

On March 31, 2017, the Company issued a promissory note in the aggregate amount of CDN$5,000 for a legal retainer paid directly to, Harper Grey LLP, on behalf of the Company, totalling $3,656 (CDN$5,000) by a non-related party. The promissory note is unsecured, bears no interest, and matures on May 15, 2017. The Company repaid this promissory note on May 10, 2017.

On April 28, 2017, the Company issued a convertible loan agreement in the aggregate principal amount of $100,000. This convertible loan agreement is unsecured, bears interest at 5% per annum, compounded annually, is convertible at $20.00 per common share, and is due in full including principal and accrued interest at its date of maturity on April 28, 2018. The Company recorded a debt discount of $100,000 related to the beneficial conversion feature. The expense was measured at the intrinsic value of the beneficial conversion feature at the commitment date and is being amortized as accretion expense over maturity using the effective interest method. For the nine months ended January 31, 2018, the Company incurred $75,616 (2016 - $nil) in accretion expense pursuant to this debt discount. As of January 31, 2018, the carrying value of the promissory note was $76,164 (April 30, 2017 - $548)

Also included in notes payable at January 31, 2018 and April 30, 2017 are four promissory notes with a total balance payable of $40,700 bearing interest at 6% per annum maturing on December 31, 2018.

During the 9 months ended January 31, 2018, the Company charged interest expense of $5,777 (2017 - $1,847) pursuant to various note payables. Total accrued interest on all outstanding notes payable as of October 31, 2017, was $11,878 (April 30, 2017 - $6,101) which is included in accrued liabilities.

Note 6

Capital Stock

Authorized share capital

The authorized common stock of the Company consists of 111,~~125~~250,000~~,000~~ shares of common stock with par value of $0.001 and 10100,000~~,000~~ shares of preferred stock with a par value of $0.001. As of ~~October~~ January 31, ~~2017~~2018, the Company had 38383,~~384,960~~855 shares of common stock and no shares of preferred stock outstanding.

Issued share capital

On June 5, 2017, the Company agreed to issue ~~62,500~~625 units at a price of CDN $0.40.00 per unit for consideration of CDN $25,000 ($18,754) which is included in shares to be issued at April 30, 2017 pursuant to a subscription agreement. Each unit issued consists of one common share in the capital of the Company and one-half of one non-transferable common share purchase warrant. Each warrant ~~will~~entitles ~~entitle~~ the holder to acquire one common share at a price of $0.60.00 per warrant share.

On October 30, 2017, the Company agreed to issue 2,694,526 common shares with a fair value of $40,418 for full settlement of debt payable to the creditor in the amount of CDN $26,945 ($20,955) resulting in a capitalized loss of $19,460 in deficit. The liability being settled resulted from loans, accrued management fees, and expenses owed to our former management, which had been previously assigned to the creditor.F-10

EVOLUTION BLOCKCHAIN GROUP INC.

(FORMERLY GARMATEX HOLDINGS LTD.)

Notes to the Interim Condensed Consolidated Financial Statements

For the three and nine months ended January 31, 2018 and 2017

(Expressed in USD - Unaudited)

Page 6

On October 30, 2017, the Company agreed to issue 26,946 common shares with a fair value of $40,418 for full settlement of debt payable to the creditor in the amount of CDN $26,945 ($20,955) resulting in a capitalized loss of $19,460 in deficit. The liability being settled resulted from loans, accrued management fees, and expenses owed to our former management, which had been previously assigned to the creditor.

Obligation to issue shares

Pursuant to an IR consulting agreement dated April 24, 2017, the Company recorded an obligation to issue ~~112~~1,~~000~~120 shares of the Company with a fair value of $9,520 ~~(2016 - $Nil)~~.

Warrants

At ~~October~~January 31, ~~2017~~2018, the Company had 220,~~095,217~~956 share purchase warrants outstanding as follows:

	Exercise	~~Exercise~~Expiry	~~Expiry~~
Number	~~Number~~Price	~~Price~~Date	~~Date~~
	437,500	$0.60	June 17, 2018
4,376	$60.00	17, 2018
	62,500	$0.60	July 17, 2018
625	$60.00	July 17, 2018
	147,056	$0.60	July 28, 2018
1,471	$60.00	July 28, 2018
	111,765	$0.60	October 3, 2018
1,118	$60.00	October 3, 2018
	1,000,000	$0.60	November 22, 2018
10,000	$60.00	November 22, 2018
	80,883	$0.60	February 17, 2019
810	$60.00	February 17, 2019
	187,500	$0.60	February 22, 2019
1,875	$60.00	February 22, 2019
	36,764	$0.60	March 23, 2019
368	$60.00	March 23, 2019
	31,250	$0.60	June 5, 2019
313	$60.00	June 5, 2019
	2,095,217
20,956

During the ~~six~~nine months ended ~~October~~January 31, ~~2017~~2018, the Company issued an aggregate of ~~31,250~~313 warrants, exercisable at a weighted average exercise price of $0.60.00 per share for a period of two years from the date of issuance, pursuant to subscription agreements. Each warrant entitles the holder the right to purchase one common share.

~~The~~Note ~~accompanying~~7 ~~notes are an integral part of these unaudited interim condensed consolidated financial statements~~ Commitments

~~Note~~Pursuant 7to ~~Supplemental~~a ~~Cash~~Marketing ~~Flow~~and ~~Information~~Consulting Agreement, ~~Investing~~dated ~~and~~April ~~financing~~24, ~~activities~~2017, ~~that~~the doCompany ~~not~~committed ~~have~~to pay a ~~direct~~retainer ~~impact~~of $5,000 onper ~~current~~month ~~cash~~until ~~flows~~June ~~are~~24, ~~excluded~~2017 and $10,000 per month from July 24, 2017 until March 24, 2018. As additional consideration for services, the ~~statement~~Company also agreed to issue 1,120 shares of ~~cash~~common ~~flows~~stock on July 24, 2017 as per the Form 8-K filed with the SEC on June 23, 2017. During the period ended October 31, 2017, the Company recorded the obligation to issue 1,120 shares (Note 6).

	Six Months	Six Months
	Ended	Ended
	October 31,	October 31,
	2017	2016
Common stock issued for note payable	-	79,776
Common stock issued for cash loaned to related party	-	271,892
Common stock issued for convertible note payable	-	38,929
Obligation to issue shares	9,520	-
Operating expenses paid directly by related party	20,958	19,805
Operating expenses paid directly by non-related party	4,785	-

F-11

~~Note~~EVOLUTION 8BLOCKCHAIN ~~Commitments~~GROUP ~~Pursuant~~INC. to(FORMERLY aGARMATEX ~~Marketing~~HOLDINGS ~~and~~LTD.) ~~Consulting~~Notes ~~Agreement,~~to ~~dated April 24, 2017,~~ the ~~Company~~Interim ~~committed~~Condensed toConsolidated ~~pay~~Financial aStatements ~~retainer~~For ofthe ~~$5,000~~three ~~per month until June 24, 2017~~ and ~~$10,000~~nine ~~per~~months ~~month~~ended ~~from~~January ~~July 24~~31, ~~2017 until March 24,~~ 2018. Asand ~~additional consideration for services, the Company also agreed to issue 112,000 shares of common stock on July 24,~~ 2017 as(Expressed ~~per~~in ~~the~~USD ~~Form 8~~-K ~~filed~~Unaudited) ~~with~~Page ~~the SEC on June 23, 2017. During the period ended October 31, 2017, the Company recorded the obligation to issue 112,000 shares (Note 6).~~7

~~The~~Note ~~accompanying~~8 ~~notes~~Subsequent ~~are an integral part of these unaudited interim condensed consolidated financial statements~~ Events

On January 15, 2018, the board of directors approved an agreement and plan of merger where the Company will merge with its wholly-owned subsidiary Evolution Blockchain Group Inc., a Nevada corporation and remain the surviving company of the merger, continuing under the name Evolution Blockchain Group Inc.

On February 13, 2018, the Company filed a Certificate of Amendment and Articles of Amendment with the Nevada Secretary of State. The name change from Garmatex Holdings Inc. to Evolution Blockchain Group Inc. was subsequently reviewed and approved by the Financial Industry Regulatory Authority (FINRA) with an effective date of February 28, 2018. Also, effective February 28, 2018, the Company trading symbol will be EVBCD. After 20 business days, the symbol will change back to EVBC.

F-12

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

Report Date:

March 16, 2018

Forward-Looking Statements

This quarterly report contains “forward-looking statements”. All statements other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including, but not limited to, statements regarding: the plans, strategies and objections of management for future operations; the future plans or business of our company; future economic conditions or performance; and any statements of assumptions underlying any of the foregoing.

Forward-looking statements may include the words “may,” “could,” “estimate,” “intend,” “continue,” “believe,” “expect” or “anticipate” or other similar words. These forward-looking statements present our estimates and assumptions only as of the date of this report. Accordingly, readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the dates on which they are made. Except as required by applicable law, we do not intend, and undertake no obligation, to update any forward-looking statement.

Although we believe the expectations reflected in the forward-looking statements in this report are reasonable, actual results could differ materially from those projected or assumed in any forward-looking statements. All forward-looking statements are subject to change and inherent risks and uncertainties. The factors impacting these risks and uncertainties include, but are not limited to:

	•	our current lack of working capital;
	•	a possible inability to raise additional financing;
	•	an inability to close the Arrangement with GTBC (each as defined herein) on the terms expected or at all;
	•	the fact that our accounting policies and methods are fundamental to how we report our financial condition and results of operations, and they may require our management to make estimates about matters that are inherently uncertain;
	•	deterioration in general or regional economic conditions;
	•	adverse state or federal legislation or regulations that increase the costs of compliance;
	•	inability to efficiently manage our operations; and
	•	the unavailability of funds for capital expenditures.

As used in this quarterly report on Form 10-Q, the terms “we”, “us”, “our”, the “Company” and “~~Garmatex Holdings~~Evolution” refer to ~~Garmatex~~Evolution Blockchain ~~Holdings~~Group ~~Ltd~~Inc., a Nevada corporation, and our wholly-owned subsidiary, ORC Exploration LLC, a Nevada corporation, unless otherwise specified.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

We were incorporated under the laws of the State of Nevada on April 9, 2014. Our fiscal year end is April 30. Following incorporation, we commenced the business of a mineral exploration company. On May 8, 2014, we incorporated our wholly-owned subsidiary, ORC Exploration LLC, for the purposes of mineral exploration. On May 20, 2014, we acquired an option to acquire a 100% legal and beneficial ownership interest in the Elizabeth mineral claim, located in the Omineca Mining District in the central part of the Province of British Columbia. Our initial mining exploration program, which was scheduled to commence in the second quarter of the fiscal year ending April 30, 2015, was delayed until the fourth quarter due to forest fire concerns.

Due to a dearth of available financing options, which has affected many junior mining companies in recent years, we subsequently ran out of funds to proceed with our planned exploration program. As a result, our management decided to seek out other potential business operations and management skills for the continuation of our business. In connection therewith, effective June 8, 2015, our chief executive officer (“CEO”) and sole director, Jose Montes, resigned all positions as an officer and director of our company, and we appointed Mike Gilliland to serve as our sole officer and director. Effective March 14, 2016, Mr. Gilliland resigned all positions as an officer and director of our company, and we appointed Devon Loosdrecht to serve as our sole officer and director. Effective October 2, 2017, Mr. Loosdrecht resigned all positions as an officer and director of our company and we appointed Lawrence Stephenson to serve as our sole officer and director.

~~The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements~~ 4

On April 8, 2016, we entered into an arrangement agreement (the “Arrangement Agreement”) with Garmatex Technologies, Inc. (“GTBC”), a private company incorporated under the laws of the Province of British Columbia, pursuant to which we agreed to acquire all of the outstanding securities of GTBC in exchange for the issuance of equivalent securities of our company by way of a statutory arrangement (the “Arrangement”) under the Business Corporations Act (British Columbia). The Arrangement Agreement contained customary representations, warranties, and conditions to closing. The closing of the Arrangement Exchange (the “Closing”) would only occur once we complete a name change, forward stock-split and was provided with audited financial statements from ~~Garmatex~~the Company, with such financial statements being prepared by an independent accounting firm registered with the Public Company Accounting Oversight Board (PCAOB).

Effective August 15, 2016, we completed a merger with our wholly-owned subsidiary, Garmatex Holdings. Ltd., a Nevada corporation, which was incorporated solely to effect a change in our name. As a result, we have changed our name from “Oaxaca Resources Corp.” to “Garmatex Holdings Ltd.”. Also, effective August 15, 2016, we effected a twelve and one-half to one forward stock split of our authorized and issued and outstanding common stock. As a result, our authorized capital of common stock increased from 90,000,000 shares of common stock with a par value of $0.001 and 10,000,000 shares of preferred stock with a par value of $0.001 to 1,125,000,000 shares of common stock with a par value of $0.001 and 10,000,000 shares of preferred stock with a par value of $0.001 and our previously outstanding 2,520,000 shares of common stock increased to 31,500,000 shares of common stock outstanding. There are no shares of preferred stock currently outstanding. We changed our name and effected forward-split as per the terms and conditions of the Arrangement Agreement.

As of the date of this report, the Arrangement Agreement with GTBC has expired as conditions of the merger had not yet been satisfied. We continue to negotiate with GTBC with the intention of reaching a new agreement. All other agreements between us and GTBC remain intact.

We entered into and executed a non-exclusive Sublicense Agreement dated March 8, 2017 and the Garmatex Trademark & Technology License Agreement dated March 9, 2017 (collectively, “Master Sublicense Agreement”) with Garmatex Technologies, Inc. a company formed under the laws of the Province of British Columbia, Canada (“GTBC”) whereby we were granted various Intellectual Property Rights related to the design, development and manufacturing of various scientifically-engineered fabric technologies and performance technologies; including a patented T3® design, Bact-Out®, CoolSkin®, WarmSkin®, Kottinu™, ColdSkin™, SteelSkin™, Satinu™, CamoSkin™, RecoverySkin™, SlimSkin™, AbsorbSkin™ and IceSkin™ (collectively the foregoing are referred to hereinafter as the “Licensed IP”).

Pursuant to the terms of the agreement, we acquired the rights to further develop, commercialize, market and distribute certain proprietary inventions and know-how related to the Products. In exchange, we agreed to the following terms and conditions: (i) the Parties shall enter into Amendment No. 1 to the Arrangement Agreement; and (ii) we agreed to cancel various loans made pursuant to a Loan Agreement between us and GTBC in the aggregate amount of $953,988.00CDN.

Effective on September 15, 2017 the Arrangement Agreement has been terminated between our Company ~~company~~ and ~~Garmatex Technologies Inc~~GTBC.

On January 25, 2018, the Company formed a wholly-owned subsidiary, Evolution Blockchain Group Inc., which was incorporated in the State of Nevada, United States.

Effective February 28, 2018, the Company effected a reverse stock split on the basis of 100:1. As such, the Company’s authorized capital was decreased from 1,125,000,000 shares of common stock, par value $0.001 to 11,250,000 shares of common stock, par value $0.001 and all shares of common stock issued and outstanding were decreased on the basis of one (1) new share for each one hundred (100) old shares. These consolidated financial statements give retroactive effect to such reverse split and all share and per share amounts have been adjusted accordingly.

On February 13, 2018, the Company changed its name from Garmatex Holdings Ltd. to Evolution Blockchain Group Inc.

Our Business

We plan to provide performance fabric solutions in virtually every sector that has textile applications. Our primary strategy is to deploy our performance fabrics as a premium ingredient brand, similar to Gore-Tex® in the outerwear market, or akin to Intel® in the computer space. We believe that our future fabrics will be superior in performance relative to current market “standards” and have a wide range of applications in multiple clothing and textile categories including, but not limited to, sports apparel, medical, sleepwear, linens, undergarments, military, designer wear, protective, industrial and first responders.

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements

Our business model is to co-develop fabric with manufacturers to obtain exclusive licenses of technology and purchase fabric technology to build on our technology portfolio. We plan to commercialize these inventions by selling bolts of fabric directly to retailers and wholesalers. We plan to control the proprietary process of the technology for IP protection and do not intend to own any manufacturing facilities, which will effectively allow us to scale.

We are in the market to further acquire technologies from inventors looking for a commercialization partner.

Currently, we do not have a source of revenue. We are not able to fund our cash requirements through our current operations. Historically, we have been able to raise a limited amount of capital through private placements of our equity stock, but we are uncertain about our continued ability to raise funds privately.

Results of Operations for the period ended ~~October~~January 31, ~~2017~~2018.

We generated no revenues for the period ending ~~October~~January 31, ~~2017~~2018 and ~~2016~~2017. We do not expect to generate revenues until we have established a new business plan and operations and successfully implemented such business plan.

Three months ended ~~October~~January 31, ~~2017~~2018 compared to three months ended ~~October~~January 31, ~~2016~~2017

We incurred operating expenses of $7350,~~550~~220 for the three months ended ~~October~~January 31, ~~2017~~2018, compared with operating ~~expenses~~income of $424,~~111~~053 for the three months ended ~~October~~January 31, ~~2016~~2017. The most significant changes in operating expenses comprised of legal fees of $711,~~792~~985 (~~2016~~2017 - $32,~~271~~690) ~~and~~a ~~audit~~difference of $9,295 or 345.5%, consulting fees of $1330,~~606~~000 (~~2016~~2017 - $52,~~387~~271) a difference of $27,729 or 1221%, and ~~consulting~~foreign ~~fees~~exchange of $472,~~572~~707 (~~2016~~2017 - ($215,~~285~~604)) a difference of $18,311 or (117.3%). The difference between periods was attributable to the additional legal fees for the current quarter ending related to the ~~Arrangement~~BC ~~Agreement~~Securities ~~with Garmatex~~Inquiry, consulting fees accrued per the ~~investor~~ investor relations agreement with Core IR, and ~~other~~foreign ~~matters~~exchange adjustments relating to the ~~legal filings~~large ~~required.~~promissory ~~Audit~~note ~~fees~~receivable ~~also~~balance ~~increased~~in ~~due to~~ the ~~changeover~~comparable ~~of auditors for the year ending April 30, 2017~~period.

We incurred other expenses of $3027,~~143~~142 for the three months ended ~~October~~January 31, ~~2017~~2018, as compared to other income of $57,~~286~~361 for the three months ended ~~October~~January 31, ~~2016~~2017. Our other expenses consisted of interest expense of $1,937 (~~2016~~2017 - $616) a difference of $1,321 or 214.4%, interest income of $nil (~~2016~~2017 - $57,~~902~~977) a difference of $7,977 or 100%, and accretion expense of $2825,~~206~~205 (2016 - $nil) a difference of $25,205 or 100%. Interest expense for ~~2017~~ 2018 and ~~2016~~2017 included $1,937 and $616, respectively, to reflect the interest accrued on promissory notes issued during the periods.

We incurred a net loss of $~~103~~77,~~693~~362 for the three months ended ~~October~~ January 31, ~~2017~~2018, as compared with a net ~~loss~~revenue of $3611,~~825~~414 for the prior year three-month period. The reason for the increase in loss is due largely to ~~accretion~~ ~~expense~~the foreign ~~recorded~~exchange onloss ~~convertible debt~~ of $282,~~206~~707 (~~2016~~2017 -– ~~$nil), legal fees of $7,792~~ (~~2016 -~~ $315,~~271~~504)), ~~consulting~~legal fees of $4711,~~572~~985 ( ~~2016~~ 2017 - $2,~~285~~690), and ~~audit~~ ~~and~~interest ~~accounting~~income ~~fees~~ of $~~13,606~~nil (~~2016~~2017 - $57,~~387~~977).

~~Six~~ Nine months ended ~~October~~January 31, ~~2017~~2018 compared to ~~six~~nine months ended ~~October~~January 31, ~~2016~~ 2017

We incurred operating expenses of $~~129~~179,~~296~~516 for the ~~six~~ nine months ended ~~October~~January 31, ~~2017~~2018, compared with operating expenses of $7672,~~081~~028 for the ~~six~~ nine months ended ~~October~~January 31, ~~2016~~2017. The most significant changes in operating expenses comprised of ~~legal~~consulting fees of 24$88,~~033~~789 (~~2016~~2017 - $1418,~~423~~524) a difference of $70,265 ~~consulting~~or 379.3%, legal fees of $5836,~~789~~018 (~~2016~~2017 - $1617,~~253~~113) a difference of $18,905 or 110.5%, and audit fees of $2023,~~784~~713 (~~2016~~2017 - $813,~~561~~726) a difference of $9,987 or 72.8%. The difference between periods was attributable to the additional legal fees for the current quarter ending related to the Arrangement Agreement with ~~Garmatex~~the Company, the investor relations agreement with Core IR, and other matters relating to legal filings required. Audit fees also increased due to the changeover of auditors for the year ending April 30, 2017.

We incurred other expenses of $54,335 for the six months ended October 31, 2017, as compared to other income of $9,478 for the six months ended October 31, 2016. Our other expenses consisted of interest expense of $3,840 (2016 – ($1,231)), interest income of $nil (2016 - $10,709), and accretion expense of $50,411 (2016 - $nil). Interest expense for 2017 and 2016 included $3,840 and $1,231, respectively, to reflect the interest accrued on promissory notes issued during the periods.6

~~The~~We ~~accompanying~~incurred ~~notes~~other ~~are~~expenses anof ~~integral~~$81,477 ~~part~~for the nine months ended January 31, 2018, as compared to other loss of ~~these~~$16,839 ~~unaudited interim~~for ~~condensed~~the ~~consolidated~~nine months ~~financial~~ended ~~statements~~January 31, 2017. Our other expenses consisted of interest expense of $5,777 (2017 - $1,847) a difference of $3,930 or 212.8%, interest income of $nil (2017 - $18,686) a difference of $18,686 or (100%), and accretion expense of $75,616 (2017 - $nil) a difference of $75,616 or 100%. Interest expense for 2018 and 2017 included $5,777 and $1,847, respectively, to reflect the interest accrued on promissory notes issued during the periods.

We incurred a net loss of $~~183~~260,~~631~~993 for the ~~six~~nine months ended ~~October~~ January 31, ~~2017~~2018, as compared with a net loss of $6655,~~603~~189 for the prior year ~~six~~ nine-month period. The reason for the increase in loss is due largely to accretion ~~expense~~ expense recorded on convertible debt of $5075,~~411~~616 (~~2016~~2017 - $nil), consulting fees of $5888,789 (~~2016~~2017 - $1618,~~253~~524), legal fees of $2436,~~033~~018 (~~2016~~2017 - $1417,~~423~~113), and audit ~~and~~ and accounting fees of $2023,~~784~~713 (~~2016~~2017 - $813,~~561~~726).

Liquidity and Capital Resources

As of ~~October~~January 31, ~~2017~~2018, we had total current assets of $~~nil~~3,144, consisting of cash in the amount of $~~nil~~3,144 and prepaid expenses of $nil. We had current liabilities of $~~162~~283,~~284~~490 as of ~~October~~January 31, ~~2017~~2018. Accordingly, we had a working capital deficit of $~~162~~280,~~283~~346 as of ~~October~~January 31, ~~2017~~2018. As of April 30, 2017, we had total current assets of $31,809, consisting of cash in the amount of $27,880, prepaid expenses of $3,844 and due from related party of $85. We had current liabilities of $40,940 as of April 30, 2017. Accordingly, we had a working capital deficit of $9,131 as of April 30, 2017.

As of April 30, 2017, we had total current assets of $31,809, consisting of cash in the amount of $27,880, prepaid expenses of $3,844 and due from related party of $85. We had current liabilities of $40,940 as of April 30, 2017. Accordingly, we had a working capital deficit of $9,131 as of April 30, 2017.

Operating Activities

Operating activities used $2320,~~887~~814 in cash for the ~~six~~ nine months ended ~~October~~January 31, ~~2017~~2018 as compared to $3148,~~863~~467 used for the prior ~~six~~ nine months ended ~~October~~January 31, ~~2016~~2017. The decrease in cash used for operating activities was attributable to the increase in net loss for the current period. offset by non-cash adjustments which occurred during the current nine months ending.

Investing Activities

Investing activities used cash of $nil for the ~~six~~nine months ~~ended~~ ~~October~~ended January 31, ~~2017~~2018 as compared to $~~182~~323,~~320~~028 for the ~~six~~nine months ended ~~October~~ January 31, ~~2016~~ 2017. The decrease in the use of cash was due to the advance of funds to ~~Garmatex Technologies~~ GTBC in the prior year.

Financing Activities

Financing activities used cash of $3,656 for the ~~six~~nine months ended ~~October~~January 31, ~~2017~~2018, as compared to $~~214~~369,~~531~~530 for the ~~six~~nine months ended ~~October~~ January 31, ~~2016~~2017, which is comprised of $nil in due to related party payables offset by a promissory note repayment $3,656 (CDN$5,000) compared to $~~214~~314,~~531 in~~ 530 funds received for common stock in ~~2016~~2017.

Based upon our current financial condition, we do not expect to have sufficient cash to operate our business at the current level for the next twelve months. We intend to fund future operations through new business sales and debt and/or equity financing arrangements, which may be insufficient to fund expenditures or other cash requirements. We plan to seek additional financing in a private equity offering to secure funding for operations. There can be no assurance that we will be successful in raising additional funding. If we are not able to secure additional funding, the implementation of our future business plan will be impaired. There can be no assurance that such additional financing will be available to us on acceptable terms or at all.

Outstanding Share Data

AsOn ofJanuary ~~October 31~~15, ~~2017~~ 2018, ~~there~~the ~~were~~Board ~~38,384,960~~of ~~shares~~Directors ofapproved ~~common~~ a reverse stock ~~outstanding.~~split Inof ~~addition,~~the asCompany’s issued ofand ~~October~~authorized ~~31,~~shares ~~2017,~~of ~~there~~common ~~2,095,217~~and ~~share purchase~~preferred ~~warrants~~stock ~~outstanding~~on ~~and~~the ~~500,000~~basis of 100 old shares offor ~~common~~one ~~stock~~(1) ~~were~~new ~~issuable upon~~share. ~~conversion~~The $0.001 par value of the ~~convertible~~common ~~loan~~and inpreferred shares ~~the~~remained ~~aggregate~~unchanged. ~~principal~~This ~~amount~~MD&A ~~of $100,000~~and at the ~~conversion~~accompanying ~~price~~consolidated financial ofstatements ~~$0.20~~give ~~per~~retroactive ~~share.~~effect Asto ofsuch ~~December~~reverse ~~27,~~split ~~2017, there~~and ~~were~~all share ~~38,384,960~~and ~~shares~~per ofshare ~~common~~amounts ~~stock~~have ~~outstanding.~~been adjusted accordingly.

As of January 31, 2018, there were 383,855 shares of common stock outstanding. In addition, as of January 31, 2018, there were 20,956 share purchase warrants outstanding and 5,000 shares of common stock were issuable upon conversion of the convertible loan in the aggregate principal amount of $100,000 at the conversion price of $20.00 per share.

As of March 16, 2018, there were 383,864 shares of common stock outstanding.

Going Concern

Our financial statements have been prepared assuming that we will continue as a going concern which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. We have incurred cumulative losses of $1,~~213~~291,~~762~~124 through ~~October~~January 31, ~~2017~~2018, expect to incur further losses in the development of our new business and have been dependent on funding operations through the issuance of convertible debt and private sale of equity securities. These conditions raise substantial doubt about our ability to continue as a going concern. Management’s plans include continuing to finance operations through the private or public placement of debt and/or equity securities and the reduction of expenditures. However, no assurance can be given at this time as to whether we will be able to achieve these objectives.

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements

Management’s plans include continuing to finance operations through the private or public placement of debt and/or equity securities and the reduction of expenditures. However, no assurance can be given at this time as to whether we will be able to achieve these objectives.

As discussed in the notes to our unaudited consolidated financial statements, we have no established source of revenue. This has raised substantial doubt for our auditors about our ability to continue as a going concern. Without realization of additional capital, it would be unlikely for us to continue as a going concern.

Off Balance Sheet Arrangements

We have performed an analysis of the related party loan balance under ASC 810-10, and has determined that the loan represents a variable interest in ~~Garmatex~~GTBC. ~~Garmatex~~GTBC ~~Technologies~~ is a variable interest entity (“VIE”) and depends on the Company, as well as additional parties, for continuing financial support in order to maintain operations. However, the Company cannot make key operating decisions considered to be most significant to the VIE, and is therefore not considered to be the primary beneficiary. Our maximum exposure to loss approximates to the carrying value of the due from related party loan balance on the Balance Sheet at ~~October~~January 31, ~~2017~~2018.

Other than noted above, we have no off-balance sheet arrangements that have, or are reasonably likely to have, a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to our stockholders.

Critical Accounting Policies

Our interim condensed consolidated financial statements and accompanying notes are prepared in accordance with generally accepted accounting principles used in the United States (“GAAP”). Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses. These estimates and assumptions are affected by management’s application of accounting policies. We believe that understanding the basis and nature of the estimates and assumptions involved with the following aspects of our financial statements is critical to an understanding of our financial statements.

There have been no significant changes in the critical accounting policies and estimates described in our Annual Report on Form 10-K for the year ended April 30, 2017 as filed with the SEC on October 31, 2017.

Recently Adopted Accounting Pronouncements

For fiscal years beginning after December 15, 2016:

In November 2015, the FASB issued ASC 2015-17 “Income Taxes (Topic 740) – Balance Sheet Classification of Deferred Taxes” guidance simplifying the presentation of deferred tax liabilities and assets requiring that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. Early adoption is permitted. The standard became effective for the Company on May 1, 2017. The adoption of this standard did not have any effect on its financial condition, results of operations and cash flows.

In August 2014, the FASB issued ASC 2014-15 “Presentation of Financial Statements – Going Concern (Subtopic 205-40) – Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern” new guidance which provides details on when and how to disclose going concern uncertainties. The new standard requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year and to provide certain footnote disclosures if conditions or events raise substantial doubt about an entity’s ability to continue as a going concern. Early adoption is permitted. The standard became effective for the Company on May 1, 2017. The adoption of this standard did not have any effect on its financial condition, results of operations and cash flows.

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements

Recently Issued Accounting Pronouncements

For fiscal years beginning after December 15, 2017:

In August 2016, the Financial Accounting Standards Board (“FASB”) issued ASC 2016-15 “Statement of Cash Flows (Topic 230) – Classification of Certain Cash Receipts and Cash Payments”. These amendments are intended to provide guidance for each of the eight issues included, to reduce the current and potential future diversity in practice. Early adoption is permitted including in an interim period.

In January 2016, the FASB issued ASC 2016-01 “Financial Instruments – Overall (Subtopic 825-10) – Recognition and Measurement of Financial Assets and Liabilities” a new standard related primarily to accounting for equity investments, financial liabilities where the fair value option has been elected, and the presentation and disclosure requirements for financial instruments. There will no longer be an available-for-sale classification and therefore, no changes in fair value will be reported in other comprehensive income for equity securities with readily determinable fair values. Early adoption is permitted.

For fiscal years beginning after December 15, 2018:

In July 2017, the Financial Accounting Standards Board (“FASB”) issued ASC 2017-11 “Earnings Per Share (Topic 260), Distinguishing Liability from Equity (Topic 480), and Derivatives and Hedging (Topic 815) – (i) Accounting for Certain Financial Instruments with Down Round Features (ii) Replace of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments.” The amendments in (i) change the classification analysis of certain equity-linked financial instruments (or embedded features) with down round features and to help clarify existing disclosure requirements. The amendments in (ii) recharacterize the indefinite deferral of certain provisions and do not have an accounting effect.

We are currently evaluating the impact of the above standards on our consolidated financial statements. Other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on our present or future consolidated financial statements.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

A smaller reporting company is not required to provide the information required by this Item.

Item 4. Controls and Procedures

Disclosure Controls and Procedures

“Disclosure controls and procedures”, as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), include controls and procedures designed to ensure that information required to be disclosed in our company’s reports filed under the Exchange Act recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management to allow timely decisions regarding required disclosure.

Our principal executive officer and principal financial officer evaluated the effectiveness of the design and operation of our disclosure controls and procedures as of ~~October~~January 31, ~~2017~~2018. Based on this evaluation he concluded that, as of ~~October~~January 31, ~~2017~~2018, our disclosure controls and procedures were ~~not~~ effective such that the information relating to us that is required to be be disclosed in our SEC reports: (i) is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms; and (ii) is accumulated and communicated to our management, including our principal executive and financial officer, to allow timely decisions regarding required disclosure.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting that occurred during the fiscal quarter ~~October~~January 31, ~~2017~~2018 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements

Limitations on the Effectiveness of Internal Controls

Our management, including our principal executive officer and principal financial officer, does not expect that our disclosure controls and procedures or our internal control over financial reporting are or will be capable of preventing or detecting all errors or all fraud. Any control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the control system’s objectives will be met. The design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Further, because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that misstatements, due to error or fraud will not occur or that all control issues and instances of fraud, if any, within the company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty and that breakdowns may occur because of simple error or mistake. Controls can also be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of controls. The design of any system of controls is based in part on certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Projections of any evaluation of controls effectiveness to future periods are subject to risk.

~~The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements~~ 10

PART II - OTHER INFORMATION

Item 1. Legal Proceedings

We know of no material pending legal proceedings to which our company is a party or of which any of our properties is the subject. In addition, we do not know of any such proceedings contemplated by any governmental authorities.

We know of no material proceedings in which any of our directors, officers or affiliates, or any registered or beneficial stockholder, is a party adverse to our company or has a material interest adverse to our company.

Item 1A. Risk Factors.

An investment in our common stock involves a number of very significant risks. You should carefully consider the following risks and uncertainties in addition to other information in this report in evaluating our company before purchasing our securities. Our operating results and financial condition could be seriously harmed as a result of the occurrence of any of the following risks. You could lose all or part of your investment due to any of these risks.

Risks Related to Our Business

The sale of fabric is a new operation of ours with a limited operating history and history of business, revenue generation or production history.

We have never been engaged in the sale of fabric. There could be limited value to the current portfolio of technologies and raise significant doubt about our commercial viability. Our future operations are dependent upon many factors, including the ability to create sales from its current portfolio of technology.

Operating results may fluctuate depending on a number of factors which may cause the value of our shares to decrease significantly.

Operating results may fluctuate as a result of a number of factors, many of which will be outside of our control. As a result of these fluctuations, financial planning and forecasting may be more difficult and comparisons of operating results on a period-to-period basis may not necessarily be meaningful. Our business can be seasonal in nature, reflecting overall economic conditions as well as client budgeting and buying patterns in the textile and technical apparel industries. This may result in the fluctuation of operating results. Further, the cyclicality and seasonality of our business could become more pronounced and may cause operating results to fluctuate more widely.

Additional funds for our planned operations will be required.

We will need substantial funding for our planned operations. No assurances can be given that we will be able to raise the additional funding that will be required for such activities. To meet such funding requirements, we will be required to undertake additional equity financing, which would be dilutive to shareholders. Debt financing, if available, may also involve restrictions on financing and operating activities. There is no assurance that additional financing will be available on terms acceptable to us or at all. If we are unable to obtain additional financing as needed, we will be required to reduce the scope of our operations.

Third-party technology licenses may not continue to be available to us in the future.

We will rely on certain technology that we license from GTBC. These third-party technology licenses may not in the future be available to us on commercially reasonable terms, or at all. The loss of any of these technology licenses could result in delays in performance of work until our company identifies, licenses and integrates equivalent technology, and it may not be able to identify, license or integrate any such equivalent technology in a timely manner or at all. Any resulting delays in performance could damage our reputation, which could materially adversely affect our business, operating results or financial condition.

~~The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements~~ 11

Others may assert intellectual property infringement claims against us.

Infringement or misappropriation claims (or claims for indemnification resulting from such claims) against us may be asserted or prosecuted, regardless of their merit, and any such assertions or prosecutions may adversely affect our business and/or operating results. Irrespective of the validity or the successful assertion of such claims, we would incur significant costs and diversion of resources relating to the defense of such claims, which could have an adverse effect on our business, operating results or both.

If any claims or actions are asserted against us, we may seek to obtain a license of a third-party’s intellectual property rights; however, under such circumstances such a license may not be available on reasonable terms or at all. Any such litigation could result in a material adverse effect on the business, prospects, and financial results of our company.

Adverse economic conditions may have an adverse effect on the business and financial results of our company.

Textiles and garments may be considered discretionary items for consumers. Factors affecting the level of consumer spending for such discretionary items include general economic conditions, particularly those in Canada and the United States, and other factors such as consumer confidence in future economic conditions, fears of recession, the availability of consumer credit, level of unemployment, tax rates and the cost of consumer credit. As global economic conditions continue to be volatile or economic uncertainty remains, trends in consumer discretionary spending also remain unpredictable. The current volatility in the United States economy in particular has resulted in an overall slowing in growth in the retail sector because of decreased consumer spending, which may remain depressed for the foreseeable future. These unfavorable economic conditions may lead consumers to delay or reduce purchase of fabric products and therefore have a material adverse effect on our financial condition.

Unpredictability of demand could negatively influence our product offerings, plans operations and strategies.

Our success depends on our ability to identify and originate product trends as well as to anticipate and react to changing consumer demands in a timely manner. All of our future products are subject to changing consumer preferences that cannot be predicted with certainty. If we are unable to introduce new products or novel technologies in a timely manner or our new products or technologies are not accepted by our customers, our competitors may introduce similar products in a timelier fashion, which could hurt our goal to be viewed as a leader in performance fabric innovation. Our new products may not receive consumer acceptance as consumer preferences could shift rapidly to different types of performance fabrics or away from these types of products altogether, and our future success depends in part on our ability to anticipate and respond to these changes. Failure to anticipate and respond in a timely manner to changing consumer preferences could lead to, among other things, lower sales and excess inventory levels. Even if we are successful in anticipating consumer preferences, our failure to effectively introduce new products that are accepted by consumers could result in a decrease in net revenue and excess inventory levels, which could have a material adverse effect on our financial condition.

A growing competitive market in technologically advanced textiles could affect our ability to gain market share.

The market for performance textiles is highly competitive. It includes increasing competition from established companies who are expanding their production and marketing of performance products, as well as from frequent new entrants to the market. There can be no assurance that other companies with greater financial and technological resources will not develop similar scientifically advance fabric technologies similar to our company’s or with greater perceived benefits which would affect our ability to compete successfully against existing competitors or future entrants into the market.

Raw materials required in the manufacture of products may be susceptible availability and pricing and quality fluctuations and may adversely affect our financial results.

Our business will rely on externally sourced raw materials in our manufacturing operations, and will business with a broad range of suppliers to ensure steady supplies of high-quality raw materials at competitive prices. Many of the parts or materials used in manufacturing of our textiles are anticipated to be made from oil. If the price of crude oil rises, the purchase price of such parts or materials may increase as well. Further, unanticipated contingencies among these suppliers or if parts and materials procured by these suppliers suffer from quality problems or are in short supply, we may be forced to discontinue production. Such events, if occurred, may adversely affect our financial position and results of operations.

~~The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements~~ 12

Brand leaders are slow to adopt new technologies and the long business development cycle could delay the return on investment of resources required to develop our business.

Textile innovation for customized product development is a collaborative effort between suppliers, our company and the customer. All play a key role to ensure the functionality and performance of the products are developed to meet the customer’s specific technical textile requirements. Technological advances in textiles are slow to be adopted by large multinational companies and approvals must be had at many stages of the buying process. As a result, the extended business development cycle and delayed of return on investment may have an adverse effect our financial condition.

We have limited resources for marketing of our products and we may not be able to attract sufficient paying customers to make our business sustainable.

We have limited resources for marketing of our products. Our future sales will depend in large part on our ability to attract sufficient paying customers to make our business profitable and sustainable. Also, we may not be able to attract and retain personnel or be able to build an efficient and effective marketing force, which could negatively impact sales of our products, and reduce our revenues and profitability.

Our ability to implement our business and marketing strategy.

The implementation of our business and marketing strategy will depend on a number of factors. These include our ability to (i) find and hire reliable and sufficiently skilled third-party marketing personnel, (ii) make our products known and establish a trusted brand to our potential end user customers, (iii) establish a significant paying customer base, (iv) obtain adequate financing on favorable terms in order to fund our business, (v) maintain appropriate procedures, policies and systems; (vi) hire, train and retain skilled employees, and (vii) operate successfully and profitably within an environment of increasing competition. Our inability to manage any or all of these factors could impair our ability to implement our business strategy successfully, which could have a material adverse effect on our business, financial condition and the results of our operations.

Our operating results may prove unpredictable.

Our operating results are likely to fluctuate significantly in the future due to a variety of factors, many of which we have no control over. Factors that may cause our operating results to fluctuate significantly include: the level of commercial acceptance by the public of our products; fluctuations in the demand for our products; the amount and timing of operating costs and capital expenditures relating to the operation of and/or expansion of our business, operations, infrastructure and general economic conditions. If realized, any of these risks could have a material adverse effect on our business, financial condition and the results of operations.

The current state of capital markets, particularly for small companies, is expected to reduce our ability to obtain the financing necessary to continue our business. If we cannot raise the funds that we need to continue acquisitions and fund future business opportunities, we will go out of business and investors will lose their entire investment in our company.

Like other smaller companies, we face difficulties in raising capital for our continued operations and to consummate a business opportunity with a viable business. We may not be able to raise money through the sale of our equity securities or through borrowing funds on terms we find acceptable.

~~The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements~~ 13

Because Devon Loosdrecht controls a large percentage of our voting stock, he has the ability to influence matters affecting our stockholders.

Devon Loosdrecht, our CEO, president, chief financial officer, treasurer and sole director, owns over 46% of our common stock and controls a majority of the votes attached to our outstanding voting securities. As a result, he has the ability to influence matters affecting our stockholders, including the election of directors, the acquisition of assets, and the issuance of securities. Because he controls a majority of votes, it would be very difficult for investors to replace our management if they disagree with the way our business is being operated. Because the influence by Mr. Loosdrecht could result in management making decisions that are in the best interest of Mr. Loosdrecht and not in the best interest of the investors, you may lose some or all of the value of your investment in our common stock.

Our Articles of Incorporation exculpate our officers and directors from certain liability to our company or our stockholders.

Our Articles of Incorporation contain a provision limiting the liability of our officers and directors for their acts or failures to act, except for acts involving intentional misconduct, fraud or a knowing violation of law. This limitation on liability may reduce the likelihood of derivative litigation against our officers and directors and may discourage or deter our stockholders from suing our officers and directors based upon breaches of their duties to our company.

Risks Associated with our Common Stock

Our stock price may be volatile, which may result in losses to our shareholders.

The stock markets have experienced significant price and trading volume fluctuations, and the market prices of companies listed on the OTC Markets quotation system in which shares of our common stock are traded, have been volatile in the past and have experienced sharp share price and trading volume changes. The trading price of our common stock is likely to be volatile and could fluctuate widely in response to many factors, including the following, some of which are beyond our control:

	•	variations in our operating results;
	•	changes in expectations of our future financial performance, including financial estimates by securities analysts and investors;
	•	changes in operating and stock price performance of other companies in our industry;
	•	additions or departures of key personnel; and
	•	future sales of our common stock.

Domestic and international stock markets often experience significant price and volume fluctuations. These fluctuations, as well as general economic and political conditions unrelated to our performance, may adversely affect the price of our common stock.

Our common shares may become thinly traded and you may be unable to sell at or near ask prices, or at all.

We cannot predict the extent to which an active public market for trading our common stock will be sustained. Although the trading price of our common shares increased significantly recently, it has historically been sporadically or “thinly-traded” meaning that the number of persons interested in purchasing our common shares at or near bid prices at certain given time may be relatively small or non-existent.

This situation is attributable to a number of factors, including the fact that we are a small company which is relatively unknown to stock analysts, stock brokers, institutional investors and others in the investment community who generate or influence sales volume. Even if we came to the attention of such persons, those persons tend to be risk-averse and may be reluctant to follow, purchase, or recommend the purchase of shares of an unproven company such as ours until such time as we become more seasoned and viable. As a consequence, there may be periods of several days or more when trading activity in our shares is minimal or non-existent, as compared to a seasoned issuer which has a large and steady volume of trading activity that will generally support continuous sales without an adverse effect on share price. We cannot give you any assurance that a broader or more active public trading market for our common stock will develop or be sustained, or that current trading levels will be sustained.

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements

The market price for our common stock is particularly volatile given our status as a relatively small company, which could lead to wide fluctuations in our share price. You may be unable to sell your common stock at or above your purchase price if at all, which may result in substantial losses to you.

Shareholders should be aware that, according to SEC Release No. 34-29093, the market for penny stocks has suffered in recent years from patterns of fraud and abuse. Such patterns include (1) control of the market for the security by one or a few broker-dealers that are often related to the promoter or issuer; (2) manipulation of prices through prearranged matching of purchases and sales and false and misleading press releases; (3) boiler room practices involving high-pressure sales tactics and unrealistic price projections by inexperienced sales persons; (4) excessive and undisclosed bid-ask differential and markups by selling broker-dealers; and (5) the wholesale dumping of the same securities by promoters and broker-dealers after prices have been manipulated to a desired level, along with the resulting inevitable collapse of those prices and with consequent investor losses. Our management is aware of the abuses that have occurred historically in the penny stock market. Although we do not expect to be in a position to dictate the behavior of the market or of broker-dealers who participate in the market, management will strive within the confines of practical limitations to prevent the described patterns from being established with respect to our securities. The occurrence of these patterns or practices could increase the volatility of our share price.

Because we can issue additional shares of common stock, our stockholders may experience dilution in the future.

We are authorized to issue up to 111,~~125~~250,000~~,000~~ shares of common stock, of which 38383,~~322,460~~855 shares of common stock were issued and outstanding as of ~~October~~January 31, ~~2017~~2018. As of ~~October~~January 31, ~~2017~~2018, we have 220,~~095,217~~956 warrants outstanding which could further dilution in the future if exercised and 5,000 shares of common stock issuable upon conversion of a convertible loan in the aggregate principal amount of $100,000 at the conversion price of $20.00 per share. Our board of directors has the authority to cause us to issue additional shares of common ~~stock~~ stock without consent of our stockholders. Consequently, stockholders may ~~experience~~ experience dilution in their ownership of our stock in the future. As of ~~December~~ 18March 16, ~~2017~~2018, there were 38383,~~322,460~~864 common shares and 220,~~095,217~~956 warrants outstanding.

There is currently no established public trading market for our common stock, which makes it difficult for our stockholders to resell their shares.

There is currently no established public trading market for our common stock. There is a limited public market for our common stock through its quotation on the OTCPink quotation system operated by the OTC Markets Group. Trading in stocks quoted on the OTCPink is often thin and is characterized by wide fluctuations in trading prices due to many factors that may be unrelated or have little to do with a company's operations or business prospects. Moreover, the OTCPink is not a stock exchange, and trading of securities on the OTCPink is often more sporadic than the trading of securities listed on a national securities exchange like the NASDAQ or the NYSE. Accordingly, stockholders may have difficulty reselling any of our shares. We cannot assure you that there will be a market for our common stock in the future.

We do not anticipate paying any cash dividends to our common shareholders.

We presently do not anticipate that we will pay dividends on any of our common stock in the foreseeable future. If payment of dividends does occur at some point in the future, it would be contingent upon our revenues and earnings, if any, capital requirements, and general financial condition. The payment of any common stock dividends will be within the discretion of our board of directors. We presently intend to retain all earnings after paying the interest for the preferred stock, if any, to implement our business plan; accordingly, we do not anticipate the declaration of any dividends for common stock in the foreseeable future.

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements

Volatility in our common share price may subject us to securities litigation.

The market for our common stock is characterized by significant price volatility as compared to seasoned issuers, and we expect that our share price will continue to be more volatile than a seasoned issuer for the indefinite future. In the past, plaintiffs have often initiated securities class action litigation against a company following periods of volatility in the market price of its securities. We may, in the future, be the target of similar litigation. Securities litigation could result in substantial costs and liabilities and could divert management’s attention and resources.

The elimination of monetary liability against our directors, officers and employees under Nevada law and the existence of indemnification rights of our directors, officers and employees may result in substantial expenditures by our company and may discourage lawsuits against our directors, officers and employees.

Our Articles of Incorporation contain a specific provision that eliminates the liability of our directors and officers for monetary damages to our company and shareholders. Further, we are prepared to give such indemnification to our directors and officers to the extent provided for by Nevada law. The foregoing indemnification obligations could result in our company incurring substantial expenditures to cover the cost of settlement or damage awards against directors and officers, which we may be unable to recoup. These provisions and resultant costs may also discourage our company from bringing a lawsuit against directors and officers for breaches of their fiduciary duties, and may similarly discourage the filing of derivative litigation by our shareholders against our directors and officers even though such actions, if successful, might otherwise benefit our company and shareholders.

Our business is subject to changing regulations related to corporate governance and public disclosure that have increased both our costs and the risk of noncompliance.

Because our common stock is publicly traded, we are subject to certain rules and regulations of federal, state and financial market exchange entities charged with the protection of investors and the oversight of companies whose securities are publicly traded. These entities, including the Public Company Accounting Oversight Board, the SEC and FINRA, have issued requirements and regulations and continue to develop additional regulations and requirements in response to corporate scandals and laws enacted by Congress, most notably the Sarbanes-Oxley Act of 2002. Our efforts to comply with these regulations have resulted in, and are likely to continue resulting in, increased general and administrative expenses and diversion of management time and attention from revenue-generating activities to compliance activities. Because new and modified laws, regulations and standards are subject to varying interpretations in many cases due to their lack of specificity, their application in practice may evolve over time as new guidance is provided by regulatory and governing bodies. This evolution may result in continuing uncertainty regarding compliance matters and additional costs necessitated by ongoing revisions to our disclosure and governance practices.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3. Defaults upon Senior Securities

None

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements

Item 6. Exhibits

Exhibit Number	Description of Exhibit
31.1	Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1	Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

~~The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements~~ 16

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

~~GARMATEX~~EVOLUTION ~~HOLDINGS~~BLOCKCHAIN ~~LTD~~GROUP INC. ~~By: /s/ Devon Loosdrecht Devon Loosdrecht Chief Executive Officer, Chief Financial Officer, President, Secretary, Treasurer and sole Director Date: December 29, 2017~~

~~The~~By: ~~accompanying~~/s/ ~~notes~~Lawrence ~~are~~Stephenson Lawrence anStephenson ~~integral~~Chief ~~part~~Executive ofOfficer ~~these~~and ~~unaudited~~Chief ~~interim~~Financial ~~condensed consolidated financial statements~~ Officer

Date: March 16, 2018

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