UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(MARK ONE)


þ	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~December~~June 3130, ~~2014~~2015


o	TRANSITION REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _________ to _________

Commission File Number: 333-169554

RAINBOW CORAL CORP.

(Exact name of registrant as specified in its charter)

Florida		27-3247562
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification Number)
(State or other jurisdiction of Incorporation or organization)		(I.R.S. Employer Identification Number)
495 Grand Boulevard, Suite 206 Miramar Beach, Florida		32550
871 Coronado Center Dr, Suite 200 Henderson, Nevada		89052
(Address of principal executive offices)		(Zip code)

Registrant’s telephone number, including area code: ~~(850) 269~~702-~~7230~~952-5000

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (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 þ No o

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 (§232.405 of this chapter) during the preceding 12 months.

Yes o No þ

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


Large accelerated filer	o	Accelerated filer	o
Non-accelerated filer	o	Smaller reporting company	þ
(Do not check is smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes o No þ

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date. ~~There~~As ~~were~~of 34August 14,~~210~~ 2015,~~257~~ 8,748,882 shares of common stock are issued and outstanding ~~as of February 10, 2015~~.

TABLE OF CONTENTS

PART I — FINANCIAL INFORMATION 4 Item 1. Financial Statements 4 Consolidated Balance Sheets (Unaudited) 4 Consolidated Statements of Operations (Unaudited) 5 ~~Consolidated~~ Statement of Changes in Stockholders’ Deficit (Unaudited) 6 Consolidated Statements of Cash Flows (Unaudited) 7 Notes to the Unaudited Consolidated Financial Statements 8 Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 15 Item 3. Quantitative and Qualitative Disclosures about Market Risk 1716 Item 4. Controls and Procedures 1716 PART II — OTHER INFORMATION 1817 Item 1. Legal Proceedings 1817 Item 1A. Risk Factors 1817 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 1817 Item 3. Defaults upon Senior Securities 1817 Item 4. Mine Safety Disclosures 1817 Item 5. Other Information 1817 Item 6. Exhibits 18

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CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

Certain statements in this report contain or may contain forward-looking statements. These statements, identified by words such as “plan”, “anticipate”, “believe”, “estimate”, “should”, “expect” and similar expressions include our expectations and objectives regarding our future financial position, operating results and business strategy. These statements are subject to known and unknown risks, uncertainties and other factors, which may cause actual results, performance, or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward - looking statements. These forward-looking statements were based on various factors and were derived utilizing numerous assumptions and other factors that could cause our actual results to differ materially from those in the forward-looking statements. These factors include, but are not limited to, our ability to secure suitable financing to continue with our existing business or change our business and conclude a merger, acquisition or combination with a business prospect, economic, political and market conditions and fluctuations, government and industry regulation, interest rate risk, U.S. and global competition, and other factors. Most of these factors are difficult to predict accurately and are generally beyond our control. You should consider the areas of risk described in connection with any forward-looking statements that may be made herein. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this report. Readers should carefully review this report in its entirety, including but not limited to our financial statements and the notes thereto and the risks described in our Annual Report on Form 10-K for the fiscal year ended March 31, ~~2014~~2015. We advise you to carefully review the reports and documents we file from time to time with the Securities and Exchange Commission (the “SEC”), particularly our quarterly reports on Form 10-Q and our current reports on Form 8-K. Except for our ongoing obligations to disclose material information under the Federal securities laws, we undertake no obligation to release publicly any revisions to any forward-looking statements, to report events or to report the occurrence of unanticipated events.

OTHER PERTINENT INFORMATION

When used in this report, the terms, “we,” the “Company,” “our,” and “us” refers to Rainbow Coral Corp., a Florida corporation.

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PART I — FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

RAINBOW CORAL CORP.

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

	December 31, 2014			March 31, 2014
	June 30, 2015			March 31, 2015
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	312,~~262~~740		$	655,~~373~~180
Prepaid expenses		~~350~~1,220			~~841~~1,095
Inventory		~~8,322~~564			51,~~249~~139
Total current assets		394,~~934~~524			717,~~463~~414
Fixed assets, net of accumulated depreciation of $11,395 and $7,615, respectively		2,502			6,282
Fixed assets net of accumulated depreciation of $3,354 and $2,795, respectively		3,355			3,914
TOTAL ASSETS	$	427,~~436~~879		$	7711,~~745~~328
LIABILITIES AND STOCKHOLDERS’ DEFICIT
CURRENT LIABILITIES
Accounts payable and accrued expenses	$	~~195~~319,~~337~~830		$	~~191~~274,~~780~~684
Advances payable		—			149,453
Related party payables		177,274			165,214
Related party advances payable		153,431			131,505
Current portion of convertible notes payable, net of discount of $48,852 and $0, respectively		6,395			—
Current portion of notes payable		1113,~~369~~921			213,~~843~~734
Total current liabilities		360,137			475,581
Current portion of accrued interest payable		378			—
Convertible notes payable, net of discount of $232,630 and $215,716, respectively		161,141			13,111
Total current liabilities		517,798			453,632
Notes payable		42,561			47,157
Convertible notes payable, net of discount of $226,888 and $237,643, respectively		40,960			164,238
Accrued interest payable		5,799			11,201
Notes payable		34,551			37,352
TOTAL LIABILITIES		569,638			547,050
Accrued interest payable		11,647			14,127
TOTAL LIABILITIES		604,956			669,349
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ DEFICIT
Preferred stock, $0.0001 par value; 10,000,000 shares authorized; no shares issued and outstanding		—			—
Preferred stock, $0.001 par value; 20,000,000 shares authorized; No shares issued and outstanding at June 30, 2015 and March 31, 2015, respectively		—			—
Common stock, $0.0001 par value; 250,000,000 shares authorized; 33,134,943 and 22,851,900 shares issued and outstanding at December 31, 2014 and March 31, 2014, respectively		3,313			2,285
Common stock, $0.001 par value; 480,000,000 shares authorized; 7,536,277 shares issued and outstanding at June 30, 2015 and March 31, 2015, respectively		7,536			342
Additional paid-in capital		3,~~189~~455,~~558~~104			23,~~460~~264,~~965~~425
Accumulated deficit		(34,~~720~~059,~~073~~717	)		(23,~~932~~922,~~555~~788	)
Total stockholders’ deficit		(~~527~~597,~~202~~077	)		(~~469~~658,~~305~~021	)
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT	$	427,~~436~~879		$	7711,~~745~~328

The accompanying notes are an integral part of these unaudited ~~consolidated~~ financial statements.

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RAINBOW CORAL CORP.

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

	Nine months ended December 31,						Three months ended December 31,
	Three months ended June 30,
	2014			2013			2014			2013
	2015			2014
REVENUE	$	9927,~~503~~683		$	8435,~~044~~147		$	~~28,182~~		$	~~25,491~~
COST OF GOODS SOLD		4812,~~327~~675			5717,~~506~~283			~~10,592~~			~~22,630~~
GROSS PROFIT		5115,~~176~~008			2617,~~538~~864			~~17,590~~			~~2,861~~
OPERATING EXPENSES
Expenses related to joint ventures and business development activities		7010,000			5540,000			~~10,000~~			—
General and administrative expenses		~~408~~115,~~144~~844			~~421~~129,~~084~~685			~~137,213~~			~~165,140~~
LOSS FROM OPERATIONS		(426,968	)		(449,546	)		(129,623	)		(162,279	)
Total operating expenses		125,844			169,685
OTHER EXPENSE
LOSS FROM OPERATIONS	$	(110,836	)	$	(151,821	)
Interest expense		(360,550	)		(234,389	)		(121,858	)		(53,710	)
OTHER INCOME (EXPENSE)
NET LOSS	$	(787,518	)	$	(683,935	)	$	(251,481	)	$	(215,989	)
Interest expense		(26,093	)		(223,088	)
NET LOSS PER COMMON SHARE – Basic and diluted	$	(0.03	)	$	(0.04	)	$	(0.01	)	$	(0.01	)
NET LOSS	$	(136,929	)	$	(374,909	)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING – Basic and diluted		29,061,197			16,238,095			32,587,117			17,656,269
NET LOSS PER COMMON SHARE – Basic and diluted	$	(0.05	)	$	(1.46	)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING – Basic and diluted		2,683,948			256,925

The accompanying notes are an integral part of these unaudited ~~consolidated~~ financial statements.

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RAINBOW CORAL CORP.

~~CONSOLIDATED~~ STATEMENT OF CHANGES IN STOCKHOLDERS’ DEFICIT

(UNAUDITED)

	Common Stock			Additional Paid In			Accumulated
	Preferred Stock			Common Stock					Additional Paid-In			Accumulated			Total
	Shares	Amount		~~Capital~~Shares		Amount	~~Deficit~~		Capital	~~Total~~		Deficit			Deficit
BALANCE, March 31, 2014	22,851,900	$	2,285	$	2,460,965		$	(2,932,555	)	$	(469,305	)
BALANCE, March 31, 2015	—	$	—	342,106		$	342		$	3,264,425		$	(3,922,788	)	$	(658,021	)
Shares issued for conversion of notes payable	~~10,283,043~~—		~~1,028~~—	7,193,344	~~368,294~~		7,194	—		136,673	~~369,322~~		—			143,867
Discount on issuance of convertible notes payable	—		—		360,299			—			360,299
Discount on issuance of convertible note payable	—		—	—			—			54,006			—			54,006
Net loss	—		—		—			(787,518	)		(787,518	)
Share rounding	—		—	827			—			—			—			—
BALANCE, December 31, 2014	33,134,943	$	3,313	$	3,189,558		$	(3,720,073	)	$	(527,202	)
Net Loss	—		—	—			—			—			(136,929	)		(136,929	)
BALANCE, June 30, 2015	—	$	—	7,536,277		$	7,536		$	3,455,104		$	(4,059,717	)	$	(597,077	)

The accompanying notes are an integral part of these unaudited ~~consolidated~~ financial statements.

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RAINBOW CORAL CORP.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	Nine months ended December 31,
	Three months ended June 30,
	2014			2013
	2015			2014
CASH FLOW FROM OPERATING ACTIVITIES:
Net loss	$	(~~787~~136,~~518~~929	)	$	(~~683~~374,~~935~~909	)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of discount on convertible notes payable		343,385			215,122
Amortization of discount on convertible note payable		15,909			216,176
Depreciation		~~3,780~~559			21,~~867~~260
Changes in operating assets and liabilities:
Inventory		~~(3,073~~575	)		—798
Prepaid expenses		~~491~~(125	)		—491
Accounts payable and accrued expenses		128,616			52,929
Accounts payable and accrued liabilities		45,146			41,503
Accrued interest payable		178,~~165~~973			206,~~923~~912
NET CASH USED IN OPERATING ACTIVITIES		(~~297~~65,~~154~~892	)		(~~392~~107,~~094~~769	)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from advances		~~237~~54,~~187~~006			~~330~~62,~~280~~980
Proceeds from related party advances		21,926			36,756
Proceeds from related party advance		12,060			—
Repayments of related party advances		—			(1,~~686~~204	)
Proceeds from notes payable		3,930			50,000
Repayments of notes payable		(2,614	)		(140	)
NET CASH PROVIDED BY FINANCING ACTIVITIES		~~263~~63,~~043~~452			~~415~~61,~~350~~636
NET INCREASE (DECREASE) IN CASH		(34,111	)		23,256
NET DECREASE IN CASH		(2,440	)		(46,133	)
CASH, at the beginning of the period		655,~~373~~180			8465,~~592~~373
CASH, at the end of the period	$	312,~~262~~740		$	~~107~~19,~~848~~240
Supplemental Disclosures of Cash Flow Information:
Cash paid during the period for:
Interest	$	—1,211		$	—
Taxes	$	—		$	—
Noncash Investing and Financing Activities:
Noncash investing and financing transaction:
Refinance of advances into convertible notes payable	$	386,640		$	175,136
Refinance advances into convertible note payable	$	54,006		$	212,433
Refinance of accounts payable into convertible note payable	$	125,059		$	—
Beneficial conversion discount on convertible note	$	54,006		$	212,433
Beneficial conversion discount on convertible notes	$	360,299		$	300,526
Conversion of convertible notes payable and accrued interest to common stock	$	143,867		$	238,368
Conversion of convertible notes and accrued interest to common stock	$	369,322		$	300,526

The accompanying notes are an integral part of these unaudited ~~consolidated~~ financial statements.

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RAINBOW CORAL CORP.

NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

~~DECEMBER~~JUNE 3130, ~~2014~~2015

Note 1. General Organization and Business

~~RAINBOW~~Rainbow ~~CORAL~~Coral ~~CORP~~Corp. (the “Company”), a Florida corporation, was ~~formed~~incorporated toon ~~build~~August ~~a coral farm facility to develop and propagate (or grow) live coral~~13, ~~independent of the oceans, as a future farm reserve against the decline of natural wild reefs~~2010. We intend to grow, harvest, and distribute as many varieties of hard and soft sizes as possible of captive-bred corals that are attractive, to as many consumers as possible who can maintain them in a healthy ecosystem aquarium. We believe that coral and other marine aquarium livestock should be supplied by farms or captive breeders, rather than removed from the natural reefs. The ~~additional uses for coral as a source of potential leading edge medical discoveries are an attractive opportunity for the~~ Company’s ~~coral~~year-end ~~farming activity. We believe that the world of bioresearch~~ is aMarch ~~natural continuation of our core coral propagation business~~31. Accordingly, on October 23, 2011, the Company formed a subsidiary, Rainbow Biosciences, LLC to look into the opportunities within the bioscience market. Rainbow Biosciences, LLC will continue to research opportunities into the bioscience markets.

~~The~~We ~~Company~~were ~~was~~formed ~~incorporated~~to onbuild ~~August~~a 13coral farm facility to develop and propagate (or grow) live coral, ~~2010~~independent ~~with~~of ~~its~~the ~~corporate~~oceans, ~~headquarters~~as ~~located~~a future farm reserve against the decline of natural wild reefs. We intend to grow, harvest, and distribute as many varieties of hard and soft sizes as possible of captive-bred corals that are attractive to as many consumers as possible who can maintain them in ~~Miramar~~a ~~Beach~~healthy ecosystem aquarium. We believe that coral and other marine aquarium livestock should be supplied by farms or captive breeders, ~~Florida~~rather than removed from the natural reefs. The additional uses for coral as a source of potential leading edge medical discoveries are an attractive opportunity for the Company’s ~~fiscal~~coral ~~year~~farming ~~end~~activity. We believe that the world of bioresearch is ~~March~~a 31natural continuation of our core coral propagation business. Accordingly, on October 23, 2011, we formed a subsidiary, Rainbow Biosciences, LLC to look into the opportunities within the bioscience market. Rainbow Biosciences, LLC will continue to research opportunities into the bioscience markets.

Joint Ventures

On March 13, 2012, the Company entered into a stock purchase agreement (“~~2012~~ N3D Stock Purchase Agreement”) with Nano3D Biosciences, Inc. (“N3D”), a Texas corporation that has developed a unique concept in three dimensional cell research tools. Under the terms of the ~~2012~~ N3D Stock Purchase Agreement, the Company agreed to acquire 604 shares of common stock of N3D, representing approximately 5% of the outstanding shares on the date of the agreement, for a price of $413.62 per share. The total purchase price of $249,826 was to be paid by making weekly payments of $5,000 until fully paid. Under the terms of the ~~2012~~ N3D Stock Purchase Agreement, we could discontinue payment of the purchase price at any time by providing written notice to N3D. The Company ~~discontinued~~invested ~~payments~~$60,000 toin N3D inresulting ~~May 2012 because of their delay~~ in ~~reaching certain milestones in~~ the ~~commercialization process.~~acquisition ~~The~~of ~~Company~~145 wrote off the investment in full due to the uncertainty about whether the carrying amount is recoverable. The Company began made additional payments under the 2012 N3D Stock Purchase Agreement during 2014. The Company has acquired 228 shares of N3D’s common stock. ~~During the nine months ended December 31, 2014, the Company provided $40,000 of additional funding to N3D and expensed $50,000 pursuant to this investment.~~

OnThe ~~December 15, 2014, the~~ Company ~~entered~~suspended ~~into~~payments ato ~~new~~N3D ~~stock~~in ~~purchase~~May ~~agreement~~2012 ~~with~~because ~~N3D~~of ~~(“2014~~their ~~N3D~~delay ~~Stock Purchase~~in ~~Agreement”)~~reaching ~~which~~certain ~~replaced~~milestones in the ~~previous~~commercialization ~~agreement~~process. ~~Under~~The ~~the~~Company ~~terms~~wrote ofoff the ~~2014~~investment ~~N3D~~in ~~Stock~~full ~~Purchase~~due ~~Agreement,~~to the ~~Company~~ ~~agreed~~uncertainty toabout ~~acquire~~whether ~~241~~the ~~shares~~carrying ofamount ~~common~~is ~~stock of N3D for a price of $413~~recoverable.62 ~~per~~During ~~share.~~the ~~The~~three ~~total~~months ~~purchase~~ended ~~price~~June of30, ~~$100~~2015,~~000 will~~ bethe ~~made~~Company bypaid ~~making~~and ~~monthly~~expensed ~~payments of~~ $10,000 ~~until~~with ~~fully paid. The first payment was made on January 8, 2015. The Company can discontinue payment of the purchase price at any time by providing written notice to~~ N3D. ~~All amounts invested in N3D have been written off and expensed due to uncertainty about whether the cost is recoverable.~~

On February 1, 2013, the Company entered into a joint venture agreement with TheraKine Ltd. (“TheraKine”) in order to explore potential business opportunities to exploit TheraKine’s ~~novel~~ drug delivery technologies. TheraKine is the developer of a revolutionary, sustained-release drug delivery platform that could soon make local delivery of biologic agents and small molecules safer, more effective, and more convenient than ever before. During the ~~nine~~three months ended ~~December~~June 3130, ~~2014~~2015, the Company ~~paid~~incurred ~~and~~no ~~expensed~~expenses ~~$20,000~~related ~~pursuant~~ to this joint venture.

Note 2. Going Concern

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. For the ~~nine~~three months ended ~~December~~June 3130, ~~2014~~2015, the Company had a net loss of $~~787~~136,~~518~~929 and negative cash flow from operating activities of $~~297~~65,~~154~~892. As of ~~December~~June 3130, ~~2014~~2015, the Company had negative working capital of $~~320~~513,~~203~~274. Management does not anticipate having positive cash flow from operations in the near future.

These factors raise a substantial doubt about the Company’s ability to continue as a going concern. The accompanying consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result from the possible inability of the Company to continue as a going concern.

The Company does not have the resources at this time to repay its credit and debt obligations, make any payments in the form of dividends to its shareholders or implement its business plan. Without additional capital, the Company will not be able to remain in business.

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The Company does not have the resources at this time to repay its credit and debt obligations, make any payments in the form of dividends to its shareholders or fully implement its business plan. Without additional capital, the Company will not be able to remain in business.

Management has plans to address the Company’s financial situation as follows:

In the near term, management plans to continue to focus on raising the funds necessary to implement the Company’s business plan. Management will continue to seek out debt financing to obtain the capital required to meet the Company’s financial obligations. There is no assurance, however, that lenders will continue to advance capital to the Company or that the new business operations will be profitable. The possibility of failure in obtaining additional funding and the potential inability to achieve profitability raise doubts about the Company’s ability to continue as a going concern.

In the long term, management believes that the Company’s projects and initiatives will be successful and will provide cash flow to the Company, which will be used to finance the Company’s future growth. However, there can be no assurances that the Company’s planned activities will be successful, or that the Company will ultimately attain profitability. The Company’s long-term viability depends on its ability to obtain adequate sources of debt or equity funding to meet current commitments and fund the continuation of its business operations, and the ability of the Company to achieve adequate profitability and cash flows from operations to sustain its operations.

Note 3. Summary of Significant Accounting Policies

Basis of Presentation

The financial statements and related disclosures have been prepared pursuant to the rules and regulations of the SEC. The financial statements have been prepared using the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America (“GAAP”).

Interim Financial Statements

The accompanying these unaudited financial statements have been prepared in accordance with generally accepted accounting (“GAAP”) principles in the United States of America for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, the ~~consolidated~~Consolidated financial statements do not include all of the information and footnotes required by ~~GAAP~~generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included and such adjustments are of a normal recurring nature. These ~~consolidated~~Consolidated financial statements should be read in conjunction with the ~~consolidated~~Consolidated financial statements for the fiscal year ended March 31, ~~2014~~2015 and notes thereto and other pertinent information contained in our Form 10-K the Company has filed with the Securities and Exchange Commission (the “SEC”).

The results of operations for the ~~nine~~three-month period ended ~~December~~June 3130, ~~2014~~2015 are not necessarily indicative of the results to be expected for the full fiscal year ending March 31, ~~2015~~2016.

Basis of Presentation

The consolidated financial statements and related disclosures have been prepared pursuant to the rules and regulations of the SEC. The financial statements have been prepared using the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America (“GAAP”).

Principles of Consolidation

The consolidated financial statements include the accounts and operations of Rainbow Coral Corp., and its wholly owned subsidiaries, Rainbow Biosciences, LLC and Father Fish Aquarium, Inc. (collectively referred to as the “Company”). All material intercompany accounts and transactions have been eliminated in consolidation.

Use of Estimates

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

Cash and Cash Equivalents

For the purpose of the financial statements, cash equivalents include all highly liquid investments with maturity of three months or less. Cash and cash equivalents were $312,~~262~~740 and $655,~~373~~780 at ~~December~~June 3130, ~~2014~~2015 and March 31, ~~2014~~2015, respectively.

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Inventory

Inventory represents aquarium products and other pet supply items valued at the lower of cost or net realizable value determined using the weighted average cost method, and with market defined as the lower of replacement cost or realizable value. The cost of inventory includes all costs to purchase, costs of conversion and other costs incurred in bringing the inventory to its present location and condition. Inventory is reduced for the estimated losses due to obsolescence.

Fixed Assets

Fixed assets of the Company include vehicles and computer equipment and are stated at cost. Expenditures for fixed assets that substantially increase the useful lives of existing assets are capitalized at cost and depreciated. Routine expenditures for repairs and maintenance are expensed as incurred.

Depreciation is provided principally on the straight-line method over the estimated useful lives of three to five years for financial reporting purposes.

Impairment of Long-Lived Assets

Long-lived assets, including fixed assets and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the long-lived asset may not be recoverable. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. If it is determined that an impairment loss has occurred, the loss is measured as the amount by which the carrying amount of the long-lived asset exceeds its fair value. The Company determined that there was no impairment of long-lived assets during the ~~nine~~three months ended ~~December~~June 3130, ~~2014~~2015.

Revenue and Cost Recognition

The Company recognizes revenue when persuasive evidence of an arrangement exists, product delivery has occurred or the services have been rendered, the price is fixed or determinable and collectability is reasonably assured. Revenue is generated from the sales of live coral and other related products in a retail setting. Revenue is recognized net of sales returns and allowances.

Costs of goods sold represents product costs associated with generating revenue. It includes all costs of purchase, costs of conversion and other costs of acquiring products that have been sold.

Advertising Costs

The Company’s policy regarding advertising is to expense advertising costs as incurred. The Company incurred $5,985 and $9,099 of advertising costs for the nine months ended December 31, 2014 and December 31, 2013, respectively.

Income Taxes

The Company accounts for income taxes under ASC 740 Income Taxes. Under the asset and liability method of ASC 740, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period the enactment occurs. A valuation allowance is provided deferred tax assets if it is more likely than not that the Company will not realize tax assets through future operations. No deferred tax assets or liabilities were recognized as of ~~December~~June 3130, ~~2014~~2015 or March 31, ~~2014~~2015.

Earnings (Loss) per Common Share

The Company computes basic and diluted earnings per common share amounts in accordance with ASC Topic 260, Earnings per Share. The basic earnings (loss) per common share are calculated by dividing the Company’s net income available to common shareholders by the weighted average number of common shares outstanding during the ~~year~~period. The diluted earnings (loss) per common share are calculated by dividing the Company’s net income (loss) available to common shareholders by the diluted weighted average number of shares outstanding during the ~~year~~period. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted as of the first of the year for any potentially dilutive debt or equity. There are no dilutive shares outstanding for any periods reported.

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In periods in which a net loss has been incurred, all potentially dilutive common shares are considered anti-dilutive and thus are excluded from the calculation. The Company’s convertible debt is considered anti-dilutive due to the Company’s net loss for the ~~nine~~years ~~months~~ ended ~~December~~March 31, ~~2014~~2015 and ~~2013~~2014. As a result, the Company did not have any potentially dilutive common shares for those periods. For the ~~three~~year ~~months~~ ended ~~October~~March 31, ~~2014~~2015 and ~~2013~~2014, potentially issuable shares as a result of conversions of convertible notes payable have been excluded from the calculation. At ~~December~~March 31, ~~2014 and December 31~~2015, ~~2013,~~ the Company had ~~28,260,400~~ ~~and 10~~26,~~801~~679,~~058,~~469 ~~respectively,~~ potentially issuable shares upon the conversion of convertible notes payable and interest.

Financial Instruments

The Company’s balance sheet includes certain financial instruments. The carrying amounts of current assets and current liabilities approximate their fair value because of the relatively short period between the origination of these instruments and their expected realization.

Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 820 Fair Value Measurements and Disclosures (ASC 820) defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy that distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:


	Level 1 -	Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

	Level 2 -	Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means.

	Level 3 -	Inputs that are both significant to the fair value measurement and unobservable.

Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of ~~December~~June 3130, ~~2014~~2015. The respective carrying value of certain on-balance-sheet financial instruments approximated their fair values due to the short-term nature of these instruments. These financial instruments include accounts payable, and accrued expenses. The fair value of the Company’s notes payable is estimated based on current rates that would be available for debt of similar terms that is not significantly different from its stated value.

Subsequent events

The Company evaluated material events occurring between ~~December~~the 31end of the current period, ~~2014~~June 30, 2015, and through the date when the consolidated financial statements were available to be issued for disclosure consideration.

Recently Issued Accounting Pronouncements

~~Recently~~There ~~issued~~were various other accounting ~~pronouncements~~standards ~~are~~and ~~not~~interpretations ~~expected~~issued torecently, ornone ~~did~~of ~~not~~which are expected to a have, a material impact on ~~our~~the Company’s consolidated financial position, ~~results of~~ operations or cash flows.

Note 4. Advances

During the ~~nine~~three months ended ~~December~~June 3130, ~~2014~~2015, Vista View Ventures, Inc. advanced $~~237~~54,~~187~~006 to the Company for working capital. These advances are non-interest bearing and payable on demand. During the same period, the Company refinanced $~~386~~54,~~640~~006 of the advances into convertible notes payable with Vista View Ventures, Inc. As of ~~December~~June 3130, ~~2014~~2015 and March 31, ~~2014~~2015, advances in the amount of $0 and $~~149~~0,~~453,~~ respectively, are included in current liabilities on the consolidated balance sheets.

- 11 -

Note 5. Convertible Notes Payable

Convertible notes payable consist of the following as of ~~December~~June 3130, ~~2014~~2015 and March 31, ~~2014~~2015:

	December 31, 2014			March 31, 2014
	June 30, 2015			March 31, 2015
Convertible note payable, dated June 30, 2013, bearing interest at 10% per annum, matures on June 30, 2015 and convertible into shares of common stock at $0.04 per share	$	—		$	4,742
Convertible note, dated June 30, 2014, bearing interest at 10% per annum, matures on June 30, 2016 and convertible into shares of common stock at $0.02 per share		55,247			62,980
Convertible note payable, dated September 30, 2013, bearing interest at 10% per annum, matures on September 30, 2015 and convertible into shares of common stock at $0.04 per share		—			224,085
Convertible note, dated September 30, 2014, bearing interest at 10% per annum, matures on September 30, 2016 and convertible into shares of common stock at $0.01 per share		80,133			80,133
Convertible note payable, dated April 2014, bearing interest at 10% per annum, matures on March 31, 2016 and convertible into shares of common stock at $0.03 per share		31,525			—
Convertible note, dated December 31, 2014, bearing interest at 10% per annum, matures on December 31, 2016 and convertible into shares of common stock at $0.01 per share		94,074			94,074
Convertible note payable, dated June 30, 2014, bearing interest at 10% per annum, matures on June 30, 2016 and convertible into shares of common stock at $0.02 per share		62,980			—
Convertible note, dated December 31, 2014, bearing interest at 10% per annum, matures on December 31, 2016 and convertible into shares of common stock at $0.02 per share		—			125,059
Convertible note payable, dated September 30, 2014, bearing interest at 10% per annum, matures on September 30, 2016 and convertible into shares of common stock at $0.01 per share		80,133			—
Convertible note, dated March 31, 2015, bearing interest at 10% per annum, matures on March 31, 2017 and convertible into shares of common stock at $0.007 per share		39,635			39,635
Convertible notes payable, dated December 31, 2014, bearing interest at 10% per annum, matures on December 31, 2016 and convertible into shares of common stock at $0.01 - $0.02 per share		219,133			—
Convertible note, dates June 30, 2015, bearing interest at 10% per annum, matures on June 30, 2017 and convertible into shares of common stock at $0.25 per share.		54,006			—
Total convertible notes payable	$	~~393~~323,~~771~~095		$	~~228~~401,~~827~~881
Less: discount on convertible notes payable		(232,630	)		(215,716	)
Less: current portion of convertible notes payable		(55,247	)		—
Convertible notes payable, net of discount	$	161,141		$	13,111
Less: discount on convertible notes payable		(226,888	)		(237,643	)
Convertible notes payable, net of discount	$	40,960		$	164,238

Advances Refinanced into Convertible ~~notes~~Promissory ~~issued~~Notes

During the ~~nine~~three months ended ~~December~~June 3130, ~~2014~~2015, the Company has signed a convertible promissory ~~notes~~note ~~of $386,640 in total~~ with Vista View Ventures, Inc., ~~which~~that refinanced non-interest bearing advances. ~~These~~into ~~notes~~a ~~are~~convertible ~~payable~~notes ~~at maturity and bear interest at 10% per annum~~payable. The ~~holder of the notes may not convert the~~ convertible promissory note ~~into~~bears ~~common~~interest ~~stock~~at ~~if that conversion would result in the holder owing more than 4.99~~10% ofper ~~the~~annum ~~number~~and ofis ~~shares~~payable ofalong ~~common~~with ~~stock~~accrued ~~outstanding~~interest on the ~~conversion~~maturity date. The convertible promissory ~~notes~~note and unpaid accrued interest are convertible into common stock at ~~rates of between $0.03 and $0.01 per share at~~ the option of the holder.

Date Issued	Maturity Date	Interest Rate		Conversion Rate		~~Amount of~~ Note Amount
April 1, 2014	March 31, 2016	10	%	$	0.03	$	149,453
June 30, 2015	June 30, 2017	10	%	$	0.25	$	54,006
June 30, 2014	June 30, 2016	10	%	$	0.02		62,980
Total						$	54,006
September 30, 2014	September 30, 2016	10	%	$	0.01		80,133
December 31, 2014	December 31, 2016	10	%	$	0.01		94,074
Total						$	386,640

~~Also~~The onCompany ~~December~~evaluated ~~31,~~the ~~2014~~terms of the new note in accordance with ASC Topic No. 815 - 40, Derivatives and Hedging - Contracts in Entity’s Own Stock and determined that the underlying common stock is indexed to the Company’s ~~issued~~common astock. ~~convertible~~The ~~note~~Company ~~payable~~determined tothat athe ~~third~~conversion ~~party~~features indid not meet the ~~amount~~definition of ~~$125,059~~a inliability ~~exchange~~and therefore did not bifurcate the conversion feature and account for ~~that~~it ~~third~~as ~~party~~a ~~paying~~separate ~~off~~derivative ~~accounts~~liability. ~~payable~~The inCompany evaluated the ~~same~~conversion ~~amount~~feature for a beneficial conversion feature. The ~~note~~effective ~~bears~~conversion ~~interest~~price atwas ~~10%~~compared ~~per~~to ~~year~~the market price on the date of the note and iswas ~~convertible~~deemed ~~into~~to be less than the market value of underlying common stock at the inception of the ~~Company~~note. atTherefore, the ~~rate~~Company recognized a beneficial conversion feature of $~~0.02~~54,006 ~~per~~on ~~share~~June 30, 2015. ~~All~~The ~~principal~~beneficial conversion feature was recorded as increase to additional paid-in capital and ~~accrued~~a discount to the convertible note. The discount to the convertible note will be amortized to interest isexpense ~~payable~~over onthe ~~December~~life ~~31,~~of ~~2016.~~the note.

~~The~~Conversions ~~Company~~into ~~evaluated the terms of all the convertible notes in accordance with ASC Topic No. 815 – 40, Derivatives and Hedging - Contracts in Entity’s Own Stock and determined that the underlying~~ common ~~stock~~ ~~is indexed to the Company’s common~~ stock. The Company determined that the conversion features did not meet the definition of a liability and therefore did not bifurcate the conversion feature and account for it as a separate derivative liability. The Company evaluated the conversion features for a beneficial conversion feature. The effective conversion price was compared to the market price on the date of the notes and was deemed less than the market value of underlying common stock at the inception of the note. Therefore, the Company recognized a discount for the beneficial conversion feature in the amount of $360,299, in aggregate, on the date the notes were signed. The beneficial conversion feature was recorded as an increase in additional paid-in capital and a discount to the convertible notes payable. The discount to the convertible notes payable will be amortized to interest expense over the life of the notes.

During the three months ended June 30, 2015, the holders of the convertible note payable dated December 31, 2014 elected to convert principal of $125,059 and accrued interest of $5,208 into 6,513,344 shares of common stock.

During the three months ended June 30, 2015, the holders of the convertible note payable dated June 30, 2014 elected to convert principal of $7,733 and accrued interest of $5,867 into 680,000 shares of common stock.

- 12 -

~~Conversions~~Note to6. ~~Common~~Related ~~Stock~~Party Transactions

During ~~nine~~the three months ended ~~December~~June 3130, ~~2014~~2015, Mr. Foxwell, the ~~holders~~president of ~~the~~Father ~~convertible~~Fish, ~~note~~advanced ~~payable~~$12,060 ~~dated~~to ~~June~~our 30subsidiary, ~~2013~~Father ~~elected~~Fish, tofor ~~convert~~working ~~principal~~capital. As of $4June 30,~~742~~ 2015 and ~~accrued~~March ~~interest~~31, of2015, ~~$212~~related ~~into~~party ~~shares~~advances ofpayable ~~the~~to ~~Company’s common stock~~Mr. OnFoxwell ~~the~~totaled ~~conversion date~~$177,274 ~~the~~and ~~unamortized~~$165,214, ~~discount~~respectively. ~~related~~The toadvances ~~the~~bear ~~principal~~no ~~amount~~interest ~~converted~~and ~~was~~are ~~immediately~~due ~~amortized~~on ~~to interest expense~~demand.

~~During~~Note ~~nine~~7. ~~months ended December 31, 2014, the holders of the convertible note payable dated September 30, 2013 elected to convert principal of $224,085 and accrued interest of $14,283 into shares of the Company~~Stockholders’s ~~common stock. On the conversion date, the unamortized discount related to the principal amount converted was immediately amortized to interest expense.~~ Equity

~~During~~On ~~nine~~May ~~months ended December 31~~29, ~~2014~~2015, the ~~holders~~Company ofreincorporated ~~the~~from ~~convertible~~Florida ~~note~~to ~~payable~~Nevada. ~~dated~~The ~~April~~Company’s 1,board ~~2014~~of ~~elected~~directors and majority shareholder consented to ~~convert~~the ~~principal~~reincorporation. Each of ~~$117,928~~our ~~and~~shareholders ~~accrued~~on ~~interest~~the ofrecord ~~$8,072~~date ~~into~~received ~~shares~~one share of the Nevada Company’s common stock. Onfor each 100 shares of common stock they own in the ~~conversion~~Florida ~~date,~~company. The information contained herein gives retroactive effect to the ~~unamortized~~stock ~~discount~~split ~~related~~for all periods presented. Fractional shares were rounded up to the ~~principal~~next ~~amount~~whole ~~converted~~share, ~~was~~and ~~immediately~~each ~~amortized~~shareholder received at least five shares. Following the reincorporation, the Company is authorized to ~~interest~~issue ~~expense~~500 million shares of common stock and 20 million shares of preferred stock, each with a par value of $0.001 per share.

~~Note~~Conversion 6.of ~~Notes payable~~shares

OnDuring ~~December~~three months ended June 30, ~~2013~~2015, the Company ~~entered~~issued ~~into a promissory note for $50~~7,~~000~~193,344 ~~with~~shares ~~a third party bearing interest at 5% per annum. Under the terms~~ of ~~the~~common ~~note~~stock ~~payable,~~as ~~the Company is required to make monthly payments on the note payable beginning on January 1, 2015 over~~ a ~~period~~result of 4conversions ~~years.~~of Atconvertible ~~December~~notes ~~31, 2014 and March 31, 2014, the Company owed the noteholder $50,000 and $50,000, respectively~~payable.

~~During~~Note ~~the nine months ended December 31, 2014, the Company entered into a promissory note for $5,000 with a third party bearing interest at 5% per annum~~8. Under the terms of the note payable, the Company is required to repay the note in twenty-six equal monthly installments beginning in October 2014. At December 31, 2014, the Company owed the noteholder $3,930.Commitments

~~Note~~The 7Company has an arrangement with a third party whereby the third party provides the Company with office space, legal services, accounting services, fundraising and management services. ~~Related~~During ~~Party~~the ~~Transactions~~three months ending June 30, 2015, the Company incurred $34,881 of fees related to the third party. At June 30, 2015, The Company owed the third party $172,246, which is recorded in accounts payable and accrued expenses.

AsNote ~~of December 31, 2014 and March 31, 2014, related party advances payable totaled $153,431 and $131,505~~9. ~~Transactions~~Business ~~consisted solely of advances payable to Mr. Foxwell for amounts advanced to Father Fish, its wholly-owned subsidiary, for working capital.~~Segments

Note 8. Stockholders’ Deficit

During nine months ended December 31, 2014, the holders of our convertible notes elected to convert principal and interest of $369,322 into 10,283,043 shares of common stock.

Note 9. Commitments

The Company has an arrangement with a third party whereby the third party provides the Company with office space, legal services, accounting services, fundraising and management services. During the nine months ending December 31, 2014, the Company incurred $127,264 of fees related to the third party. At December 31, 2014, The Company owed the third party $172,246, which is recorded in accounts payable and accrued expenses.

Note 10. Business Segments

The Company has two reportable operating segments: (1) aquarium and aquarium supplies and (2) medical technology. These reportable segments are managed separately due to differences in their products.

The only segment that generates revenue is aquarium and aquarium supplies. Management evaluates and monitors performance of this segment primarily through, among other measures, gross profit. The medical technology segment is in the development stage and not begun to generate revenue.

The results of operations and financial position of the two reportable operating segments and corporate were as follows:

- 13 -

Results of Operations:

	Nine months ended December 31,				Three months ended December 31,
	Year ended June 30,
	2014		2013		2014		2013
	2015		2014
REVENUE
Aquarium and aquarium supplies	$	9927,~~503~~683	$	8435,~~044~~147	$	~~28,182~~	$	~~25,491~~
Medical technology		—		—		—		—
Total	$	99,503	$	84,044	$	28,182	$	25,491
Corporate		—		—
GROSS PROFIT
	$	27,683	$	35,147
Aquarium and aquarium supplies	$	51,176	$	26,538	$	17,590	$	2,861
GROSS PROFIT
Medical technology		—		—		—		—
Aquarium and aquarium supplies	$	15,008	$	17,864
Total	$	51,176	$	26,538	$	17,590	$	2,861
Medical technology		—		—
GENERAL AND ADMINISTRATIVE EXPENSE
Corporate		—		—
Aquarium and aquarium supplies	$	83,376	$	84,078	$	23,902	$	32,401
	$	15,008		17,864
Medical technology		70,000		55,000		10,000		—
GENERAL AND ADMINISTRATIVE EXPENSE
Corporate		324,768		337,006		113,311		132,739
Aquarium and aquarium supplies	$	20,963	$	27,778
Total	$	478,144	$	476,084	$	147,213	$	165,140
Medical technology		10,000		40,000
Corporate		94,881		101,907
	$	125,844	$	169,685

- 13 -

Corporate operating expense includes general and administrative costs not allocated to operating segments.

	December 31, 2014		March 31, 2014
	June 30, 2015		March 31, 2015
TOTAL ASSETS
Aquarium and aquarium supplies	$	127,~~297~~035	$	246,~~756~~800
Medical technology		—		—
Corporate		~~30,139~~844		524,~~989~~528
Total	$	42,436	$	77,745
	$	7,879	$	11,328

Note 1110. Subsequent Events

~~Conversion~~On ofJuly ~~convertible~~7, ~~promissory~~2015, ~~note~~the toCompany issued 3,855 shares of its common stock to satisfy the requirements of the reincorporation and reverse split which took place on May 29, 2015. The transaction required that fractional shares were rounded up to the next whole share and that each shareholder received at least five shares.

On ~~January~~July 158, 2015, the ~~holders~~holder of the convertible promissory note ~~dated~~issued ~~April~~June 130, 2014 elected to convert ~~$32,259 of~~ principal and accrued interest ~~into~~of $1,~~075~~400 into 70,~~314~~000 shares of ~~the Company’s~~ common stock. of the Company.

On July 16, 2015, the holder of the convertible promissory note issued June 30, 2014 elected to convert principal and accrued interest of $7,520 into 376,000 shares of common stock of the Company.

On July 22, 2015, the holder of the convertible promissory note issued June 30, 2014 elected to convert principal and accrued interest of $3,220 into 161,000 shares of common stock of the Company.

On July 23, 2015, the holder of the convertible promissory note issued June 30, 2014 elected to convert principal and accrued interest of $995 into 49,750 shares of common stock of the Company.

On July 24, 2015, the holder of the convertible promissory note issued June 30, 2014 elected to convert principal and accrued interest of $4,920 into 246,000 shares of common stock of the Company.

On August 3, 2015, the holder of the convertible promissory note issued June 30, 2014 elected to convert principal and accrued interest of $2,200 into 110,000 shares of common stock of the Company.

On August 11, 2015, the holder of the convertible promissory note issued June 30, 2014 elected to convert principal and accrued interest of $3,860 into 196,000 shares of common stock of the Company.

- 14 -

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Overview

~~The~~We ~~Company~~were was ~~incorporated~~formed onto ~~August~~build 13a coral farm facility to develop and propagate (or grow) live coral, ~~2010~~independent ~~with~~of ~~its~~the ~~corporate~~oceans, ~~headquarters~~as ~~located~~a future farm reserve against the decline of natural wild reefs. We intend to grow, harvest, and distribute as many varieties of hard and soft sizes as possible of captive-bred corals that are attractive, to as many consumers as possible who can maintain them in ~~Miramar~~a ~~Beach~~healthy ecosystem aquarium. We believe that coral and other marine aquarium livestock should be supplied by farms or captive breeders, ~~Florida~~rather than removed from the natural reefs. The additional uses for coral as a source of potential leading edge medical discoveries are an attractive opportunity for the Company’s ~~fiscal~~coral ~~year~~farming ~~end~~activity. We believe that the world of bioresearch is ~~March~~a 31natural continuation of our core coral propagation business. Accordingly, on October 23, 2011, we formed a subsidiary, Rainbow Biosciences, LLC to look into the opportunities within the bioscience market. Rainbow Biosciences, LLC will continue to research opportunities into the bioscience markets.

On May 5, 2015, we reincorporated from Florida to Nevada.

Critical Accounting Policies

We prepare our consolidated financial statements in conformity with GAAP, which requires management to make certain estimates and apply judgments. We base our estimates and judgments on historical experience, current trends, and other factors that management believes to be important at the time the ~~cconsolidated~~condensed consolidated financial statements are prepared. On a regular basis, we review our accounting policies and how they are applied and disclosed in our condensed consolidated financial statements.

While we believe that the historical experience, current trends and other factors considered support the preparation of our condensed consolidated financial statements in conformity with GAAP, actual results could differ from our estimates and such differences could be material.

For a full description of our critical accounting policies, please refer to Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report for the year ended March 31, ~~2014~~2015 on Form 10-K.

Results of Operations

~~Nine~~Three months ended ~~December~~June 3130, ~~2014~~2015 compared to the ~~nine~~three months ended ~~December~~June 3130, ~~2013~~2014.

Revenue

Revenue ~~increased~~decreased to $9927,~~503~~683 for the ~~nine~~three months ended ~~December~~June 3130, ~~2014~~2015, compared to $8435,~~044~~147 for the ~~nine~~three months ended ~~December~~June 3130, ~~2013~~2014 due to ~~higher~~reduced ~~customer~~sales ~~traffic~~during inthe ~~our~~current ~~retail aquarium store~~period.

Cost of goods sold

Cost of goods sold decreased to $48,327 for the nine months ended December 31, 2014, compared to $57,506 for the comparable period in 2013 due to the mix of sales.

Gross Profit

Gross profit increased to $51,176 for the nine months ended December 31, 2014, compared to $26,538 for the nine months ended December 31, 2013. This was caused by the increases in customer traffic and margins discussed above.

Expenses related to joint ventures and other business development agreements

During the nine months ended December 31, 2014, the Company incurred expenses of $50,000 for its N3D joint venture and $20,000 for its TheraKine joint venture. During the nine months ended December 31, 2013, the Company incurred expenses of $55,000 related to its joint venture with TheraKine.

- 15 -

General and Administrative Expenses

We recognized general and administrative expenses in the amounts of $408,144 and $421,084 for the nine months ended December 31, 2014 and 2013, respectively. During the nine months ended December 31, 2014, general and administrative expenses consisted mainly of management fees of $127,264, $137,624 of professional fees and $83,591 of store related general and administrative expenses.

Interest Expense

Interest expense increased from $234,389 for the nine months ended December 31, 2013 to $360,550 for the nine months ended December 31, 2014. Interest expense for the nine months ended December 31, 2014 included amortization of discount on convertible notes payable in the amount of $343,385, compared to $215,122 for the comparable period of 2013.

Net Loss

We incurred a net loss of $787,518 for the nine months ended December 31, 2014 as compared to $683,935 for the comparable period of 2013. The increase in the net loss was primarily the results of the increase in interest expense, offset by improvements to our gross profit.

Three months ended December 31, 2014 compared to the three months ended December 31, 2013

Revenue

Revenue increased to $28,182 for the nine months ended December 31, 2014, compared to $25,491 for the three months ended December 31, 2013 due to higher customer traffic at our retail aquarium store.

Cost of Goods Sold

Cost of ~~Goods~~goods ~~Sold~~sold decreased to $1012,~~592~~675 for the ~~nine~~three months ended ~~December~~June 3130, ~~2014~~2015, compared to $2217,~~630~~283 for the comparable period in ~~2013~~2014 due to ~~the~~reduced ~~mix~~sales ofduring ~~sales~~the current period.

Gross Profit

Gross profit ~~increased~~decreased to $1715,~~590~~008 for the three months ended ~~December~~June 3130, ~~2014~~2015, compared to $217,~~861~~864 for the three months ended ~~December~~June 3130, ~~2013~~2014. This was ~~caused~~a byresult ~~the~~of ~~increases~~a decline in ~~customer~~sales ~~traffic~~during ~~and~~the ~~margins~~current ~~discussed above~~period.

Expenses related to joint ventures and other business development agreements

During the three months ended December 31, 2014, the Company incurred $20,000 of expense related to its joint venture with N3D.

General and Administrative Expenses

We recognized general and administrative expenses in the ~~amounts~~amount of $~~137~~115,~~213~~844 and $~~165~~129,~~140~~685 for the three months ended ~~December~~ 31June 30, ~~2014~~2015 and ~~2013~~ended 2014, respectively. ~~During~~The ~~the~~decrease ~~three~~was ~~months~~due ~~ended~~to ~~December~~a ~~31,~~reduction ~~2014,~~in ~~general and administrative expenses consisted mainly of management fees of $44,128, $53,615 of~~ professional fees ~~and $24,210 of store related general and administrative expenses~~.

- 15 -

Interest Expense

Interest expense ~~increased~~decreased from $53223,~~710~~088 for the three months ended ~~December~~June 3130, ~~2013~~2014 to $~~121~~26,~~858~~093 for the three months ended ~~December~~June 3130, ~~2014~~2015. Interest expense for the three months ended ~~December~~June 3130, ~~2014~~2015 included amortization of discount on convertible notes payable in the amount of $~~117~~15,~~027~~909, compared to $44216,~~657~~176 for the comparable period of ~~2013~~2014. The remaining amount is the result of the Company entering into interest-bearing convertible notes payable.

Net Loss

We incurred a net loss of $~~251~~136,~~481~~929 for the three months ended ~~December~~June 3130, ~~2014~~2015 as compared to $~~215~~374,~~989~~909 for the comparable period of ~~2013~~2014. The ~~increase~~decrease in the net loss was ~~primarily~~driven ~~the~~by ~~results of~~ the ~~increase~~decline in interest expense~~, offset by improvements to our gross profit~~.

- 16 -

Liquidity and Capital Resources

At ~~December~~June 3130, ~~2014~~2015, we had cash on hand of $312,~~262~~740. The Company ~~has~~had negative working capital of $~~320~~513,~~203 as~~274 ~~of December 31, 2014~~ . Net cash used in operating activities for the ~~nine~~three months ended ~~December~~June 3130, ~~2014~~2015 was $~~297~~65,~~154~~892. Cash on hand is adequate to fund our operations for less than one month. We do not expect to achieve positive cash flow from operating activities in the near future. We will require additional cash in order to implement our business plan. There is no guarantee that we will be able to ~~attain~~obtain ~~fund~~funds when we need them or that funds will be available on terms that are acceptable to the Company. We have no material commitments for capital expenditures as of ~~December~~June 3130, ~~2014~~2015.

Additional Financing

Additional financing is required to continue operations. Although actively searching for available capital, the Company does not have any current arrangements for additional outside sources of financing and cannot provide any assurance that such financing will be available.

Off Balance Sheet Arrangements

We do not have any 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 investors.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

~~Not~~This item is not applicable to a smaller reporting ~~company~~companies.

ITEM 4. CONTROLS AND PROCEDURES

Management’s Report on Internal Control over Financial Reporting

We carried out an evaluation, under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, of the effectiveness of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of ~~December~~June 3130, ~~2014~~2015. Based upon that evaluation, our principal executive officer and principal financial officer concluded that, as of ~~December~~June 3130, ~~2014~~2015, our disclosure controls and procedures were not effective to ensure that information required to be disclosed in reports filed by us under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the required time periods and is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

	1.	As of December 31, 2014, we did not maintain effective controls over the control environment. Specifically we have not developed and effectively communicated to our employees our accounting policies and procedures. This has resulted in inconsistent practices. Further, the Board of Directors does not currently have any independent members and no director qualifies as an audit committee financial expert as defined in Item 407(d)(5)(ii) of Regulation S-K. Since these entity level programs have a pervasive effect across the organization, management has determined that these circumstances constitute a material weakness.
	2.	As of December 31, 2014, we did not maintain effective controls over financial statement disclosure. Specifically, controls were not designed and in place to ensure that all disclosures required were originally addressed in our financial statements. Accordingly, management has determined that this control deficiency constitutes a material weakness.

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	1.	As of June 30, 2015, we did not maintain effective controls over the control environment. Specifically we have not developed and effectively communicated to our employees our accounting policies and procedures. This has resulted in inconsistent practices. Further, the Board of Directors does not currently have any independent members and no director qualifies as an audit committee financial expert as defined in Item 407(d)(5)(ii) of Regulation S-K. Since these entity level programs have a pervasive effect across the organization, management has determined that these circumstances constitute a material weakness.

	2.	As of June 30, 2015, we did not maintain effective controls over financial statement disclosure. Specifically, controls were not designed and in place to ensure that all disclosures required were originally addressed in our financial statements. Accordingly, management has determined that this control deficiency constitutes a material weakness.

Our management, including our principal executive officer and principal financial officer, who is the same person, does not expect that our disclosure controls and procedures or our internal controls will prevent all error or fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, 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. Due to the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected.

Change in Internal Controls Over Financial Reporting

There was no change in our internal controls over financial reporting that occurred during the period covered by this report, which has materially affected, or is reasonably likely to ~~materially~~have ~~affect~~a material effect, our internal controls over financial reporting.

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PART II — OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

We know of no material, active or pending legal proceedings against us, nor are we involved as a plaintiff in any material proceedings or pending litigation. There are no proceedings in which any of our directors, officers or affiliates, or any registered beneficial shareholder are an adverse party or has a material interest adverse to us.

ITEM 1A. RISK FACTORS

Not applicable to a smaller reporting company.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

There were no sales of unregistered equity securities during the three months ended June 30, 2015.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

The Company has not defaulted upon senior securities.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable to the Company.

ITEM 5. OTHER INFORMATION

None.

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ITEM 6. EXHIBITS

3.1	Articles of Incorporation (1)
3.2	Bylaws (1)
14	Code of Ethics (1)
21	Subsidiaries of the registrant (2)
31.1	Rule 13(a)-14(a)/15(d)-14(a) Certification of principal executive officer and principal financial and account officer. (2)
32.1	Section 1350 Certification of principal executive officer and principal financial accounting officer. (2)
101	XBRL data files of Financial Statement and Notes contained in this Quarterly Report on Form 10-Q. (3),(4)

__________

(1)	Incorporated by reference to our Form S-1 filed with the Securities and Exchange Commission on September 23, 2010.
(2)	Filed or furnished herewith.
(3)	In accordance with Regulation S-T, the Interactive Data Files in Exhibit 101 to the Quarterly Report on Form 10-Q shall be deemed “furnished” and not “filed.”
(4)	To be submitted by amendment.

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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.

	Rainbow Coral Corp.
Date: February 17, 2015	BY: /s/ Kimberly Palmer
Date: August 19, 2015	BY: /s/ Kimberly Palmer
	Kimberly Palmer
	President, Secretary, Treasurer, Principal Executive Officer, Principal Financial and Accounting Officer and Sole Director.

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