EHOUSE GLOBAL, INC.

In April 2015, the FASB issued ASU No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30) - Simplifying the Presentation of Debt Issuance Costs. ASU 2015-03 amends previous guidance to require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this ASU. The standard is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted for financial statements that have not been previously issued. The Company plans to adopt ASU No.2015-03 regarding the presentation of debt issuance cost from fiscal year 2016.

Other expenses for the three months ended March 31, 2015 and 2014, were $1,125,088 and $1,135,629, respectively. For the three months ended March 31, 2015, the other expenses consisted of interest expenses of $43,146 and changes in fair value of derivative liabilities of $1,081,942. For the three months ended March 31, 2014, the other expenses consisted of interest expenses of $1,066,811 and changes in fair value of derivative liabilities of $68,818. The decrease of $10,541 was primarily due to a decrease of $1,020,000 in interest expense and debt related amortization as a result of conversions during the current period, offset by an increase of $1,010,000 related to changes in the fair value of derivative liabilities as a result of newly issued convertible notes.

The Company had cash proceeds from financing activities for the three months ended March 31, 2015 of $40,500 compared to $242,750 for the three months ended March 31, 2014. The decrease of $202,250 was primarily due to lower proceeds from convertible debt in the current period.

The Company cannot provide any assurances about the likelihood or timing of being successful in obtaining funding. Our independent registered auditors included an explanatory paragraph in their opinion on our financial statements as of December 31, 2014 that states that our lack of resources causes substantial doubt about our ability to continue as a going concern. No assurances can be given that we will generate sufficient revenue or obtain any financing that may be necessary in order to continue as a going concern.

The preparation of financial statements in conformity with generally accepted accounting principles requires us to make judgments, estimates and assumptions in the preparation of our consolidated financial statements and accompanying notes. Actual results could differ from those estimates. We believe there have been no significant changes in our critical accounting policies as discussed in our Annual Report on Form 10-K for the year ended December 31, 2014.

As of the end of the period covered by this report, the Company carried out an evaluation, under the supervision and with the participation of management including our Principal Executive Officer, of the effectiveness of the design and operation of the Company's disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act). Based on that evaluation, the Company's Principal Executive Officer has concluded that the Company's disclosure controls and procedures are not effective as of March 31, 2015 in ensuring that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms. This conclusion is based on findings that constitute material weaknesses. A material weakness is a deficiency, or combination of control deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of the Company’s interim financial statements will not be prevented or detected on a timely basis.