808 RENEWABLE ENERGY CORP

Through November 2015, we leased an office and warehouse facility, of 5,486 square feet, located in Garden Grove CA. Rent was $8,000 per month, plus common area maintenance of $605, on a 15 year lease, from our Chairman, Patrick Carter. On November 1, 2015, the Company relocated, its offices, to 2082 Michelson Drive, Ste. 301, Irvine, CA., on a twelve month lease terminating on October 31, 2016, at a monthly cost of $2,378 plus telephones and internet of $550.

On December 22, 2000, Proxima 701, LLC ("Lessor") and 808 Energy 3, LLC ("Lessee") entered into a lease of approximately 172 square feet on the roof of the building located at 701 B Street, San Diego, CA, (the "Premises"). The Premises contained electrical power and thermal energy equipment as described in the Lease. As a result of a dispute arising out of the Lease, on April 23, 2014, Lessor filed an unlawful detainer action to recover possession of the Premises in the San Diego Superior Court case entitled PROXIMA 701 LLC v. 808 ENERGY 3, LLC, case number 37-2014-00012602-CU-UD-CTL (the "Action"). This matter was resolved by way of Lessee's surrender of the Premises to Lessor, and the parties thereafter executed an Acknowledgment of Surrender effective July 15, 2014, executed by 808 Renewable Energy Corporation, a Nevada corporation, formerly known as 808 Energy 3, LLC, in favor of Lessor. On August 1, 2014, counsel for Lessor executed a Request for Dismissal without prejudice of the entire unlawful detainer action.

Subsequent to the resolution of the unlawful detainer Action set forth above, Lessee was to pick up equipment located at the Premises but elected to abandon the equipment because Lessor interfered with Lessee's efforts to remove the equipment and, moreover, the removal was cost prohibitive. Lessor served notices of abandonment related to Lessee's equipment, which Lessee did not respond to. As a result, Lessor filed a new action that alleged breach of contract. The potential liability related to the abandonment is for Lessor's cost of removal of the equipment, which is potentially offset by Lessee's claim for breach of an energy supply agreement between the parties. This case is currently pending for trial in January 2017. Lessee continues to vigorously defend against the Lessor's claims and to vigorously prosecute its only claims for breach of the energy supply agreement.

The following table sets forth the quarterly high and low bid prices for our Common Stock during the last fiscal year, as reported by a Quarterly Trade and Quote Summary Report of the OTC Bulletin Board. The quotations reflect inter-dealer prices, without retail mark-up, markdown or commission, and may not necessarily represent actual transactions.

Revenues, from the delivery and sale of electricity and related products, including professional services, in the full year of 2015 were $732,084 compared to $415,333 for the same period in 2014, an increase of $316,751 or 76%.  The increase in revenue was primarily due to an increase in the number of operational hours of installed CHP systems operating compared to the same period in 2014. Our CHP Energy Production Revenue in 2015 was $732,084 compared to $409,012 for the same period in 2014, an increase of $323,072or 79%.   Our Energy Services revenue in 2015 was nil compared to $6,321 in 2014.  The revenue from our Energy Developer projects will vary substantially per period.  Although the service has been available and has been offered throughout 2015, no new contracts were consummated.

The loss attributable to common shareholders in the full year of 2015 was $4,621,805 compared to $9,985,500 for the same period in 2014, a decrease of $5,363,695 or 53.8%.  Included in the loss attributable to common shareholders, for the year ended December 31, 2014, is a deemed dividend of $5,375,969, arising from the sale of series D preferred shares.  The December 31, 2014 operating loss included the payment of a management salary of $360,000; non-cash expense of $1,125,000 for stock based compensation; and impairment cost of $1,684,334 to fully impair non-producing facilities. The loss for the year ended December 31, 2015 included payment to management of $485,000, and impairment expense of $159,800 and cumulative dividends of the Series D Preferred shares of $662,400 and the accretion of preferred stock to redemption value of $2,212,785.