0001005101
2012-07-01
2012-09-30
0001005101
2012-11-01
0001005101
2012-06-30
0001005101
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0001005101
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2011-09-30
0001005101
2012-09-30
0001005101
2011-09-30
iso4217:USD
xbrli:shares
iso4217:USD
xbrli:shares
xbrli:pure
CONCIERGE TECHNOLOGIES INC
0001005101
10-Q
2012-09-30
false
--06-30
No
No
Smaller Reporting Company
Q1
2012
235617
235617610
Yes
26852
26841
55254
55763
1813
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235617610
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Concierge Technologies, Inc., (the “Company”),
a Nevada corporation, was originally incorporated in California on August 18, 1993 as Fanfest, Inc. On March 20, 2002, the Company
changed its name to Concierge Technologies, Inc. The Company’s principal operations include the purchase and sale of digital
equipment through its majority owned subsidiary Wireless Village under the fictitious business name of 3rd Eye Cam.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Accounting Principles</b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In the opinion of management, the accompanying
balance sheets and related interim statements of income and comprehensive income, and cash flows include all adjustments, consisting
only of normal recurring items, necessary for their fair presentation in conformity with accounting principles generally accepted
in the United States of America (“U.S. GAAP”). Interim results are not necessarily indicative of results for a full
year. The information included in this Form 10-Q should be read in conjunction with information included in the Company’s
2012 Form 10-K filed on October 16, 2012 with the U.S. Securities and Exchange Commission.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Principles of Consolidation</b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The accompanying consolidated financial
statements include the accounts of Concierge Technologies, Inc. (parent), its wholly owned subsidiary, Planet Halo, Inc., and majority
owned subsidiary, Wireless Village. All significant inter-company transactions and accounts have been eliminated in consolidation.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Use of Estimates</b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The preparation of consolidated financial
statements is in conformity with accounting principles generally accepted in the United States of America which 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 revenues and expenses during the reporting
period. Actual results could differ from those estimates.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Recent Accounting Pronouncements</b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In December 2011, the FASB issued guidance
on offsetting (netting) assets and liabilities. Entities are required to disclose both gross information and net information about
both instruments and transactions eligible for offset in the statement of financial position and instruments and transactions subject
to an agreement similar to a master netting arrangement. The new guidance is effective for annual periods beginning after January
1, 2013.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The accompanying financial statements
have been prepared in conformity with generally accepted accounting principles, which contemplate continuation of the Company as
a going concern. The Company has an accumulated deficit of $4,667,611 as of September 30, 2012, including a net income of $1,254
during the three-month period ended September 30, 2012. The historical losses have adversely affected the liquidity of the Company.
The current quarter operations resulted in a net income, and although losses are expected to be curtailed during the current fiscal
year due to increased product sales, the Company faces continuing significant business risks, which include, but are not limited
to, its ability to maintain vendor and supplier relationships by making timely payments when due, manage the interests of the minority
shareholders in Wireless Village, continue product research and development efforts, and successfully compete for customers.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In view of the matters described in the
preceding paragraph, recoverability of a major portion of the recorded asset amounts shown in the accompanying balance sheet is
dependent upon continued operations of the Company, which in turn is dependent upon the Company’s ability to increase profitability
from operations, obtain financing, and succeed in its future operations. The financial statements do not include any adjustments
relating to the recoverability and classification of recorded asset amounts or amounts or classification of liabilities that might
be necessary should the Company be unable to continue as a going concern.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Management has taken the following steps
to revise its operating and financial requirements, which it believes are sufficient to provide the Company with the ability to
continue as a going concern.  Management devoted considerable effort from inception through the period ended September
30, 2012, towards (i) establishment of sales distribution channels for its products, (ii) management of accrued expenses and accounts
payable, (iii) initiation of the business strategies of the Planet Halo and Wireless Village subsidiaries, and (vi) acquisition
of suitable synergistic partners for business opportunities in mobile incident reporting that generate immediate revenues.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Management believes that the above actions
will allow the Company to continue operations for the next 12 months.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Property and equipment consisted of the
following as of September 30, 2012 and June 30, 2012:</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table align="center" cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1pt solid">
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>September 30,</b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2012</b></p></td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1pt solid">
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>June 30,</b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2012</b></p></td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 76%; line-height: 115%">Furniture & Office Equipment</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 9%; line-height: 115%; text-align: right">26,852</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 9%; line-height: 115%; text-align: right">26,852</td>
<td style="width: 1%; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%">Network Hardware & Software</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">55,763</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">55,254</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 115%">Site Installation Materials</td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right">1,813</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right">1,813</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%">Total Fixed Assets</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">84,428</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">83,919</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 115%">Accumulated Depreciation</td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right">(77,796</td>
<td style="line-height: 115%">)</td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right">(77,120</td>
<td style="line-height: 115%">)</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%">Total Fixed Assets, Net</td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 1.5pt double; line-height: 115%">$</td>
<td style="border-bottom: black 1.5pt double; line-height: 115%; text-align: right">6,632</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 1.5pt double; line-height: 115%">$</td>
<td style="border-bottom: black 1.5pt double; line-height: 115%; text-align: right">6,799</td>
<td style="line-height: 115%"> </td></tr>
</table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">Depreciation expense amounted to $677 and $621 for the three-month
periods ended September 30, 2012 and 2011, respectively.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Due from Related Party</b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Notes receivable from related party is
comprised of two notes of $5,000 each. The principal of these notes were due and payable on or before May 1, 2012. The notes are
unsecured and non-interest bearing until maturity, after which time interest is calculated at 10% per annum. Total interest due
as of September 30, 2012 was $252.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Accounts Payable – Related Parties</b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Concierge Technologies, Inc. has no bank
account in its own name. The Wallen Group, a consulting company headed by the C.E.O. and director of the Company, maintains an
administrative account for the Company. As of September 30, 2012, The Wallen Group was owed $416 by the Company. The amount of
the advancement is non-interest bearing, unsecured, and due on demand. Also included in related parties payable is the amount of
$295 due a director of Wireless Village for amounts paid to vendors on behalf of the Company.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">As of June 30, 2012, the
Company had accounts payable to a related party in the amount of $75,450 related to hardware purchases from 3rd Eye Cam, a
California general partnership whose founders are now directors of Wireless Village. During the three month period ending
September 30, 2012 this charge was reversed by 3rd Eye Cam with the transaction recorded as additional paid-in-capital and the elimination of the account payable to a related party by Wireless Village as of September 30, 2012.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">  </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><b>Notes Payable - Related Parties</b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Current related party notes payable consist
of the following:</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">September 30,<br /> 2012</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1pt solid">
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>June 30,</b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2012</b></p></td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 76%; line-height: 115%">Notes payable to shareholder, interest rate of 8%, unsecured and payable on December 31, 2012</td>
<td style="width: 1%; line-height: 115%; text-align: right"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 9%; line-height: 115%; text-align: right">35,000</td>
<td nowrap="nowrap" style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%; text-align: right"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 9%; line-height: 115%; text-align: right">35,000</td>
<td nowrap="nowrap" style="width: 1%; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%">Notes payable to director/shareholder, noninterest-bearing, unsecured and payable on demand</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">8,500</td>
<td nowrap="nowrap" style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">8,500</td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 115%">Notes payable to shareholder, interest rate of 10%, unsecured and payable on July 31, 2004 (past due)</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">5,000</td>
<td nowrap="nowrap" style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">5,000</td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%">Notes payable to shareholder, interest rate of 10%, unsecured and payable on December 31, 2012</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">28,000</td>
<td nowrap="nowrap" style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">28,000</td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 115%">Notes payable to shareholder, interest rate of 8%, unsecured and payable on December 31, 2012</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">14,000</td>
<td nowrap="nowrap" style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">14,000</td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%">Notes payable to director/shareholder, interest rate of 8%, unsecured and payable on December 31, 2012</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">3,500</td>
<td nowrap="nowrap" style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">3,500</td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 115%">Notes payable to shareholder, interest rate of 8%, unsecured and payable on December 31, 2012</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">20,000</td>
<td nowrap="nowrap" style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">20,000</td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%">Notes payable to director/shareholder, interest rate of 8%, unsecured and payable on December 31, 2012</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">5,000</td>
<td nowrap="nowrap" style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">5,000</td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 115%">Notes payable to director/shareholder, interest rate of 8%, unsecured and payable on December 31, 2012</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">5,000</td>
<td nowrap="nowrap" style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">5,000</td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%">Notes payable to director/shareholder, interest rate of 6%, unsecured and payable on December 31, 2012</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">1,000</td>
<td nowrap="nowrap" style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">1,000</td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 115%">Notes payable to shareholder, interest rate of 8%, unsecured and payable on December 31, 2012</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">15,000</td>
<td nowrap="nowrap" style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">15,000</td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%">Notes payable to shareholder, interest rate of 6%, unsecured and payable on December 31, 2012</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right">10,000</td>
<td nowrap="nowrap" style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right">10,000</td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="border-bottom: black 1.5pt double; line-height: 115%">$</td>
<td style="border-bottom: black 1.5pt double; line-height: 115%; text-align: right">150,000</td>
<td nowrap="nowrap" style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="border-bottom: black 1.5pt double; line-height: 115%">$</td>
<td style="border-bottom: black 1.5pt double; line-height: 115%; text-align: right">150,000</td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
</table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Long-term related party notes payable
consist of the following:</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td colspan="2" style="border-bottom: black 1pt solid">
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>September 30,</b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2012</b></p></td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td colspan="2" style="border-bottom: black 1pt solid">
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>June 30,</b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2012</b></p></td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 76%; line-height: 115%">Notes payable to shareholder, interest rate of 3%, unsecured and payable on April 1, 2014</td>
<td style="width: 1%; line-height: 115%; text-align: right"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 9%; line-height: 115%; text-align: right">20,000</td>
<td nowrap="nowrap" style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%; text-align: right"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 9%; line-height: 115%; text-align: right">20,000</td>
<td nowrap="nowrap" style="width: 1%; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%">Notes payable to shareholder, interest rate of 3%, unsecured and payable on August 1, 2014</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">12,500</td>
<td nowrap="nowrap" style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">-</td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 115%">Notes payable to shareholder, interest rate of 3%, unsecured and payable on September 1, 2014</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right">45,000</td>
<td nowrap="nowrap" style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right">-</td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="border-bottom: black 1.5pt double; line-height: 115%">$</td>
<td style="border-bottom: black 1.5pt double; line-height: 115%; text-align: right">77,500</td>
<td nowrap="nowrap" style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="border-bottom: black 1.5pt double; line-height: 115%">$</td>
<td style="border-bottom: black 1.5pt double; line-height: 115%; text-align: right">20,000</td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
</table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">  </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">Interest expense for the three month periods ended September
30, 2012 and 2011 amounted to $4,474 and $4,532.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On September 8, 2010 we entered into
a loan agreement containing certain conversion features whereby the note holder could convert the principal amount of the loan,
$100,000, together with accrued interest at the rate of 6% per annum, into shares of our Series B Convertible, Voting, Preferred
stock at the conversion rate of $0.20 per share. The Series B Convertible, Voting, Preferred stock could then be further converted
to common stock at a ratio of 1:20 after being held for a minimum period of 270 days from the date of issuance. The result of the
conversion to common stock would be the issuance of 10,000,000 shares with a fair market value set at the date of the debenture
at $0.025 creating a beneficial conversion feature to the debenture equal to $100,000. The cost of the beneficial conversion feature
was amortized over the life of the debenture, two years, and was completely amortized as of September 8, 2012 with $9,439 being
recorded for the three month period ending September 30, 2012 as compared to $12,586 for the period ending September 30, 2011.
On September 7, 2012, the debenture holder elected to exercise the right to convert the debt to equity resulting in 560,000 shares
of our Series B Convertible, Voting, Preferred stock to be issued in settlement of $100,000 due in principal and $12,000 due in
accrued interest.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">Accounts payable and accrued expenses consisted of the following:</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1pt solid">
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>September 30,</b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2012</b></p></td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1pt solid">
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>June 30,</b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2012</b></p></td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 76%; line-height: 115%">Accounts payable</td>
<td style="width: 1%; line-height: 115%; text-align: right"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 9%; line-height: 115%; text-align: right">95,950</td>
<td nowrap="nowrap" style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%; text-align: right"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 9%; line-height: 115%; text-align: right">110,283</td>
<td nowrap="nowrap" style="width: 1%; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%">Tax reserve</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">50,466</td>
<td nowrap="nowrap" style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">94,595</td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 115%">Accrued judgment</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">135,000</td>
<td nowrap="nowrap" style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">135,000</td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%">Accrued interest</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">84,449</td>
<td nowrap="nowrap" style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">91,973</td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 115%">Auditing</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right">28,000</td>
<td nowrap="nowrap" style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right">24,500</td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%">Total</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="border-bottom: black 1.5pt double; line-height: 115%">$</td>
<td style="border-bottom: black 1.5pt double; line-height: 115%; text-align: right">393,865</td>
<td nowrap="nowrap" style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="border-bottom: black 1.5pt double; line-height: 115%">$</td>
<td style="border-bottom: black 1.5pt double; line-height: 115%; text-align: right">456,352</td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
</table>
<p style="margin: 0pt"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Shares Issued in Connection with Financing
Cost</b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In connection with the debenture of September
8, 2010, the Company also paid a loan commitment fee in the form of 40,000 shares of Series B Convertible, Voting, Preferred stock,
which could then be further converted to common stock at a ratio of 1:20 after being held for a minimum period of 270 days from
the date of issuance. The result of the conversion to common stock would be the issuance of 800,000 shares. The fair market value
was set at the date of the issuance at $0.025 per share giving rise to a valuation of $20,000. This amount was amortized over the
life of the debenture, two years, with the entire amount expensed as of September 8 2012. The amount expensed for the three month
periods ending September 30, 2012 and 2011 were $1,888 and $9,385 respectively.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">During the three month period ended September 30, 2012, the
Company authorized 560,000 shares of Series B Convertible, Voting, Preferred stock in settlement of $100,000 due in principal and
$12,000 due in accrued interest related to the convertible debenture described in detail under Note 5 herein.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Share Based Compensation</b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On October 8, 2010 Concierge Technologies
entered into Employee at Will Agreements with three individuals and also acquired an Exclusive Distribution Agreement and the services
of a professional lobbying organization to assist Wireless Village with its transition to the business of selling, distributing
and marketing mobile incident reporting cameras and associated hardware and services. In exchange for these services and agreements
Concierge Technologies conveyed, in the aggregate, 817 shares of its 1,667 shares in Wireless Village. The resulting ownership
in Wireless Village is 850 shares, or 51%, held by Concierge Technologies and 817 shares, or 49%, held by others.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">As the shares of Wireless Village are
not traded and have no implied fair value, the cost of services was estimated using a discounted cash flow model to arrive at a
present value for the portion of the business being conveyed. Utilizing this methodology, the share-based compensation was determined
to be $149,137. As the related agreements are “at will” in nature, the entire compensation cost was expensed on the
date of execution of the agreements and was recorded as non-controlling interest of subsidiary.</p>
<p style="font: 8pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt"> </p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Our effective tax rates were approximately
1.2% and 6.9% for the three months ended September 30, 2012 and 2011, respectively. Our effective tax rate was lower than the U.S.
federal statutory rate due to differences in the tax basis for several items in our income statements, and the Company records
a valuation allowance against deferred tax assets created by net operating loss carry-forwards available to offset current and
future taxable income.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt"> </p>
<p style="margin: 0pt"></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Lease Commitment</b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company entered into a lease agreement
to rent an office space dated November 23, 2010, for the period from December 1, 2010 to November 30, 2011 at a monthly base rent
of $762 plus monthly operating expenses. On July 28, 2011, the Company entered into a new agreement extending the lease period
through November 30, 2012. Monthly base rent increased from $762 to $800 starting on December 1, 2011. All other terms of the agreement
remained the same.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Upon expiration of its leases, the Company
does not anticipate any difficulty in obtaining renewals or alternative space. Rent expense amounted to $5,693 and $6,348 for the
three-month periods ended September 30, 2012 and 2011, respectively.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Litigation</b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On May 6, 2002, a default judgment was
awarded to Brookside Investments Ltd. against, jointly and severally, Concierge, Inc., Allen E. Kahn, and The Whitehall Companies
in the amount of $135,000 plus legal fees.  As of May 7, 2012, the judgment had lapsed due to the passage of time and
the creditor’s failure to renew. Although a new court action would be required by the plaintiff in order to seek legal remedies,
the Company has accrued the amount of $135,000 in the accompanying financial statements as accrued expenses as of June 30, 2012.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">As of September 30, 2012 discussions
and negotiations were continuing with Alliance Wireless Technologies, Inc. who was claiming a trademark infringement against Concierge
Technologies, Wireless Village and Planet Halo for alleged unauthorized use of their registered trademark for the name “3rd
Eye”. Concierge Technologies and Planet Halo have removed the name reference to “3rd Eye Cam” from their websites
and Wireless Village is taking steps to transition to a new fictitious business name of “Janus Cam” as well as re-branding
their product such that “3rd Eye Cam” is removed from use in the marketplace. Management believes that these and other
similar actions will successfully settle the dispute with little or no significant financial impact to the companies.</p>
624577
276777
355689
167613
268888
109164
263921
116341
263921
116341
252
38381
6362
7049
-15549
18747
-10583
11569
25834
-1130
-37217
11899
25834
-1130
677
621
-9439
-12586
1888
2517
-14844
-24940
-11604
40919
-50487
-49590
-902
920
-77217
-6198
510
252
-1065
-762
1065
40000
57500
57500
-40000
-20478
-45133
114433
53704
93955
8571
112000
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The accompanying consolidated financial
statements include the accounts of Concierge Technologies, Inc. (parent), its wholly owned subsidiary, Planet Halo, Inc., and majority
owned subsidiary, Wireless Village. All significant inter-company transactions and accounts have been eliminated in consolidation.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The preparation of consolidated financial
statements is in conformity with accounting principles generally accepted in the United States of America which 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 revenues and expenses during the reporting
period. Actual results could differ from those estimates.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In December 2011, the FASB issued guidance
on offsetting (netting) assets and liabilities. Entities are required to disclose both gross information and net information about
both instruments and transactions eligible for offset in the statement of financial position and instruments and transactions subject
to an agreement similar to a master netting arrangement. The new guidance is effective for annual periods beginning after January
1, 2013.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In the opinion of management, the accompanying
balance sheets and related interim statements of income and comprehensive income, and cash flows include all adjustments, consisting
only of normal recurring items, necessary for their fair presentation in conformity with accounting principles generally accepted
in the United States of America (“U.S. GAAP”). Interim results are not necessarily indicative of results for a full
year. The information included in this Form 10-Q should be read in conjunction with information included in the Company’s
2012 Form 10-K filed on October 16, 2012 with the U.S. Securities and Exchange Commission.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">Property
and equipment consisted of the following as of September 30, 2012 and June 30, 2012:</font></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"><font style="font: 8pt Times New Roman, Times, Serif"> </font></p>
<table align="center" cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%; font-size: 11pt; font-weight: bold; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 1.5pt solid; padding-bottom: 1.5pt"><p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>September
30,</b></font></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>2012</b></font></p></td>
<td style="line-height: 115%; font-size: 11pt; font-weight: bold; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%; font-size: 11pt; font-weight: bold; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 1.5pt solid"><p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>June
30,</b></font></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>2012</b></font></p></td>
<td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 76%; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Furniture & Office Equipment</font></td>
<td style="width: 1%; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 9%; line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">26,852</font></td>
<td style="width: 1%; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 9%; line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">26,852</font></td>
<td style="width: 1%; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Network Hardware & Software</font></td>
<td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">55,763</font></td>
<td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">55,254</font></td>
<td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Site Installation Materials</font></td>
<td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">1,813</font></td>
<td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">1,813</font></td>
<td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Total Fixed Assets</font></td>
<td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">84,428</font></td>
<td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">83,919</font></td>
<td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Accumulated Depreciation</font></td>
<td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">(77,796</font></td>
<td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">)</font></td>
<td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">(77,120</font></td>
<td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Total Fixed Assets, Net</font></td>
<td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">6,632</font></td>
<td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">6,799</font></td>
<td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><font style="font: 8pt Times New Roman, Times, Serif"><b>Notes
Payable - Related Parties</b></font></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">Current
related party notes payable consist of the following:</font></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"><font style="font: 8pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%; font-size: 11pt; font-weight: bold; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 1.5pt solid; line-height: 115%; font-size: 11pt; font-weight: bold; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>September
30,<br />
2012</b></font></td>
<td nowrap="nowrap" style="line-height: 115%; font-size: 11pt; font-weight: bold; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%; font-size: 11pt; font-weight: bold; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 1.5pt solid"><p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>June
30,</b></font></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>2012</b></font></p></td>
<td nowrap="nowrap" style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 76%; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Notes payable to shareholder,
interest rate of 8%, unsecured and payable on December 31, 2012</font></td>
<td style="width: 1%; line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 9%; line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">35,000</font></td>
<td nowrap="nowrap" style="width: 1%; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 9%; line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">35,000</font></td>
<td nowrap="nowrap" style="width: 1%; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Notes payable to director/shareholder,
noninterest-bearing, unsecured and payable on demand</font></td>
<td style="line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">8,500</font></td>
<td nowrap="nowrap" style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">8,500</font></td>
<td nowrap="nowrap" style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Notes payable to shareholder, interest
rate of 10%, unsecured and payable on July 31, 2004 (past due)</font></td>
<td style="line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">5,000</font></td>
<td nowrap="nowrap" style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">5,000</font></td>
<td nowrap="nowrap" style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Notes payable to shareholder, interest
rate of 10%, unsecured and payable on December 31, 2012</font></td>
<td style="line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">28,000</font></td>
<td nowrap="nowrap" style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">28,000</font></td>
<td nowrap="nowrap" style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Notes payable to shareholder, interest
rate of 8%, unsecured and payable on December 31, 2012</font></td>
<td style="line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">14,000</font></td>
<td nowrap="nowrap" style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">14,000</font></td>
<td nowrap="nowrap" style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Notes payable to director/shareholder,
interest rate of 8%, unsecured and payable on December 31, 2012</font></td>
<td style="line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">3,500</font></td>
<td nowrap="nowrap" style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">3,500</font></td>
<td nowrap="nowrap" style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Notes payable to shareholder, interest
rate of 8%, unsecured and payable on December 31, 2012</font></td>
<td style="line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">20,000</font></td>
<td nowrap="nowrap" style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">20,000</font></td>
<td nowrap="nowrap" style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Notes payable to director/shareholder,
interest rate of 8%, unsecured and payable on December 31, 2012</font></td>
<td style="line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">5,000</font></td>
<td nowrap="nowrap" style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">5,000</font></td>
<td nowrap="nowrap" style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Notes payable to director/shareholder,
interest rate of 8%, unsecured and payable on December 31, 2012</font></td>
<td style="line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">5,000</font></td>
<td nowrap="nowrap" style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">5,000</font></td>
<td nowrap="nowrap" style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Notes payable to director/shareholder,
interest rate of 6%, unsecured and payable on December 31, 2012</font></td>
<td style="line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">1,000</font></td>
<td nowrap="nowrap" style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">1,000</font></td>
<td nowrap="nowrap" style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Notes payable to shareholder, interest
rate of 8%, unsecured and payable on December 31, 2012</font></td>
<td style="line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">15,000</font></td>
<td nowrap="nowrap" style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">15,000</font></td>
<td nowrap="nowrap" style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Notes payable to shareholder, interest
rate of 6%, unsecured and payable on December 31, 2012</font></td>
<td style="line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">10,000</font></td>
<td nowrap="nowrap" style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">10,000</font></td>
<td nowrap="nowrap" style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">150,000</font></td>
<td nowrap="nowrap" style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">150,000</font></td>
<td nowrap="nowrap" style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><font style="font: 8pt Times New Roman, Times, Serif">Long-term
related party notes payable consist of the following:</font></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"><font style="font: 8pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="line-height: 115%; font-size: 11pt; font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%; font-size: 11pt; font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 1.5pt solid; padding-bottom: 1.5pt"><p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>September
30,</b></font></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>2012</b></font></p></td>
<td nowrap="nowrap" style="line-height: 115%; font-size: 11pt; font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%; font-size: 11pt; font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 1.5pt solid"><p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>June
30,</b></font></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>2012</b></font></p></td>
<td nowrap="nowrap" style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 76%; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Notes payable to shareholder,
interest rate of 3%, unsecured and payable on April 1, 2014</font></td>
<td style="width: 1%; line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 9%; line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">20,000</font></td>
<td nowrap="nowrap" style="width: 1%; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 9%; line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">20,000</font></td>
<td nowrap="nowrap" style="width: 1%; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Notes payable to shareholder, interest
rate of 3%, unsecured and payable on August 1, 2014</font></td>
<td style="line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">12,500</font></td>
<td nowrap="nowrap" style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td>
<td nowrap="nowrap" style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">Notes payable to shareholder, interest
rate of 3%, unsecured and payable on September 1, 2014</font></td>
<td style="line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">45,000</font></td>
<td nowrap="nowrap" style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td>
<td nowrap="nowrap" style="line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double; line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">77,500</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double; line-height: 115%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">20,000</font></td>
<td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">Accounts payable and accrued expenses consisted of the following:</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; font-size: 11pt; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; padding-bottom: 1.5pt">
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>September 30,</b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2012</b></p></td>
<td nowrap="nowrap" style="line-height: 115%; font-size: 11pt; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-size: 11pt; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid">
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>June 30,</b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2012</b></p></td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 76%; line-height: 115%">Accounts payable</td>
<td style="width: 1%; line-height: 115%; text-align: right"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 9%; line-height: 115%; text-align: right">95,950</td>
<td nowrap="nowrap" style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%; text-align: right"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 9%; line-height: 115%; text-align: right">110,283</td>
<td nowrap="nowrap" style="width: 1%; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%">Tax reserve</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">50,466</td>
<td nowrap="nowrap" style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">94,595</td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 115%">Accrued judgment</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">135,000</td>
<td nowrap="nowrap" style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">135,000</td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%">Accrued interest</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">84,449</td>
<td nowrap="nowrap" style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">91,973</td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 115%">Auditing</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: right">28,000</td>
<td nowrap="nowrap" style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: right">24,500</td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%">Total</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: right">393,865</td>
<td nowrap="nowrap" style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: right">456,352</td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
</table>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
35000
35000
8500
8500
5000
5000
28000
28000
14000
14000
3500
3500
20000
20000
5000
5000
5000
5000
1000
1000
15000
15000
10000
10000
20000
20000
12500
45000
75450
416
4474
4532
110283
95950
94595
50466
135000
135000
91973
84449
24500
28000
1888
9385
5693
6348
800
800
11222
11222
235617610
233667610
244915200
242115200
0.00
0.00
0.00
0.00
-75450
0.012
0.069