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<!--StartFragment-->
<p style="margin:0in;margin-bottom:.0001pt"><b>NOTE 1 – NATURE OF OPERATIONS</b></p>
<p style="margin:0in;margin-bottom:.0001pt"> </p>
<p style="margin:0in;margin-bottom:.0001pt">Potash America, Inc. (formerly Adtomize Inc.) (“the Company” or “PTAM”), was incorporated in the state of Nevada on July 31, 2007. PTAM’s primary focus is the development of fertilizer and agri-business assets. Such assets may include Potash, Montmorillonite, Bentonite and Gypsum. The Company seeks to acquire known deposits whose economic value has recently changed with market pricing levels, and develop these assets into agri-products.</p>
<p class="MsoNormal"> </p>
<!--EndFragment-->
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<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><b><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN">NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES</font></b><font style="font-size:10.0pt;font-family:"Times New Roman","serif";mso-fareast-font-family: "Times New Roman";color:black;mso-fareast-language:EN-IN"/></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN"> </font></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><u><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN">Exploration Stage Company</font></u><font style="font-size:10.0pt; font-family:"Times New Roman","serif";mso-fareast-font-family:"Times New Roman"; color:black;mso-fareast-language:EN-IN"/></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN">The accompanying financial statements have been prepared in accordance with generally accepted accounting principles related to accounting and reporting by exploration stage companies. An exploration stage company is one in which planned principal operations have not commenced or if its operations have commenced, there has been no significant revenues there from.</font></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN"> </font></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><u><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN">Basis of Presentation</font></u><font style="font-size:10.0pt; font-family:"Times New Roman","serif";mso-fareast-font-family:"Times New Roman"; color:black;mso-fareast-language:EN-IN"/></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN">The accompanying interim unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules and regulations of the United States Securities and Exchange Commission for interim financial information. Accordingly, they do not include all the information and footnotes necessary for a comprehensive presentation of financial position, results of operations, stockholders’ deficit or cash flows. It is management's opinion, however, that all material adjustments (consisting of normal recurring adjustments) have been made which are necessary for a fair financial statement presentation. The interim unaudited financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K, which contains the annual audited financial statements and notes thereto, together with the Management’s Discussion and Analysis, for the year ended March 31, 2012. The interim results for the period ended September 30, 2012 are not necessarily indicative of the results for the full fiscal year. The interim unaudited financial statements are presented in USD. </font></p>
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<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><u><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN">Accounting Basis</font></u><font style="font-size:10.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman";color:black;"/></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN">The Company uses the accrual basis of accounting and accounting principles generally accepted in the United States of America (“GAAP” accounting). The Company has adopted a March 31 fiscal year end.</font></p>
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<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><u><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN">Financial Instrument</font></u><font style="font-size:10.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman";color:black;"/></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN">The Company's financial instrument consists of cash, prepaid expenses, deposits, accrued expenses, deferred compensation, amounts due to stockholders and a line of credit.</font></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN">The amounts due to stockholders are non-interest bearing. It is management's opinion that the Company is not exposed to significant interest, currency or credit risks arising from its other financial instruments and that their fair values approximate their carrying values except where separately disclosed.</font></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN"> </font></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><u><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN">Cash and Cash Equivalents</font></u><font style="font-size:10.0pt; font-family:"Times New Roman","serif";mso-fareast-font-family:"Times New Roman"; color:black;mso-fareast-language:EN-IN"/></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN">PTAM considers all highly liquid investments with maturities of three months or less to be cash equivalents. At September 30, 2012 and March 31, 2012, respectively, the Company had $13,461 and $69,323 of cash.</font></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN"> </font></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><u><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN">Mineral rights, property and acquisition costs</font></u><font style="font-size:10.0pt;font-family:"Times New Roman","serif";mso-fareast-font-family: "Times New Roman";color:black;mso-fareast-language:EN-IN"/></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN">Since March 31, 2011, the Company is primarily engaged in the acquisition and exploration of mining properties. The Company has not yet realized any revenues from its planned operations. </font></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN"> </font></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN">The Company capitalizes acquisition and option costs of mineral rights as tangible assets. Upon commencement of commercial production, the mineral rights will be amortized using the unit-of-production method over the life of the mineral rights. If the Company does not continue with exploration after the completion of the feasibility study, the mineral rights will be expensed at that time.</font></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN"> </font></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN">The costs of acquiring mining properties are capitalized upon acquisition. Mine development costs incurred to develop and expand the capacity of mines, or to develop mine areas in advance of production are also capitalized once proven and probable reserves exist and the property is a commercially mineable property. Costs incurred to maintain current exploration or to maintain assets on a standby basis are charged to operations. Costs of abandoned projects are charged to operations upon abandonment. The Company evaluates the carrying value of capitalized mining costs and related property and equipment costs, to determine if these costs are in excess of their recoverable amount whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. Evaluation of the carrying value of capitalized costs and any related property and equipment costs are based upon expected future cash flows and/or estimated salvage value in accordance with Accounting Standards Codification (ASC) 360-10-35-15, <i>Impairment or Disposal of Long-Lived Assets</i>.</font></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN"> </font></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><u><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN">Impairment of long-lived assets</font></u><font style="font-size:10.0pt; font-family:"Times New Roman","serif";mso-fareast-font-family:"Times New Roman"; color:black;mso-fareast-language:EN-IN"/></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN">The Company reviews and evaluates long-lived assets for impairment when events or changes in circumstances indicate the related carrying amounts may not be recoverable. The assets are subject to impairment consideration under ASC 360-10-35-17, <i>Measurement of an Impairment Loss</i>, if events or circumstances indicate that their carrying amount might not be recoverable. As of September 30, 2012, exploration progress is on target with the Company’s exploration and evaluation plan and no events or circumstances have happened to indicate that the related carrying values of the properties may not be recoverable. When the Company determines that an impairment analysis should be done, the analysis will be performed using the rules of FASB ASC 930-360-35, <i>Asset Impairment</i>, and 360-10-15-3 through 15-5, <i>Impairment or Disposal of Long-Lived Assets</i>.</font></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN"> </font></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><u><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN">Advertising</font></u><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN"/></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN">The Company expenses advertising costs as incurred. The Company has had no advertising activity since inception. </font></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN"> </font></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><u><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN">Revenue Recognition</font></u><font style="font-size:10.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman";color:black;"/></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN">The Company recognizes revenue when products are fully delivered or services have been provided and collection is reasonably assured.</font></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN"> </font></p>
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<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN">During the year ended March 31, 2011, the Company enacted an 80 to 1 forward stock split. All share and per share data has been adjusted to reflect such stock split.</font></p>
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<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><u><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN">Stock-Based Compensation</font></u><font style="font-size:10.0pt; font-family:"Times New Roman","serif";mso-fareast-font-family:"Times New Roman"; color:black;mso-fareast-language:EN-IN"/></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN">Stock-based compensation is accounted for at fair value in accordance with ASC Topic 718. On March 31, 2011, the Company instituted a Stock Option Plan which allows for the issuance of 3,000,000 shares of common stock to the Company’s management, employees and consultants. As of September 30, 2012, in lieu of compensation the Company issued 465,000 common stock shares and 1,305,000 in stock options.</font></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN"> </font></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><u><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN">Income Taxes</font></u><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN"/></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN">Income taxes are computed using the asset and liability method. Under the asset and liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws. A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized.</font></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN"> </font></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><u><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN">Recent Accounting Pronouncements</font></u><font style="font-size:10.0pt; font-family:"Times New Roman","serif";mso-fareast-font-family:"Times New Roman"; color:black;mso-fareast-language:EN-IN"/></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN">PTAM does not expect the adoption of recently issued accounting pronouncements to have a significant impact on the Company’s results of operations, financial position or cash flow.</font></p>
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<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><b><font style="font-size:12.0pt;font-family:"Times New Roman","serif";">NOTE 3 – MINING PROPERTY</font></b><font style="font-size:12.0pt;font-family:"Times New Roman","serif";mso-fareast-font-family: "Times New Roman""/></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:12.0pt;font-family:"Times New Roman","serif";"> </font></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:12.0pt;font-family:"Times New Roman","serif";">On June 6, 2011, we entered into and closed a property acquisition agreement with Habitants Minerals Ltd. Pursuant to the terms of the agreement; we acquired an undivided 100% interest in certain unpatented mining claims located in Western Newfoundland, Canada which we refer to as the “Newfoundland Property”. Pursuant to the terms of the agreement, we agreed to provide the following payments to Habitants:</font></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:12.0pt;font-family:"Times New Roman","serif";"> </font></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:12.0pt;font-family:"Times New Roman","serif";">The aggregate consideration of $50,000 consisting of the following: </font></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:12.0pt;font-family:"Times New Roman","serif";"> </font></p>
<p class="MsoListParagraphCxSpFirst" style="margin-top:0in;margin-right:0in; margin-bottom:0in;margin-left:54.75pt;margin-bottom:.0001pt;mso-add-space:auto; text-indent:-.25in;line-height:normal;mso-list:l0 level1 lfo1"><font style="font-size:12.0pt;font-family:Symbol;mso-fareast-font-family:Symbol;">·<font style="font:7.0pt "Times New Roman"">       </font></font><font style="font-size:12.0pt;font-family:"Times New Roman","serif";mso-fareast-font-family: "Times New Roman"">$30,000 which was previously provided to Habitants, and</font></p>
<p class="MsoListParagraphCxSpLast" style="margin-top:0in;margin-right:0in; margin-bottom:0in;margin-left:54.75pt;margin-bottom:.0001pt;mso-add-space:auto; text-indent:-.25in;line-height:normal;mso-list:l0 level1 lfo1"><font style="font-size:12.0pt;font-family:Symbol;mso-fareast-font-family:Symbol;">·<font style="font:7.0pt "Times New Roman"">       </font></font><font style="font-size:12.0pt;font-family:"Times New Roman","serif";mso-fareast-font-family: "Times New Roman"">the balance of $20,000 which was provided on the closing of the agreement. </font></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:12.0pt;font-family:"Times New Roman","serif";"> </font></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:12.0pt;font-family:"Times New Roman","serif";">If we identify any material defect in Habitant’s title to the Newfoundland Property, we shall give Habitants notice of such defect. If the defect has not been cured within 30 days of receipt of such notice, we shall be entitled to take such curative action as is reasonably necessary, and shall be entitled to deduct the costs and expenses incurred in taking such action from the payments then otherwise due or accruing due to Habitants. If there are no such payments, we shall be entitled to a refund in the amount of said costs and expenses.</font></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:12.0pt;font-family:"Times New Roman","serif";"> </font></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:12.0pt;font-family:"Times New Roman","serif";">If any third party asserts any right or claim to the Newfoundland Property or to any amounts payable to Habitants, we may deposit any amounts otherwise due to Habitants in escrow with a suitable agent until the validity of such right or claim has been finally resolved. If we deposit said amounts in escrow, we shall be deemed not in default under this agreement for failure to pay such amounts to Habitants.</font></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:12.0pt;font-family:"Times New Roman","serif";"> </font></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:12.0pt;font-family:"Times New Roman","serif";">On August 31, 2011, we entered into a purchase and sale agreement with Ms. Kim Diaz and Sonseeahry related to the acquisition of the 100% interest in the Sodaville Claims. Under the terms of the purchase and sale agreement our company issued a pre-closing advance of $200,000 (paid on August 29, 2011).</font></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:12.0pt;font-family:"Times New Roman","serif";"> </font></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:12.0pt;font-family:"Times New Roman","serif";">As additional consideration our company will pay compensation as follows:</font></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:12.0pt;font-family:"Times New Roman","serif";"> </font></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;text-indent: 18.4pt;line-height:normal"><font style="font-size:12.0pt;font-family:"Times New Roman","serif";">1.   $200,000 on November 31, 2011 (paid);</font></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;text-indent: 18.4pt;line-height:normal"><font style="font-size:12.0pt;font-family:"Times New Roman","serif";">2.  $50,000 on July 1, 2012 (paid);</font></p>
<p class="MsoNormal" style="margin-top:0in;margin-right:0in;margin-bottom:0in; margin-left:18.4pt;margin-bottom:.0001pt;line-height:normal"><font style="font-size:12.0pt;font-family:"Times New Roman","serif";mso-fareast-font-family: "Times New Roman"">3.  $1,500,000, which will be paid in equal payments of $500,000 on or before January 1st of </font></p>
<p class="MsoNormal" style="margin-top:0in;margin-right:0in;margin-bottom:0in; margin-left:18.4pt;margin-bottom:.0001pt;text-indent:17.6pt;line-height:normal"><font style="font-size:12.0pt;font-family:"Times New Roman","serif";mso-fareast-font-family: "Times New Roman"">2013, 2014 and 2015;</font></p>
<p class="MsoNormal" style="margin-top:0in;margin-right:0in;margin-bottom:0in; margin-left:18.4pt;margin-bottom:.0001pt;line-height:normal"><font style="font-size:12.0pt;font-family:"Times New Roman","serif";mso-fareast-font-family: "Times New Roman"">4.  2,500,000 shares of our company’s common stock based on the pro-rata interest in the </font></p>
<p class="MsoNormal" style="margin-top:0in;margin-right:0in;margin-bottom:0in; margin-left:.5in;margin-bottom:.0001pt;line-height:normal"><font style="font-size:12.0pt;font-family:"Times New Roman","serif";mso-fareast-font-family: "Times New Roman"">claims and a total of 500,000 shares to those parties designated by the sellers on or before July 1st of 2012, 2013 and 2014 (1,000,000 shares were issued to the Sellers effective June 30, 2012);</font></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:12.0pt;font-family:"Times New Roman","serif";"> </font></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:12.0pt;font-family:"Times New Roman","serif";">We have also agreed to pay a royalty of $10 per short ton of product produced from the Sodaville Claims and sold by our company.</font></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:12.0pt;font-family:"Times New Roman","serif";"> </font></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:12.0pt;font-family:"Times New Roman","serif";">Our company has also located an additional 48 unpatented lode mining claims in the area in which the Sodaville Claims are located. As part of the consideration our company will also pay the sellers a royalty of $10 per short ton of product produced from the Additional Claims and sold by our company. In addition to granting the royalty in the Additional Claims our company will issue 50,000 shares of restricted stock to the sellers on or before January 1, 2015.</font></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:12.0pt;font-family:"Times New Roman","serif";"> </font></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:12.0pt;font-family:"Times New Roman","serif";">Our company shall also reserve a NSR Royalty on certain metallic products produced from the Sodaville Claims equal to 2% of the net smelter returns. The NSR Royalty shall not apply to and no NSR Royalty payments shall be due for any product produced from the Sodaville Claims sold by our company.</font></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:12.0pt;font-family:"Times New Roman","serif";"> </font></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:12.0pt;font-family:"Times New Roman","serif";">Additionally, our company will pay the sellers a guaranteed minimum annual royalty of $50,000 for a period of 5 years with the first payment due on December 31, 2015 and the last payment due on December 31, 2020.</font></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:12.0pt;font-family:"Times New Roman","serif";"> </font></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:12.0pt;font-family:"Times New Roman","serif";">There has been no mining of resources to date.</font></p>
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<p style="margin:0in;margin-bottom:.0001pt"><b>NOTE 4 – PREPAID EXPENSES</b></p>
<p style="margin:0in;margin-bottom:.0001pt"> </p>
<p style="margin:0in;margin-bottom:.0001pt">Prepaid expenses consisted of $10,406 of prepaid insurance and rent, and $107,639 of stock compensation as of September 30, 2012.</p>
<p class="MsoNormal"> </p>
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<p style="margin:0in;margin-bottom:.0001pt"><b>NOTE 5 – DEPOSITS</b></p>
<p style="margin:0in;margin-bottom:.0001pt"> </p>
<p style="margin:0in;margin-bottom:.0001pt">The current deposit of $500 consist of a rent deposit near the mining site.</p>
<p style="margin:0in;margin-bottom:.0001pt"> </p>
<p class="MsoNormal"> </p>
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<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><b><font style="font-size:12.0pt;font-family:"Times New Roman","serif";">NOTE 6 – ACCRUED EXPENSES</font></b><font style="font-size:12.0pt;font-family:"Times New Roman","serif";mso-fareast-font-family: "Times New Roman""/></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:12.0pt;font-family:"Times New Roman","serif";"> </font></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:12.0pt;font-family:"Times New Roman","serif";">Accrued expenses and liabilities consisted of the following as of September 30, 2012 and March 31, 2012:</font></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:12.0pt;font-family:"Times New Roman","serif";"> </font></p>
<table cellpadding="0" cellspacing="0" class="MsoNormalTable" style="mso-yfti-tbllook:1184;mso-padding-alt:0in 0in 0in 0in" border="0">
<tr style="mso-yfti-firstrow:yes">
<td width="196" style="width:117.6pt;padding:0in 0in 0in 0in"/>
<td width="98" style="width:58.8pt;padding:0in 0in 0in 0in"/>
<td width="96" style="width:.8in;padding:0in 0in 0in 0in"/></tr>
<tr>
<td valign="bottom" width="196" style="width:117.6pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";"> </font></p></td>
<td valign="bottom" width="98" style="width:58.8pt;border:none;border-bottom: solid black 1.0pt;mso-border-bottom-alt:solid black .75pt;padding:0in 0in 0in 0in">
<p align="center" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:center;line-height:normal"><font style="font-size:9.0pt; font-family:"Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">September 30, </font></p>
<p align="center" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:center;line-height:normal"><font style="font-size:9.0pt; font-family:"Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">2012</font></p></td>
<td valign="bottom" width="96" style="width:.8in;border:none;border-bottom:solid black 1.0pt;padding:0in 0in 0in 0in">
<p align="center" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:center;line-height:normal"><font style="font-size:9.0pt; font-family:"Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">March 31, 2012</font></p></td></tr>
<tr>
<td valign="bottom" width="196" style="width:117.6pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";">Accounting fees</font></p></td>
<td valign="bottom" width="98" style="width:58.8pt;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">$           2,250</font></p></td>
<td valign="bottom" width="96" style="width:.8in;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">$                  -</font></p></td></tr>
<tr>
<td valign="bottom" width="196" style="width:117.6pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";">Legal fees</font></p></td>
<td valign="bottom" width="98" style="width:58.8pt;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">-</font></p></td>
<td valign="bottom" width="96" style="width:.8in;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">5,588</font></p></td></tr>
<tr>
<td valign="bottom" width="196" style="width:117.6pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";">Filing fees</font></p></td>
<td valign="bottom" width="98" style="width:58.8pt;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">-</font></p></td>
<td valign="bottom" width="96" style="width:.8in;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">173</font></p></td></tr>
<tr style="mso-yfti-lastrow:yes">
<td valign="bottom" width="196" style="width:117.6pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";">Total Accrued Expenses</font></p></td>
<td valign="bottom" width="98" style="width:58.8pt;border-top:solid black 1.0pt; border-left:none;border-bottom:double black 2.25pt;border-right:none;mso-border-bottom-alt:double black 2.25pt; padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">$           2,250</font></p></td>
<td valign="bottom" width="96" style="width:.8in;border-top:solid black 1.0pt; border-left:none;border-bottom:double black 2.25pt;border-right:none;mso-border-bottom-alt:double black 2.25pt; padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">$           5,761</font></p></td></tr></table>
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<p style="margin:0in;margin-bottom:.0001pt"><b>NOTE 7 – NOTES PAYABLE – RELATED PARTIES</b></p>
<p style="margin:0in;margin-bottom:.0001pt"> </p>
<p style="margin:0in;margin-bottom:.0001pt">A shareholder and current director of the Company advanced funds at various times during the year ended March 31, 2011 in order to support operations. The loans are unsecured, non-interest bearing and due on demand. The amount due to the shareholder and director was $35,500 as of September 30, 2012.</p>
<p class="MsoNormal"> </p>
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<p style="margin:0in;margin-bottom:.0001pt"><b>NOTE 8 – LINES OF CREDIT</b></p>
<p style="margin:0in;margin-bottom:.0001pt"> </p>
<p style="margin:0in;margin-bottom:.0001pt">The Company entered into a Credit Facility Agreement during the year ended March 31, 2011 in the amount of $200,000. The line of credit is secured by the assets of the Company, bears 5% interest and is due on demand.</p>
<p style="margin:0in;margin-bottom:.0001pt"> </p>
<p style="margin:0in;margin-bottom:.0001pt">On June 22, 2011, the Company’s credit line was increased from $200,000 to $1,000,000 under the same terms. The line of credit was drawn to $630,000 as of September 30, 2012.  Accrued interest related to the line of credit was $35,574 as of September 30, 2012.  </p>
<p style="margin:0in;margin-bottom:.0001pt"> </p>
<p style="margin:0in;margin-bottom:.0001pt">On November 22, 2011, the Company entered into a second Credit Facility Agreement in which the lender agreed to provide the Company with a line of credit in the amount of up to $500,000. Pursuant to the terms of the Credit Facility Agreement, the Company shall pay any outstanding amounts to the lender on demand. The Company may also repay the loan and accrued interest at any time without penalty. Amounts outstanding shall bear interest at the rate of 10% per annum. The line of credit was drawn to $0 as of September 30, 2012.  Accrued interest related to the line of credit was $21,246 as of September 30, 2012.  </p>
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<p style="margin:0cm;margin-bottom:.0001pt"><b><font style="font-size:10.0pt; color:black">NOTE 9 – CONVERTIBLE LINE OF CREDIT</font></b><font style="font-size:10.0pt;color:black"/></p>
<p style="margin:0cm;margin-bottom:.0001pt"><font style="font-size:10.0pt; color:black"> </font></p>
<p style="margin:0cm;margin-bottom:.0001pt"><font style="font-size:10.0pt; color:black">On April 12, 2012, the Company entered into a US$1,000,000 Letter of Credit Agreement dated March 27, 2012. Pursuant to the terms outlined in the Letter of Credit, at any time the Company may require any and all funds outstanding under the Letter of Credit, except for accrued interest which is to be paid in cash, to be converted into units of the Company at a price of $0.80 per unit (the “Unit”). Each Unit consists of one (1) share of common stock and one (1) warrant to purchase one (1) share of common stock at $1.50 US for a period of five (5) years. The Company will pay annual interest of 5% until the loan is repaid or converted into Units. The Company will issue 1,250,000 Units when the exercise provision is enacted. In association with conversion feature of the line of credit with warrants the Company had $916,335 in derivative liability as of September 30, 2012. Additional, the Company incurred derivative expense of $184,044, change in derivative expense of $22,291 and amortization of debt discount of $257,881 as of September 30, 2012. The line of credit was drawn to $710,000 which is partial offset by the debt discount $452,119, totaling to $257,881 as of September 30, 2012. Accrued interest related to the line of credit was $11,477 as of September 30, 2012. </font></p>
<p style="margin:0cm;margin-bottom:.0001pt"><font style="font-size:10.0pt; color:black"> </font></p>
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<p style="margin:0in;margin-bottom:.0001pt"><b>NOTE 10 – RELATED PARTY TRANSACTIONS</b></p>
<p style="margin:0in;margin-bottom:.0001pt"> </p>
<p style="margin:0in;margin-bottom:.0001pt">On November 7, 2011, the Company entered into an employment agreement with Barry Wattenberg, our president, chief executive officer, chief financial officer, secretary, treasurer and a member of our board of directors.  The employment agreement was effective on December 1, 2011.</p>
<p style="margin:0in;margin-bottom:.0001pt"> </p>
<p style="margin:0in;margin-bottom:.0001pt">Pursuant to the terms of the employment agreement Mr. Wattenberg will receive a base salary of $10,000 per month, payments of which will accrue, and a key man life insurance policy of $1,000,000 payable half to the Company and half to Mr. Wattenberg’s estate. The Company shall also reimburse all reasonable and necessary business expenses incurred by Mr. Wattenberg in performance of his duties. When established, the Company will compensate Mr. Wattenberg with group health insurance benefits and will allow for standard executive benefits such as vacation, holidays, sick leave and the granting of stock options when deemed appropriate by the Company.</p>
<p style="margin:0in;margin-bottom:.0001pt"> </p>
<p style="margin:0in;margin-bottom:.0001pt">The total amounts of $125,500 and $65,500 as of September 30, 2012 and March 31, 2012, respectively, have been recorded as deferred compensation.</p>
<p class="MsoNormal"> </p>
<!--EndFragment-->
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<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><b><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN">NOTE 11 – CAPITAL STOCK </font></b><font style="font-size:10.0pt; font-family:"Times New Roman","serif";mso-fareast-font-family:"Times New Roman"; color:black;mso-fareast-language:EN-IN"/></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN"> </font></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN">The Company has 200,000,000 common shares authorized at a par value of $0.0001 per share.</font></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN"> </font></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN">During the period ended March 31, 2008, the Company issued 80,000,000 common shares at to founders for total proceeds of $8,000. Additionally, the Company issued 67,200,000 shares during the period ended March 31, 2008 for total proceeds of $42,000.</font></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN"> </font></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN">On July 9, 2010, a former shareholder and director of the Company agreed to forgive debt in the amount of $14,244. This amount has been recorded as contributed capital.</font></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN"> </font></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN">Effective September 8, 2010 the Company increased the authorized shares of common stock from 100,000,000 to 200,000,000 and enacted a forward stock split of 80 to 1. All share and per share data has been adjusted to reflect such stock split.</font></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN"> </font></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN">In May 2011 the Company issued 150,000 common shares in lieu of compensation along with stock options. </font></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN"> </font></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN">On November 10, 2011, the Company issued 25,000 shares of common stock at a value of $0.0001 per share as compensation for a finder’s fee related to the Sodaville, Nevada property.</font></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN"> </font></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN">On December 31, 2011, the Company issued an aggregate of 190,000 restricted shares of our common stock at a value of $0.0001 per share to our directors, advisors and consultants to the Company.</font></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN"> </font></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN">On June 30, 2012, the Company issued 1,000,000 restricted shares of our common stock at a value of approximately $0.20 per share to Kim Diaz of BLM Claims located in Mineral County Nevada in connection with the acquisition of mineral properties. (See note 3 for further details).</font></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN"> </font></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN">The Company purchased back 40,000 shares of common stock for cash totaling $10,000 during the period ended September 30, 2012. The stock is currently being held in treasury.</font></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN"> </font></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN">Stock-based compensation expense for the period ending September 30, 2012 was $157,754.</font></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN"> </font></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN">There were 148,665,000 shares of common stock issued and outstanding as of September 30, 2012. As September 30, 2012, the Company has no warrants outstanding. There are 1,305,000 stock options outstanding.<b> </b></font></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN"> </font></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><b><u><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN">Stock options</font></u></b><u><font style="font-size:10.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman";color:black;"> </font></u><font style="font-size:10.0pt; font-family:"Times New Roman","serif";mso-fareast-font-family:"Times New Roman"; color:black;mso-fareast-language:EN-IN"/></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN"> </font></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN">In April 2011, the Company issued 600,000 stock options to directors of the Company per the Stock Option Plan with an exercise price of $0.60 per share for a 5 year term. In May 2011, the Company entered into two consulting agreements which granted a total of 75,000 stock options per the Company’s Stock Option Plan. All these stock options are exercisable at $1.00 per share for a 5 year term. In December 2011, the Company granted a total of 115,000 stock options to advisors and consultants. All these stock options are exercisable at $1.00 per share for a 3 year term.</font></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN"> </font></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN">In April 2012, the Company issued 35,000 stock options to advisors and consultants of the Company per the Stock Option Plan with an exercise price of $1.00 per share for a 5 year term.</font></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN"> </font></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN">In May 2012, the Company issued 25,000 stock options to consultants of the Company per the Stock Option Plan with an exercise price of $1.00 per share for a 5 year term.</font></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN"> </font></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN">In June 2012, the Company issued 25,000 stock options to consultants of the Company per the Stock Option Plan with an exercise price of $1.00 per share for a 5 year term.</font></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN"> </font></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN">In July 2012, the Company issued 35,000 stock options to advisors and consultants of the Company per the Stock Option Plan with an exercise price of 5% above market price ($0.29) per share for a 5 year term</font></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN"> </font></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN">Stock option compensation expense for the period ending September 30, 2012 was $157,754. The expense was calculated using the Black-Scholes pricing model. The following table summarizes information about options as of September 30, 2012:</font></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN"> </font></p>
<table style="mso-yfti-tbllook:1184;mso-padding-alt:0cm 0cm 0cm 0cm" border="0" class="MsoNormalTable" cellpadding="0" cellspacing="0">
<tr style="mso-yfti-firstrow:yes">
<td style="width:194.25pt;padding:0cm 0cm 0cm 0cm" width="259"/>
<td style="width:18.0pt;padding:0cm 0cm 0cm 0cm" width="24"/>
<td style="width:105.75pt;padding:0cm 0cm 0cm 0cm" width="141"/>
<td style="width:24.75pt;padding:0cm 0cm 0cm 0cm" width="33"/>
<td style="width:108.75pt;padding:0cm 0cm 0cm 0cm" width="145"/></tr>
<tr>
<td style="width:194.25pt;background:white; padding:0cm 0cm 0cm 0cm" valign="bottom" width="259"/>
<td style="width:18.0pt;background:white;padding:0cm 0cm 0cm 0cm" valign="bottom" width="24"/>
<td style="width:105.75pt;border:none;border-bottom: solid black 1.0pt;mso-border-bottom-alt:solid black .75pt;background:white; padding:0cm 0cm 0cm 0cm" valign="bottom" width="141">
<p align="center" style="margin-bottom:0cm;margin-bottom:.0001pt; text-align:center;line-height:normal" class="MsoNormal"><font style="font-size:9.0pt; font-family:"Times New Roman","serif";mso-fareast-font-family:"Times New Roman";">Number of Shares</font></p></td>
<td style="width:24.75pt;background:white;padding: 0cm 0cm 0cm 0cm" valign="bottom" width="33"/>
<td style="width:108.75pt;border:none;border-bottom: solid black 1.0pt;mso-border-bottom-alt:solid black .75pt;background:white; padding:0cm 0cm 0cm 0cm" valign="bottom" width="145">
<p align="center" style="margin-bottom:0cm;margin-bottom:.0001pt; text-align:center;line-height:normal" class="MsoNormal"><font style="font-size:9.0pt; font-family:"Times New Roman","serif";mso-fareast-font-family:"Times New Roman";">Weighted Average Exercise Price</font></p></td></tr>
<tr>
<td style="width:194.25pt;background:white; padding:0cm 0cm 0cm 0cm" valign="bottom" width="259">
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";mso-fareast-language:EN-IN">Outstanding, March 31, 2012</font></p></td>
<td style="width:18.0pt;background:white;padding:0cm 0cm 0cm 0cm" valign="bottom" width="24"/>
<td style="width:105.75pt;background:white; padding:0cm 0cm 0cm 0cm" valign="bottom" width="141">
<p align="right" style="margin-bottom:0cm;margin-bottom:.0001pt; text-align:right;line-height:normal" class="MsoNormal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman";">1,185,000</font></p></td>
<td style="width:24.75pt;background:white;padding: 0cm 0cm 0cm 0cm" valign="bottom" width="33">
<p align="right" style="margin-bottom:0cm;margin-bottom:.0001pt; text-align:right;line-height:normal" class="MsoNormal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman";">$</font></p></td>
<td style="width:108.75pt;background:white; padding:0cm 0cm 0cm 0cm" valign="bottom" width="145">
<p align="right" style="margin-bottom:0cm;margin-bottom:.0001pt; text-align:right;line-height:normal" class="MsoNormal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman";">.84</font></p></td></tr>
<tr>
<td style="width:194.25pt;background:white; padding:0cm 0cm 0cm 0cm" valign="bottom" width="259">
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";mso-fareast-language:EN-IN">Options granted</font></p></td>
<td style="width:18.0pt;background:white;padding:0cm 0cm 0cm 0cm" valign="bottom" width="24"/>
<td style="width:105.75pt;background:white; padding:0cm 0cm 0cm 0cm" valign="bottom" width="141">
<p align="right" style="margin-bottom:0cm;margin-bottom:.0001pt; text-align:right;line-height:normal" class="MsoNormal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman";">120,000</font></p></td>
<td style="width:24.75pt;background:white;padding: 0cm 0cm 0cm 0cm" valign="bottom" width="33"/>
<td style="width:108.75pt;background:white; padding:0cm 0cm 0cm 0cm" valign="bottom" width="145">
<p align="right" style="margin-bottom:0cm;margin-bottom:.0001pt; text-align:right;line-height:normal" class="MsoNormal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman";">.76</font></p></td></tr>
<tr>
<td style="width:194.25pt;background:white; padding:0cm 0cm 0cm 0cm" valign="bottom" width="259">
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";mso-fareast-language:EN-IN">Options expired</font></p></td>
<td style="width:18.0pt;background:white;padding:0cm 0cm 0cm 0cm" valign="bottom" width="24"/>
<td style="width:105.75pt;background:white; padding:0cm 0cm 0cm 0cm" valign="bottom" width="141">
<p align="right" style="margin-bottom:0cm;margin-bottom:.0001pt; text-align:right;line-height:normal" class="MsoNormal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman";">-</font></p></td>
<td style="width:24.75pt;background:white;padding: 0cm 0cm 0cm 0cm" valign="bottom" width="33"/>
<td style="width:108.75pt;background:white; padding:0cm 0cm 0cm 0cm" valign="bottom" width="145">
<p align="right" style="margin-bottom:0cm;margin-bottom:.0001pt; text-align:right;line-height:normal" class="MsoNormal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman";">-</font></p></td></tr>
<tr>
<td style="width:194.25pt;background:white; padding:0cm 0cm 0cm 0cm" valign="bottom" width="259">
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";mso-fareast-language:EN-IN">Options cancelled</font></p></td>
<td style="width:18.0pt;background:white;padding:0cm 0cm 0cm 0cm" valign="bottom" width="24"/>
<td style="width:105.75pt;border:none;border-bottom: solid black 1.0pt;mso-border-bottom-alt:solid black .75pt;background:white; padding:0cm 0cm 0cm 0cm" valign="bottom" width="141">
<p align="right" style="margin-bottom:0cm;margin-bottom:.0001pt; text-align:right;line-height:normal" class="MsoNormal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman";">-</font></p></td>
<td style="width:24.75pt;background:white;padding: 0cm 0cm 0cm 0cm" valign="bottom" width="33"/>
<td style="width:108.75pt;border:none;border-bottom: solid black 1.0pt;mso-border-bottom-alt:solid black .75pt;background:white; padding:0cm 0cm 0cm 0cm" valign="bottom" width="145">
<p align="right" style="margin-bottom:0cm;margin-bottom:.0001pt; text-align:right;line-height:normal" class="MsoNormal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman";">-</font></p></td></tr>
<tr>
<td style="width:194.25pt;background:white; padding:0cm 0cm 0cm 0cm" valign="bottom" width="259">
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";mso-fareast-language:EN-IN">Outstanding, September 30, 2012</font></p></td>
<td style="width:18.0pt;background:white;padding:0cm 0cm 0cm 0cm" valign="bottom" width="24"/>
<td style="width:105.75pt;border:none;border-bottom: double black 2.25pt;background:white;padding:0cm 0cm 0cm 0cm" valign="bottom" width="141">
<p align="right" style="margin-bottom:0cm;margin-bottom:.0001pt; text-align:right;line-height:normal" class="MsoNormal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman";">1,305,000</font></p></td>
<td style="width:24.75pt;background:white;padding: 0cm 0cm 0cm 0cm" valign="bottom" width="33">
<p align="right" style="margin-bottom:0cm;margin-bottom:.0001pt; text-align:right;line-height:normal" class="MsoNormal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman";">$</font></p></td>
<td style="width:108.75pt;border:none;border-bottom: double black 2.25pt;background:white;padding:0cm 0cm 0cm 0cm" valign="bottom" width="145">
<p align="right" style="margin-bottom:0cm;margin-bottom:.0001pt; text-align:right;line-height:normal" class="MsoNormal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman";">.80</font></p></td></tr>
<tr style="mso-yfti-lastrow:yes">
<td style="width:194.25pt;background:white; padding:0cm 0cm 0cm 0cm" valign="bottom" width="259">
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";mso-fareast-language:EN-IN">Exercisable, September 30, 2012</font></p></td>
<td style="width:18.0pt;background:white;padding:0cm 0cm 0cm 0cm" valign="bottom" width="24"/>
<td style="width:105.75pt;border:none;border-bottom: double black 2.25pt;background:white;padding:0cm 0cm 0cm 0cm" valign="bottom" width="141">
<p align="right" style="margin-bottom:0cm;margin-bottom:.0001pt; text-align:right;line-height:normal" class="MsoNormal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman";">1,305,000</font></p></td>
<td style="width:24.75pt;background:white;padding: 0cm 0cm 0cm 0cm" valign="bottom" width="33">
<p align="right" style="margin-bottom:0cm;margin-bottom:.0001pt; text-align:right;line-height:normal" class="MsoNormal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman";">$</font></p></td>
<td style="width:108.75pt;border:none;border-bottom: double black 2.25pt;background:white;padding:0cm 0cm 0cm 0cm" valign="bottom" width="145">
<p align="right" style="margin-bottom:0cm;margin-bottom:.0001pt; text-align:right;line-height:normal" class="MsoNormal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman";">.80</font></p></td></tr></table>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN"> </font></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN">The following table summarizes information about stock warrants granted to employees, advisors, investors and board members at September 30, 2012:</font></p>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN"> </font></p>
<table style="mso-yfti-tbllook:1184;mso-padding-alt:0cm 0cm 0cm 0cm" border="0" class="MsoNormalTable" cellpadding="0" cellspacing="0">
<tr style="mso-yfti-firstrow:yes">
<td style="width:15.75pt;padding:0cm 0cm 0cm 0cm" width="21"/>
<td style="width:60.75pt;padding:0cm 0cm 0cm 0cm" width="81"/>
<td style="width:13.5pt;padding:0cm 0cm 0cm 0cm" width="18"/>
<td style="width:67.5pt;padding:0cm 0cm 0cm 0cm" width="90"/>
<td style="width:13.5pt;padding:0cm 0cm 0cm 0cm" width="18"/>
<td style="width:58.5pt;padding:0cm 0cm 0cm 0cm" width="78"/>
<td style="width:13.5pt;padding:0cm 0cm 0cm 0cm" width="18"/>
<td style="width:85.5pt;padding:0cm 0cm 0cm 0cm" width="114"/>
<td style="width:13.5pt;padding:0cm 0cm 0cm 0cm" width="18"/>
<td style="width:58.5pt;padding:0cm 0cm 0cm 0cm" width="78"/>
<td style="width:13.5pt;padding:0cm 0cm 0cm 0cm" width="18"/>
<td style="width:58.5pt;padding:0cm 0cm 0cm 0cm" width="78"/></tr>
<tr>
<td style="width:329.25pt;border:none; border-bottom:solid black 1.0pt;mso-border-bottom-alt:solid black .75pt; background:white;padding:0cm 0cm 0cm 0cm" valign="bottom" colspan="8" width="439">
<p align="center" style="margin-bottom:0cm;margin-bottom:.0001pt; text-align:center;line-height:normal" class="MsoNormal"><font style="font-size:9.0pt; font-family:"Times New Roman","serif";mso-fareast-font-family:"Times New Roman";">Stock Options Outstanding</font></p></td>
<td style="width:13.5pt;background:white;padding:0cm 0cm 0cm 0cm" valign="bottom" width="18"/>
<td style="width:130.5pt;border:none; border-bottom:solid black 1.0pt;mso-border-bottom-alt:solid black .75pt; background:white;padding:0cm 0cm 0cm 0cm" valign="bottom" colspan="3" width="174">
<p align="center" style="margin-bottom:0cm;margin-bottom:.0001pt; text-align:center;line-height:normal" class="MsoNormal"><font style="font-size:9.0pt; font-family:"Times New Roman","serif";mso-fareast-font-family:"Times New Roman";">Stock Options Exercisable</font></p></td></tr>
<tr>
<td style="width:15.75pt;background:white;padding: 0cm 0cm 0cm 0cm" valign="bottom" width="21"/>
<td style="width:60.75pt;border:none;border-bottom: solid black 1.0pt;mso-border-bottom-alt:solid black .75pt;background:white; padding:0cm 0cm 0cm 0cm" valign="bottom" width="81">
<p align="center" style="margin-bottom:0cm;margin-bottom:.0001pt; text-align:center;line-height:normal" class="MsoNormal"><font style="font-size:9.0pt; font-family:"Times New Roman","serif";mso-fareast-font-family:"Times New Roman";">Range of Exercise Prices</font></p></td>
<td style="width:13.5pt;background:white;padding:0cm 0cm 0cm 0cm" valign="bottom" width="18"/>
<td style="width:67.5pt;border:none;border-bottom: solid black 1.0pt;mso-border-bottom-alt:solid black .75pt;background:white; padding:0cm 0cm 0cm 0cm" valign="bottom" width="90">
<p align="center" style="margin-bottom:0cm;margin-bottom:.0001pt; text-align:center;line-height:normal" class="MsoNormal"><font style="font-size:9.0pt; font-family:"Times New Roman","serif";mso-fareast-font-family:"Times New Roman";">Number Outstanding</font></p></td>
<td style="width:13.5pt;background:white;padding:0cm 0cm 0cm 0cm" valign="bottom" width="18"/>
<td style="width:58.5pt;border:none;border-bottom: solid black 1.0pt;mso-border-bottom-alt:solid black .75pt;background:white; padding:0cm 0cm 0cm 0cm" valign="bottom" width="78">
<p align="center" style="margin-bottom:0cm;margin-bottom:.0001pt; text-align:center;line-height:normal" class="MsoNormal"><font style="font-size:9.0pt; font-family:"Times New Roman","serif";mso-fareast-font-family:"Times New Roman";">Weighted Average Exercise Price</font></p></td>
<td style="width:13.5pt;background:white;padding:0cm 0cm 0cm 0cm" valign="bottom" width="18"/>
<td style="width:85.5pt;border:none;border-bottom: solid black 1.0pt;mso-border-bottom-alt:solid black .75pt;background:white; padding:0cm 0cm 0cm 0cm" valign="bottom" width="114">
<p align="center" style="margin-bottom:0cm;margin-bottom:.0001pt; text-align:center;line-height:normal" class="MsoNormal"><font style="font-size:9.0pt; font-family:"Times New Roman","serif";mso-fareast-font-family:"Times New Roman";">Weighted Average Remaining Contractual Life (in years)</font></p></td>
<td style="width:13.5pt;background:white;padding:0cm 0cm 0cm 0cm" valign="bottom" width="18"/>
<td style="width:58.5pt;border:none;border-bottom: solid black 1.0pt;mso-border-bottom-alt:solid black .75pt;background:white; padding:0cm 0cm 0cm 0cm" valign="bottom" width="78">
<p align="center" style="margin-bottom:0cm;margin-bottom:.0001pt; text-align:center;line-height:normal" class="MsoNormal"><font style="font-size:9.0pt; font-family:"Times New Roman","serif";mso-fareast-font-family:"Times New Roman";">Number of Options</font></p></td>
<td style="width:13.5pt;background:white;padding:0cm 0cm 0cm 0cm" valign="bottom" width="18"/>
<td style="width:58.5pt;border:none;border-bottom: solid black 1.0pt;mso-border-bottom-alt:solid black .75pt;background:white; padding:0cm 0cm 0cm 0cm" valign="bottom" width="78">
<p align="center" style="margin-bottom:0cm;margin-bottom:.0001pt; text-align:center;line-height:normal" class="MsoNormal"><font style="font-size:9.0pt; font-family:"Times New Roman","serif";mso-fareast-font-family:"Times New Roman";">Weighted Average Exercise Price</font></p></td></tr>
<tr>
<td style="width:15.75pt;background:white;padding: 0cm 0cm 0cm 0cm" valign="bottom" width="21"/>
<td style="width:60.75pt;background:white;padding: 0cm 0cm 0cm 0cm" valign="bottom" width="81"/>
<td style="width:13.5pt;background:white;padding:0cm 0cm 0cm 0cm" valign="bottom" width="18"/>
<td style="width:67.5pt;background:white;padding:0cm 0cm 0cm 0cm" valign="bottom" width="90"/>
<td style="width:13.5pt;background:white;padding:0cm 0cm 0cm 0cm" valign="bottom" width="18"/>
<td style="width:58.5pt;background:white;padding:0cm 0cm 0cm 0cm" valign="bottom" width="78"/>
<td style="width:13.5pt;background:white;padding:0cm 0cm 0cm 0cm" valign="bottom" width="18"/>
<td style="width:85.5pt;background:white;padding: 0cm 0cm 0cm 0cm" valign="bottom" width="114"/>
<td style="width:13.5pt;background:white;padding:0cm 0cm 0cm 0cm" valign="bottom" width="18"/>
<td style="width:58.5pt;background:white;padding:0cm 0cm 0cm 0cm" valign="bottom" width="78"/>
<td style="width:13.5pt;background:white;padding:0cm 0cm 0cm 0cm" valign="bottom" width="18"/>
<td style="width:58.5pt;background:white;padding:0cm 0cm 0cm 0cm" valign="bottom" width="78"/></tr>
<tr style="mso-yfti-lastrow:yes">
<td style="width:15.75pt;background:white;padding: 0cm 0cm 0cm 0cm" valign="bottom" width="21">
<p align="right" style="margin-bottom:0cm;margin-bottom:.0001pt; text-align:right;line-height:normal" class="MsoNormal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman";">$</font></p></td>
<td style="width:60.75pt;background:white;padding: 0cm 0cm 0cm 0cm" valign="bottom" width="81">
<p align="right" style="margin-bottom:0cm;margin-bottom:.0001pt; text-align:right;line-height:normal" class="MsoNormal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman";">.60 to 1.00</font></p></td>
<td style="width:13.5pt;background:white;padding:0cm 0cm 0cm 0cm" valign="bottom" width="18"/>
<td style="width:67.5pt;background:white;padding:0cm 0cm 0cm 0cm" valign="bottom" width="90">
<p align="right" style="margin-bottom:0cm;margin-bottom:.0001pt; text-align:right;line-height:normal" class="MsoNormal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman";">1,305,000</font></p></td>
<td style="width:13.5pt;background:white;padding:0cm 0cm 0cm 0cm" valign="bottom" width="18">
<p align="right" style="margin-bottom:0cm;margin-bottom:.0001pt; text-align:right;line-height:normal" class="MsoNormal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman";">$</font></p></td>
<td style="width:58.5pt;background:white;padding:0cm 0cm 0cm 0cm" valign="bottom" width="78">
<p align="right" style="margin-bottom:0cm;margin-bottom:.0001pt; text-align:right;line-height:normal" class="MsoNormal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman";">.76</font></p></td>
<td style="width:13.5pt;background:white;padding:0cm 0cm 0cm 0cm" valign="bottom" width="18"/>
<td style="width:85.5pt;background:white;padding: 0cm 0cm 0cm 0cm" valign="bottom" width="114">
<p align="right" style="margin-bottom:0cm;margin-bottom:.0001pt; text-align:right;line-height:normal" class="MsoNormal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman";">3.93</font></p></td>
<td style="width:13.5pt;background:white;padding:0cm 0cm 0cm 0cm" valign="bottom" width="18"/>
<td style="width:58.5pt;background:white;padding:0cm 0cm 0cm 0cm" valign="bottom" width="78">
<p align="right" style="margin-bottom:0cm;margin-bottom:.0001pt; text-align:right;line-height:normal" class="MsoNormal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman";">1,305,000</font></p></td>
<td style="width:13.5pt;background:white;padding:0cm 0cm 0cm 0cm" valign="bottom" width="18">
<p align="right" style="margin-bottom:0cm;margin-bottom:.0001pt; text-align:right;line-height:normal" class="MsoNormal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman";">$</font></p></td>
<td style="width:58.5pt;background:white;padding:0cm 0cm 0cm 0cm" valign="bottom" width="78">
<p align="right" style="margin-bottom:0cm;margin-bottom:.0001pt; text-align:right;line-height:normal" class="MsoNormal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman";">0.80</font></p></td></tr></table>
<p style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal" class="MsoNormal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";color:black;mso-fareast-language: EN-IN"> </font></p><font style="font-size:10.0pt;line-height:115%;font-family:"Times New Roman","serif";color:black;mso-ansi-language:EN-IN;mso-bidi-language:AR-SA">As of September 30, 2012, the aggregate intrinsic value of the stock options outstanding and exercisable was $0. The weighted-average grant-date fair value of stock options granted for the period ending September 30, 2012 was $0.85. The total fair value of shares vested as of September 30, 2012 was 1,305,000 of stock options at fair market value on September 30, 2012.</font><!--EndFragment-->
<!--StartFragment-->
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><b><font style="font-size:12.0pt;font-family:"Times New Roman","serif";">NOTE 12 – RESTATEMENT</font></b><font style="font-size:12.0pt;font-family:"Times New Roman","serif";mso-fareast-font-family: "Times New Roman""/></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:12.0pt;font-family:"Times New Roman","serif";"> </font></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:12.0pt;font-family:"Times New Roman","serif";">The Company has recorded the cost of stock options granted in the 10K ending March 31, 2012. The Company is allocating the cost to the correct quarterly periods in the fiscal year ended March 31, 2012. The corrected balances and the previously stated balances for the six and three months ended September 30, 2012 are shown below.</font></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:12.0pt;font-family:"Times New Roman","serif";"> </font></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:12.0pt;font-family:"Times New Roman","serif";">The following are the previously stated and corrected balances for the six months ended September 30, 2011:</font></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:12.0pt;font-family:"Times New Roman","serif";"> </font></p>
<table cellpadding="0" cellspacing="0" class="MsoNormalTable" style="mso-yfti-tbllook:1184;mso-padding-alt:0in 0in 0in 0in" border="0">
<tr style="mso-yfti-firstrow:yes">
<td width="163" style="width:97.8pt;padding:0in 0in 0in 0in"/>
<td width="180" style="width:1.5in;padding:0in 0in 0in 0in"/>
<td width="96" style="width:.8in;padding:0in 0in 0in 0in"/>
<td width="102" style="width:.85in;padding:0in 0in 0in 0in"/></tr>
<tr>
<td valign="bottom" width="163" style="width:97.8pt;border:none;border-bottom: solid black 1.0pt;background:white;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";">September 30, 2011 Financial Statement</font></p></td>
<td valign="bottom" width="180" style="width:1.5in;border:none;border-bottom: solid black 1.0pt;background:white;padding:0in 0in 0in 0in">
<p align="center" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:center;line-height:normal"><font style="font-size:9.0pt; font-family:"Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">Line Item</font></p></td>
<td valign="bottom" width="96" style="width:.8in;border:none;border-bottom:solid black 1.0pt; background:white;padding:0in 0in 0in 0in">
<p align="center" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:center;line-height:normal"><font style="font-size:9.0pt; font-family:"Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">Corrected</font></p></td>
<td valign="bottom" width="102" style="width:.85in;border:none;border-bottom: solid black 1.0pt;background:white;padding:0in 0in 0in 0in">
<p align="center" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:center;line-height:normal"><font style="font-size:9.0pt; font-family:"Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">Previously Stated</font></p></td></tr>
<tr>
<td valign="bottom" width="163" style="width:97.8pt;background:white;padding: 0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";">Income Statement</font></p></td>
<td valign="bottom" width="180" style="width:1.5in;background:white;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";">Stock-based compensation </font></p></td>
<td valign="bottom" width="96" style="width:.8in;background:white;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">       398,531 </font></p></td>
<td valign="bottom" width="102" style="width:.85in;background:white;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">         181,715 </font></p></td></tr>
<tr>
<td valign="bottom" width="163" style="width:97.8pt;background:white;padding: 0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";">Income Statement</font></p></td>
<td valign="bottom" width="180" style="width:1.5in;background:white;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";">Operating expenses</font></p></td>
<td valign="bottom" width="96" style="width:.8in;background:white;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">572,192</font></p></td>
<td valign="bottom" width="102" style="width:.85in;background:white;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">355,376</font></p></td></tr>
<tr>
<td valign="bottom" width="163" style="width:97.8pt;background:white;padding: 0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";">Income Statement</font></p></td>
<td valign="bottom" width="180" style="width:1.5in;background:white;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";">Net Loss</font></p></td>
<td valign="bottom" width="96" style="width:.8in;background:white;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman""> (577,098)</font></p></td>
<td valign="bottom" width="102" style="width:.85in;background:white;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman""> (360,282)</font></p></td></tr>
<tr style="mso-yfti-lastrow:yes">
<td valign="bottom" width="163" style="width:97.8pt;background:white;padding: 0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";">Cash Flows</font></p></td>
<td valign="bottom" width="180" style="width:1.5in;background:white;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";">Stock-based compensation </font></p></td>
<td valign="bottom" width="96" style="width:.8in;background:white;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">       398,531 </font></p></td>
<td valign="bottom" width="102" style="width:.85in;background:white;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">         181,715 </font></p></td></tr></table>
<p align="center" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:center;line-height:normal"><font style="font-size:12.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman""> </font></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:12.0pt;font-family:"Times New Roman","serif";">The following are the previously stated and corrected balances for the three months ended September 30, 2011:</font></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:12.0pt;font-family:"Times New Roman","serif";"> </font></p>
<table cellpadding="0" cellspacing="0" class="MsoNormalTable" style="mso-yfti-tbllook:1184;mso-padding-alt:0in 0in 0in 0in" border="0">
<tr style="mso-yfti-firstrow:yes">
<td width="163" style="width:97.8pt;padding:0in 0in 0in 0in"/>
<td width="180" style="width:1.5in;padding:0in 0in 0in 0in"/>
<td width="96" style="width:.8in;padding:0in 0in 0in 0in"/>
<td width="102" style="width:.85in;padding:0in 0in 0in 0in"/></tr>
<tr>
<td valign="bottom" width="163" style="width:97.8pt;border:none;border-bottom: solid black 1.0pt;background:white;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";">September 30, 2011 Financial Statement</font></p></td>
<td valign="bottom" width="180" style="width:1.5in;border:none;border-bottom: solid black 1.0pt;background:white;padding:0in 0in 0in 0in">
<p align="center" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:center;line-height:normal"><font style="font-size:9.0pt; font-family:"Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">Line Item</font></p></td>
<td valign="bottom" width="96" style="width:.8in;border:none;border-bottom:solid black 1.0pt; background:white;padding:0in 0in 0in 0in">
<p align="center" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:center;line-height:normal"><font style="font-size:9.0pt; font-family:"Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">Corrected</font></p></td>
<td valign="bottom" width="102" style="width:.85in;border:none;border-bottom: solid black 1.0pt;background:white;padding:0in 0in 0in 0in">
<p align="center" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:center;line-height:normal"><font style="font-size:9.0pt; font-family:"Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">Previously Stated</font></p></td></tr>
<tr>
<td valign="bottom" width="163" style="width:97.8pt;background:white;padding: 0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";">Income Statement</font></p></td>
<td valign="bottom" width="180" style="width:1.5in;background:white;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";">Stock-based compensation </font></p></td>
<td valign="bottom" width="96" style="width:.8in;background:white;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">95,416</font></p></td>
<td valign="bottom" width="102" style="width:.85in;background:white;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">20,665</font></p></td></tr>
<tr>
<td valign="bottom" width="163" style="width:97.8pt;background:white;padding: 0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";">Income Statement</font></p></td>
<td valign="bottom" width="180" style="width:1.5in;background:white;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";">Professional fees</font></p></td>
<td valign="bottom" width="96" style="width:.8in;background:white;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">24,724</font></p></td>
<td valign="bottom" width="102" style="width:.85in;background:white;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">24,095</font></p></td></tr>
<tr>
<td valign="bottom" width="163" style="width:97.8pt;background:white;padding: 0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";">Income Statement</font></p></td>
<td valign="bottom" width="180" style="width:1.5in;background:white;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";">Operating expenses</font></p></td>
<td valign="bottom" width="96" style="width:.8in;background:white;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">216,629</font></p></td>
<td valign="bottom" width="102" style="width:.85in;background:white;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">141,249</font></p></td></tr>
<tr style="mso-yfti-lastrow:yes">
<td valign="bottom" width="163" style="width:97.8pt;background:white;padding: 0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";">Income Statement</font></p></td>
<td valign="bottom" width="180" style="width:1.5in;background:white;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";">Net Loss</font></p></td>
<td valign="bottom" width="96" style="width:.8in;background:white;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman""> (220,402)</font></p></td>
<td valign="bottom" width="102" style="width:.85in;background:white;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman""> (145,022)</font></p></td></tr></table>
<p align="center" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:center;line-height:normal"><font style="font-size:12.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman""> </font></p>
<p class="MsoNormal"> </p>
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<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><b><font style="font-size:12.0pt;font-family:"Times New Roman","serif";">NOTE 13 – INCOME TAXES</font></b><font style="font-size:12.0pt;font-family:"Times New Roman","serif";mso-fareast-font-family: "Times New Roman""/></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:12.0pt;font-family:"Times New Roman","serif";"> </font></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:12.0pt;font-family:"Times New Roman","serif";">The provision for Federal income tax consists of the following for the six months ended September 30, 2012</font><font style="font-family:"Times New Roman","serif";mso-fareast-font-family:"Times New Roman""/><font style="font-size:12.0pt;font-family:"Times New Roman","serif";">and 2011:</font></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:12.0pt;font-family:"Times New Roman","serif";"> </font></p>
<table cellpadding="0" cellspacing="0" class="MsoNormalTable" style="mso-yfti-tbllook:1184;mso-padding-alt:0in 0in 0in 0in" border="0">
<tr style="mso-yfti-firstrow:yes">
<td width="268" style="width:160.8pt;padding:0in 0in 0in 0in"/>
<td width="84" style="width:.7in;padding:0in 0in 0in 0in"/>
<td width="80" style="width:48.0pt;padding:0in 0in 0in 0in"/></tr>
<tr>
<td valign="bottom" width="268" style="width:160.8pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";"> </font></p></td>
<td valign="bottom" width="84" style="width:.7in;border:none;border-bottom:solid black 1.0pt;padding:0in 0in 0in 0in">
<p align="center" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:center;line-height:normal"><font style="font-size:9.0pt; font-family:"Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">2012</font></p></td>
<td valign="bottom" width="80" style="width:48.0pt;border:none;border-bottom: solid black 1.0pt;mso-border-bottom-alt:solid black .75pt;padding:0in 0in 0in 0in">
<p align="center" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:center;line-height:normal"><font style="font-size:9.0pt; font-family:"Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">2011</font></p></td></tr>
<tr>
<td valign="bottom" width="268" style="width:160.8pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";">Federal income tax benefit attributable to:</font></p></td>
<td valign="bottom" width="84" style="width:.7in;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";"> </font></p></td>
<td valign="bottom" width="80" style="width:48.0pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";"> </font></p></td></tr>
<tr>
<td valign="bottom" width="268" style="width:160.8pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";">Current operations</font></p></td>
<td valign="bottom" width="84" style="width:.7in;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">$   370,111</font></p></td>
<td valign="bottom" width="80" style="width:48.0pt;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">$   196,213   </font></p></td></tr>
<tr>
<td valign="bottom" width="268" style="width:160.8pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";">Less: valuation allowance</font></p></td>
<td valign="bottom" width="84" style="width:.7in;border:none;border-bottom:solid black 1.0pt;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">(370,111)</font></p></td>
<td valign="bottom" width="80" style="width:48.0pt;border:none;border-bottom: solid black 1.0pt;mso-border-bottom-alt:solid black .75pt;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">(196,213)</font></p></td></tr>
<tr style="mso-yfti-lastrow:yes">
<td valign="bottom" width="268" style="width:160.8pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";">Net provision for Federal income taxes</font></p></td>
<td valign="bottom" width="84" style="width:.7in;border:none;border-bottom:double black 2.25pt; padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">$              -</font></p></td>
<td valign="bottom" width="80" style="width:48.0pt;border:none;border-bottom: double black 2.25pt;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">$              -</font></p></td></tr></table>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:12.0pt;font-family:"Times New Roman","serif";"> </font></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:12.0pt;font-family:"Times New Roman","serif";">The cumulative tax effect at the expected rate of 34% of significant items comprising our net deferred tax amount is as follows as of September 30, 2012 and March 31, 2012:</font></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:12.0pt;font-family:"Times New Roman","serif";"> </font></p>
<table cellpadding="0" cellspacing="0" class="MsoNormalTable" style="mso-yfti-tbllook:1184;mso-padding-alt:0in 0in 0in 0in" border="0">
<tr style="mso-yfti-firstrow:yes">
<td width="235" style="width:141.0pt;padding:0in 0in 0in 0in"/>
<td width="96" style="width:.8in;padding:0in 0in 0in 0in"/>
<td width="96" style="width:.8in;padding:0in 0in 0in 0in"/></tr>
<tr>
<td valign="top" width="235" style="width:141.0pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";"> </font></p></td>
<td valign="bottom" width="96" style="width:.8in;border:none;border-bottom:solid black 1.0pt;padding:0in 0in 0in 0in">
<p align="center" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:center;line-height:normal"><font style="font-size:9.0pt; font-family:"Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">September 30, 2012</font></p></td>
<td valign="bottom" width="96" style="width:.8in;border:none;border-bottom:solid black 1.0pt;padding:0in 0in 0in 0in">
<p align="center" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:center;line-height:normal"><font style="font-size:9.0pt; font-family:"Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">March 31, 2012</font></p></td></tr>
<tr>
<td valign="top" width="235" style="width:141.0pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";">Deferred tax asset attributable to:</font></p></td>
<td valign="bottom" width="96" style="width:.8in;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";"> </font></p></td>
<td valign="bottom" width="96" style="width:.8in;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";"> </font></p></td></tr>
<tr>
<td valign="top" width="235" style="width:141.0pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";">Net operating loss carryover</font></p></td>
<td valign="bottom" width="96" style="width:.8in;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">$       893,411     </font></p></td>
<td valign="bottom" width="96" style="width:.8in;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">$     523,300       </font></p></td></tr>
<tr>
<td valign="top" width="235" style="width:141.0pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";">Less: valuation allowance</font></p></td>
<td valign="bottom" width="96" style="width:.8in;border:none;border-bottom:solid black 1.0pt;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">(893,411)</font></p></td>
<td valign="bottom" width="96" style="width:.8in;border:none;border-bottom:solid black 1.0pt;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">(523,300)</font></p></td></tr>
<tr style="mso-yfti-lastrow:yes">
<td valign="top" width="235" style="width:141.0pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";">Net deferred tax asset</font></p></td>
<td valign="bottom" width="96" style="width:.8in;border:none;border-bottom:double black 2.25pt; padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">$                -</font></p></td>
<td valign="bottom" width="96" style="width:.8in;border:none;border-bottom:double black 2.25pt; padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">$                -</font></p></td></tr></table>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:12.0pt;font-family:"Times New Roman","serif";"> </font></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:12.0pt;font-family:"Times New Roman","serif";">Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards of $2,627,680 for federal income tax reporting purposes are subject to annual limitations. Should a change in ownership occur, net operating loss carry forwards may be limited as to use in future years.</font></p>
<p class="MsoNormal"> </p>
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<p style="margin:0in;margin-bottom:.0001pt"><b>NOTE 14 – GOING CONCERN</b></p>
<p style="margin:0in;margin-bottom:.0001pt"> </p>
<p style="margin:0in;margin-bottom:.0001pt"><font style="background:white">The accompanying financial statements have been prepared assuming that the Company will continue as a going concern.  The Company has no established source of revenue, negative working capital and losses since inception.  These factors raise substantial doubt about the Company’s ability to continue as a going concern.  Without realization of additional capital, it would be unlikely for the Company to continue as a going concern.  The financial statements do not include any adjustments that might result from this uncertainty.</font></p>
<p style="margin:0in;margin-bottom:.0001pt"> </p>
<p style="margin:0in;margin-bottom:.0001pt">We anticipate that additional funding will be required in the form of debt or equity capital financing from the sale of our common stock.  At this time, we cannot provide investors with any assurance that we will be able to raise sufficient funding from the sale of our common stock or through debt to meet our obligations over the next twelve months. We do not have any arrangements in place for any future debt or equity financing.  </p>
<p class="MsoNormal"> </p>
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<p style="margin:0in;margin-bottom:.0001pt"><b>NOTE 15 – SUBSEQUENT EVENTS</b></p>
<p style="margin:0in;margin-bottom:.0001pt"> </p>
<p style="margin:0in;margin-bottom:.0001pt">In October 2012, the Company issued 35,000 stock options to advisors and consultants of the Company per the Stock Option Plan with an exercise price of market price (at date of grant) plus 5% per share for a 5 year term. The exercise price for the options granted on October 1, 2012 was $0.26.  </p>
<p style="margin:0in;margin-bottom:.0001pt"> </p>
<p style="margin:0in;margin-bottom:.0001pt">In accordance with ASC Topic 855-10, the Company has analyzed its operations subsequent to September 30, 2012 to the date these financial statements were issued, and has determined that it does not have any material subsequent events to disclose in these financial statements other than the events described above.</p>
<p style="margin:0in;margin-bottom:.0001pt"> </p>
<p class="MsoNormal"> </p>
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<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:12.0pt;font-family:"Times New Roman","serif";">Accrued expenses and liabilities consisted of the following as of September 30, 2012 and March 31, 2012:</font></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:12.0pt;font-family:"Times New Roman","serif";"> </font></p>
<table cellpadding="0" cellspacing="0" class="MsoNormalTable" style="mso-yfti-tbllook:1184;mso-padding-alt:0in 0in 0in 0in" border="0">
<tr style="mso-yfti-firstrow:yes">
<td width="196" style="width:117.6pt;padding:0in 0in 0in 0in"/>
<td width="98" style="width:58.8pt;padding:0in 0in 0in 0in"/>
<td width="96" style="width:.8in;padding:0in 0in 0in 0in"/></tr>
<tr>
<td valign="bottom" width="196" style="width:117.6pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";"> </font></p></td>
<td valign="bottom" width="98" style="width:58.8pt;border:none;border-bottom: solid black 1.0pt;mso-border-bottom-alt:solid black .75pt;padding:0in 0in 0in 0in">
<p align="center" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:center;line-height:normal"><font style="font-size:9.0pt; font-family:"Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">September 30, </font></p>
<p align="center" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:center;line-height:normal"><font style="font-size:9.0pt; font-family:"Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">2012</font></p></td>
<td valign="bottom" width="96" style="width:.8in;border:none;border-bottom:solid black 1.0pt;padding:0in 0in 0in 0in">
<p align="center" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:center;line-height:normal"><font style="font-size:9.0pt; font-family:"Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">March 31, 2012</font></p></td></tr>
<tr>
<td valign="bottom" width="196" style="width:117.6pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";">Accounting fees</font></p></td>
<td valign="bottom" width="98" style="width:58.8pt;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">$           2,250</font></p></td>
<td valign="bottom" width="96" style="width:.8in;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">$                  -</font></p></td></tr>
<tr>
<td valign="bottom" width="196" style="width:117.6pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";">Legal fees</font></p></td>
<td valign="bottom" width="98" style="width:58.8pt;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">-</font></p></td>
<td valign="bottom" width="96" style="width:.8in;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">5,588</font></p></td></tr>
<tr>
<td valign="bottom" width="196" style="width:117.6pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";">Filing fees</font></p></td>
<td valign="bottom" width="98" style="width:58.8pt;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">-</font></p></td>
<td valign="bottom" width="96" style="width:.8in;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">173</font></p></td></tr>
<tr style="mso-yfti-lastrow:yes">
<td valign="bottom" width="196" style="width:117.6pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";">Total Accrued Expenses</font></p></td>
<td valign="bottom" width="98" style="width:58.8pt;border-top:solid black 1.0pt; border-left:none;border-bottom:double black 2.25pt;border-right:none;mso-border-bottom-alt:double black 2.25pt; padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">$           2,250</font></p></td>
<td valign="bottom" width="96" style="width:.8in;border-top:solid black 1.0pt; border-left:none;border-bottom:double black 2.25pt;border-right:none;mso-border-bottom-alt:double black 2.25pt; padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">$           5,761</font></p></td></tr></table>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:12.0pt;font-family:"Times New Roman","serif";"> </font></p>
<p class="MsoNormal"> </p>
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<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:12.0pt;font-family:"Times New Roman","serif";">The following table summarizes information about options as of September 30, 2012:</font></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:12.0pt;font-family:"Times New Roman","serif";"> </font></p>
<table cellpadding="0" cellspacing="0" class="MsoNormalTable" style="mso-yfti-tbllook:1184;mso-padding-alt:0in 0in 0in 0in" border="0">
<tr style="mso-yfti-firstrow:yes">
<td width="259" style="width:155.4pt;padding:0in 0in 0in 0in"/>
<td width="24" style="width:.2in;padding:0in 0in 0in 0in"/>
<td width="141" style="width:84.6pt;padding:0in 0in 0in 0in"/>
<td width="33" style="width:19.8pt;padding:0in 0in 0in 0in"/>
<td width="145" style="width:87.0pt;padding:0in 0in 0in 0in"/></tr>
<tr>
<td valign="bottom" width="259" style="width:155.4pt;background:white;padding: 0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";"> </font></p></td>
<td valign="bottom" width="24" style="width:.2in;background:white;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";"> </font></p></td>
<td valign="bottom" width="141" style="width:84.6pt;border:none;border-bottom: solid black 1.0pt;mso-border-bottom-alt:solid black .75pt;background:white; padding:0in 0in 0in 0in">
<p align="center" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:center;line-height:normal"><font style="font-size:9.0pt; font-family:"Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">Number of Shares</font></p></td>
<td valign="bottom" width="33" style="width:19.8pt;background:white;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";"> </font></p></td>
<td valign="bottom" width="145" style="width:87.0pt;border:none;border-bottom: solid black 1.0pt;mso-border-bottom-alt:solid black .75pt;background:white; padding:0in 0in 0in 0in">
<p align="center" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:center;line-height:normal"><font style="font-size:9.0pt; font-family:"Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">Weighted Average Exercise Price</font></p></td></tr>
<tr>
<td valign="bottom" width="259" style="width:155.4pt;background:white;padding: 0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";">Outstanding, March  31, 2012</font></p></td>
<td valign="bottom" width="24" style="width:.2in;background:white;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";"> </font></p></td>
<td valign="bottom" width="141" style="width:84.6pt;background:white;padding: 0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">1,185,000</font></p></td>
<td valign="bottom" width="33" style="width:19.8pt;background:white;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">$</font></p></td>
<td valign="bottom" width="145" style="width:87.0pt;background:white;padding: 0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">.84</font></p></td></tr>
<tr>
<td valign="bottom" width="259" style="width:155.4pt;background:white;padding: 0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";">          Options granted</font></p></td>
<td valign="bottom" width="24" style="width:.2in;background:white;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";"> </font></p></td>
<td valign="bottom" width="141" style="width:84.6pt;background:white;padding: 0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">120,000</font></p></td>
<td valign="bottom" width="33" style="width:19.8pt;background:white;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";"> </font></p></td>
<td valign="bottom" width="145" style="width:87.0pt;background:white;padding: 0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">.76</font></p></td></tr>
<tr>
<td valign="bottom" width="259" style="width:155.4pt;background:white;padding: 0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";">          Options expired</font></p></td>
<td valign="bottom" width="24" style="width:.2in;background:white;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";"> </font></p></td>
<td valign="bottom" width="141" style="width:84.6pt;background:white;padding: 0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">-</font></p></td>
<td valign="bottom" width="33" style="width:19.8pt;background:white;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";"> </font></p></td>
<td valign="bottom" width="145" style="width:87.0pt;background:white;padding: 0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">-</font></p></td></tr>
<tr>
<td valign="bottom" width="259" style="width:155.4pt;background:white;padding: 0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";">          Options cancelled</font></p></td>
<td valign="bottom" width="24" style="width:.2in;background:white;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";"> </font></p></td>
<td valign="bottom" width="141" style="width:84.6pt;border:none;border-bottom: solid black 1.0pt;mso-border-bottom-alt:solid black .75pt;background:white; padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">-</font></p></td>
<td valign="bottom" width="33" style="width:19.8pt;background:white;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";"> </font></p></td>
<td valign="bottom" width="145" style="width:87.0pt;border:none;border-bottom: solid black 1.0pt;mso-border-bottom-alt:solid black .75pt;background:white; padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">-</font></p></td></tr>
<tr>
<td valign="bottom" width="259" style="width:155.4pt;background:white;padding: 0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";">      Outstanding, September 30, 2012</font></p></td>
<td valign="bottom" width="24" style="width:.2in;background:white;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";"> </font></p></td>
<td valign="bottom" width="141" style="width:84.6pt;border:none;border-bottom: double black 2.25pt;background:white;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">1,305,000</font></p></td>
<td valign="bottom" width="33" style="width:19.8pt;background:white;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">$</font></p></td>
<td valign="bottom" width="145" style="width:87.0pt;border:none;border-bottom: double black 2.25pt;background:white;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">.80</font></p></td></tr>
<tr style="mso-yfti-lastrow:yes">
<td valign="bottom" width="259" style="width:155.4pt;background:white;padding: 0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";">      Exercisable, September 30, 2012</font></p></td>
<td valign="bottom" width="24" style="width:.2in;background:white;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";"> </font></p></td>
<td valign="bottom" width="141" style="width:84.6pt;border:none;border-bottom: double black 2.25pt;background:white;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">1,305,000</font></p></td>
<td valign="bottom" width="33" style="width:19.8pt;background:white;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">$</font></p></td>
<td valign="bottom" width="145" style="width:87.0pt;border:none;border-bottom: double black 2.25pt;background:white;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">.80</font></p></td></tr></table>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:12.0pt;font-family:"Times New Roman","serif";"> </font></p>
<p class="MsoNormal"> </p>
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<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:12.0pt;font-family:"Times New Roman","serif";">The following table summarizes information about stock warrants granted to employees, advisors, investors and board members at September 30, 2012:</font></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:12.0pt;font-family:"Times New Roman","serif";"> </font></p>
<table cellpadding="0" cellspacing="0" class="MsoNormalTable" style="mso-yfti-tbllook:1184;mso-padding-alt:0in 0in 0in 0in" border="0">
<tr style="mso-yfti-firstrow:yes">
<td width="21" style="width:12.6pt;padding:0in 0in 0in 0in"/>
<td width="81" style="width:48.6pt;padding:0in 0in 0in 0in"/>
<td width="18" style="width:.15in;padding:0in 0in 0in 0in"/>
<td width="90" style="width:.75in;padding:0in 0in 0in 0in"/>
<td width="18" style="width:.15in;padding:0in 0in 0in 0in"/>
<td width="78" style="width:.65in;padding:0in 0in 0in 0in"/>
<td width="18" style="width:.15in;padding:0in 0in 0in 0in"/>
<td width="114" style="width:.95in;padding:0in 0in 0in 0in"/>
<td width="18" style="width:.15in;padding:0in 0in 0in 0in"/>
<td width="78" style="width:.65in;padding:0in 0in 0in 0in"/>
<td width="18" style="width:.15in;padding:0in 0in 0in 0in"/>
<td width="78" style="width:.65in;padding:0in 0in 0in 0in"/></tr>
<tr>
<td valign="bottom" width="439" style="width:263.4pt;border:none; border-bottom:solid black 1.0pt;background:white;padding:0in 0in 0in 0in" colspan="8">
<p align="center" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:center;line-height:normal"><font style="font-size:9.0pt; font-family:"Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">Stock Options Outstanding</font></p></td>
<td valign="bottom" width="18" style="width:.15in;background:white;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";"> </font></p></td>
<td valign="bottom" width="174" style="width:1.45in;border:none; border-bottom:solid black 1.0pt;background:white;padding:0in 0in 0in 0in" colspan="3">
<p align="center" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:center;line-height:normal"><font style="font-size:9.0pt; font-family:"Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">Stock Options Exercisable</font></p></td></tr>
<tr>
<td valign="bottom" width="21" style="width:12.6pt;background:white;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";"> </font></p></td>
<td valign="bottom" width="81" style="width:48.6pt;border:none;border-bottom: solid black 1.0pt;background:white;padding:0in 0in 0in 0in">
<p align="center" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:center;line-height:normal"><font style="font-size:9.0pt; font-family:"Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">Range of Exercise Prices</font></p></td>
<td valign="bottom" width="18" style="width:.15in;background:white;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";"> </font></p></td>
<td valign="bottom" width="90" style="width:.75in;border:none;border-bottom:solid black 1.0pt; background:white;padding:0in 0in 0in 0in">
<p align="center" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:center;line-height:normal"><font style="font-size:9.0pt; font-family:"Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">Number Outstanding</font></p></td>
<td valign="bottom" width="18" style="width:.15in;background:white;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";"> </font></p></td>
<td valign="bottom" width="78" style="width:.65in;border:none;border-bottom:solid black 1.0pt; background:white;padding:0in 0in 0in 0in">
<p align="center" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:center;line-height:normal"><font style="font-size:9.0pt; font-family:"Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">Weighted Average Exercise Price</font></p></td>
<td valign="bottom" width="18" style="width:.15in;background:white;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";"> </font></p></td>
<td valign="bottom" width="114" style="width:.95in;border:none;border-bottom: solid black 1.0pt;background:white;padding:0in 0in 0in 0in">
<p align="center" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:center;line-height:normal"><font style="font-size:9.0pt; font-family:"Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">Weighted Average Remaining Contractual Life    (in years)</font></p></td>
<td valign="bottom" width="18" style="width:.15in;background:white;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";"> </font></p></td>
<td valign="bottom" width="78" style="width:.65in;border:none;border-bottom:solid black 1.0pt; background:white;padding:0in 0in 0in 0in">
<p align="center" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:center;line-height:normal"><font style="font-size:9.0pt; font-family:"Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">Number of Options</font></p></td>
<td valign="bottom" width="18" style="width:.15in;background:white;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";"> </font></p></td>
<td valign="bottom" width="78" style="width:.65in;border:none;border-bottom:solid black 1.0pt; background:white;padding:0in 0in 0in 0in">
<p align="center" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:center;line-height:normal"><font style="font-size:9.0pt; font-family:"Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">Weighted Average Exercise Price</font></p></td></tr>
<tr>
<td valign="bottom" width="21" style="width:12.6pt;background:white;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";"> </font></p></td>
<td valign="bottom" width="81" style="width:48.6pt;background:white;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";"> </font></p></td>
<td valign="bottom" width="18" style="width:.15in;background:white;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";"> </font></p></td>
<td valign="bottom" width="90" style="width:.75in;background:white;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";"> </font></p></td>
<td valign="bottom" width="18" style="width:.15in;background:white;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";"> </font></p></td>
<td valign="bottom" width="78" style="width:.65in;background:white;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";"> </font></p></td>
<td valign="bottom" width="18" style="width:.15in;background:white;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";"> </font></p></td>
<td valign="bottom" width="114" style="width:.95in;background:white;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";"> </font></p></td>
<td valign="bottom" width="18" style="width:.15in;background:white;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";"> </font></p></td>
<td valign="bottom" width="78" style="width:.65in;background:white;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";"> </font></p></td>
<td valign="bottom" width="18" style="width:.15in;background:white;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";"> </font></p></td>
<td valign="bottom" width="78" style="width:.65in;background:white;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";"> </font></p></td></tr>
<tr style="mso-yfti-lastrow:yes">
<td valign="bottom" width="21" style="width:12.6pt;background:white;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">$</font></p></td>
<td valign="bottom" width="81" style="width:48.6pt;background:white;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">.60 to 1.00</font></p></td>
<td valign="bottom" width="18" style="width:.15in;background:white;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";"> </font></p></td>
<td valign="bottom" width="90" style="width:.75in;background:white;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">1,305,000</font></p></td>
<td valign="bottom" width="18" style="width:.15in;background:white;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">$</font></p></td>
<td valign="bottom" width="78" style="width:.65in;background:white;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">.76</font></p></td>
<td valign="bottom" width="18" style="width:.15in;background:white;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";"> </font></p></td>
<td valign="bottom" width="114" style="width:.95in;background:white;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">3.93</font></p></td>
<td valign="bottom" width="18" style="width:.15in;background:white;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";"> </font></p></td>
<td valign="bottom" width="78" style="width:.65in;background:white;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">1,305,000</font></p></td>
<td valign="bottom" width="18" style="width:.15in;background:white;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">$</font></p></td>
<td valign="bottom" width="78" style="width:.65in;background:white;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">0.80</font></p></td></tr></table>
<p class="MsoNormal"> </p>
<!--EndFragment-->
<!--StartFragment-->
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:12.0pt;font-family:"Times New Roman","serif";">The following are the previously stated and corrected balances for the six months ended September 30, 2011:</font></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:12.0pt;font-family:"Times New Roman","serif";"> </font></p>
<table cellpadding="0" cellspacing="0" class="MsoNormalTable" style="mso-yfti-tbllook:1184;mso-padding-alt:0in 0in 0in 0in" border="0">
<tr style="mso-yfti-firstrow:yes">
<td width="163" style="width:97.8pt;padding:0in 0in 0in 0in"/>
<td width="180" style="width:1.5in;padding:0in 0in 0in 0in"/>
<td width="96" style="width:.8in;padding:0in 0in 0in 0in"/>
<td width="102" style="width:.85in;padding:0in 0in 0in 0in"/></tr>
<tr>
<td valign="bottom" width="163" style="width:97.8pt;border:none;border-bottom: solid black 1.0pt;background:white;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";">September 30, 2011 Financial Statement</font></p></td>
<td valign="bottom" width="180" style="width:1.5in;border:none;border-bottom: solid black 1.0pt;background:white;padding:0in 0in 0in 0in">
<p align="center" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:center;line-height:normal"><font style="font-size:9.0pt; font-family:"Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">Line Item</font></p></td>
<td valign="bottom" width="96" style="width:.8in;border:none;border-bottom:solid black 1.0pt; background:white;padding:0in 0in 0in 0in">
<p align="center" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:center;line-height:normal"><font style="font-size:9.0pt; font-family:"Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">Corrected</font></p></td>
<td valign="bottom" width="102" style="width:.85in;border:none;border-bottom: solid black 1.0pt;background:white;padding:0in 0in 0in 0in">
<p align="center" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:center;line-height:normal"><font style="font-size:9.0pt; font-family:"Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">Previously Stated</font></p></td></tr>
<tr>
<td valign="bottom" width="163" style="width:97.8pt;background:white;padding: 0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";">Income Statement</font></p></td>
<td valign="bottom" width="180" style="width:1.5in;background:white;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";">Stock-based compensation </font></p></td>
<td valign="bottom" width="96" style="width:.8in;background:white;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">       398,531 </font></p></td>
<td valign="bottom" width="102" style="width:.85in;background:white;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">         181,715 </font></p></td></tr>
<tr>
<td valign="bottom" width="163" style="width:97.8pt;background:white;padding: 0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";">Income Statement</font></p></td>
<td valign="bottom" width="180" style="width:1.5in;background:white;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";">Operating expenses</font></p></td>
<td valign="bottom" width="96" style="width:.8in;background:white;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">572,192</font></p></td>
<td valign="bottom" width="102" style="width:.85in;background:white;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">355,376</font></p></td></tr>
<tr>
<td valign="bottom" width="163" style="width:97.8pt;background:white;padding: 0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";">Income Statement</font></p></td>
<td valign="bottom" width="180" style="width:1.5in;background:white;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";">Net Loss</font></p></td>
<td valign="bottom" width="96" style="width:.8in;background:white;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman""> (577,098)</font></p></td>
<td valign="bottom" width="102" style="width:.85in;background:white;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman""> (360,282)</font></p></td></tr>
<tr style="mso-yfti-lastrow:yes">
<td valign="bottom" width="163" style="width:97.8pt;background:white;padding: 0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";">Cash Flows</font></p></td>
<td valign="bottom" width="180" style="width:1.5in;background:white;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";">Stock-based compensation </font></p></td>
<td valign="bottom" width="96" style="width:.8in;background:white;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">       398,531 </font></p></td>
<td valign="bottom" width="102" style="width:.85in;background:white;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">         181,715 </font></p></td></tr></table>
<p align="center" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:center;line-height:normal"><font style="font-size:12.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman""> </font></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:12.0pt;font-family:"Times New Roman","serif";">The following are the previously stated and corrected balances for the three months ended September 30, 2011:</font></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:12.0pt;font-family:"Times New Roman","serif";"> </font></p>
<table cellpadding="0" cellspacing="0" class="MsoNormalTable" style="mso-yfti-tbllook:1184;mso-padding-alt:0in 0in 0in 0in" border="0">
<tr style="mso-yfti-firstrow:yes">
<td width="163" style="width:97.8pt;padding:0in 0in 0in 0in"/>
<td width="180" style="width:1.5in;padding:0in 0in 0in 0in"/>
<td width="96" style="width:.8in;padding:0in 0in 0in 0in"/>
<td width="102" style="width:.85in;padding:0in 0in 0in 0in"/></tr>
<tr>
<td valign="bottom" width="163" style="width:97.8pt;border:none;border-bottom: solid black 1.0pt;background:white;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";">September 30, 2011 Financial Statement</font></p></td>
<td valign="bottom" width="180" style="width:1.5in;border:none;border-bottom: solid black 1.0pt;background:white;padding:0in 0in 0in 0in">
<p align="center" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:center;line-height:normal"><font style="font-size:9.0pt; font-family:"Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">Line Item</font></p></td>
<td valign="bottom" width="96" style="width:.8in;border:none;border-bottom:solid black 1.0pt; background:white;padding:0in 0in 0in 0in">
<p align="center" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:center;line-height:normal"><font style="font-size:9.0pt; font-family:"Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">Corrected</font></p></td>
<td valign="bottom" width="102" style="width:.85in;border:none;border-bottom: solid black 1.0pt;background:white;padding:0in 0in 0in 0in">
<p align="center" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:center;line-height:normal"><font style="font-size:9.0pt; font-family:"Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">Previously Stated</font></p></td></tr>
<tr>
<td valign="bottom" width="163" style="width:97.8pt;background:white;padding: 0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";">Income Statement</font></p></td>
<td valign="bottom" width="180" style="width:1.5in;background:white;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";">Stock-based compensation </font></p></td>
<td valign="bottom" width="96" style="width:.8in;background:white;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">95,416</font></p></td>
<td valign="bottom" width="102" style="width:.85in;background:white;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">20,665</font></p></td></tr>
<tr>
<td valign="bottom" width="163" style="width:97.8pt;background:white;padding: 0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";">Income Statement</font></p></td>
<td valign="bottom" width="180" style="width:1.5in;background:white;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";">Professional fees</font></p></td>
<td valign="bottom" width="96" style="width:.8in;background:white;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">24,724</font></p></td>
<td valign="bottom" width="102" style="width:.85in;background:white;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">24,095</font></p></td></tr>
<tr>
<td valign="bottom" width="163" style="width:97.8pt;background:white;padding: 0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";">Income Statement</font></p></td>
<td valign="bottom" width="180" style="width:1.5in;background:white;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";">Operating expenses</font></p></td>
<td valign="bottom" width="96" style="width:.8in;background:white;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">216,629</font></p></td>
<td valign="bottom" width="102" style="width:.85in;background:white;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">141,249</font></p></td></tr>
<tr style="mso-yfti-lastrow:yes">
<td valign="bottom" width="163" style="width:97.8pt;background:white;padding: 0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";">Income Statement</font></p></td>
<td valign="bottom" width="180" style="width:1.5in;background:white;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";">Net Loss</font></p></td>
<td valign="bottom" width="96" style="width:.8in;background:white;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman""> (220,402)</font></p></td>
<td valign="bottom" width="102" style="width:.85in;background:white;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman""> (145,022)</font></p></td></tr></table>
<p class="MsoNormal"> </p>
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<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:12.0pt;font-family:"Times New Roman","serif";">The provision for Federal income tax consists of the following for the six months ended September 30, 2012</font><font style="font-family:"Times New Roman","serif";mso-fareast-font-family:"Times New Roman""/><font style="font-size:12.0pt;font-family:"Times New Roman","serif";">and 2011:</font></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:12.0pt;font-family:"Times New Roman","serif";"> </font></p>
<table cellpadding="0" cellspacing="0" class="MsoNormalTable" style="mso-yfti-tbllook:1184;mso-padding-alt:0in 0in 0in 0in" border="0">
<tr style="mso-yfti-firstrow:yes">
<td width="268" style="width:160.8pt;padding:0in 0in 0in 0in"/>
<td width="84" style="width:.7in;padding:0in 0in 0in 0in"/>
<td width="80" style="width:48.0pt;padding:0in 0in 0in 0in"/></tr>
<tr>
<td valign="bottom" width="268" style="width:160.8pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";"> </font></p></td>
<td valign="bottom" width="84" style="width:.7in;border:none;border-bottom:solid black 1.0pt;padding:0in 0in 0in 0in">
<p align="center" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:center;line-height:normal"><font style="font-size:9.0pt; font-family:"Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">2012</font></p></td>
<td valign="bottom" width="80" style="width:48.0pt;border:none;border-bottom: solid black 1.0pt;mso-border-bottom-alt:solid black .75pt;padding:0in 0in 0in 0in">
<p align="center" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:center;line-height:normal"><font style="font-size:9.0pt; font-family:"Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">2011</font></p></td></tr>
<tr>
<td valign="bottom" width="268" style="width:160.8pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";">Federal income tax benefit attributable to:</font></p></td>
<td valign="bottom" width="84" style="width:.7in;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";"> </font></p></td>
<td valign="bottom" width="80" style="width:48.0pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";"> </font></p></td></tr>
<tr>
<td valign="bottom" width="268" style="width:160.8pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";">Current operations</font></p></td>
<td valign="bottom" width="84" style="width:.7in;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">$   370,111</font></p></td>
<td valign="bottom" width="80" style="width:48.0pt;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">$   196,213   </font></p></td></tr>
<tr>
<td valign="bottom" width="268" style="width:160.8pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";">Less: valuation allowance</font></p></td>
<td valign="bottom" width="84" style="width:.7in;border:none;border-bottom:solid black 1.0pt;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">(370,111)</font></p></td>
<td valign="bottom" width="80" style="width:48.0pt;border:none;border-bottom: solid black 1.0pt;mso-border-bottom-alt:solid black .75pt;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">(196,213)</font></p></td></tr>
<tr style="mso-yfti-lastrow:yes">
<td valign="bottom" width="268" style="width:160.8pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";">Net provision for Federal income taxes</font></p></td>
<td valign="bottom" width="84" style="width:.7in;border:none;border-bottom:double black 2.25pt; padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">$              -</font></p></td>
<td valign="bottom" width="80" style="width:48.0pt;border:none;border-bottom: double black 2.25pt;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">$              -</font></p></td></tr></table>
<p class="MsoNormal"> </p>
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<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:12.0pt;font-family:"Times New Roman","serif";">The cumulative tax effect at the expected rate of 34% of significant items comprising our net deferred tax amount is as follows as of September 30, 2012 and March 31, 2012:</font></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:12.0pt;font-family:"Times New Roman","serif";"> </font></p>
<table cellpadding="0" cellspacing="0" class="MsoNormalTable" style="mso-yfti-tbllook:1184;mso-padding-alt:0in 0in 0in 0in" border="0">
<tr style="mso-yfti-firstrow:yes">
<td width="235" style="width:141.0pt;padding:0in 0in 0in 0in"/>
<td width="96" style="width:.8in;padding:0in 0in 0in 0in"/>
<td width="96" style="width:.8in;padding:0in 0in 0in 0in"/></tr>
<tr>
<td valign="top" width="235" style="width:141.0pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:10.0pt;font-family:"Times New Roman","serif";"> </font></p></td>
<td valign="bottom" width="96" style="width:.8in;border:none;border-bottom:solid black 1.0pt;padding:0in 0in 0in 0in">
<p align="center" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:center;line-height:normal"><font style="font-size:9.0pt; font-family:"Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">September 30, 2012</font></p></td>
<td valign="bottom" width="96" style="width:.8in;border:none;border-bottom:solid black 1.0pt;padding:0in 0in 0in 0in">
<p align="center" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:center;line-height:normal"><font style="font-size:9.0pt; font-family:"Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">March 31, 2012</font></p></td></tr>
<tr>
<td valign="top" width="235" style="width:141.0pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";">Deferred tax asset attributable to:</font></p></td>
<td valign="bottom" width="96" style="width:.8in;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";"> </font></p></td>
<td valign="bottom" width="96" style="width:.8in;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";"> </font></p></td></tr>
<tr>
<td valign="top" width="235" style="width:141.0pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";">Net operating loss carryover</font></p></td>
<td valign="bottom" width="96" style="width:.8in;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">$       893,411     </font></p></td>
<td valign="bottom" width="96" style="width:.8in;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">$     523,300       </font></p></td></tr>
<tr>
<td valign="top" width="235" style="width:141.0pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";">Less: valuation allowance</font></p></td>
<td valign="bottom" width="96" style="width:.8in;border:none;border-bottom:solid black 1.0pt;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">(893,411)</font></p></td>
<td valign="bottom" width="96" style="width:.8in;border:none;border-bottom:solid black 1.0pt;padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">(523,300)</font></p></td></tr>
<tr style="mso-yfti-lastrow:yes">
<td valign="top" width="235" style="width:141.0pt;padding:0in 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><font style="font-size:9.0pt;font-family:"Times New Roman","serif";">Net deferred tax asset</font></p></td>
<td valign="bottom" width="96" style="width:.8in;border:none;border-bottom:double black 2.25pt; padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">$                -</font></p></td>
<td valign="bottom" width="96" style="width:.8in;border:none;border-bottom:double black 2.25pt; padding:0in 0in 0in 0in">
<p align="right" class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:right;line-height:normal"><font style="font-size:9.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman"">$                -</font></p></td></tr></table>
<p class="MsoNormal"> </p>
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2011-06-06
1
Acquisition of interest in mining claims
Habitants Minerals Ltd
50000
The aggregate consideration of $50,000 consisting of the following:
1)$30,000 which was previously provided to Habitants, and
2)the balance of $20,000 which was provided on the closing of the agreement.
If we identify any material defect in Habitant's title to the Newfoundland Property, we shall give Habitants notice of such defect. If the defect has not been cured within 30 days of receipt of such notice, we shall be entitled to take such curative action as is reasonably necessary.
2011-08-31
Acquisition of interest in mining claims
Ms. Kim Diaz and Sonseeahry
1
As additional consideration our company will pay compensation as follows:
1.$200,000 on November 31, 2011 (paid);
2.$50,000 on July 1, 2012 (paid);
3.$1,500,000, which will be paid in equal payments of $500,000 on or before January 1st of 2013, 2014 and 2015;
4.2,500,000 shares of our company's common stock based on the pro-rata interest in the claims and a total of 500,000 shares to those parties designated by the sellers on or before July 1st of 2012, 2013 and 2014 (1,000,000 shares were issued to the Sellers effective June 30, 2012);
10
Company shall also reserve a NSR Royalty on certain metallic products produced from the Sodaville Claims equal to 2% of the net smelter returns. The NSR Royalty shall not apply to and no NSR Royalty payments shall be due for any product produced from the Sodaville Claims sold by our company.
Additionally, our company will pay the sellers a guaranteed minimum annual royalty of $50,000 for a period of 5 years with the first payment due on December 31, 2015 and the last payment due on December 31, 2020.
200000
Company will issue 50,000 shares of restricted stock to the sellers on or before January 1, 2015.
48
10
10406
107639
500
2250
5588
173
35500
200000
The line of credit is secured by the assets of the company.
0.05
The line of credit is due on demand.
1000000
630000
35574
2011-11-22
500000
0.10
Pursuant to the terms of the Credit Facility Agreement, the Company shall pay any outstanding amounts to the lender on demand. The Company may also repay the loan and accrued interest at any time without penalty.
0
21246
2012-04-12
1000000
0.05
The Company will pay annual interest of 5% until the loan is repaid or converted into Units.
Pursuant to the terms outlined in the Letter of Credit, at any time the Company may require any and all funds outstanding under the Letter of Credit, except for accrued interest which is to be paid in cash, to be converted into units of the Company at a price of $0.80 per unit (the "Unit"). Each Unit consists of one (1) share of common stock and one (1) warrant to purchase one (1) share of common stock at $1.50 US for a period of five (5) years. The Company will pay annual interest of 5% until the loan is repaid or converted into Units. The Company will issue 1,250,000 Units when the exercise provision is enacted.
11477
452119
916335
184044
22291
257880
710000
257881
Pursuant to the terms of the employment agreement Mr. Wattenberg will receive a base salary of $10,000 per month, payments of which will accrue, and a key man life insurance policy of $1,000,000 payable half to the Company and half to Mr. Wattenberg's estate.
1185000
1305000
.80
.80
.84
.60
1.00
1305000
.76
P3Y11M5D
1305000
0.80
80000000
8000
67200000
42000
14244
Effective September 8, 2010 the Company increased the authorized shares of common stock from 100,000,000 to 200,000,000
80
150000
2011-11-10
25000
0.0001
2011-12-31
190000
0.0001
2012-06-30
1000000
0.20
40000
10000
Directors
600000
0.60
P5Y
75000
1.00
P5Y
2
115000
1.00
P3Y
Advisors and consultants
Advisors and consultants
35000
1.00
P5Y
25000
Consultants
1.00
P5Y
Consultants
25000
1.00
P5Y
35000
Advisors and consultants
P5Y
Exercise price of 5% above market price ($0.29) per share.
0
0
0.85
The total fair value of shares vested as of September 30, 2012 was 1,305,000 of stock options at fair market value on September 30, 2012.
95416
24724
-220402
216629
20665
24095
141249
-145022
398531
572192
-577098
181715
355376
-360282
370111
196213
370111
196213
0.34
Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards of $2,627,680 for federal income tax reporting purposes are subject to annual limitations. Should a change in ownership occur, net operating loss carry forwards may be limited as to use in future years.
893411
893411
523300
523300
Advisors and consultants
35000
Exercise price of market price (at date of grant) plus 5% per share.
0.26
P5Y
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<p style="margin: 0px;" align="justify"><u>Exploration Stage Company</u></p>
<p style="margin: 0px;" align="justify">The accompanying financial statements have been prepared in accordance with generally accepted accounting principles related to accounting and reporting by exploration stage companies.  An exploration stage company is one in which planned principal operations have not commenced or if its operations have commenced, there has been no significant revenues there from.</p>
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<p style="margin: 0px;" align="justify"><u>Basis of Presentation</u></p>
<p style="margin: 0px;" align="justify">The accompanying interim unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules and regulations of the United States Securities and Exchange Commission for interim financial information. Accordingly, they do not include all the information and footnotes necessary for a comprehensive presentation of financial position, results of operations, stockholders’ deficit or cash flows. It is management's opinion, however, that all material adjustments (consisting of normal recurring adjustments) have been made which are necessary for a fair financial statement presentation.  The interim unaudited financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K, which contains the annual audited financial statements and notes thereto, together with the Management’s Discussion and Analysis, for the year ended March 31, 2012. The interim results for the period ended September 30, 2012 are not necessarily indicative of the results for the full fiscal year.  The interim unaudited financial statements are presented in USD.</p>
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<p style="margin: 0px;" align="justify"><br/>
</p>
<p style="margin: 0px;" align="justify"><u>Accounting Basis</u></p>
<p style="margin: 0px;" align="justify">The Company uses the accrual basis of accounting and accounting principles generally accepted in the United States of America (“GAAP” accounting).  The Company has adopted a March 31 fiscal year end.</p>
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<p style="margin: 0px;" align="justify"><u>Financial Instrument</u></p>
<p style="margin: 0px;" align="justify">The Company's financial instrument consists of cash, prepaid expenses, deposits, accrued expenses, deferred compensation, amounts due to stockholders and a line of credit.</p>
<p style="margin: 0px;" align="justify"> </p>
<p style="margin: 0px;" align="justify">The amounts due to stockholders are non-interest bearing.  It is management's opinion that the Company is not exposed to significant interest, currency or credit risks arising from its other financial instruments and that their fair values approximate their carrying values except where separately disclosed.</p>
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<p style="margin: 0px;" align="justify"><u>Cash and Cash Equivalents</u></p>
<p style="margin: 0px;" align="justify">PTAM considers all highly liquid investments with maturities of three months or less to be cash equivalents.  At September 30, 2012 and March 31, 2012, respectively, the Company had $13,461 and $69,323 of cash.</p>
<p style="margin: 0px;" align="justify"><br/>
</p>
<p style="margin: 0px;"><br/>
</p>
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<p style="margin: 0px;" align="justify"><u>Mineral rights, property and acquisition costs</u></p>
<p style="margin: 0px;" align="justify">Since March 31, 2011, the Company is primarily engaged in the acquisition and exploration of mining properties. The Company has not yet realized any revenues from its planned operations.</p>
<p style="margin: 0px;" align="justify"><br/>
</p>
<p style="margin: 0px;" align="justify">The Company capitalizes acquisition and option costs of mineral rights as tangible assets. Upon commencement of commercial production, the mineral rights will be amortized using the unit-of-production method over the life of the mineral rights. If the Company does not continue with exploration after the completion of the feasibility study, the mineral rights will be expensed at that time.</p>
<p style="margin: 0px;" align="justify"><br/>
</p>
<p style="margin: 0px;" align="justify">The costs of acquiring mining properties are capitalized upon acquisition.  Mine development costs incurred to develop and expand the capacity of mines, or to develop mine areas in advance of production are also capitalized once proven and probable reserves exist and the property is a commercially mineable property. Costs incurred to maintain current exploration or to maintain assets on a standby basis are charged to operations.  Costs of abandoned projects are charged to operations upon abandonment.  The Company evaluates the carrying value of capitalized mining costs and related property and equipment costs, to determine if these costs are in excess of their recoverable amount whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable.  Evaluation of the carrying value of capitalized costs and any related property and equipment costs are based upon expected future cash flows and/or estimated salvage value in accordance with Accounting Standards Codification (ASC) 360-10-35-15, <i>Impairment or Disposal of Long-Lived Assets</i>.</p>
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<p style="margin: 0px;" align="justify"><u>Impairment of long-lived assets</u></p>
<p style="margin: 0px;" align="justify">The Company reviews and evaluates long-lived assets for impairment when events or changes in circumstances indicate the related carrying amounts may not be recoverable. The assets are subject to impairment consideration under ASC 360-10-35-17, <i>Measurement of an Impairment Loss</i>, if events or circumstances indicate that their carrying amount might not be recoverable.  As of September 30, 2012, exploration progress is on target with the Company’s exploration and evaluation plan and no events or circumstances have happened to indicate that the related carrying values of the properties may not be recoverable. When the Company determines that an impairment analysis should be done, the analysis will be performed using the rules of FASB ASC 930-360-35, <i>Asset Impairment</i>, and 360-10-15-3 through 15-5, <i>Impairment or Disposal of Long-Lived Assets</i>.</p>
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<p style="margin: 0px;" align="justify"><u>Advertising</u></p>
<p style="margin: 0px;" align="justify">The Company expenses advertising costs as incurred.  The Company has had no advertising activity since inception.</p>
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<p style="margin: 0px;" align="justify"><u>Revenue Recognition</u></p>
<p style="margin: 0px;" align="justify">The Company recognizes revenue when products are fully delivered or services have been provided and collection is reasonably assured.</p>
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<p style="margin: 0px;" align="justify"><u>Use of Estimates </u></p>
<p style="margin: 0px;" align="justify">The preparation of financial statements in conformity with generally accepted accounting principles of the United States 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 year. The more significant areas requiring the use of estimates include asset impairment, stock-based compensation, and future income tax amounts. Management bases its estimates on historical experience and on other assumptions considered to be reasonable under the circumstances. However, actual results may differ from the estimates.</p>
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<p style="margin: 0px;" align="justify"><u>Basic Income (Loss) Per Share</u></p>
<p style="margin: 0px;" align="justify">Basic income (loss) per share is calculated by dividing the Company’s net loss applicable to common shareholders by the weighted average number of common shares during the period. Diluted earnings per share is calculated by dividing the Company’s net income available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. There are no such common stock equivalents outstanding as of September 30, 2012.</p>
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<p style="margin: 0px;" align="justify">During the year ended March 31, 2011, the Company enacted an 80 to 1 forward stock split. All share and per share data has been adjusted to reflect such stock split.</p>
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<p style="margin: 0px;" align="justify"><u>Stock-Based Compensation</u></p>
<p style="margin: 0px;" align="justify">Stock-based compensation is accounted for at fair value in accordance with ASC Topic 718.  On March 31, 2011, the Company instituted a Stock Option Plan which allows for the issuance of 3,000,000 shares of common stock to the Company’s management, employees and consultants. As of September 30, 2012, the Company issued 465,000 common stock shares and has issued 1,305,000 in stock options in lieu of compensation.</p>
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<p style="margin: 0px;" align="justify"><u>Income Taxes</u></p>
<p style="margin: 0px;" align="justify">Income taxes are computed using the asset and liability method.  Under the asset and liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws.  A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized.</p>
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<p style="margin: 0px;"><u>Recent Accounting Pronouncements</u></p>
<p style="margin: 0px;" align="justify">PTAM does not expect the adoption of recently issued accounting pronouncements to have a significant impact on the Company’s results of operations, financial position or cash flow.</p>
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120000
0.76
465000