false
--02-29
FY
2012
2012-02-29
10-K
0001498148
18500000
Yes
Smaller Reporting Company
8500000
ON THE MOVE SYSTEMS CORP.
No
No
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<div> <div style="WIDTH: 720px"><!--StartFragment--> <p style="TEXT-ALIGN: justify; MARGIN: 0px"><strong>2. Going Concern</strong></p> <p style="TEXT-ALIGN: justify; MARGIN: 0px"><br /> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0px">The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. For the year ended February 29, 2012, the Company had a net loss of $4,088,407. The Company has not generated positive cash flow from operations since inception and does not expect to generate positive cash flow from operations during the coming year. In view of these matters, the Company's ability to continue as a going concern is dependent upon the Company's ability to achieve a level of profitability which would generate positive cash flow or from its ability to raise adequate capital either from sales of equity securities or the issuance of debt. The Company intends on financing its operations and its working capital needs largely through the issuance of debt. There is no assurance that the Company will be able to obtain adequate financing when needed or that such financing will be available on terms that are acceptable to the Company. The financial statements of the Company do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern.</p> <!--EndFragment--></div> </div>
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14987705
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28071
2225
5702
3877150
60250
204423
128760
41527
128760
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<div> <div style="WIDTH: 720px"><!--StartFragment--> <p style="TEXT-ALIGN: justify; MARGIN: 0px"><br /> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0px"><strong>4. Acquisition of CMI</strong></p> <p style="TEXT-ALIGN: justify; MARGIN: 0px"><br /> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0px">On March 25, 2011, the Company purchased the assets and businesses of CMI, a sole proprietorship owned by the Company's sole officer and director, in execution of its business plan. The terms of the acquisition required a down payment of $10,000 payable at closing with a Promissory Note for $90,000, at 10% interest rate, payable in monthly installments of $2,500 with a balloon payment of the remaining principal and interest due February 1, 2014.</p> <p style="TEXT-ALIGN: justify; MARGIN: 0px"><br /> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0px">The acquisition of CMI was accounted for using purchase accounting as OTMSC acquired substantially all of the assets, debt and business of CMI. CMI's results of operations and cash flows are included in the accompanying consolidated financial statements from the date of acquisition.</p> <p style="TEXT-ALIGN: justify; MARGIN: 0px"><br /> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0px">The acquisition price was allocated to the assets acquired and liabilities assumed based upon their estimated fair values. The Company determined that assets acquired included an intangible asset associated with the customer list for CMI's existing customer relationships. The customer list was valued at $20,000 and has an estimated life of five years. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition:</p> <p style="TEXT-ALIGN: justify; MARGIN: 0px"><br /> </p> <table style="MARGIN-TOP: 0px; FONT-SIZE: 10pt" cellspacing="0" cellpadding="0" align="center"> <tr style="FONT-SIZE: 1pt"> <td width="264"> </td> <td width="17"> </td> <td width="15"> </td> <td width="65"> </td> <td width="15"> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="bottom" width="264"> <p style="MARGIN: 0px"> </p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="17"> <p style="MARGIN: 0px"> </p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px" valign="bottom" width="80" colspan="2"> <p style="MARGIN: 0px; text-align: center"> <strong>Amount</strong></p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="15"> <p style="MARGIN: 0px"> </p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #cceeff; MARGIN-TOP: 0px" valign="bottom" width="264"> <p style="MARGIN: 0px">Cash</p> </td> <td style="BACKGROUND-COLOR: #cceeff; MARGIN-TOP: 0px" valign="bottom" width="17"> <p style="MARGIN: 0px"> </p> </td> <td style="BACKGROUND-COLOR: #cceeff; MARGIN-TOP: 0px" valign="bottom" width="15"> <p style="MARGIN: 0px">$</p> </td> <td style="BACKGROUND-COLOR: #cceeff; MARGIN-TOP: 0px" valign="bottom" width="65"> <p style="MARGIN: 0px; text-align: right">2,300</p> </td> <td style="BACKGROUND-COLOR: #cceeff; MARGIN-TOP: 0px" valign="bottom" width="15"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> </p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #ffffff; MARGIN-TOP: 0px" valign="bottom" width="264"> <p style="MARGIN: 0px">Accounts receivable</p> </td> <td style="BACKGROUND-COLOR: #ffffff; MARGIN-TOP: 0px" valign="bottom" width="17"> <p style="MARGIN: 0px"> </p> </td> <td style="BACKGROUND-COLOR: #ffffff; MARGIN-TOP: 0px" valign="bottom" width="15"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> </p> </td> <td style="BACKGROUND-COLOR: #ffffff; MARGIN-TOP: 0px" valign="bottom" width="65"> <p style="MARGIN: 0px; text-align: right">2,042</p> </td> <td style="BACKGROUND-COLOR: #ffffff; MARGIN-TOP: 0px" valign="bottom" width="15"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> </p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #cceeff; MARGIN-TOP: 0px" valign="bottom" width="264"> <p style="MARGIN: 0px">Inventory</p> </td> <td style="BACKGROUND-COLOR: #cceeff; MARGIN-TOP: 0px" valign="bottom" width="17"> <p style="MARGIN: 0px"> </p> </td> <td style="BACKGROUND-COLOR: #cceeff; MARGIN-TOP: 0px" valign="bottom" width="15"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> </p> </td> <td style="BACKGROUND-COLOR: #cceeff; MARGIN-TOP: 0px" valign="bottom" width="65"> <p style="MARGIN: 0px; text-align: right">450</p> </td> <td style="BACKGROUND-COLOR: #cceeff; MARGIN-TOP: 0px" valign="bottom" width="15"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> </p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #ffffff; MARGIN-TOP: 0px" valign="bottom" width="264"> <p style="MARGIN: 0px">Fixed assets</p> </td> <td style="BACKGROUND-COLOR: #ffffff; MARGIN-TOP: 0px" valign="bottom" width="17"> <p style="MARGIN: 0px"> </p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #ffffff; MARGIN-TOP: 0px" valign="bottom" width="15"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> </p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #ffffff; MARGIN-TOP: 0px" valign="bottom" width="65"> <p style="MARGIN: 0px; text-align: right">19,047</p> </td> <td style="BACKGROUND-COLOR: #ffffff; MARGIN-TOP: 0px" valign="bottom" width="15"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> </p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #cceeff; MARGIN-TOP: 0px" valign="bottom" width="264"> <p style="MARGIN: 0px">Intangible asset</p> </td> <td style="BACKGROUND-COLOR: #cceeff; MARGIN-TOP: 0px" valign="bottom" width="17"> <p style="MARGIN: 0px"> </p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff; MARGIN-TOP: 0px" valign="bottom" width="15"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> </p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff; MARGIN-TOP: 0px" valign="bottom" width="65"> <p style="MARGIN: 0px; text-align: right">20,000</p> </td> <td style="BACKGROUND-COLOR: #cceeff; MARGIN-TOP: 0px" valign="bottom" width="15"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> </p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #ffffff; MARGIN-TOP: 0px" valign="bottom" width="264"> <p style="MARGIN: 0px">Goodwill</p> </td> <td style="BACKGROUND-COLOR: #ffffff; MARGIN-TOP: 0px" valign="bottom" width="17"> <p style="MARGIN: 0px"> </p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #ffffff; MARGIN-TOP: 0px" valign="bottom" width="15"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> </p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #ffffff; MARGIN-TOP: 0px" valign="bottom" width="65"> <p style="MARGIN: 0px; text-align: right">108,724</p> </td> <td style="BACKGROUND-COLOR: #ffffff; MARGIN-TOP: 0px" valign="bottom" width="15"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> </p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #cceeff; MARGIN-TOP: 0px" valign="bottom" width="264"> <p style="MARGIN: 0px">Total assets acquired</p> </td> <td style="BACKGROUND-COLOR: #cceeff; MARGIN-TOP: 0px" valign="bottom" width="17"> <p style="MARGIN: 0px"> </p> </td> <td style="BACKGROUND-COLOR: #cceeff; MARGIN-TOP: 0px" valign="bottom" width="15"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> </p> </td> <td style="BACKGROUND-COLOR: #cceeff; MARGIN-TOP: 0px" valign="bottom" width="65"> <p style="MARGIN: 0px; text-align: right">152,563</p> </td> <td style="BACKGROUND-COLOR: #cceeff; MARGIN-TOP: 0px" valign="bottom" width="15"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> </p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #ffffff; MARGIN-TOP: 0px" valign="bottom" width="264"> <p style="MARGIN: 0px"> </p> </td> <td style="BACKGROUND-COLOR: #ffffff; MARGIN-TOP: 0px" valign="bottom" width="17"> <p style="MARGIN: 0px"> </p> </td> <td style="BACKGROUND-COLOR: #ffffff; MARGIN-TOP: 0px" valign="bottom" width="15"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> </p> </td> <td style="BACKGROUND-COLOR: #ffffff; MARGIN-TOP: 0px" valign="bottom" width="65"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> </p> </td> <td style="BACKGROUND-COLOR: #ffffff; MARGIN-TOP: 0px" valign="bottom" width="15"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> </p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #cceeff; MARGIN-TOP: 0px" valign="bottom" width="264"> <p style="MARGIN: 0px">Debt assumed (accounts and notes payable)</p> </td> <td style="BACKGROUND-COLOR: #cceeff; MARGIN-TOP: 0px" valign="bottom" width="17"> <p style="MARGIN: 0px"> </p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff; MARGIN-TOP: 0px" valign="bottom" width="15"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> </p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff; MARGIN-TOP: 0px" valign="bottom" width="65"> <p style="MARGIN: 0px; text-align: right">52,563</p> </td> <td style="BACKGROUND-COLOR: #cceeff; MARGIN-TOP: 0px" valign="bottom" width="15"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> </p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #ffffff; MARGIN-TOP: 0px" valign="bottom" width="264"> <p style="MARGIN: 0px">Net assets acquired</p> </td> <td style="BACKGROUND-COLOR: #ffffff; MARGIN-TOP: 0px" valign="bottom" width="17"> <p style="MARGIN: 0px"> </p> </td> <td style="BORDER-BOTTOM: #000000 3px double; BACKGROUND-COLOR: #ffffff; MARGIN-TOP: 0px" valign="bottom" width="15"> <p style="MARGIN: 0px">$</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; BACKGROUND-COLOR: #ffffff; MARGIN-TOP: 0px" valign="bottom" width="65"> <p style="MARGIN: 0px; text-align: right">100,000</p> </td> <td style="BACKGROUND-COLOR: #ffffff; MARGIN-TOP: 0px" valign="bottom" width="15"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> </p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #cceeff; MARGIN-TOP: 0px" valign="bottom" width="264"> <p style="MARGIN: 0px"> </p> </td> <td style="BACKGROUND-COLOR: #cceeff; MARGIN-TOP: 0px" valign="bottom" width="17"> <p style="MARGIN: 0px"> </p> </td> <td style="BACKGROUND-COLOR: #cceeff; MARGIN-TOP: 0px" valign="bottom" width="15"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> </p> </td> <td style="BACKGROUND-COLOR: #cceeff; MARGIN-TOP: 0px" valign="bottom" width="65"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> </p> </td> <td style="BACKGROUND-COLOR: #cceeff; MARGIN-TOP: 0px" valign="bottom" width="15"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> </p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #ffffff; MARGIN-TOP: 0px" valign="bottom" width="264"> <p style="MARGIN: 0px">Cash payment at closing</p> </td> <td style="BACKGROUND-COLOR: #ffffff; MARGIN-TOP: 0px" valign="bottom" width="17"> <p style="MARGIN: 0px"> </p> </td> <td style="BACKGROUND-COLOR: #ffffff; MARGIN-TOP: 0px" valign="bottom" width="15"> <p style="MARGIN: 0px">$</p> </td> <td style="BACKGROUND-COLOR: #ffffff; MARGIN-TOP: 0px" valign="bottom" width="65"> <p style="MARGIN: 0px; text-align: right">10,000</p> </td> <td style="BACKGROUND-COLOR: #ffffff; MARGIN-TOP: 0px" valign="bottom" width="15"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> </p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #cceeff; MARGIN-TOP: 0px" valign="bottom" width="264"> <p style="MARGIN: 0px">Note payable to John Crawford</p> </td> <td style="BACKGROUND-COLOR: #cceeff; MARGIN-TOP: 0px" valign="bottom" width="17"> <p style="MARGIN: 0px"> </p> </td> <td style="BACKGROUND-COLOR: #cceeff; MARGIN-TOP: 0px" valign="bottom" width="15"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> </p> </td> <td style="BACKGROUND-COLOR: #cceeff; MARGIN-TOP: 0px" valign="bottom" width="65"> <p style="MARGIN: 0px; text-align: right">90,000</p> </td> <td style="BACKGROUND-COLOR: #cceeff; MARGIN-TOP: 0px" valign="bottom" width="15"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> </p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #ffffff; MARGIN-TOP: 0px" valign="bottom" width="264"> <p style="MARGIN: 0px"> </p> </td> <td style="BACKGROUND-COLOR: #ffffff; MARGIN-TOP: 0px" valign="bottom" width="17"> <p style="MARGIN: 0px"> </p> </td> <td style="BACKGROUND-COLOR: #ffffff; MARGIN-TOP: 0px" valign="bottom" width="15"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> </p> </td> <td style="BACKGROUND-COLOR: #ffffff; MARGIN-TOP: 0px" valign="bottom" width="65"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> </p> </td> <td style="BACKGROUND-COLOR: #ffffff; MARGIN-TOP: 0px" valign="bottom" width="15"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> </p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #cceeff; MARGIN-TOP: 0px" valign="bottom" width="264"> <p style="MARGIN: 0px">Total purchase price</p> </td> <td style="BACKGROUND-COLOR: #cceeff; MARGIN-TOP: 0px" valign="bottom" width="17"> <p style="MARGIN: 0px"> </p> </td> <td style="BORDER-BOTTOM: #000000 3px double; BACKGROUND-COLOR: #cceeff; MARGIN-TOP: 0px" valign="bottom" width="15"> <p style="MARGIN: 0px">$</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; BACKGROUND-COLOR: #cceeff; MARGIN-TOP: 0px" valign="bottom" width="65"> <p style="MARGIN: 0px; text-align: right">100,000</p> </td> <td style="BACKGROUND-COLOR: #cceeff; MARGIN-TOP: 0px" valign="bottom" width="15"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> </p> </td> </tr> </table> <!--EndFragment--></div> </div>
18690
128760
-110070
128760
0.0001
0.0001
100000000
100000000
18500000
12500000
18500000
12500000
1850
1250
32600
100100
32404
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<div> <div style="WIDTH: 720px"><!--StartFragment--> <p style="TEXT-ALIGN: justify; MARGIN: 0px"><strong>7. Notes Payable</strong></p> <p style="TEXT-ALIGN: justify; MARGIN: 0px"><br /> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0px">On February 28, 2011, the Company borrowed $100,100 through a convertible note, for the purpose of raising operating capital. Under the terms of the note, interest shall accrue at 7% per annum; and principal and accrued interest shall become due on February 27, 2013, unless extended by mutual consent of the parties. Unpaid principal and accrued interest are convertible into common stock of the company at $0.015 per share.</p> <p style="TEXT-ALIGN: justify; MARGIN: 0px"><br /> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0px">On November 3, 2011, the holder of the note elected to convert principal in the amount of $67,500 into 4,500,000 shares of common stock.</p> <p style="TEXT-ALIGN: justify; MARGIN: 0px"><br /> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0px">During the year ended February 29, 2012, the Company received advances in the amount of $284,938 for working capital. These advances are non-interest bearing and payable on demand.</p> <!--EndFragment--></div> </div>
8165
10446
-0.27
0.0
0.015
0.001
0.015
108724
39852
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<div> <div style="WIDTH: 720px"><!--StartFragment--> <p style="TEXT-ALIGN: justify; MARGIN: 0px"><strong>6. Income Taxes</strong></p> <p style="TEXT-ALIGN: justify; MARGIN: 0px"><br /> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0px">There are no current or deferred income tax expense or benefit for the year ended February 29, 2012 and for the period from inception (March 25, 2010) through February 28, 2011.</p> <p style="TEXT-ALIGN: justify; MARGIN: 0px"><br /> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0px">The provision for income taxes is different from that which would be obtained by applying the statutory federal income tax rate to income before income taxes.</p> <p style="MARGIN: 0px"><br /> </p> <table style="MARGIN-TOP: 0px; FONT-SIZE: 10pt" cellspacing="0" cellpadding="0" align="center"> <tr style="FONT-SIZE: 1pt"> <td width="255"> </td> <td width="20"> </td> <td width="15"> </td> <td width="100"> </td> <td width="20"> </td> <td width="17"> </td> <td width="97"> </td> <td width="10"> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="bottom" width="255"> <p style="MARGIN: 0px"><strong> </strong></p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="20"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> </p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px" valign="bottom" width="115" colspan="2"> <p style="MARGIN: 0px; text-align: center"><strong>Year Ended<br /> February 29, 2012</strong></p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="20"> <p style="MARGIN: 0px"><strong> </strong></p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px" valign="bottom" width="115" colspan="2"> <p style="MARGIN: 0px; text-align: center"><strong>March 25, 2010<br /> (Date of Inception)<br /> through<br /> February 28, 2011</strong></p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="10"> <p style="MARGIN: 0px"><strong> </strong></p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #ccecff; MARGIN-TOP: 0px" valign="bottom" width="255"> <p style="MARGIN: 0px">Tax benefit at U.S. statutory rate</p> </td> <td style="BACKGROUND-COLOR: #ccecff; MARGIN-TOP: 0px" valign="bottom" width="20"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> </p> </td> <td style="BACKGROUND-COLOR: #ccecff; MARGIN-TOP: 0px" valign="bottom" width="15"> <p style="MARGIN: 0px">$</p> </td> <td style="BACKGROUND-COLOR: #ccecff; MARGIN-TOP: 0px" valign="bottom" width="100"> <p style="MARGIN: 0px; text-align: right">1,144,800</p> </td> <td style="BACKGROUND-COLOR: #ccecff; MARGIN-TOP: 0px" valign="bottom" width="20"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> </p> </td> <td style="BACKGROUND-COLOR: #ccecff; MARGIN-TOP: 0px" valign="bottom" width="17"> <p style="MARGIN: 0px">$</p> </td> <td style="BACKGROUND-COLOR: #ccecff; MARGIN-TOP: 0px" valign="bottom" width="97"> <p style="MARGIN: 0px; text-align: right">12,800</p> </td> <td style="BACKGROUND-COLOR: #ccecff; MARGIN-TOP: 0px" valign="bottom" width="10"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> </p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="bottom" width="255"> <p style="MARGIN: 0px">Non deductible stock based compensation</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="20"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> </p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="15"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> </p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="100"> <p style="MARGIN: 0px; text-align: right">(1,050,000</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="20"> <p style="MARGIN: 0px">)</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="17"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> </p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="97"> <p style="MARGIN: 0px; text-align: right">-</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="10"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> </p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #ccecff; MARGIN-TOP: 0px" valign="bottom" width="255"> <p style="MARGIN: 0px">Valuation allowance</p> </td> <td style="BACKGROUND-COLOR: #ccecff; 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text-align: right">(12,800</p> </td> <td style="BACKGROUND-COLOR: #ccecff; MARGIN-TOP: 0px" valign="bottom" width="10"> <p style="MARGIN: 0px">)</p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="bottom" width="255"> <p style="MARGIN: 0px">Tax benefit</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="20"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> </p> </td> <td style="BORDER-BOTTOM: #000000 3px double; MARGIN-TOP: 0px" valign="bottom" width="15"> <p style="MARGIN: 0px">$</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; MARGIN-TOP: 0px" valign="bottom" width="100"> <p style="MARGIN: 0px; text-align: right">-</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="20"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> </p> </td> <td style="BORDER-BOTTOM: #000000 3px double; MARGIN-TOP: 0px" valign="bottom" width="17"> <p style="MARGIN: 0px">$</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; 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<div> <div style="WIDTH: 720px"><!--StartFragment--> <p style="MARGIN: 0px"><strong>1. Background Information</strong></p> <p style="MARGIN: 0px"><br /> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0px">On The Move Systems Corp., a Florida corporation ("we", "us", "our", "OMVS", or the "Company"), was formed to provide mobile electronic services to automobile, recreational vehicle and boat dealerships, government agencies as well as individual consumers. The Company installs its inventoried after market electronic products desired by the customer at their location. The Company was incorporated on March 25, 2010 (Date of Inception) with its corporate headquarters located in Tampa, Florida. Its fiscal year-end is February 28.</p> <p style="TEXT-ALIGN: justify; MARGIN: 0px"><br /> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0px">On March 25, 2011, Crawford Mobile Installation Corp. ("CMIC"), a wholly owned subsidiary of the Company acquired all of the assets and assumed certain liabilities of Crawford Mobile Install ("CMI"). The assets of CMI included cash, inventory, a vehicle and installation equipment. On the date of the acquisition, a material relationship existed between the parties, because John Crawford was the sole officer and director of both the Company and CMIC as well as being the sole proprietor of CMI. The purchase price for the assets and liabilities of CMI was $100,000. </p> <p style="TEXT-ALIGN: justify; MARGIN: 0px"><br /> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0px">On March 22, 2012, we signed a letter of intent to investigate new strategic opportunities with Kelley Emergency Alert Systems, LLC ("KEAS"). KEAS owns the license to a cutting-edge alert system designed to improve driver response time to approaching emergency vehicles. Integrated with registration tags mounted on vehicle windshields, the alert visually and audibly signals drivers to take caution when emergency vehicles such as fire trucks and ambulances are nearby.</p> <p style="TEXT-ALIGN: justify; MARGIN: 0px"><br /> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0px"><u>Development Stage Company</u></p> <p style="TEXT-ALIGN: justify; MARGIN: 0px"><br /> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0px">From the date of inception, March 25, 2010, through the date of the acquisition of CMI on March 25, 2011, the Company was in the development stage as defined in ASC 915, "Accounting and Reporting by Development Stage Enterprises". As a result of the acquisition of CMI, the Company has begun to generate revenue from operations and has emerged from the development stage.</p> <!--EndFragment--></div> </div>
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<div> <div style="WIDTH: 720px"><!--StartFragment--> <p style="MARGIN: 0px"><strong>5. Related Party Transactions</strong></p> <p style="MARGIN: 0px"><br /> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0px">During May 2010, the Company sold 9,000,000 shares of its $0.0001 common stock to John Crawford, the sole officer and director of the Company for $9,000.</p> <p style="TEXT-ALIGN: justify; MARGIN: 0px"><br /> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0px">The officers and directors of the Company are involved in other business activities and may, in the future, become involved in other business opportunities that become available. They may face a conflict in selecting between the Company and other business interests. The Company has not formulated a policy for the resolution of such conflicts.</p> <p style="TEXT-ALIGN: justify; MARGIN: 0px"><br /> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0px">On March 25, 2011, CMIC, a wholly owned subsidiary of the Company, entered into an agreement to purchase all of the assets and the business of CMI for $100,000. CMI was a sole proprietorship owned and operated by John Crawford. John Crawford is also the sole officer-director of the Company and CMIC. The purchase price was paid with $10,000 in cash at closing and a note payable for the remaining $90,000. The note bears interest at 10% per year and is payable in monthly installments of $2,500 with a balloon payment of the remaining principal and interest due February 1, 2014.</p> <p style="TEXT-ALIGN: justify; MARGIN: 0px"><br /> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0px">The above terms and amounts are not necessarily indicative of the terms and amounts that would have been incurred had comparable transactions been entered into with independent parties.</p> <!--EndFragment--></div> </div>
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<div> <div style="WIDTH: 720px"><!--StartFragment--> <p style="TEXT-ALIGN: justify; MARGIN: 0px"><strong>3. Significant Accounting Policies</strong></p> <p style="TEXT-ALIGN: justify; MARGIN: 0px"><br /> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0px">The significant accounting policies followed are:</p> <p style="TEXT-ALIGN: justify; MARGIN: 0px"><br /> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0px">USE OF ESTIMATES - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.</p> <p style="TEXT-ALIGN: justify; MARGIN: 0px"><br /> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0px">CASH AND CASH EQUIVALENTS - All cash, other than cash held in escrow, is maintained with a major financial institution in the United States. Deposits with this bank may exceed the amount of insurance provided on such deposits. Temporary cash investments with an original maturity of three months or less are considered to be cash equivalents.</p> <p style="TEXT-ALIGN: justify; MARGIN: 0px"><br /> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0px">INVENTORY - Inventory represents purchased aftermarket electronic products and other items valued at the lower of cost or market with cost determined using the specific identification method, and with market defined as the lower of replacement cost or realizable value.</p> <p style="TEXT-ALIGN: justify; MARGIN: 0px"><br /> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0px">FIXED ASSETS - Fixed assets of the Company include vehicles and are stated at cost. Expenditures for fixed assets which substantially increase the useful lives of existing assets are capitalized at cost and depreciated. Routine expenditures for repairs and maintenance are expensed as incurred.</p> <p style="TEXT-ALIGN: justify; MARGIN: 0px"><br /> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0px">Depreciation is provided principally on the straight-line method over the estimated useful lives ranging of four years for financial reporting purposes. The Company recognized depreciation expense of $8,165 during the year ended February 29, 2012. </p> <p style="TEXT-ALIGN: justify; MARGIN: 0px"><br /> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0px">IMPAIRMENT OF LONG-LIVED ASSETS - Long-lived assets, including fixed assets and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the long-lived asset may not be recoverable. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. If it is determined that an impairment loss has occurred, the loss is measured as the amount by which the carrying amount of the long-lived asset exceeds its fair value. The Company determined that there was no impairment of long-lived assets during the year ended February 29, 2012.</p> <p style="TEXT-ALIGN: justify; MARGIN: 0px"><br /> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0px">GOODWILL - Goodwill represents the excess of purchase price and related costs over the value assigned to the net tangible and intangible assets of businesses acquired. We evaluate goodwill for impairment utilizing undiscounted projected cash flows in accordance with the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 350, "Intangibles - Goodwill and Other" ("ASC Topic 350"). The Company has determined that there was no impairment of goodwill as of February 29, 2012.</p> <p style="TEXT-ALIGN: justify; MARGIN: 0px"><br /> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0px">REVENUE AND COST RECOGNITION - The Company recognizes revenue when persuasive evidence of an arrangement exists, product delivery has occurred or the services have been rendered, the price is fixed or determinable and collectability is reasonably assured. Revenue is recognized net of sales returns and allowances.</p> <p style="TEXT-ALIGN: justify; MARGIN: 0px"><br /> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0px">ADVERTISING COSTS - The Company's policy regarding advertising is to expense advertising when incurred.</p> <p style="TEXT-ALIGN: justify; MARGIN: 0px"><br /> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0px">RESEARCH AND DEVELOPMENT EXPENSES - Expenditures for research, development, and engineering of products are expensed as incurred.</p> <p style="TEXT-ALIGN: justify; MARGIN: 0px"><br /> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0px">INCOME TAXES - Income taxes are provided for the tax effects of transactions reported in the financial statements and consist of taxes currently due plus deferred taxes resulting from temporary differences. Such temporary differences result from differences in the carrying value of assets and liabilities for tax and financial reporting purposes. The deferred tax assets and liabilities represent the future tax consequences of those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized.</p> <p style="TEXT-ALIGN: justify; MARGIN: 0px"><br /> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0px">The Company adopted the provisions of FASB ASC 740-10 "Uncertainty in Income Taxes" (ASC 740-10), on January 1, 2007. The Company has not recognized a liability as a result of the implementation of ASC 740-10. A reconciliation of the beginning and ending amount of unrecognized tax benefits has not been provided since there is no unrecognized benefit since the date of adoption. The Company has not recognized interest expense or penalties as a result of the implementation of ASC 740-10. If there were an unrecognized tax benefit, the Company would recognize interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses.</p> <p style="TEXT-ALIGN: justify; MARGIN: 0px"><br /> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0px">EARNINGS (LOSS) PER SHARE - Basic loss per share is computed by dividing net loss attributable to common stockholders by the weighted average common shares outstanding for the period. Diluted loss per share is computed giving effect to all potentially dilutive common shares. Potentially dilutive common shares may consist of incremental shares issuable upon the exercise of stock options and warrants and the conversion of notes payable to common stock. In periods in which a net loss has been incurred, all potentially dilutive common shares are considered anti-dilutive and thus are excluded from the calculation. The Company's convertible debt is considered anti-dilutive due to the Company's net loss for the year ended February 29, 2012 and February 28, 2011. As a result, the Company did not have any potentially dilutive common shares for those periods.</p> <p style="TEXT-ALIGN: justify; MARGIN: 0px"><br /> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0px">FINANCIAL INSTRUMENTS - In September 2006, the Financial Accounting Standards Board (FASB) introduced a framework for measuring fair value and expanded required disclosure about fair value measurements of assets and liabilities. The Company adopted the standard for those financial assets and liabilities as of the beginning of the 2008 fiscal year and the impact of adoption was not significant. FASB Accounting Standards Codification (ASC) 820 "Fair Value Measurements and Disclosures" (ASC 820) defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.. ASC 820 also establishes a fair value hierarchy that distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity's own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:</p> <p style="TEXT-ALIGN: justify; MARGIN: 0px"><br /> </p> <table style="MARGIN-TOP: 0px; FONT-SIZE: 10pt" cellspacing="0" cellpadding="0"> <tr style="FONT-SIZE: 1pt"> <td width="25"> </td> <td width="25"> </td> <td width="669"> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="top" width="25"> <p style="TEXT-ALIGN: justify; MARGIN: 0px"> </p> </td> <td style="MARGIN-TOP: 0px" valign="top" width="25"> <p style="TEXT-ALIGN: justify; MARGIN: 0px; FONT-FAMILY: Symbol"> ·</p> </td> <td style="MARGIN-TOP: 0px" valign="top" width="669"> <p style="TEXT-ALIGN: justify; MARGIN: 0px">Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.</p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="top" width="25"> <p style="TEXT-ALIGN: justify; MARGIN: 0px"> </p> </td> <td style="MARGIN-TOP: 0px" valign="top" width="25"> <p style="TEXT-ALIGN: justify; MARGIN: 0px"> </p> </td> <td style="MARGIN-TOP: 0px" valign="top" width="669"> <p style="TEXT-ALIGN: justify; MARGIN: 0px"> </p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="top" width="25"> <p style="TEXT-ALIGN: justify; MARGIN: 0px"> </p> </td> <td style="MARGIN-TOP: 0px" valign="top" width="25"> <p style="TEXT-ALIGN: justify; MARGIN: 0px; FONT-FAMILY: Symbol"> ·</p> </td> <td style="MARGIN-TOP: 0px" valign="top" width="669"> <p style="TEXT-ALIGN: justify; MARGIN: 0px">Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means.</p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="top" width="25"> <p style="TEXT-ALIGN: justify; MARGIN: 0px"> </p> </td> <td style="MARGIN-TOP: 0px" valign="top" width="25"> <p style="TEXT-ALIGN: justify; MARGIN: 0px"> </p> </td> <td style="MARGIN-TOP: 0px" valign="top" width="669"> <p style="TEXT-ALIGN: justify; MARGIN: 0px"> </p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="top" width="25"> <p style="TEXT-ALIGN: justify; MARGIN: 0px"> </p> </td> <td style="MARGIN-TOP: 0px" valign="top" width="25"> <p style="TEXT-ALIGN: justify; MARGIN: 0px; FONT-FAMILY: Symbol"> ·</p> </td> <td style="MARGIN-TOP: 0px" valign="top" width="669"> <p style="TEXT-ALIGN: justify; MARGIN: 0px">Level 3 - Inputs that are both significant to the fair value measurement and unobservable.</p> </td> </tr> </table> <p style="TEXT-ALIGN: justify; MARGIN: 0px"><br /> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0px">Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of February 29, 2012. The respective carrying value of certain on-balance-sheet financial instruments approximated their fair values due to the short-term nature of these instruments. These financial instruments include accounts receivable, other current assets, accounts payable, accrued compensation and accrued expenses. The fair value of the Company's notes payable is estimated based on current rates that would be available for debt of similar terms which is not significantly different from its stated value.</p> <p style="TEXT-ALIGN: justify; MARGIN: 0px"><br /> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0px">RECENT ACCOUNTING PRONOUNCEMENTS</p> <p style="TEXT-ALIGN: justify; MARGIN: 0px"><br /> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0px">Recent accounting pronouncements issued by the FASB (including its EITF), the AICPA, and the SEC did not or are not believed by management to have a material impact on the Company's present or future financial statements.</p> <!--EndFragment--></div> </div>
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<div> <div style="WIDTH: 720px"><!--StartFragment--> <p style="TEXT-ALIGN: justify; MARGIN: 0px"><strong>8. Stockholders' Equity</strong></p> <p style="TEXT-ALIGN: justify; MARGIN: 0px"><br /> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0px">On June 21, 2011, the Company issued 1,500,000 shares of common stock as compensation for consulting services. The shares were valued at $3,750,000 based on the market value of the stock on the date of issuance.</p> <p style="TEXT-ALIGN: justify; MARGIN: 0px"><br /> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0px">On November 3, 2011, the Company issued 4,500,000 shares of common stock for conversion of the convertible note payable in the amount of $67,500.</p> <!--EndFragment--></div> </div>
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