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&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"&gt;Related party transactions are discussed in Note 13.&lt;/p&gt;

&lt;p style="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt"&gt;&amp;#160;&lt;/p&gt;</NonNumbericText><FootnoteIndexer /><CurrencyCode /><CurrencySymbol /><IsIndependantCurrency>false</IsIndependantCurrency><ShowCurrencySymbol>false</ShowCurrencySymbol><DisplayDateInUSFormat>false</DisplayDateInUSFormat></Cell><Cell FlagID="0" ContextID="From2011-10-01to2012-09-30" UnitID=""><Id>2</Id><IsNumeric>false</IsNumeric><IsRatio>false</IsRatio><DisplayZeroAsNone>false</DisplayZeroAsNone><NumericAmount>0</NumericAmount><RoundedNumericAmount>0</RoundedNumericAmount><NonNumbericText>&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;See Note&amp;#160;13 for discussion of notes payable issued to the Company&amp;#146;s
former CEO and President during the quarter ended March 31, 2007.&amp;#160;&amp;#160; Other than the note payable, related interest and
payroll related accruals, all amounts are recorded in the related party accounts payable balance.&amp;#160;&amp;#160;As of the filing date,
Mr. Erickson beneficially owns 5,423,773 shares of common stock.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;Mr. Sparks resigned from the Board of Directors effective September
6, 2012.&amp;#160;&amp;#160;On September 6, 2012, the Company entered into a Settlement and Release Agreement with Mr. Sparks pursuant
to which the Company agreed to (i)&amp;#160;pay to Mr. Sparks the sum of $50,750 and issue 513,696 shares of the Company&amp;#146;s common
stock as satisfaction in full of amounts owed pursuant to a note issued in 2007 and related accrued interest; and (ii)&amp;#160;pay
to Mr. Sparks the sum of $39,635 and issue 4,000,000 shares of the Company&amp;#146;s common stock as satisfaction in full of amounts
owed to pursuant to a note issued in 2009, related accrued interest, and other liabilities, including accrued compensation of $721,333.&amp;#160;&amp;#160;The
full Settlement and Release Agreement was filed as Exhibit 10.1 to Form 8-K/A1 filed by the Company on September 12, 2012.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;The Company paid $195,000 for fees due two directors for their services
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