Fonon Technologies, Inc. asset purchase for MBMI stock

Finish goods and work in process

$

1,220,642

Fixed assets - demo and trade show equipment

1,439,273

Fixed assets - office furniture

92,789

Software - infrastructure, operational and web development

364,042

Software for machines for resale

1,176,284

Other intangibles - customer database

676,000

Other intangibles – trademarks

35,000

Other intangibles - design and documentation

5,397,000

Total non-cash asset purchase

$

10,401,030

Stock issued for purchase of assets from Fonon Technologies, Inc. (at par)

$

325,242

Value of warrants issued to Al Pietrangeo

374,957

Additional paid in capital

9,700,831

Total non-cash consideration

$

10,401,030