Per the terms of the convertible debentures (Note 7), holders of the debentures have the option to receive shares of common stock issued in lieu of cash for accrued interest at 10% per annum through the date of conversion. The table and narrative below details common shares issued for conversion of debentures and accrued interest during the nine months ended June 30, 2012:

	Date		Debt Converted	Conversion price per share	Shares Issued		Accrued Interest	Fair Market Value per share	Shares Issued

October 4, 2011		$	-	-	-	$	5,835	$0.0706	82,660
October 20, 2011			60,000	$0.12	500,000		607	$0.0670	9,141
November 29, 2011			55,000	$0.12	458,333		932	$0.0765	12,183
TOTAL		$	115,000		958,333	$	7,374		103,984

On December 8, 2011, the Company issued 83,333 shares of common stock as a charitable contribution. The shares were valued at $0.06 per share.

On February 16, 2012, the Company issued 469,446 shares of common stock in lieu of paying interest with cash, to holders of convertible debentures described in Note 7. The interest totaled $25,643 and was issued at the 5-day variable weighted-average price ("VWAP") of $0.067 per share which materially agrees to fair value of the common stock on date of issuance.

On April 16, 2012, the Company issued 400,545 shares of common stock in lieu of paying interest with cash, to holders of convertible debentures described in Note 7. The interest totaled $20,292 and was issued at the 5-day variable weighted-average price ("VWAP") of $0.051 per share which materially agrees with fair value.