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<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Creative Learning Corporation (formerly B2 Health, Inc.)
was incorporated March 8, 2006 in the State of Delaware. BFK Franchise Company LLC was formed in the State of Nevada on May 19,
2009. Effective July 2, 2010 Creative Learning Corporation was acquired by BFK Franchise Company LLC in a transaction classified
as a reverse acquisition.<font style="color: red"> </font>Creative Learning Corporation concurrently changed its name from B2 Health,
Inc. to Creative Learning Corporation. The financial statements represent the activity of BFK Franchise Company LLC from May 19,
2009 forward, and the consolidated activity of BFK Franchise Company LLC and Creative Learning Corporation from July 2, 2010 forward.
BFK Franchise Company LLC and Creative Learning Corporation are hereinafter referred to collectively as the "Company".
The Company, primarily through franchises, offers educational programs designed to teach principles of engineering, architecture
and physics to children using Lego ® bricks. The Company may also engage in any other business that is permitted by law, as
designated by the Board of Directors of the Company.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Basis of Presentation</u></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The accompanying unaudited financial statements have been
prepared in accordance with the instructions to Form 10-Q and do not include all of the information and disclosures required by
generally accepted accounting principles for complete financial statements. All adjustments which are, in the opinion of management,
necessary for a fair presentation of the results of operations for the interim periods have been made and are of a recurring nature
unless otherwise disclosed herein. The results of operations for such interim periods are not necessarily indicative of operations
for a full year.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Fiscal year</u></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company employs a fiscal year ending September 30.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Principles of consolidation</u></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The accompanying consolidated financial statements include
the accounts of the Company and its wholly owned subsidiary. All intercompany accounts and transactions have been eliminated in
consolidation.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Reclassifications</u></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Certain amounts in the prior year’s consolidated financial
statements have been reclassified to conform to the current year presentation and to correct prior year errors. The reclassifications
did not have any effect on the prior year net loss.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Cash and cash equivalents</u></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company considers all highly liquid securities with original
maturities of three months or less when acquired, to be cash equivalents. We had no cash equivalents at December 31, 2012 and 2011.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Accounts receivable</u></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company reviews accounts receivable periodically for
collectability and establishes an allowance for doubtful accounts and records bad debt expense when deemed necessary. At December
31, 2012 and 2011 the Company had $12,000 and $11,000 in its allowance for doubtful accounts.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Property and equipment</u></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Property and equipment are stated at cost. Depreciation is
calculated using the straight-line method over the estimated useful lives of the related assets, currently set at five years. Expenditures
for additions and improvements are capitalized, while repairs and maintenance costs are expensed as incurred. The cost and related
accumulated depreciation of property and equipment sold or otherwise disposed of are removed from the accounts and any gain or
loss is recorded in the year of disposal.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Revenue recognition</u></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Revenue is recognized on an accrual basis after services
have been performed under contract terms, the service price to the client is fixed or determinable, and collectability is reasonably
assured.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Initial franchise fees are recognized upon the commencement
of operations by the franchisee, which is when the Company has performed substantially all initial services required by the franchise
agreement. Any unearned income<font style="color: red"> </font>represents franchise fees received for which the Company has not
completed its initial obligations under the franchise agreement. Such obligations generally consist of site location assistance
and training. Royalties and marketing fees are recognized as earned.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Use of Estimates</u></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates and assumptions that affect 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="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Income tax</u></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company accounts for income taxes pursuant to ASC 740.
Under ASC 740 deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary
differences and operating loss carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary
differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets
are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of
the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax
laws and rates on the date of enactment.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Advertising costs</u></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Advertising costs are expensed as incurred. The Company had
advertising costs for the three month period ended December 31, 2012 and 2011 was $60,450 and $64,289 respectively.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Net income (loss) per share</u></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">ASC 260-10-45, “Earnings Per Share”, requires
presentation of "basic" and "diluted" earnings per share on the face of the statements of operations for all
entities with complex capital structures. Basic earnings per share are computed by dividing net income by the weighted average
number of common shares outstanding for the period. Diluted earnings per share reflect the potential dilution that could occur
if securities or other contracts to issue common stock were exercised or converted during the period. Dilutive securities having
an anti-dilutive effect on diluted earnings per share are excluded from the calculation. When the company is in loss position,
no dilutive effect is considered.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Fair Value of Financial Instruments</u></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The carrying amounts of cash, accounts receivable and current
liabilities approximate fair value because of the short-term maturity of these items. These fair value estimates are subjective
in nature and involve uncertainties and matters of significant judgment, and, therefore, cannot be determined with precision. Changes
in assumptions could significantly affect these estimates. The Company does not hold or issue financial instruments for trading
purposes, nor does it utilize derivative instruments.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The FASB Accounting Standards Codification (“ASC”)
clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer
a liability in an orderly transaction between market participants. It also requires disclosure about how fair value is determined
for assets and liabilities and establishes a hierarchy for which these assets and liabilities must be grouped, based on significant
levels of inputs as follows:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
<td style="width: 24px; text-align: justify"> </td>
<td style="width: 72px; font: 10pt/115% Times New Roman, Times, Serif; text-align: justify">Level 1:</td>
<td style="font: 10pt/115% Times New Roman, Times, Serif; text-align: justify">Quoted prices in active markets for identical assets or liabilities.</td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify"> </td>
<td style="font: 10pt/115% Times New Roman, Times, Serif; text-align: justify"> </td>
<td style="font: 10pt/115% Times New Roman, Times, Serif; text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify"> </td>
<td style="font: 10pt/115% Times New Roman, Times, Serif; text-align: justify">Level 2:</td>
<td style="font: 10pt/115% Times New Roman, Times, Serif; text-align: justify">Quoted prices in active markets for similar assets and liabilities and inputs that are observable for the asset or liability.</td></tr>
</table>
<p style="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
<td style="width: 24px; text-align: justify"> </td>
<td style="width: 72px; font: 10pt/115% Times New Roman, Times, Serif; text-align: justify">Level 3:</td>
<td style="font: 10pt/115% Times New Roman, Times, Serif; text-align: justify">Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.</td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The determination of where assets and liabilities fall within
this hierarchy is based upon the lowest level of input that is significant to the fair value measurement.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Long-Lived Assets</u></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In accordance with ASC 350, the Company
regularly reviews the carrying value of intangible and other long-lived assets for the existence of facts or circumstances, both
internally and externally, that may suggest impairment. If impairment testing indicates a lack of recoverability, an impairment
loss is recognized by the Company if the carrying amount of a long-lived asset exceeds its fair value.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-weight: normal"><u>Note
Payables</u></font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-weight: normal"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-weight: normal">As
of September 30, 2012, the Company owed a $40,000, non-interest bearing promissory note to a related party for Consulting Services
payable in 2013 by issuance of 40,000 shares of the Company’s common stock. During this period of October to December 2012,
20,000 shares of common stock, valued at $1.00 per share, were issued as part of this note payable.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-weight: normal"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-weight: normal"><u>Stock
based compensation</u></font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-weight: normal"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-weight: normal">The
Company accounts for employee and non-employee stock awards under ASC 718, whereby equity instruments issued to employees for
services are recorded based on the fair value of the instrument issued and those issued to non-employees are recorded based on
the fair value of the consideration received or the fair value of the equity instrument, whichever is more reliably measurable.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-weight: normal"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-weight: normal"><u>Subsequent
Events</u></font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-weight: normal"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-weight: normal">In
January of 2013 the Company also formed Sew Fun Franchise Company LLC (“SF”) as a wholly owned subsidiary for the
purpose of operating a third franchise concept known as Sew Fun. Sew Fun is a brick and mortar business featuring stores/studios
located in strip malls and offering after-school classes, camps and birthday parties,  for children ages 8-13+,  as
well as adult classes in fashion design.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-weight: normal"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-weight: normal">The
Sew Fun concept and trademarks were acquired under a purchase agreement on January 8, 2013 by the issuance of 35,000 shares of
the Company’s common stock values at $0.58 per share and the intangible asset was transferred to SF. The Company also contributed
$50,000 to SF as seed capital in January of 2013.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-weight: normal"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-weight: normal">SF
will require separate registrations with state franchising regulators, and will begin that process subsequent to January 2013.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
12000
11000
20000
40000
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The accompanying unaudited financial
statements have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and disclosures
required by generally accepted accounting principles for complete financial statements. All adjustments which are, in the opinion
of management, necessary for a fair presentation of the results of operations for the interim periods have been made and are of
a recurring nature unless otherwise disclosed herein. The results of operations for such interim periods are not necessarily indicative
of operations for a full year.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company employs a fiscal year ending
September 30.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The accompanying consolidated financial
statements include the accounts of the Company and its wholly owned subsidiary. All intercompany accounts and transactions have
been eliminated in consolidation.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Certain amounts in the prior year’s
consolidated financial statements have been reclassified to conform to the current year presentation and to correct prior year
errors. The reclassifications did not have any effect on the prior year net loss.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company considers all highly liquid
securities with original maturities of three months or less when acquired, to be cash equivalents.  We had no cash equivalents
at December 31, 2012 and 2011.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company reviews accounts receivable
periodically for collectability and establishes an allowance for doubtful accounts and records bad debt expense when deemed necessary.
At December 31, 2012 and 2011 the Company had $12,000 and $11,000 in its allowance for doubtful accounts.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Property and equipment are stated at
cost.  Depreciation is calculated using the straight-line method over the estimated useful lives of the related assets,
currently set at five years.  Expenditures for additions and improvements are capitalized, while repairs and maintenance
costs are expensed as incurred.  The cost and related accumulated depreciation of property and equipment sold or otherwise
disposed of are removed from the accounts and any gain or loss is recorded in the year of disposal.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Revenue is recognized on an accrual
basis after services have been performed under contract terms, the service price to the client is fixed or determinable, and collectability
is reasonably assured.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="color: black">Initial franchise
fees are recognized upon the commencement of operations by the franchisee, which is when the Company has performed substantially
all initial services required by the franchise agreement. Any unearned income</font><font style="color: red"> </font><font style="color: black">represents
franchise fees received for which the Company has not completed its initial obligations under the franchise agreement. Such obligations
generally consist of site location assistance and training. Royalties and marketing fees are recognized as earned.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The preparation of financial statements
in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect 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="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company accounts for income taxes
pursuant to ASC 740. Under ASC 740 deferred taxes are provided on a liability method whereby deferred tax assets are recognized
for deductible temporary differences and operating loss carryforwards and deferred tax liabilities are recognized for taxable temporary
differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases.
Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some
portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects
of changes in tax laws and rates on the date of enactment.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Advertising costs are expensed as incurred.
The Company had advertising costs for the three month period ended December 31, 2012 and 2011 was $60,450 and $64,289 respectively.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">ASC 260-10-45, “Earnings Per Share”,
requires presentation of "basic" and "diluted" earnings per share on the face of the statements of operations
for all entities with complex capital structures. Basic earnings per share are computed by dividing net income by the weighted
average number of common shares outstanding for the period. Diluted earnings per share reflect the potential dilution that could
occur if securities or other contracts to issue common stock were exercised or converted during the period. Dilutive securities
having an anti-dilutive effect on diluted earnings per share are excluded from the calculation. When the company is in loss position,
no dilutive effect is considered.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The carrying amounts of cash, accounts
receivable and current liabilities approximate fair value because of the short-term maturity of these items. These fair value estimates
are subjective in nature and involve uncertainties and matters of significant judgment, and, therefore, cannot be determined with
precision.  Changes in assumptions could significantly affect these estimates.  The Company does not hold or
issue financial instruments for trading purposes, nor does it utilize derivative instruments.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The FASB Accounting Standards Codification
(“ASC”) clarifies that fair value is an exit price, representing the amount that would be received to sell an asset
or paid to transfer a liability in an orderly transaction between market participants. It also requires disclosure about how fair
value is determined for assets and liabilities and establishes a hierarchy for which these assets and liabilities must be grouped,
based on significant levels of inputs as follows:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">          </p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
<td style="width: 24px; font: 10pt/115% Times New Roman, Times, Serif; text-align: justify"> </td>
<td style="width: 72px; font: 10pt/115% Times New Roman, Times, Serif; text-align: justify">Level 1:</td>
<td style="font: 10pt/115% Times New Roman, Times, Serif; text-align: justify">Quoted prices in active markets for identical assets or liabilities.</td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 24px; line-height: 115%; text-align: justify"> </td>
<td style="width: 72px; line-height: 115%; text-align: justify">Level 2:</td>
<td style="line-height: 115%; text-align: justify">Quoted prices in active markets for similar assets and liabilities and inputs that are observable for the asset or liability.</td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 24px; line-height: 115%; text-align: justify"> </td>
<td style="width: 72px; line-height: 115%; text-align: justify">Level 3:</td>
<td style="line-height: 115%; text-align: justify">Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.</td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The determination of where assets and
liabilities fall within this hierarchy is based upon the lowest level of input that is significant to the fair value measurement.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In accordance with ASC 350, the Company
regularly reviews the carrying value of intangible and other long-lived assets for the existence of facts or circumstances, both
internally and externally, that may suggest impairment. If impairment testing indicates a lack of recoverability, an impairment
loss is recognized by the Company if the carrying amount of a long-lived asset exceeds its fair value.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company accounts for employee and
non-employee stock awards under ASC 718, whereby equity instruments issued to employees for services are recorded based on the
fair value of the instrument issued and those issued to non-employees are recorded based on the fair value of the consideration
received or the fair value of the equity instrument, whichever is more reliably measurable.</p>
0.0001
0.0001
50000000
50000000
36529
29805
4121
16771
285981
283522
0.0001
0.0001
8800
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In January of 2013 the Company also formed
Sew Fun Franchise Company LLC (“SF”) as a wholly owned subsidiary for the purpose of operating a third franchise concept
known as Sew Fun. Sew Fun is a brick and mortar business featuring stores/studios located in strip malls and offering after-school
classes, camps and birthday parties,  for children ages 8-13+,  as well as adult classes in fashion design.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Sew Fun concept and trademarks were acquired
under a purchase agreement on January 8, 2013 by the issuance of 35,000 shares of the Company’s common stock values at $0.58
per share and the intangible asset was transferred to SF. The Company also contributed $50,000 to SF as seed capital in January
of 2013.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">SF will require separate registrations with
state franchising regulators, and will begin that process subsequent to January 2013.</p>
40000
20000
1.00
We have revised our statement of operations and financial note
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">As of September 30, 2012, the Company
owed a $40,000, non-interest bearing promissory note to a related party for Consulting Services payable in 2013 by issuance of
40,000 shares of the Company’s common stock. During this period of October to December 2012, 20,000 shares of common stock,
valued at $1.00 per share, were issued as part of this note payable.</p>