0001394638
2013-10-01
2014-09-30
0001394638
2013-09-30
0001394638
2014-09-30
0001394638
2014-12-29
0001394638
2014-03-31
0001394638
2012-10-01
2013-09-30
0001394638
2012-09-30
0001394638
us-gaap:CommonStockMember
2012-10-01
2013-09-30
0001394638
us-gaap:CommonStockMember
2013-10-01
2014-09-30
0001394638
us-gaap:CommonStockMember
2012-09-30
0001394638
us-gaap:CommonStockMember
2013-09-30
0001394638
us-gaap:CommonStockMember
2014-09-30
0001394638
us-gaap:AdditionalPaidInCapitalMember
2012-10-01
2013-09-30
0001394638
us-gaap:AdditionalPaidInCapitalMember
2013-10-01
2014-09-30
0001394638
us-gaap:AdditionalPaidInCapitalMember
2012-09-30
0001394638
us-gaap:AdditionalPaidInCapitalMember
2013-09-30
0001394638
us-gaap:AdditionalPaidInCapitalMember
2014-09-30
0001394638
us-gaap:RetainedEarningsMember
2012-10-01
2013-09-30
0001394638
us-gaap:RetainedEarningsMember
2013-10-01
2014-09-30
0001394638
us-gaap:RetainedEarningsMember
2012-09-30
0001394638
us-gaap:RetainedEarningsMember
2013-09-30
0001394638
us-gaap:RetainedEarningsMember
2014-09-30
0001394638
CLCN:FranVenturesLLCMember
2013-10-01
2014-09-30
0001394638
CLCN:FranVenturesLLCMember
2012-10-01
2013-09-30
0001394638
CLCN:MCLogicLLCMember
2013-10-01
2014-09-30
0001394638
CLCN:MCLogicLLCMember
2012-10-01
2013-09-30
0001394638
CLCN:LeapAheadLearningCompanyMember
2013-10-01
2014-09-30
0001394638
CLCN:LeapAheadLearningCompanyMember
2012-10-01
2013-09-30
0001394638
CLCN:SecondFranchiseMember
2014-09-30
0001394638
CLCN:ThirdFranchiseMember
2014-09-30
0001394638
CLCN:SecondFranchiseMember
2013-09-30
0001394638
CLCN:ThirdFranchiseMember
2013-09-30
0001394638
CLCN:FirstIssuanceMember
2012-10-01
2013-09-30
0001394638
CLCN:SecondIssuanceMember
2012-10-01
2013-09-30
0001394638
CLCN:ThirdIssuanceMember
2012-10-01
2013-09-30
0001394638
CLCN:BfkFranchiseCompanyLlcMember
2013-10-01
2014-09-30
0001394638
CLCN:BfkFranchiseCompanyLlcMember
2013-09-30
0001394638
CLCN:BfkFranchiseCompanyLlcMember
2014-09-30
0001394638
CLCN:BfkFranchiseCompanyLlcMember
2012-10-01
2013-09-30
0001394638
CLCN:BfkFranchiseCompanyLlcMember
2012-09-30
0001394638
CLCN:CiFranchiseCompanyLlcMember
2013-10-01
2014-09-30
0001394638
CLCN:CiFranchiseCompanyLlcMember
2013-09-30
0001394638
CLCN:CiFranchiseCompanyLlcMember
2014-09-30
0001394638
CLCN:CiFranchiseCompanyLlcMember
2012-10-01
2013-09-30
0001394638
CLCN:CiFranchiseCompanyLlcMember
2012-09-30
0001394638
CLCN:TemporaryDifferenceMember
2014-09-30
0001394638
CLCN:TaxEffectMember
2014-09-30
0001394638
CLCN:TemporaryDifferenceMember
2013-09-30
0001394638
CLCN:TaxEffectMember
2013-09-30
iso4217:USD
xbrli:shares
iso4217:USD
xbrli:shares
xbrli:pure
CREATIVE LEARNING Corp
0001394638
10-K
2014-09-30
false
--09-30
No
No
Yes
Smaller Reporting Company
2014
FY
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">Property and equipment
consisted of the following:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td> </td>
<td colspan="2" id="ffc" style="vertical-align: bottom; text-align: center"><font style="font-size: 10pt"><b>Year End</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="vertical-align: bottom; text-align: center"><font style="font-size: 10pt"><b>Year End</b></font></td>
<td> </td></tr>
<tr>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td> </td>
<td colspan="2" style="vertical-align: bottom; text-align: center"><font style="font-size: 10pt"><b>September 30,</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="vertical-align: bottom; text-align: center"><font style="font-size: 10pt"><b>September 30,</b></font></td>
<td> </td></tr>
<tr>
<td colspan="2" style="vertical-align: bottom; padding-bottom: 1pt"><font style="font-size: 10pt"><b>Description</b></font></td>
<td> </td>
<td colspan="2" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center"><font style="font-size: 10pt"><b>2014</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center"><font style="font-size: 10pt"><b>2013</b></font></td>
<td> </td></tr>
<tr style="background-color: #CCEEFF">
<td colspan="2" style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">Equipment</font></td>
<td> </td>
<td style="vertical-align: bottom"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">44,930</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">33,109</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td colspan="2" style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">Furniture & Fixtures</font></td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">75,351</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">57,654</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td colspan="2" style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">Property Improvement</font></td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">233,615</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">233,615</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td colspan="2" style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"><font style="font-size: 10pt">Software</font></td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">30,558</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"> </td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">30,558</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom; width: 2%"> </td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">Total Depreciable Assets</font></td>
<td style="width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">384,454</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">354,936</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td colspan="2" style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"><font style="font-size: 10pt">Accumulated Depreciation</font></td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(98,238</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(60,073</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom; padding-bottom: 1pt"> </td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"><font style="font-size: 10pt">NBV Fixed Assets</font></td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">286,216</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"> </td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">294,863</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td colspan="2" style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"><font style="font-size: 10pt">Work In Progress (1)</font></td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">36,443</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"> </td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid; padding-bottom: 0.75pt; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom; padding-bottom: 1pt"> </td>
<td style="vertical-align: bottom; padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">322,659</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">294,863</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"> </td></tr>
</table>
<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">(1) This is website development and is expected
to be completed June 2015 at total cost of $45,000. </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; margin-left: 0pt; text-indent: 20pt; text-align: justify">Depreciation
expense totaled $39,915 and $30,267, respectively, for the years ended September 30, 2014 and 2013.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">Property and equipment
consisted of the following:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td> </td>
<td colspan="2" id="ffc" style="vertical-align: bottom; text-align: center"><font style="font-size: 10pt"><b>Year End</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="vertical-align: bottom; text-align: center"><font style="font-size: 10pt"><b>Year End</b></font></td>
<td> </td></tr>
<tr>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td> </td>
<td colspan="2" style="vertical-align: bottom; text-align: center"><font style="font-size: 10pt"><b>September 30,</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="vertical-align: bottom; text-align: center"><font style="font-size: 10pt"><b>September 30,</b></font></td>
<td> </td></tr>
<tr>
<td colspan="2" style="vertical-align: bottom; padding-bottom: 1pt"><font style="font-size: 10pt"><b>Description</b></font></td>
<td> </td>
<td colspan="2" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center"><font style="font-size: 10pt"><b>2014</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center"><font style="font-size: 10pt"><b>2013</b></font></td>
<td> </td></tr>
<tr style="background-color: #CCEEFF">
<td colspan="2" style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">Equipment</font></td>
<td> </td>
<td style="vertical-align: bottom"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">44,930</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">33,109</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td colspan="2" style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">Furniture & Fixtures</font></td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">75,351</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">57,654</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td colspan="2" style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">Property Improvement</font></td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">233,615</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">233,615</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td colspan="2" style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"><font style="font-size: 10pt">Software</font></td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">30,558</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"> </td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">30,558</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom; width: 2%"> </td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">Total Depreciable Assets</font></td>
<td style="width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">384,454</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">354,936</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td colspan="2" style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"><font style="font-size: 10pt">Accumulated Depreciation</font></td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(98,238</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(60,073</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom; padding-bottom: 1pt"> </td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"><font style="font-size: 10pt">NBV Fixed Assets</font></td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">286,216</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"> </td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">294,863</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td colspan="2" style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"><font style="font-size: 10pt">Work In Progress (1)</font></td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">36,443</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"> </td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid; padding-bottom: 0.75pt; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom; padding-bottom: 1pt"> </td>
<td style="vertical-align: bottom; padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">322,659</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">294,863</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"> </td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">As of September 30, 2014,
the Company had $125,754 of intangible assets, consisting of a second and a third franchise concept and trademarks for $25,250
and $23,300, respectively, under developing subsidiaries called CI Franchise Company LLC (Challenge Island) and Sew Fun Franchise
Company LLC. Also included is a net change of $30,484 as the result of the repurchase of three BKF franchises and sale of one BKF
franchises in Nevada, Texas, and Missouri.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">As of September 30, 2013,
the Company had $95,270 of intangible assets, consisting of a second and a third franchise concept and trademarks for $25,250 and
$23,300, respectively, under newly created subsidiaries called CI Franchise Company LLC (Challenge Island) and Sew Fun Franchise
Company LLC, a $40,000 purchase of a Franchisee territory in Denver, and $6,720 for the purchase of a partial Franchisee Territory
in Texas.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr>
<td colspan="5" style="text-align: center"><font style="font-size: 10pt"><b>Creative Learning Corporation</b></font></td></tr>
<tr>
<td colspan="5" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">Intangible Asset Roll-forward</font></td></tr>
<tr>
<td> </td>
<td> </td>
<td colspan="2" id="ffc" style="vertical-align: bottom"> </td>
<td> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 10pt">Balance October 1, 2012</font></td>
<td style="width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">46,720</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="text-align: justify"><font style="font-size: 10pt">Additions</font></td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">48,550</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 10pt">Disposals</font></td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="text-align: justify"><font style="font-size: 10pt">Balance September 30, 2013</font></td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">95,270</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 10pt">Additions</font></td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">77,474</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="text-align: justify"><font style="font-size: 10pt">Disposals</font></td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(46,990</font></td>
<td style="vertical-align: bottom"><font style="font-size: 10pt">)</font></td></tr>
<tr style="background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 10pt">Balance September 30, 2014</font></td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">125,754</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Employee stock options</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">The Company accounts for
employee stock options under ASC 718, Compensation – Stock Compensation, whereby option costs are recorded based on the Black-Scholes
option pricing model. Unless otherwise provided for, the Company covers option exercises by issuing new shares.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">On July 1, 2013, the Company
issued 50,000 common stock purchase options (25,000 each to an employee and to an officer/director), allowing the holders to purchase
one share of common stock per option, exercisable at $.60 per share with an expiration date of December 31, 2015. At September
30, 2014 these share options were still outstanding. The fair value of the option grants were estimated on the date of grant using
the Black-Scholes option pricing model.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; margin-left: 0pt; text-indent: 20pt; text-align: justify">On
February 3, 2014, the Company issued 70,000 common stock purchase options (20,000 each to two officers and 10,000 each to three
employees) allowing the holders to purchase one share of common stock per option, exercisable at $1.55 per share with an expiration
date of December 31, 2016. These options were fully vested on October 1, 2014. At September 30, 2014 these share options were
still outstanding. The fair value of the options grants were estimated on the date of grant using the Black-Scholes option pricing
model. The company incurred and recorded compensation expense of $56,630 for the year ended September 30, 2014 and $6,613 for
the year ended September 30, 2013.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr>
<td style="vertical-align: bottom"></td>
<td> </td>
<td colspan="2" style="vertical-align: bottom; text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="vertical-align: bottom; text-align: center"> </td>
<td> </td>
<td style="vertical-align: bottom"> </td>
<td> </td>
<td colspan="2" style="vertical-align: bottom; text-align: center"> </td>
<td> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-bottom: 1pt"><font style="font-size: 10pt"><b>Description</b></font></td>
<td> </td>
<td colspan="2" id="ffc" style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Number of</b></font><br />
<font style="font-size: 10pt"><b>Shares</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center"><font style="font-size: 10pt"><b>Weighted</b></font><br />
<font style="font-size: 10pt"><b>Average Exercise</b></font><br />
<font style="font-size: 10pt"><b>Price</b></font></td>
<td> </td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Expiration</b></font><br />
<font style="font-size: 10pt"><b>Date</b></font></td>
<td> </td>
<td colspan="2" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center"><font style="font-size: 10pt"><b>Aggregate</b></font><br />
<font style="font-size: 10pt"><b>Intrinsic</b></font><br />
<font style="font-size: 10pt"><b>Value</b></font></td>
<td> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 10pt">Outstanding October 1, 2012</font></td>
<td style="width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="width: 1%; text-align: justify"> </td>
<td style="width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 9%; text-align: right"> </td>
<td style="width: 1%; text-align: justify"> </td>
<td style="width: 9%; text-align: justify"> </td>
<td style="width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="padding-bottom: 1pt; text-align: justify"><font style="font-size: 10pt">Granted July 1, 2013</font></td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: right"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">50,000</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"> </td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">0.60</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">12/31/15</font></td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="padding-bottom: 1pt; text-align: justify"><font style="font-size: 10pt">Outstanding 09/30/2013</font></td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">50,000</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"> </td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">0.60</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="padding-bottom: 1pt; text-align: justify"><font style="font-size: 10pt">Granted February 3, 2014</font></td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">70,000</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"> </td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">1.55</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">12/31/16</font></td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="padding-bottom: 1pt; text-align: justify"><font style="font-size: 10pt">Outstanding 09/30/2014</font></td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">120,000</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"> </td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">1.15</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="padding-bottom: 1pt; text-align: justify"><font style="font-size: 10pt">Exercisable at September 30, 2014</font></td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">50,000</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"> </td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="padding-bottom: 1pt; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="padding-bottom: 1pt; text-align: justify"><font style="font-size: 10pt">Expected to vest at September 30, 2014</font></td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">120,000</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"> </td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="padding-bottom: 1pt; text-align: justify"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">The Company recognized stock compensation expense
as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr>
<td> </td>
<td> </td>
<td colspan="2" style="vertical-align: bottom; text-align: center"><font style="font-size: 10pt"><b>Year Ended</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="vertical-align: bottom; text-align: center"><font style="font-size: 10pt"><b>Year Ended</b></font></td>
<td> </td></tr>
<tr>
<td> </td>
<td> </td>
<td colspan="2" style="vertical-align: bottom; text-align: center"><font style="font-size: 10pt"><b>September 30</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="vertical-align: bottom; text-align: center"><font style="font-size: 10pt"><b>September 30</b></font></td>
<td> </td></tr>
<tr>
<td> </td>
<td> </td>
<td colspan="2" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center"><font style="font-size: 10pt"><b>2014</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center"><font style="font-size: 10pt"><b>2013</b></font></td>
<td> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="padding-bottom: 1pt; text-align: justify"><font style="font-size: 10pt">Stock Option Expense</font></td>
<td style="width: 1%; padding-bottom: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; border-bottom: black 1pt solid"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">56,630</font></td>
<td style="vertical-align: bottom; width: 1%; padding-bottom: 1pt; text-align: justify"> </td>
<td style="width: 1%; border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; border-bottom: black 1pt solid"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">6,613</font></td>
<td style="vertical-align: bottom; width: 1%; padding-bottom: 1pt; text-align: justify"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">  </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; margin-left: 0pt; text-indent: 20pt; text-align: justify">No
additional stock based compensation is to be recognized on these stock options. </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; margin-left: 0pt; text-indent: 20pt; text-align: justify">The
fair value of the options granted during the various periods was estimated at the date of grant using the Black-Scholes option-pricing
model and the following assumptions:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>2014</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>2013</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 10pt">Year Options were granted</font></td>
<td style="text-align: justify"> </td>
<td colspan="2"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 10pt">Market value of stock on grant date</font></td>
<td style="width: 1%; text-align: justify"> </td>
<td style="width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 10pt">1.55</font></td>
<td style="width: 1%; text-align: justify"> </td>
<td style="width: 1%; text-align: justify"> </td>
<td style="width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 10pt">0.60</font></td>
<td style="width: 1%; text-align: justify"> </td>
<td style="width: 1%; text-align: justify"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify"><font style="font-size: 10pt">Risk-free interest rate</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: right"><font style="font-size: 10pt">.30</font></td>
<td style="text-align: justify"><font style="font-size: 10pt">%</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: right"><font style="font-size: 10pt">.61</font></td>
<td style="text-align: justify"><font style="font-size: 10pt">%</font></td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 10pt">Dividend Yield</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: right"><font style="font-size: 10pt">0</font></td>
<td style="text-align: justify"><font style="font-size: 10pt">%</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: right"><font style="font-size: 10pt">0</font></td>
<td style="text-align: justify"><font style="font-size: 10pt">%</font></td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify"><font style="font-size: 10pt">Volatility Factor</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: right"><font style="font-size: 10pt">100</font></td>
<td style="text-align: justify"><font style="font-size: 10pt">%</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: right"><font style="font-size: 10pt">36</font></td>
<td style="text-align: justify"><font style="font-size: 10pt">%</font></td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 10pt">Weighted average expected life</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: right"><font style="font-size: 10pt"> 2 years</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: right"><font style="font-size: 10pt"> 2 years</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify"><font style="font-size: 10pt">Expected forfeiture rate</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: right"><font style="font-size: 10pt">0</font></td>
<td style="text-align: justify"><font style="font-size: 10pt">%</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: right"><font style="font-size: 10pt">0</font></td>
<td style="text-align: justify"><font style="font-size: 10pt">%</font></td>
<td style="text-align: justify"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; margin-left: 0pt; text-indent: 20pt; text-align: justify">Fair
value is generally based on independent sources such as quoted market prices or dealer price quotations. To the extent certain
financial instruments trade infrequently or are non-marketable securities, they may not have readily determinable fair values.
The Company estimated the fair value of the options using a Black Scholes option pricing model and available information that
management deems most relevant. The stock price is the closing price of the Company’s stock on the valuation date; the risk
free interest rate is based on the U.S. Government Securities rate for 2 year maturities on the date of issuance; the volatility
is a statistical measure (standard deviation) of the tendency of the Company’s stock price to change over time; the exercise
price is the price at which the Options can be purchased by exercising prior to its expiration; the dividend yield is not applicable
due to the Company not intending to declare dividends; the contractual life is based on the average exercise period of the Options;
and the fair market value is value of the options based on the Black Scholes model on the valuation date.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">The Company currently
supports independently owned franchises located in 43 states, 9 Canadian provinces and 31 other countries. Following is a summary
of the annual franchise activity:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr>
<td> </td>
<td id="ffc" style="vertical-align: bottom"> </td>
<td colspan="6" style="vertical-align: bottom; text-align: center"><font style="font-size: 10pt"><b>BFK Franchise Company LLC</b></font></td>
<td> </td></tr>
<tr>
<td> </td>
<td style="vertical-align: bottom"> </td>
<td colspan="6" style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>September 30</b></font></td>
<td> </td></tr>
<tr>
<td> </td>
<td> </td>
<td colspan="2" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center"><font style="font-size: 10pt"><b>2014</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center"><font style="font-size: 10pt"><b>2013</b></font></td>
<td> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 10pt">Franchises in Operation - beginning of year</font></td>
<td style="width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">380</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">210</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="text-align: justify"><font style="font-size: 10pt">Franchises sold during the year</font></td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">210</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">175</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 10pt">Franchises cancelled, terminated or repurchased during the year</font></td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(6</font></td>
<td style="vertical-align: bottom"><font style="font-size: 10pt">)</font></td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(5</font></td>
<td style="vertical-align: bottom"><font style="font-size: 10pt">)</font></td></tr>
<tr style="background-color: white">
<td style="padding-bottom: 1pt; text-align: justify"><font style="font-size: 10pt">Franchises in operation - end of year</font></td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double; text-align: justify"> </td>
<td style="border-bottom: black 2.25pt double; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">584</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"> </td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double; text-align: justify"> </td>
<td style="border-bottom: black 2.25pt double; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">380</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr>
<td> </td>
<td style="vertical-align: bottom"> </td>
<td colspan="6" style="vertical-align: bottom; text-align: center"><font style="font-size: 10pt"><b>CI Franchise Company LLC</b></font></td>
<td> </td></tr>
<tr>
<td> </td>
<td style="vertical-align: bottom"> </td>
<td colspan="6" style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>September 30</b></font></td>
<td> </td></tr>
<tr>
<td> </td>
<td> </td>
<td colspan="2" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center"><font style="font-size: 10pt"><b>2014</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center"><font style="font-size: 10pt"><b>2013</b></font></td>
<td> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 10pt">Franchises in Operation - beginning of year</font></td>
<td style="width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">15</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="text-align: justify"><font style="font-size: 10pt">Franchises sold during the year</font></td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">21</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">15</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 10pt">Franchises cancelled, terminated or repurchased during the year</font></td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(2</font></td>
<td style="vertical-align: bottom"><font style="font-size: 10pt">)</font></td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="padding-bottom: 1pt; text-align: justify"><font style="font-size: 10pt">Franchises in operation - end of year</font></td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double; text-align: justify"> </td>
<td style="border-bottom: black 2.25pt double; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">34</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"> </td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double; text-align: justify"> </td>
<td style="border-bottom: black 2.25pt double; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">15</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">Franchises are required
to pay the Company an initial franchise fee, royalty fees and a marketing fee. The marketing fee is 2% of gross sales, and the
current royalty fee is 7% of gross sales. A limited number of earlier agreements set the royalty fee at 5% if they opened a Creativity
Center, but is not in the current agreements.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">The Company currently
supports independently owned franchises located in 43 states, 9 Canadian provinces and 31 other countries. Following is a summary
of the annual franchise activity:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr>
<td> </td>
<td id="ffc" style="vertical-align: bottom"> </td>
<td colspan="6" style="vertical-align: bottom; text-align: center"><font style="font-size: 10pt"><b>BFK Franchise Company LLC</b></font></td>
<td> </td></tr>
<tr>
<td> </td>
<td style="vertical-align: bottom"> </td>
<td colspan="6" style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>September 30</b></font></td>
<td> </td></tr>
<tr>
<td> </td>
<td> </td>
<td colspan="2" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center"><font style="font-size: 10pt"><b>2014</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center"><font style="font-size: 10pt"><b>2013</b></font></td>
<td> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 10pt">Franchises in Operation - beginning of year</font></td>
<td style="width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">380</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">210</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="text-align: justify"><font style="font-size: 10pt">Franchises sold during the year</font></td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">210</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">175</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 10pt">Franchises cancelled, terminated or repurchased during the year</font></td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(6</font></td>
<td style="vertical-align: bottom"><font style="font-size: 10pt">)</font></td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(5</font></td>
<td style="vertical-align: bottom"><font style="font-size: 10pt">)</font></td></tr>
<tr style="background-color: white">
<td style="padding-bottom: 1pt; text-align: justify"><font style="font-size: 10pt">Franchises in operation - end of year</font></td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double; text-align: justify"> </td>
<td style="border-bottom: black 2.25pt double; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">584</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"> </td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double; text-align: justify"> </td>
<td style="border-bottom: black 2.25pt double; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">380</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr>
<td> </td>
<td style="vertical-align: bottom"> </td>
<td colspan="6" style="vertical-align: bottom; text-align: center"><font style="font-size: 10pt"><b>CI Franchise Company LLC</b></font></td>
<td> </td></tr>
<tr>
<td> </td>
<td style="vertical-align: bottom"> </td>
<td colspan="6" style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>September 30</b></font></td>
<td> </td></tr>
<tr>
<td> </td>
<td> </td>
<td colspan="2" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center"><font style="font-size: 10pt"><b>2014</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center"><font style="font-size: 10pt"><b>2013</b></font></td>
<td> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 10pt">Franchises in Operation - beginning of year</font></td>
<td style="width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">15</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="text-align: justify"><font style="font-size: 10pt">Franchises sold during the year</font></td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">21</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">15</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 10pt">Franchises cancelled, terminated or repurchased during the year</font></td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(2</font></td>
<td style="vertical-align: bottom"><font style="font-size: 10pt">)</font></td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="padding-bottom: 1pt; text-align: justify"><font style="font-size: 10pt">Franchises in operation - end of year</font></td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double; text-align: justify"> </td>
<td style="border-bottom: black 2.25pt double; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">34</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"> </td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double; text-align: justify"> </td>
<td style="border-bottom: black 2.25pt double; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">15</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"> </td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">The following table summarizes
the Company’s contractual lease obligations as of September 30, 2014:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>2015</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>2016</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>2017</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Total</b></font></td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 389px; text-align: justify"><font style="font-size: 10pt">Lease of office space</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: right"><font style="font-size: 10pt">28,500</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: right"><font style="font-size: 10pt">28,500</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: right"><font style="font-size: 10pt">26,600</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">83,600</font></td>
<td style="text-align: justify"> </td></tr>
<tr>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">The provision for income
taxes, income taxes payable and deferred income taxes are determined using the asset and liability method. Deferred tax assets
and liabilities are determined based on temporary differences between the financial carrying amounts and the tax basis of assets
and liabilities using enacted tax rates in effect in the years in which the temporary differences are expected to reverse. On a
periodic basis, the Company assesses the probability that its net deferred tax assets, if any, will be recovered. If after evaluating
all of the positive and negative evidence, a conclusion is made that it is more likely than not that some portion or all of the
net deferred tax assets will not be recovered, a valuation allowance is provided by a charge to tax expense to reserve the portion
of the deferred tax assets which are not expected to be realized.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">The Company reviews its
filing positions for all open tax years in all U.S. federal and state jurisdictions where the Company is required to file.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">When there are uncertainties
related to potential income tax benefits, in order to qualify for recognition, the position the Company takes has to have at least
a “more likely than not” chance of being sustained (based on the position’s technical merits) upon challenge
by the respective authorities. The term “more likely than not” means a</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">likelihood of more than
50 percent. Otherwise, the Company may not recognize any of the potential tax benefit associated with the position. The Company
recognizes a benefit for a tax position that meets the “more likely than not” criterion at the largest amount of tax
benefit that is greater than 50 percent likely of being realized upon its effective resolution. Unrecognized tax benefits involve
management’s judgment regarding the likelihood of the benefit being sustained. The final resolution of uncertain tax positions
could result in adjustments to recorded amounts and may affect our results of operations, financial position and cash flows.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">The Company’s policy
is to recognize interest and/or penalties related to income tax matters in income tax expense. The Company had no accrual for interest
or penalties at September 30, 2014 and September 30, 2013, respectively, and has not recognized interest and/or penalties during
the years ended September 30, 2014 and September 30, 2013, respectively, since there are no material unrecognized tax benefits.
Management believes no material change to the amount of unrecognized tax benefits will occur within in the next 12 months.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">The tax years subject
to examination by major tax jurisdictions include the years 2010 and forward by the U.S. Internal Revenue Service, and the years
2009 and forward for various states.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 22.5pt"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>September 30,</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>September 30,</b></font></td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>2014</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>2013</b></font></td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 10pt">Deferred tax assets:</font></td>
<td style="text-align: justify"> </td>
<td colspan="2" style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="text-align: justify"> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: justify; text-indent: 22.5pt"><font style="font-size: 10pt">Short-term</font></td>
<td style="width: 1%; text-align: justify"> </td>
<td style="width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 10pt">48,723</font></td>
<td style="width: 1%; text-align: justify"> </td>
<td style="width: 1%; text-align: justify"> </td>
<td style="width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 10pt">1,058</font></td>
<td style="width: 1%; text-align: justify"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify; text-indent: 22.5pt"><font style="font-size: 10pt">Long-term</font></td>
<td style="text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">-0-</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">-0-</font></td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: justify; text-indent: 45pt"><font style="font-size: 10pt">Total deferred tax asset</font></td>
<td style="text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">48,723</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">1,058</font></td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td colspan="4" style="text-align: justify"><font style="font-size: 10pt">Deferred tax liabilities:</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify; text-indent: 22.5pt"><font style="font-size: 10pt">Short-term</font></td>
<td style="text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(27,780</font></td>
<td style="text-align: justify"><font style="font-size: 10pt">) </font></td>
<td style="text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">-0-</font></td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: justify; text-indent: 22.5pt"><font style="font-size: 10pt">Long-term</font></td>
<td style="text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">-0-</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">-0-</font></td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify; text-indent: 45pt"><font style="font-size: 10pt">Total deferred tax liabilities</font></td>
<td style="text-align: justify"> </td>
<td style="border-bottom: black 1pt solid"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(27,780</font></td>
<td><font style="font-size: 10pt">)</font></td>
<td style="text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">-0-</font></td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: justify; text-indent: 45pt"><font style="font-size: 10pt">Total deferred tax assets</font></td>
<td style="text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">48,723</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">1,058</font></td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify; text-indent: 45pt"><font style="font-size: 10pt">Net deferred tax assets (liability)</font></td>
<td style="text-align: justify"> </td>
<td style="border-bottom: black 2.25pt double; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">20,943</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="border-bottom: black 2.25pt double; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">1,058</font></td>
<td style="text-align: justify"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">  </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">The types of temporary differences between
the tax basis of assets and their financial reporting amounts that give rise to a significant portion of the deferred assets and
liabilities are as follows:  </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="6" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>September 30, 2014</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="6" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>September 30, 2013</b></font></td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>Temporary</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>Tax</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>Temporary</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>Tax</b></font></td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Difference</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Effect</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Difference</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Effect</b></font></td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 10pt">Deferred tax assets:</font></td>
<td style="text-align: justify"> </td>
<td colspan="2"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2"> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 10pt">Depreciation timing difference</font></td>
<td style="width: 1%; text-align: justify"> </td>
<td style="width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 10pt">-0-</font></td>
<td style="width: 1%; text-align: justify"> </td>
<td style="width: 1%; text-align: justify"> </td>
<td style="width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 10pt">-0-</font></td>
<td style="width: 1%; text-align: justify"> </td>
<td style="width: 1%; text-align: justify"> </td>
<td style="width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 10pt">3,084</font></td>
<td style="width: 1%; text-align: justify"> </td>
<td style="width: 1%; text-align: justify"> </td>
<td style="width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 10pt">1,058</font></td>
<td style="width: 1%; text-align: justify"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify"><font style="font-size: 10pt">Allowance for bad debt</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: right"><font style="font-size: 10pt">41,000</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: right"><font style="font-size: 10pt">16,195</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: right"><font style="font-size: 10pt">-0-</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: right"><font style="font-size: 10pt">-0-</font></td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 10pt">Florida income tax</font></td>
<td style="text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">82,350</font></td>
<td style="padding-bottom: 0.75pt; text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">32,528</font></td>
<td style="padding-bottom: 0.75pt; text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">-0-</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">-0-</font></td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 10pt">Total deferred tax asset</font></td>
<td style="text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">123,350</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">48,723</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">3,084</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">1,058</font></td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td colspan="8" style="text-align: justify"><font style="font-size: 10pt">Deferred tax liabilities:</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify"><font style="font-size: 10pt">  Depreciation timing difference</font></td>
<td style="text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(70,329</font></td>
<td style="text-align: justify"><font style="font-size: 10pt">) </font></td>
<td style="text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(27,780</font></td>
<td style="text-align: justify"><font style="font-size: 10pt">) </font></td>
<td style="text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">-0-</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">-0-</font></td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 10pt">Total deferred liability</font></td>
<td style="text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(70,329</font></td>
<td style="text-align: justify"><font style="font-size: 10pt">) </font></td>
<td style="text-align: justify"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(27,780</font></td>
<td><font style="font-size: 10pt">)</font></td>
<td style="text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">-0-</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">-0-</font></td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 10pt">Net deferred tax asset</font></td>
<td style="text-align: justify"> </td>
<td style="border-bottom: black 2.25pt double; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">53,021</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="border-bottom: black 2.25pt double; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">20,943</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="border-bottom: black 2.25pt double; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">3,084</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="border-bottom: black 2.25pt double; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">1,058</font></td>
<td style="text-align: justify"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 22.5pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">The Income Tax expense
for September 30, 2014, reflects the taxes due with taxable income of $1,416,506.  The tax year ending September 30, 2013
included a $907,000 NOL Carryforward with taxable income for the year of $64,000. </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">A current Income Tax
Receivable is due for September 30, 2014 from the Federal Government and Florida State.  This is the result of excess quarterly
deposit made during the year.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 22.5pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">The components of the provisions for income
taxes for fiscal years 2014 and 2013 are as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr>
<td> </td>
<td> </td>
<td> </td>
<td colspan="2" id="ffc" style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>2014</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center"><font style="font-size: 10pt"><b>2013</b></font></td>
<td> </td></tr>
<tr>
<td colspan="2"><font style="font-size: 10pt">Current:</font></td>
<td> </td>
<td colspan="2" style="vertical-align: bottom"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="vertical-align: bottom"> </td>
<td> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="width: 2%"> </td>
<td style="text-align: justify"><font style="font-size: 10pt">Federal</font></td>
<td style="width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">489,188</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">10,884</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="padding-bottom: 1pt"> </td>
<td style="text-align: justify; padding-bottom: 1pt"><font style="font-size: 10pt">State</font></td>
<td style="text-align: justify; padding-bottom: 1pt"> </td>
<td style="vertical-align: bottom; text-align: justify; border-bottom: Black 1pt solid"> </td>
<td style="vertical-align: bottom; text-align: right; border-bottom: Black 1pt solid"><font style="font-size: 10pt">82,822</font></td>
<td style="vertical-align: bottom; text-align: justify; padding-bottom: 1pt"> </td>
<td style="text-align: justify; padding-bottom: 1pt"> </td>
<td style="vertical-align: bottom; text-align: justify; border-bottom: Black 1pt solid"> </td>
<td style="vertical-align: bottom; text-align: right; border-bottom: Black 1pt solid"><font style="font-size: 10pt">2,247</font></td>
<td style="vertical-align: bottom; text-align: justify; padding-bottom: 1pt"> </td></tr>
<tr style="background-color: #CCEEFF">
<td colspan="2" style="text-align: justify; padding-bottom: 2.5pt"><font style="font-size: 10pt">Total current provision</font></td>
<td style="text-align: justify; padding-bottom: 2.5pt"> </td>
<td style="vertical-align: bottom; text-align: justify; border-bottom: Black 2.5pt double"> </td>
<td style="vertical-align: bottom; text-align: right; border-bottom: Black 2.5pt double"><font style="font-size: 10pt">572,010</font></td>
<td style="vertical-align: bottom; text-align: justify; padding-bottom: 2.5pt"> </td>
<td style="text-align: justify; padding-bottom: 2.5pt"> </td>
<td style="vertical-align: bottom; text-align: justify; border-bottom: Black 2.5pt double"> </td>
<td style="vertical-align: bottom; text-align: right; border-bottom: Black 2.5pt double"><font style="font-size: 10pt">13,131</font></td>
<td style="vertical-align: bottom; text-align: justify; padding-bottom: 2.5pt"> </td></tr>
<tr style="background-color: white">
<td> </td>
<td> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td colspan="2" style="text-align: justify"><font style="font-size: 10pt">Deferred:</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="text-align: justify"> </td></tr>
<tr style="background-color: white">
<td> </td>
<td style="text-align: justify"><font style="font-size: 10pt">Federal</font></td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(20,943</font></td>
<td style="vertical-align: bottom"><font style="font-size: 10pt">)</font></td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(1,058</font></td>
<td style="vertical-align: bottom"><font style="font-size: 10pt">)</font></td></tr>
<tr style="background-color: #CCEEFF">
<td> </td>
<td style="text-align: justify"><font style="font-size: 10pt">State</font></td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td colspan="2" style="text-align: justify; padding-bottom: 1pt"><font style="font-size: 10pt">Total deferred provision</font></td>
<td style="text-align: justify; padding-bottom: 1pt"> </td>
<td style="vertical-align: bottom; border-bottom: Black 1pt solid"> </td>
<td style="vertical-align: bottom; text-align: right; border-bottom: Black 1pt solid"><font style="font-size: 10pt">(20,943</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td>
<td style="text-align: justify; padding-bottom: 1pt"> </td>
<td style="vertical-align: bottom; border-bottom: Black 1pt solid"> </td>
<td style="vertical-align: bottom; text-align: right; border-bottom: Black 1pt solid"><font style="font-size: 10pt">(1,058</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td></tr>
<tr style="background-color: #CCEEFF">
<td colspan="2" style="text-align: justify; padding-bottom: 2.5pt"><font style="font-size: 10pt">Total provision</font></td>
<td style="text-align: justify; padding-bottom: 2.5pt"> </td>
<td style="vertical-align: bottom; border-bottom: Black 2.5pt double"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; text-align: right; border-bottom: Black 2.5pt double"><font style="font-size: 10pt">551,067</font></td>
<td style="vertical-align: bottom; text-align: justify; padding-bottom: 2.5pt"> </td>
<td style="text-align: justify; padding-bottom: 2.5pt"> </td>
<td style="vertical-align: bottom; border-bottom: Black 2.5pt double"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; text-align: right; border-bottom: Black 2.5pt double"><font style="font-size: 10pt">12,073</font></td>
<td style="vertical-align: bottom; text-align: justify; padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">The income tax provision differs from the amount
which would result from the statutory federal income tax rate primarily as a result of state income taxes.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 60pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">The income tax provision differs from that
computed using the federal statutory rate applied to income before taxes as follows for fiscal years 2014 and 2013:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr>
<td> </td>
<td> </td>
<td> </td>
<td colspan="6" style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>2014</b></font></td>
<td style="vertical-align: bottom"> </td>
<td> </td>
<td colspan="6" style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>2013</b></font></td>
<td style="vertical-align: bottom"> </td></tr>
<tr>
<td> </td>
<td> </td>
<td> </td>
<td colspan="2" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center"><font style="font-size: 10pt"><b>Amount</b></font></td>
<td> </td>
<td style="vertical-align: bottom"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center"><font style="font-size: 10pt"><b>%</b></font></td>
<td style="vertical-align: bottom"> </td>
<td> </td>
<td colspan="2" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center"><font style="font-size: 10pt"><b>Amount</b></font></td>
<td> </td>
<td style="vertical-align: bottom"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center"><font style="font-size: 10pt"><b>%</b></font></td>
<td style="vertical-align: bottom"> </td></tr>
<tr style="background-color: #CCEEFF">
<td colspan="2" style="text-align: justify"><font style="font-size: 10pt">Provision at statutory rates</font></td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">489,188</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">32.13</font></td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">%</font></td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">10,884</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">17.13</font></td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">%</font></td></tr>
<tr style="background-color: white">
<td colspan="2" style="text-align: justify"><font style="font-size: 10pt">State income tax, net of federal benefit</font></td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">82,822</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">5.50</font></td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">%</font></td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">2,247</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">3.54</font></td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">%</font></td></tr>
<tr style="background-color: #CCEEFF">
<td colspan="2" style="text-align: justify"><font style="font-size: 10pt">Other temporary items</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="width: 2%"> </td>
<td style="text-align: justify"><font style="font-size: 10pt">Bad Debt</font></td>
<td style="width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">(16,195</font></td>
<td style="vertical-align: bottom; width: 1%"><font style="font-size: 10pt">)</font></td>
<td style="width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">1.10</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font-size: 10pt">%</font></td>
<td style="width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="width: 1%; text-align: justify"> </td>
<td style="width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 9%; text-align: right"> </td>
<td style="width: 1%; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td> </td>
<td style="text-align: justify"><font style="font-size: 10pt">Florida income tax</font></td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(32,528</font></td>
<td style="vertical-align: bottom"><font style="font-size: 10pt">)</font></td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">2.20</font></td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">%</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="text-align: justify"> </td></tr>
<tr style="background-color: white">
<td> </td>
<td style="text-align: justify"><font style="font-size: 10pt">Depreciation</font></td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">27,780</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">1.90</font></td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">%</font></td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(1,058</font></td>
<td style="vertical-align: bottom"><font style="font-size: 10pt">)</font></td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">1.70</font></td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">%</font></td></tr>
<tr style="background-color: #CCEEFF">
<td colspan="2" style="padding-bottom: 1pt; text-align: justify"><font style="font-size: 10pt">Other permanent items</font></td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"> </td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"> </td>
<td style="border-bottom: black 1pt solid; padding-bottom: 0.75pt; text-align: justify"> </td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"> </td>
<td style="border-bottom: black 1pt solid; padding-bottom: 0.75pt; text-align: justify"> </td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"> </td>
<td style="border-bottom: black 1pt solid; padding-bottom: 0.75pt; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td colspan="2" style="padding-bottom: 1pt; text-align: justify"><font style="font-size: 10pt">Total income tax provision</font></td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">551,067</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"> </td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double; text-align: justify"> </td>
<td style="border-bottom: black 2.25pt double; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">36.23</font></td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid; padding-bottom: 2.25pt; text-align: justify"><font style="font-size: 10pt">%</font></td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">12,073</font></td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid; padding-bottom: 2.25pt; text-align: justify"> </td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double; text-align: justify"> </td>
<td style="border-bottom: black 2.25pt double; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">19.00</font></td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid; padding-bottom: 2.25pt; text-align: justify"><font style="font-size: 10pt">%</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">We have evaluated the
effects of all subsequent events from October 1, 2013 through the date the accompanying consolidated financial statements were
available to be issued. Other that those set out above, there have been no subsequent events after September 30, 2013 for which
disclosure is required.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">During the years ended
September 30, 2014 and 2013, the Company paid related parties (companies related by common control) for the following expenses:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr>
<td> </td>
<td id="ffc" style="vertical-align: bottom"> </td>
<td colspan="6" style="vertical-align: bottom; text-align: center"><font style="font-size: 10pt"><b>Commissions and Consulting</b></font></td>
<td> </td></tr>
<tr>
<td> </td>
<td style="vertical-align: bottom"> </td>
<td colspan="6" style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Fiscal Years Ending</b></font></td>
<td> </td></tr>
<tr>
<td> </td>
<td> </td>
<td colspan="2" style="vertical-align: bottom; text-align: center"><font style="font-size: 10pt"><b>September 30</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="vertical-align: bottom; text-align: center"><font style="font-size: 10pt"><b>September 30</b></font></td>
<td> </td></tr>
<tr>
<td style="padding-bottom: 1pt"><font style="font-size: 10pt"><b>Related Party</b></font></td>
<td> </td>
<td colspan="2" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center"><font style="font-size: 10pt"><b>2014</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center"><font style="font-size: 10pt"><b>2013</b></font></td>
<td> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 10pt">FranVentures, LLC</font></td>
<td style="width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">289,061</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">248,127</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="text-align: justify"><font style="font-size: 10pt">MC Logic, LLC</font></td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">244,000</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">137,000</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="padding-bottom: 1pt; text-align: justify"><font style="font-size: 10pt">Leap Ahead Learning Company</font></td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">83,000</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"> </td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">108,000</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">616,061</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"> </td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">493,127</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">Fran Ventures, LLC is
100% owned by Brian Pappas, Principal Officer and Director of the Company. MC Logic, LLC is 100% owned by Michelle Cote a Director
of the Company. Leap Ahead Leaning Company is 100% owned by Dan O’Donnell a Director of the Company.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">In June of 2013, the Company
issued 50,000 stock options (25,000 each to an officer/director and an employee) at an option price of $0.60 per share, with an
expiration date of December 31, 2015, resulting in a $6,612 stock option expense to the Company using the Black Scholes model.
See note 9.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">In July of 2013, the Company
loaned $70,000 to AudioFlix, Inc., a related party entity. The loan was personally guaranteed by Brian Papas. The loan bears interest
at 6%, payable monthly and is due and payable on July 1, 2015. The unpaid balance of the loan is convertible prior to July 1, 2015
into unrestricted shares of the common stock of AudioFlix, Inc. at a price of $0.35 per share.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">In February of 2014, the
Company issued 70,000 stock options (20,000 each to two officers and 10,000 each to three employees) at an option price of $1.55
per share, with an expiration date of December 31, 2016, resulting in a $56,630 stock option expense to the Company using the Black
Stoles model. See note 9.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">In July of 2013, the Company
issued a $70,000 loan to a related party company, personally guaranteed by the related party, at 6% interest, monthly interest
only payments and fully due and payable by July 1, 2015. The Note is convertible up to the maturity date to unrestricted shares
in the related party company for any unpaid balance at $0.35 per share. As of September 30, 2014 the $70,000, per the agreement
is outstanding.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">At September 30, 2014
and 2013 respectively, the Company held certain other receivables totaling $194,088 and $131,792 respectively for extended payment
terms of franchise fees, generally non-interest bearing notes with monthly payments, payable within one to two years, and Foreign
Tax Credits at September 30, 2014 of $22,729.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>2015</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>2016</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Total</b></font></td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 60%; text-align: justify"><font style="font-size: 10pt">Payment schedules for Notes And Other Receivables</font></td>
<td style="width: 1%; text-align: justify"> </td>
<td style="width: 1%; text-align: justify"> </td>
<td style="width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="width: 10%; text-align: right"><font style="font-size: 10pt">126,339</font></td>
<td style="width: 1%; text-align: justify"> </td>
<td style="width: 1%; text-align: justify"> </td>
<td style="width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="width: 10%; text-align: right"><font style="font-size: 10pt">67,749</font></td>
<td style="width: 1%; text-align: justify"> </td>
<td style="width: 1%; text-align: justify"> </td>
<td style="width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="width: 10%; text-align: right"><font style="font-size: 10pt">194,088</font></td>
<td style="width: 1%; text-align: justify"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">Per the terms of the franchise
agreements, the Company collects 2% of franchisee’s gross revenues for a marketing fund, managed by the Company, to allocate
towards national branding of the Company’s concepts to benefit the franchisees.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">The marketing fund amounts
are accounted for as a liability on the balance sheet and the actual collections are deposited into a marketing fund bank account.
Expenses pertaining to the marketing fund activities are paid from the marketing fund and reduce the liability account.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">As of September 30, 2014
and 2013, the accrued marketing fund liability balances were $180,009 and $100,754 respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Lease Commitments</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">The Company entered into
a Business Lease with Village Square at Palencia in July 2014, to lease unit 103B, Office Space 2, located at 701 Market Street,
St. Augustine, Florida. The contract period is beginning August 1, 2014 and ending July 31, 2017. The monthly rent is $950.00.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">The Company entered into
a Business Lease with Village Square at Palencia in July 2014, to lease unit 114 located at 701 Market Street, St. Augustine, Florida.
The contract period is beginning July 1, 2014 and ending June 15, 2019. The monthly rent is $1,425.00.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">The following table summarizes
the Company’s contractual lease obligations as of September 30, 2014:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>2015</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>2016</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>2017</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Total</b></font></td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 389px; text-align: justify"><font style="font-size: 10pt">Lease of office space</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: right"><font style="font-size: 10pt">28,500</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: right"><font style="font-size: 10pt">28,500</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: right"><font style="font-size: 10pt">26,600</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">83,600</font></td>
<td style="text-align: justify"> </td></tr>
<tr>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">Rent expense was $18,106
and $49,131, respectively, for the years ended September 30, 2014 and 2013.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 22.5pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Legal Settlement</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">On September 27, 2013,
BFK Franchise Company LLC was named as a co-defendant in a Complaint filed by a Franchisee in Nevada who had purchased three existing
Las Vegas territories from other Franchisees. In December of 2013, without any further legal process, BFK Franchise Company LLC
entered into a settlement with the Nevada Franchisee to purchase the three Las Vegas territories for $95,000. At the end of the
fiscal year September 30, 2014 the outstanding balance of the note was $55,000. This obligation will be satisfied during the next
11 months.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"><font style="font: 10pt Times New Roman, Times, Serif">The
Company may be involved in arbitration with Sew Fun, LLC (SFLLC), from which the Company purchased intellectual property to franchise
a new sewing franchise concept. As of the date of this filing there has been no formal complaint filed against the Company by
SFLLC, but managements has anticipated that there may be a complaint filed if settlement negotiations are not successful. SFLLC
is seeking $614,000 for what it claims is the Company’s failure to sell Sew Fun Studios franchises in 2013 and 2014. The
Company is seeking $804,000 against SF for the deceptive trade practices that the Company claims induced the Company to acquire
SFLLC’s intellectual property. As of the date of issuance, the Company’s legal counsel believes an unfavorable outcome
against the Company is unlikely. However, an estimated range of loss could be from $50,000 to $100,000. As of September 30, 2014,
the Company has not accrued any amounts related to this matter.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">During the year ended
September 30, 2013, the Company issued 20,000 shares of its common stock for partial payment of a promissory note to a related
party at the stated price valued at $20,000 at the stated price in the promissory note of $1.00 per share.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">During the year ended
September 30, 2013, the Company had two issuances of 35,000 and 10,000 shares of its common stock related to the acquisition of
a third Franchise concept valued at $17,500 or $0.50 per share and $5,800 or $0.58 per share, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">During the year ended
September 30, 2013, the Company had three issuances of 35,000, 5,000 and 15,000 shares of its common stock in exchange for consulting
services, valued at $21,000, $3,000 and $9,000, respectively, or at $0.60 per share.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">During the year ended
September 30, 2013, the Company, as a gesture of good will, issued 66,667 shares of its common stock to an individual investor
who had purchased stock in a prior year in a pass through arrangement with a third party company that did not fulfill their commitment
to transfer the stock. It was determined there was no recourse with the third party company, and the shares were issued at a Fair
Market Value of $38,667 or $0.58 per share. Related to this transaction, an adjustment was made to the Company issued share count
of an additional 66,667 shares that were also issued to the third party company in the prior year in error. The Company was awaiting
their return and cancellation. Without recourse with the third party company, these 66,667 shares were recorded at a fair value
of $30,000 or $0.45 per share based on the value on the date of the original issue.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">On June 23, 2014, the
Company agreed to issue 60,000 shares, over several quarters, of its common stock for payment relating to a commissions earned
for Master Franchise sales at such date. The total value of the 60,000 shares at the date of the agreement was $147,600 (60,000
shares times the fair value of $2.46 per share). The Company recorded the full fare value to Commission Expense and recorded a
liability under accrued stock based compensation in the accompanying consolidated statement balance sheet. The first 20,000 shares
were issued on July 29, 2014 with the respective $49,200 being re-classed to common stock and additional paid in capital with remaining
balance of $98,400 recorded under accrued stock based compensation at September 30, 2014.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Note dated September 2012</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">In September of 2012,
the Company issued a non-interest bearing promissory note of $40,000 to a related party for consulting services payable by issuance
of 40,000 shares of the Company’s common stock. As of September 30, 2014 and 2013, the remaining balance on this promissory
note was $0 and $20,000, respectively. During the year ended September 30, 2013, payments of $20,000 were made with the issuance
of common stock. During the year ended September 30, 2014, payments of $20,000 cash were made.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Deferred commission note payable</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">As of September 30, 2014
and September 30, 2013, the Company owed respectively $2,225 and $8,857 in deferred commission payments, non-interest bearing,
payable in monthly payments, on deferred payment schedules related to extended payment terms of Franchise Fees.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Nature
of Organization</i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"><font style="font: 10pt Times New Roman, Times, Serif">Creative
Learning Corporation (“CLC” or the “Company”), formerly B2 Health, Inc., was incorporated March 8, 2006 in
the State of Delaware. BFK Franchise Company LLC (“BFKF”) was formed in the State of Nevada on May 19, 2009. Effective
July 2, 2010, CLC was acquired by BFKF in a transaction classified as a reverse acquisition. CLC concurrently changed its name
from B2 Health, Inc. to Creative Learning Corporation. The financial statements represent the activity of BFKF from May 19, 2009
forward, and the consolidated activity of BFKF and CLC from July 2, 2010 forward. BFKF and CLC are hereinafter referred to collectively
as the "Company".</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"><font style="font: 10pt Times New Roman, Times, Serif">In
addition to the accounts of CLC and BFKF, the accompanying consolidated financial statements include the accounts of CLC’s
subsidiaries, BFK Development Company LLC (“BFKD”) from November 25, 2009 (BFKD’s inception) forward, CI Franchise
Company LLC (“CI”) from September 14, 2012 (CI’s inception) forward, and Sew Fun Franchise Company LLC (SF) from
January 8, 2013 (SF’s inception) forward.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"><font style="font: 10pt Times New Roman, Times, Serif">The
registration statements for BFK Development Company LLC, CI Franchise Company LLC, and Sew Fun Franchise Company LLC do not have
a termination date associated with the Life of the Organizations. Each of the above listed LLC’s has a single member, controller
100% by the Company.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"><font style="font: 10pt Times New Roman, Times, Serif">BFKF
held a 50% ownership interest in BFKD from November 25, 2009 through October 2, 2010. On October 3, 2010, the BFKF acquired the
50% noncontrolling interest in BFKD. Immediately following the acquisition of the noncontrolling interest, BFKF transferred its
100% interest in BFKD to CLC.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"><font style="font: 10pt Times New Roman, Times, Serif">Creative
Learning Corporation operates wholly owned subsidiaries BFK FRANCHISE COMPANY, LLC, CI FRANCHISE COMPANY, LLC AND SEW FUN FRANCHISE
COMPANY, LLC under the trade names Bricks 4 Kidz®, Challenge Island®, and Sew Fun Studios™ respectively, that
offer children's enrichment and education franchises.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Basis
of Presentation</i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"><font style="font: 10pt Times New Roman, Times, Serif">This
summary of significant accounting policies is presented to assist the reader in understanding and evaluating the Company’s
financial statements. The financial statements and notes are representation of the Company’s management, which is responsible
for their integrity and objectivity. These accounting policies conform to accounting principles generally accepted in the United
States of America and have been consistently applied in the preparation of the financial statements.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"><font style="font: 10pt Times New Roman, Times, Serif">The
Company uses the accrual basis of accounting and is presented in accordance with accounting principles generally accepted in the
United States of America (“GAAP”). The Company believes that the disclosures made are adequate to make the information
presented not misleading. The information reflects all adjustments that, in the opinion of management, are necessary for a fair
presentation of the financial position and results of operations for the periods set forth herein.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Principles
of Consolidation</i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"><font style="font: 10pt Times New Roman, Times, Serif">The
accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany
accounts and transactions have been eliminated in consolidation.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 22.5pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Variable
Interest Entity</i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 22.5pt"><font style="font: 10pt Times New Roman, Times, Serif">The
Company follows the guidelines in FASB Codification of ASC 810<b> “</b><i>Consolidation”</i> which indicates "a
legal entity that is deemed to be a business need not be evaluated by a reporting entity to determine if the legal entity is a
Variable Interest Entity (“VIE")” unless any one of four conditions exist:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
<td style="width: 4%; font: 10pt Times New Roman, Times, Serif; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
reporting entity, its related parties, or both participated significantly in the design or redesign of the legal entity;</font></td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
legal entity is designed so that substantially all of its activities involve or are conducted on behalf of the reporting entity
and its related parties;</font></td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
reporting entity and its related parties provide more than half of the total of the equity, subordinated debt, and other forms
of subordinated financial support to the legal entity; or</font></td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
activities of the legal entity are primarily related to the securitizations or other forms of asset-backed financings or single-lessee
leasing arrangements.</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"><font style="font: 10pt Times New Roman, Times, Serif"> A
VIE is an entity that either (a) has insufficient equity to permit the entity to finance its activities without additional subordinated
financial support or (b) has equity investors who lack the characteristics of a controlling financial interest. A VIE is consolidated
by its primary beneficiary. The primary beneficiary has both the power to direct the activities that most significantly impact
the entity’s economic performance and the obligation to absorb losses or the right to receive benefits from the entity that
could potentially be significant to the VIE. If we determine that we have operating power and the obligation to absorb losses
or receive benefits, we consolidate the VIE as the primary beneficiary, and if not, we do not consolidate. The Company has not
identified any VIEs as of September 30, 2014.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Fiscal
year</i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"><font style="font: 10pt Times New Roman, Times, Serif">The
Company operates on a September 30 fiscal year-end.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Related
Parties</i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"><font style="font: 10pt Times New Roman, Times, Serif">A
party is considered to be related to the Company if the party directly or indirectly or through one or more intermediaries, controls,
is controlled by, or is under common control with the Company. Related parties also include principal owners of the Company, its
management, members of the immediate families of principal owners of the Company and its management and other parties with which
the Company may deal if one party controls or can significantly influence the management or operating policies of the other to
an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. A party which
can significantly influence the management or operating policies of the transacting parties or if it has an ownership interest
in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties
might be prevented from fully pursuing its own separate interests is also a related party.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 22.5pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Use
of Estimates</i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"><font style="font: 10pt Times New Roman, Times, Serif">The
preparation of financial statements in accordance with generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities
at the date of financial statements and the reported amounts of revenues and expenses during the reporting period. The more significant
estimates and assumptions made by management include allowance for doubtful accounts, allowance for deferred tax assets, depreciation
of property and equipment, amortization of intangible assets, fair market value of equity instruments. Actual results could differ
from those estimates as the current economic environment has increased the degree of uncertainty inherent in these estimates and
assumptions.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Cash
and Cash Equivalents</i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"><font style="font: 10pt Times New Roman, Times, Serif">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 September 30, 2014 and 2013.The Company had cash of $3,061,458 and $1,904,193 as of September 30,
2014 and 2013, respectively.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"><font style="font: 10pt Times New Roman, Times, Serif">The
Company has restricted cash of $180,009 at September 30, 2014 and $100,754 at September 30, 2013 associated with a marketing funds
collected from the franchisee’s. Per the franchise agreements a marketing fund of 2% of revenues is collected and held for
promotion of the brand. (see note 6)</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"><font style="font: 10pt Times New Roman, Times, Serif">The
Company has one operating account with Wells Fargo that exceed the $250,000 FDIC limit by $2,748,000. The Company is confident
the asset is secure based upon our history with and the stability of the institution.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 22.5pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Accounts
Receivable</i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"><font style="font: 10pt Times New Roman, Times, Serif">The
Company reviews accounts receivable periodically for collectability and establishes an allowance for doubtful accounts and records
bad debt expense when deemed necessary. The Company records an allowance for doubtful accounts that is based on historical trends,
customer knowledge, any known disputes, and the aging of the accounts receivable balances combined with management’s estimate
of future potential recoverability. Receivables are written off against the allowance after all attempts to collect a receivable
have failed. The Company believes its allowance for doubtful accounts as of September 30, 2014 and 2013 are adequate, but actual
write-offs could exceed the recorded allowance. At September 30, 2014 and 2013, the Company’s allowance for doubtful accounts
totaled $41,000, and $10,000, respectively. During the year ended September 30, 2014 and September 30, 2013 the value of accounts
written-off to the reserve were approximately $12,000 and $0 respectively.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 22.5pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0pt"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Property,
Equipment and Depreciation</i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 22.5pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"><font style="font: 10pt Times New Roman, Times, Serif">Property
and equipment are stated at cost. Depreciation is calculated using the straight-line method over the estimated useful lives of
the related assets, which range from three to forty 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.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 45pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Website
development costs</i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"><font style="font: 10pt Times New Roman, Times, Serif">The
Company recognized the costs associated with developing a website in accordance with ASC 350-50 “Website Development Cost”.
The website development costs are divided into three stages, planning, development and production. The development stage can further
be classified as application and infrastructure development, graphics development and content development. In short, website development
cost for internal use should be capitalized except content input and data conversion costs in content development stage.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"><font style="font: 10pt Times New Roman, Times, Serif">Costs
associated with the website consist primarily of website development costs paid to third parties. These capitalized costs will
be amortized based on their estimated useful life over three years upon the website becoming operational. All capitalized web
development cost are captured in property and equipment.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Fair
Value of Financial Instruments</i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"><font style="font: 10pt Times New Roman, Times, Serif">The
carrying amounts of cash, accounts and notes receivable, prepaid expenses, property and equipment, intangible assets, deposits,
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.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"><font style="font: 10pt Times New Roman, Times, Serif">The
FASB Accounting Standards Codification (“ASC”) 825, Financial Instruments, 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:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
<td style="width: 11%; font: 10pt Times New Roman, Times, Serif; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">Level
1:</font></td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Quoted
prices in active markets for identical assets or liabilities.</font></td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">Level
2:</font></td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Quoted
prices in active markets for similar assets and liabilities and inputs that are observable for the asset or liability.</font></td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">Level
3:</font></td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Unobservable
inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"><font style="font: 10pt Times New Roman, Times, Serif">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.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 40pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"><font style="font: 10pt Times New Roman, Times, Serif">The
carrying value of financial assets and liabilities recorded at fair value is measured on a recurring or nonrecurring basis. Financial
assets and liabilities measured on a non-recurring basis are those that are adjusted to fair value when a significant event occurs.
The Company had no financial assets or liabilities carried and measured on a nonrecurring basis during the reporting periods.
Financial assets and liabilities measured on a recurring basis are those that are adjusted to fair value each time a financial
statement is prepared.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 22.5pt"><font style="font: 10pt Times New Roman, Times, Serif">  </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Long-Lived
Assets</i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"><font style="font: 10pt Times New Roman, Times, Serif">The
Company’s long-lived assets consisted of property and equipment, and intangible assets are reviewed for impairment in accordance
with the guidance of the FASB Topic ASC 360,<i> Property, Plant, and Equipment,</i> and FASB ASC Topic 205,<i> Presentation of
Financial Statements</i>. The Company tests for impairment losses on long-lived assets used in operations whenever events or changes
in circumstances indicate that the carrying amount of the asset may not be recoverable. Recoverability of an asset to be held
and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated
by the asset. If such asset is considered to be impaired, the impairment to be recognized is measured by the amount by which the
carrying amount of the asset exceeds its fair value. Impairment evaluations involve management’s estimates on asset useful
lives and future cash flows. Actual useful lives and cash flows could be different from those estimated by management which could
have a material effect on our reporting results and financial positions. Fair value is determined through various valuation techniques
including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. Through
September 30, 2014, the Company had not experienced impairment losses on its long-lived assets. However, there can be no assurances
that demand for the Company’s products or services will continue, which could result in an impairment of long-lived assets
in the future.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Revenue
Recognition</i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"><font style="font: 10pt Times New Roman, Times, Serif">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.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"><font style="font: 10pt Times New Roman, Times, Serif">Since
these franchises are primarily a mobile concept and do not require finding locations or construction, the franchisees can begin
operations as soon as they leave training. The franchise fees are fully collectible and nonrefundable as of the date of the signing
of the franchise agreement, but the franchise fees are not recognized as revenue until initial training has been completed and
when substantially all of the services required by the franchise agreement have been fulfilled by the Company in accordance with
ASC Topic 952-605 <i>Revenue Recognition-Franchisor</i>. Royalties and marketing fees are recognized as earned.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"><font style="font: 10pt Times New Roman, Times, Serif">As
of September 30, 2014 and 2013 the Company had $0 and $35,900 respectively in unearned revenue for franchise fees collected but
not yet earned per the revenue recognition policy.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Advertising
Costs</i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"><font style="font: 10pt Times New Roman, Times, Serif">Advertising
costs are expensed as incurred. The Company incurred advertising costs for the years ended September 30, 2014 and 2013 of approximately
$920,000 and $445,000, respectively.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0pt"><font style="font: 10pt Times New Roman, Times, Serif"> <b><i>Income
Taxes</i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"><font style="font: 10pt Times New Roman, Times, Serif">The
provision for income taxes, income taxes payable and deferred income taxes are determined using the asset and liability method.
Deferred tax assets and liabilities are determined based on temporary differences between the financial carrying amounts and the
tax basis of assets and liabilities using enacted tax rates in effect in the years in which the temporary differences are expected
to reverse. On a periodic basis, the Company assesses the probability that its net deferred tax assets, if any, will be recovered.
If after evaluating all of the positive and negative evidence, a conclusion is made that it is more likely than not that some
portion or all of the net deferred tax assets will not be recovered, a valuation allowance is provided by a charge to tax expense
to reserve the portion of the deferred tax assets which are not expected to be realized.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"><font style="font: 10pt Times New Roman, Times, Serif">The
Company reviews its filing positions for all open tax years in all U.S. federal and state jurisdictions where the Company is required
to file.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"><font style="font: 10pt Times New Roman, Times, Serif">When
there are uncertainties related to potential income tax benefits, in order to qualify for recognition, the position the Company
takes has to have at least a “more likely than not” chance of being sustained (based on the position’s technical
merits) upon challenge by the respective authorities. The term “more likely than not” means a likelihood of more than
50 percent. Otherwise, the Company may not recognize any of the potential tax benefit associated with the position. The Company
recognizes a benefit for a tax position that meets the “more likely than not” criterion at the largest amount of tax
benefit that is greater than 50 percent likely of being realized upon its effective resolution. Unrecognized tax benefits involve
management’s judgment regarding the likelihood of the benefit being sustained. The final resolution of uncertain tax positions
could result in adjustments to recorded amounts and may affect our results of operations, financial position and cash flows.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"><font style="font: 10pt Times New Roman, Times, Serif">The
Company’s policy is to recognize interest and/or penalties related to income tax matters in income tax expense. The Company
had no accrual for interest or penalties at September 30, 2014 and September 30 2013, respectively, and has not recognized interest
and/or penalties during the years ended September 30, 2014 and September 30, 2013, respectively, since there are no material unrecognized
tax benefits. Management believes no material change to the amount of unrecognized tax benefits will occur within in the next
12 months.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"><font style="font: 10pt Times New Roman, Times, Serif">The
tax years subject to examination by major tax jurisdictions include the years 2011 and forward by the U.S. Internal Revenue Service,
and the years 2010 and forward for various states.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Net
earnings (loss) per share</i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"><font style="font: 10pt Times New Roman, Times, Serif">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.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Stock-based
compensation</i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"><font style="font: 10pt Times New Roman, Times, Serif">The
Company accounts for employee and non-employee stock awards under ASC 718, Compensation – Stock Compensation, 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 Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Recent
accounting pronouncements</i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"><font style="font: 10pt Times New Roman, Times, Serif">In
July 2013, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2013-11,<i> Presentation of an Unrecognized
Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists</i>(ASU 2013-11),
to require that in certain cases, an unrecognized tax benefit, or portion of an unrecognized tax benefit, should be presented
in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss,
or a tax credit carryforward when such items exist in the same taxing jurisdiction. ASU 2013-11 is effective for fiscal years,
and interim periods within those years, beginning after December 15, 2013. The Company does not believe the adoption of this
standard will have a significant impact on the Company’s consolidated financial statements.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"><font style="font: 10pt Times New Roman, Times, Serif">In
May 2014, the Financial Accounting Standards Board issued Accounting Standards Update No. 2014-09, Revenue from Contracts with
Customers (Topic 606) (“ASU 2014-09”), which amends the existing accounting standards for revenue recognition. ASU 2014-09
is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled when products are
transferred to customers. ASU 2014-09 will be effective for the Company beginning in its first quarter of 2017. Early adoption
is not permitted. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with
the cumulative effect recognized as of the date of adoption. The Company is currently evaluating the impact of adopting the new
revenue standard on its consolidated financial statements.</font></p>
11829409
35901000
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">Creative Learning Corporation
(“CLC” or the “Company”), formerly B2 Health, Inc., was incorporated March 8, 2006 in the State of Delaware.
BFK Franchise Company LLC (“BFKF”) was formed in the State of Nevada on May 19, 2009. Effective July 2, 2010, CLC was
acquired by BFKF in a transaction classified as a reverse acquisition. CLC concurrently changed its name from B2 Health, Inc. to
Creative Learning Corporation. The financial statements represent the activity of BFKF from May 19, 2009 forward, and the consolidated
activity of BFKF and CLC from July 2, 2010 forward. BFKF and CLC are hereinafter referred to collectively as the "Company".</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">In addition to the accounts
of CLC and BFKF, the accompanying consolidated financial statements include the accounts of CLC’s subsidiaries, BFK Development
Company LLC (“BFKD”) from November 25, 2009 (BFKD’s inception) forward, CI Franchise Company LLC (“CI”)
from September 14, 2012 (CI’s inception) forward, and Sew Fun Franchise Company LLC (SF) from January 8, 2013 (SF’s
inception) forward.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">The registration statements
for BFK Development Company LLC, CI Franchise Company LLC, and Sew Fun Franchise Company LLC do not have a termination date associated
with the Life of the Organizations. Each of the above listed LLC’s has a single member, controller 100% by the Company.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">BFKF held a 50% ownership
interest in BFKD from November 25, 2009 through October 2, 2010. On October 3, 2010, the BFKF acquired the 50% noncontrolling interest
in BFKD. Immediately following the acquisition of the noncontrolling interest, BFKF transferred its 100% interest in BFKD to CLC.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">Creative Learning Corporation
operates wholly owned subsidiaries BFK FRANCHISE COMPANY, LLC, CI FRANCHISE COMPANY, LLC AND SEW FUN FRANCHISE COMPANY, LLC under
the trade names Bricks 4 Kidz®, Challenge Island®, and Sew Fun Studios™ respectively, that offer children's
enrichment and education franchises.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">This summary of significant
accounting policies is presented to assist the reader in understanding and evaluating the Company’s financial statements.
The financial statements and notes are representation of the Company’s management, which is responsible for their integrity
and objectivity. These accounting policies conform to accounting principles generally accepted in the United States of America
and have been consistently applied in the preparation of the financial statements.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">The Company uses the accrual
basis of accounting and is presented in accordance with accounting principles generally accepted in the United States of America
(“GAAP”). The Company believes that the disclosures made are adequate to make the information presented not misleading.
The information reflects all adjustments that, in the opinion of management, are necessary for a fair presentation of the financial
position and results of operations for the periods set forth herein.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">The accompanying consolidated
financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions
have been eliminated in consolidation.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">The Company operates on
a September 30 fiscal year-end.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">The preparation of financial
statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of financial
statements and the reported amounts of revenues and expenses during the reporting period. The more significant estimates and assumptions
made by management include allowance for doubtful accounts, allowance for deferred tax assets, depreciation of property and equipment,
amortization of intangible assets, fair market value of equity instruments. Actual results could differ from those estimates as
the current economic environment has increased the degree of uncertainty inherent in these estimates and assumptions.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">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 September 30, 2014 and 2013.The Company had cash of $3,061,458 and $1,904,193 as of September 30, 2014 and
2013, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">The Company has restricted
cash of $180,009 at September 30, 2014 and $100,754 at September 30, 2013 associated with a marketing funds collected from the
franchisee’s. Per the franchise agreements a marketing fund of 2% of revenues is collected and held for promotion of the
brand. (see note 6)</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">The Company has one operating
account with Wells Fargo that exceed the $250,000 FDIC limit by $2,748,000. The Company is confident the asset is secure based
upon our history with and the stability of the institution.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">The Company reviews accounts
receivable periodically for collectability and establishes an allowance for doubtful accounts and records bad debt expense when
deemed necessary. The Company records an allowance for doubtful accounts that is based on historical trends, customer knowledge,
any known disputes, and the aging of the accounts receivable balances combined with management’s estimate of future potential
recoverability. Receivables are written off against the allowance after all attempts to collect a receivable have failed. The Company
believes its allowance for doubtful accounts as of September 30, 2014 and 2013 are adequate, but actual write-offs could exceed
the recorded allowance. At September 30, 2014 and 2013, the Company’s allowance for doubtful accounts totaled $41,000, and
$10,000, respectively. During the year ended September 30, 2014 and September 30, 2013 the value of accounts written-off to the
reserve were approximately $12,000 and $0 respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">The carrying amounts of
cash, accounts and notes receivable, prepaid expenses, property and equipment, intangible assets, deposits, 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 Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 40pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">The FASB Accounting Standards
Codification (“ASC”) 825, Financial Instruments, 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 Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 10%; text-align: center"><font style="font-size: 10pt">Level 1:</font></td>
<td style="text-align: justify"><font style="font-size: 10pt">Quoted prices in active markets for identical assets or liabilities.</font></td></tr>
<tr style="vertical-align: top">
<td style="text-align: center"><font style="font-size: 10pt">Level 2:</font></td>
<td style="text-align: justify"><font style="font-size: 10pt">Quoted prices in active markets for similar assets and liabilities and inputs that are observable for the asset or liability.</font></td></tr>
<tr style="vertical-align: top">
<td style="text-align: center"><font style="font-size: 10pt">Level 3:</font></td>
<td style="text-align: justify"><font style="font-size: 10pt">Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">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 Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 40pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">The carrying value of
financial assets and liabilities recorded at fair value is measured on a recurring or nonrecurring basis. Financial assets and
liabilities measured on a non-recurring basis are those that are adjusted to fair value when a significant event occurs. The Company
had no financial assets or liabilities carried and measured on a nonrecurring basis during the reporting periods. Financial assets
and liabilities measured on a recurring basis are those that are adjusted to fair value each time a financial statement is prepared.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">The Company’s long-lived
assets consisted of property and equipment, and intangible assets are reviewed for impairment in accordance with the guidance of
the FASB Topic ASC 360,<i> Property, Plant, and Equipment,</i> and FASB ASC Topic 205,<i> Presentation of Financial Statements</i>.
The Company tests for impairment losses on long-lived assets used in operations whenever events or changes in circumstances indicate
that the carrying amount of the asset may not be recoverable. Recoverability of an asset to be held and used is measured by a comparison
of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by the asset. If such asset is
considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset
exceeds its fair value. Impairment evaluations involve management’s estimates on asset useful lives and future cash flows.
Actual useful lives and cash flows could be different from those estimated by management which could have a material effect on
our reporting results and financial positions. Fair value is determined through various valuation techniques including discounted
cash flow models, quoted market values and third-party independent appraisals, as considered necessary. Through September 30, 2014,
the Company had not experienced impairment losses on its long-lived assets. However, there can be no assurances that demand for
the Company’s products or services will continue, which could result in an impairment of long-lived assets in the future.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">Advertising costs are
expensed as incurred. The Company incurred advertising costs for the years ended September 30, 2014 and 2013 of approximately $920,000
and $445,000, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">The provision for income
taxes, income taxes payable and deferred income taxes are determined using the asset and liability method. Deferred tax assets
and liabilities are determined based on temporary differences between the financial carrying amounts and the tax basis of assets
and liabilities using enacted tax rates in effect in the years in which the temporary differences are expected to reverse. On a
periodic basis, the Company assesses the probability that its net deferred tax assets, if any, will be recovered. If after evaluating
all of the positive and negative evidence, a conclusion is made that it is more likely than not that some portion or all of the
net deferred tax assets will not be recovered, a valuation allowance is provided by a charge to tax expense to reserve the portion
of the deferred tax assets which are not expected to be realized.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">The Company reviews its
filing positions for all open tax years in all U.S. federal and state jurisdictions where the Company is required to file.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">When there are uncertainties
related to potential income tax benefits, in order to qualify for recognition, the position the Company takes has to have at least
a “more likely than not” chance of being sustained (based on the position’s technical merits) upon challenge
by the respective authorities. The term “more likely than not” means a likelihood of more than 50 percent. Otherwise,
the Company may not recognize any of the potential tax benefit associated with the position. The Company recognizes a benefit for
a tax position that meets the “more likely than not” criterion at the largest amount of tax benefit that is greater
than 50 percent likely of being realized upon its effective resolution. Unrecognized tax benefits involve management’s judgment
regarding the likelihood of the benefit being sustained. The final resolution of uncertain tax positions could result in adjustments
to recorded amounts and may affect our results of operations, financial position and cash flows.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">The Company’s policy
is to recognize interest and/or penalties related to income tax matters in income tax expense. The Company had no accrual for interest
or penalties at September 30, 2014 and September 30 2013, respectively, and has not recognized interest and/or penalties during
the years ended September 30, 2014 and September 30, 2013, respectively, since there are no material unrecognized tax benefits.
Management believes no material change to the amount of unrecognized tax benefits will occur within in the next 12 months.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">The tax years subject
to examination by major tax jurisdictions include the years 2011 and forward by the U.S. Internal Revenue Service, and the years
2010 and forward for various states.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">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.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">The Company accounts for
employee and non-employee stock awards under ASC 718, Compensation – Stock Compensation, 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>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">In July 2013, the Financial
Accounting Standards Board (“FASB”) issued ASU No. 2013-11,<i> Presentation of an Unrecognized Tax Benefit When
a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists</i>(ASU 2013-11), to require that in
certain cases, an unrecognized tax benefit, or portion of an unrecognized tax benefit, should be presented in the financial statements
as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward
when such items exist in the same taxing jurisdiction. ASU 2013-11 is effective for fiscal years, and interim periods within those
years, beginning after December 15, 2013. The Company does not believe the adoption of this standard will have a significant
impact on the Company’s consolidated financial statements.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 40pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">In May 2014, the Financial
Accounting Standards Board issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU
2014-09”), which amends the existing accounting standards for revenue recognition. ASU 2014-09 is based on principles that
govern the recognition of revenue at an amount an entity expects to be entitled when products are transferred to customers. ASU
2014-09 will be effective for the Company beginning in its first quarter of 2017. Early adoption is not permitted. The new revenue
standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized
as of the date of adoption. The Company is currently evaluating the impact of adopting the new revenue standard on its consolidated
financial statements.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">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 Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">Since these franchises
are primarily a mobile concept and do not require finding locations or construction, the franchisees can begin operations as soon
as they leave training. The franchise fees are fully collectible and nonrefundable as of the date of the signing of the franchise
agreement, but the franchise fees are not recognized as revenue until initial training has been completed and when substantially
all of the services required by the franchise agreement have been fulfilled by the Company in accordance with ASC Topic 952-605
<i>Revenue Recognition-Franchisor</i>. Royalties and marketing fees are recognized as earned.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">As of September 30, 2014
and 2013 the Company had $0 and $35,900 respectively in unearned revenue for franchise fees collected but not yet earned per the
revenue recognition policy.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 22.5pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>2015</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>2016</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Total</b></font></td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 60%; text-align: justify"><font style="font-size: 10pt">Payment schedules for Notes And Other Receivables</font></td>
<td style="width: 1%; text-align: justify"> </td>
<td style="width: 1%; text-align: justify"> </td>
<td style="width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="width: 10%; text-align: right"><font style="font-size: 10pt">126,339</font></td>
<td style="width: 1%; text-align: justify"> </td>
<td style="width: 1%; text-align: justify"> </td>
<td style="width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="width: 10%; text-align: right"><font style="font-size: 10pt">67,749</font></td>
<td style="width: 1%; text-align: justify"> </td>
<td style="width: 1%; text-align: justify"> </td>
<td style="width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="width: 10%; text-align: right"><font style="font-size: 10pt">194,088</font></td>
<td style="width: 1%; text-align: justify"> </td></tr></table>
10000
41000
60073
98238
0.0001
0.0001
10000000
10000000
0
0
0
0
0.0001
0.0001
50000000
50000000
11809409
11829409
11809409
11829409
56630
108280
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 22.5pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 22.5pt"></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr>
<td colspan="5" style="text-align: center"><font style="font-size: 10pt"><b>Creative Learning Corporation</b></font></td></tr>
<tr>
<td colspan="5" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">Intangible Asset Roll-forward</font></td></tr>
<tr>
<td> </td>
<td> </td>
<td colspan="2" id="ffc" style="vertical-align: bottom"> </td>
<td> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 10pt">Balance October 1, 2012</font></td>
<td style="width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">46,720</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="text-align: justify"><font style="font-size: 10pt">Additions</font></td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">48,550</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 10pt">Disposals</font></td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="text-align: justify"><font style="font-size: 10pt">Balance September 30, 2013</font></td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">95,270</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 10pt">Additions</font></td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">77,474</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="text-align: justify"><font style="font-size: 10pt">Disposals</font></td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(46,990</font></td>
<td style="vertical-align: bottom"><font style="font-size: 10pt">)</font></td></tr>
<tr style="background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 10pt">Balance September 30, 2014</font></td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">125,754</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr></table>
2411282
3803344
1058
48723
94301
126339
826
7850
310150
303122
2923906
4400931
15000
11425
95270
125754
46720
25250
23300
25250
23300
294863
322659
37491
67749
70000
70000
13131
120001
96737
100754
180009
35900
13105
171889
534932
5690
484030
972853
3560
2225
20000
489327
995083
5297
2923906
4400931
2434579
3405848
275725
1141164
2157673
2263501
1181
1183
180009
75843
98400
55000
7710806
4820719
78218
124598
1845530
995900
5787058
3700221
6317114
3774962
820540
389348
39915
30267
295039
158964
265742
97886
917429
455108
1104738
539982
502661
272125
1698359
976776
616061
746226
1393692
1045757
22814
-85728
61563
-80846
455
4882
865439
947956
947955
865439
551067
12073
1416506
960029
0.07
0.08
0.07
0.08
11812861
11675102
11870018
11678873
18335
11556075
11809409
11829409
2434579
3405848
1335044
1155
1181
1183
2006118
2157673
2263501
-672230
275725
1141164
56630
6613
6613
56630
20000
20000
2
19998
45000
23300
4
23296
55000
20000
49200
33001
6
2
32996
49198
66667
38667
7
38660
66667
30000
7
29993
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">The Company recognized
the costs associated with developing a website in accordance with ASC 350-50 “Website Development Cost”. The website
development costs are divided into three stages, planning, development and production. The development stage can further be classified
as application and infrastructure development, graphics development and content development. In short, website development cost
for internal use should be capitalized except content input and data conversion costs in content development stage.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 40pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">Costs associated with
the website consist primarily of website development costs paid to third parties. These capitalized costs will be amortized based
on their estimated useful life over three years upon the website becoming operational. All capitalized web development cost are
captured in property and equipment.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">The Company follows the
guidelines in FASB Codification of ASC 810<b> “</b><i>Consolidation”</i> which indicates "a legal entity that
is deemed to be a business need not be evaluated by a reporting entity to determine if the legal entity is a Variable Interest
Entity (“VIE")” unless any one of four conditions exist:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 4%; text-align: justify"><font style="font-size: 10pt">-</font></td>
<td style="text-align: justify"><font style="font-size: 10pt">The reporting entity, its related parties, or both participated significantly in the design or redesign of the legal entity;</font></td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify"><font style="font-size: 10pt">-</font></td>
<td style="text-align: justify"><font style="font-size: 10pt">The legal entity is designed so that substantially all of its activities involve or are conducted on behalf of the reporting entity and its related parties;</font></td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify"><font style="font-size: 10pt">-</font></td>
<td style="text-align: justify"><font style="font-size: 10pt">The reporting entity and its related parties provide more than half of the total of the equity, subordinated debt, and other forms of subordinated financial support to the legal entity; or</font></td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify"><font style="font-size: 10pt">-</font></td>
<td style="text-align: justify"><font style="font-size: 10pt">The activities of the legal entity are primarily related to the securitizations or other forms of asset-backed financings or single-lessee leasing arrangements.</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"> A VIE is an entity
that either (a) has insufficient equity to permit the entity to finance its activities without additional subordinated financial
support or (b) has equity investors who lack the characteristics of a controlling financial interest. A VIE is consolidated by
its primary beneficiary. The primary beneficiary has both the power to direct the activities that most significantly impact the
entity’s economic performance and the obligation to absorb losses or the right to receive benefits from the entity that could
potentially be significant to the VIE. If we determine that we have operating power and the obligation to absorb losses or receive
benefits, we consolidate the VIE as the primary beneficiary, and if not, we do not consolidate. The Company has not identified
any VIEs as of September 30, 2014.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">A party is considered
to be related to the Company if the party directly or indirectly or through one or more intermediaries, controls, is controlled
by, or is under common control with the Company. Related parties also include principal owners of the Company, its management,
members of the immediate families of principal owners of the Company and its management and other parties with which the Company
may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that
one of the transacting parties might be prevented from fully pursuing its own separate interests. A party which can significantly
influence the management or operating policies of the transacting parties or if it has an ownership interest in one of the transacting
parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from
fully pursuing its own separate interests is also a related party.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">During the years ended
September 30, 2014 and 2013, the Company paid related parties (companies related by common control) for the following expenses:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr>
<td> </td>
<td id="ffc" style="vertical-align: bottom"> </td>
<td colspan="6" style="vertical-align: bottom; text-align: center"><font style="font-size: 10pt"><b>Commissions and Consulting</b></font></td>
<td> </td></tr>
<tr>
<td> </td>
<td style="vertical-align: bottom"> </td>
<td colspan="6" style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Fiscal Years Ending</b></font></td>
<td> </td></tr>
<tr>
<td> </td>
<td> </td>
<td colspan="2" style="vertical-align: bottom; text-align: center"><font style="font-size: 10pt"><b>September 30</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="vertical-align: bottom; text-align: center"><font style="font-size: 10pt"><b>September 30</b></font></td>
<td> </td></tr>
<tr>
<td style="padding-bottom: 1pt"><font style="font-size: 10pt"><b>Related Party</b></font></td>
<td> </td>
<td colspan="2" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center"><font style="font-size: 10pt"><b>2014</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center"><font style="font-size: 10pt"><b>2013</b></font></td>
<td> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 10pt">FranVentures, LLC</font></td>
<td style="width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">289,061</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">248,127</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="text-align: justify"><font style="font-size: 10pt">MC Logic, LLC</font></td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">244,000</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">137,000</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="padding-bottom: 1pt; text-align: justify"><font style="font-size: 10pt">Leap Ahead Learning Company</font></td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">83,000</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"> </td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">108,000</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">616,061</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"> </td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">493,127</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">The types of temporary differences between
the tax basis of assets and their financial reporting amounts that give rise to a significant portion of the deferred assets and
liabilities are as follows:  </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="6" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>September 30, 2014</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="6" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>September 30, 2013</b></font></td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>Temporary</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>Tax</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>Temporary</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>Tax</b></font></td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Difference</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Effect</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Difference</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Effect</b></font></td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 10pt">Deferred tax assets:</font></td>
<td style="text-align: justify"> </td>
<td colspan="2"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2"> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 10pt">Depreciation timing difference</font></td>
<td style="width: 1%; text-align: justify"> </td>
<td style="width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 10pt">-0-</font></td>
<td style="width: 1%; text-align: justify"> </td>
<td style="width: 1%; text-align: justify"> </td>
<td style="width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 10pt">-0-</font></td>
<td style="width: 1%; text-align: justify"> </td>
<td style="width: 1%; text-align: justify"> </td>
<td style="width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 10pt">3,084</font></td>
<td style="width: 1%; text-align: justify"> </td>
<td style="width: 1%; text-align: justify"> </td>
<td style="width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 10pt">1,058</font></td>
<td style="width: 1%; text-align: justify"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify"><font style="font-size: 10pt">Allowance for bad debt</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: right"><font style="font-size: 10pt">41,000</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: right"><font style="font-size: 10pt">16,195</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: right"><font style="font-size: 10pt">-0-</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: right"><font style="font-size: 10pt">-0-</font></td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 10pt">Florida income tax</font></td>
<td style="text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">82,350</font></td>
<td style="padding-bottom: 0.75pt; text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">32,528</font></td>
<td style="padding-bottom: 0.75pt; text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">-0-</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">-0-</font></td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 10pt">Total deferred tax asset</font></td>
<td style="text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">123,350</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">48,723</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">3,084</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">1,058</font></td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td colspan="8" style="text-align: justify"><font style="font-size: 10pt">Deferred tax liabilities:</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify"><font style="font-size: 10pt">  Depreciation timing difference</font></td>
<td style="text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(70,329</font></td>
<td style="text-align: justify"><font style="font-size: 10pt">) </font></td>
<td style="text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(27,780</font></td>
<td style="text-align: justify"><font style="font-size: 10pt">) </font></td>
<td style="text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">-0-</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">-0-</font></td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 10pt">Total deferred liability</font></td>
<td style="text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(70,329</font></td>
<td style="text-align: justify"><font style="font-size: 10pt">) </font></td>
<td style="text-align: justify"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(27,780</font></td>
<td><font style="font-size: 10pt">)</font></td>
<td style="text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">-0-</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">-0-</font></td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 10pt">Net deferred tax asset</font></td>
<td style="text-align: justify"> </td>
<td style="border-bottom: black 2.25pt double; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">53,021</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="border-bottom: black 2.25pt double; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">20,943</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="border-bottom: black 2.25pt double; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">3,084</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="border-bottom: black 2.25pt double; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">1,058</font></td>
<td style="text-align: justify"> </td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">The company
incurred and recorded compensation expense of $56,630 for the year ended September 30, 2014 and $6,613 for the year ended September
30, 2013.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr>
<td style="vertical-align: bottom; padding-bottom: 1pt"><font style="font-size: 10pt"><b>Description</b></font></td>
<td> </td>
<td colspan="2" id="ffc" style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Number of</b></font><br />
<font style="font-size: 10pt"><b>Shares</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center"><font style="font-size: 10pt"><b>Weighted</b></font><br />
<font style="font-size: 10pt"><b>Average Exercise</b></font><br />
<font style="font-size: 10pt"><b>Price</b></font></td>
<td> </td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Expiration</b></font><br />
<font style="font-size: 10pt"><b>Date</b></font></td>
<td> </td>
<td colspan="2" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center"><font style="font-size: 10pt"><b>Aggregate</b></font><br />
<font style="font-size: 10pt"><b>Intrinsic</b></font><br />
<font style="font-size: 10pt"><b>Value</b></font></td>
<td> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 10pt">Outstanding October 1, 2012</font></td>
<td style="width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="width: 1%; text-align: justify"> </td>
<td style="width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 9%; text-align: right"> </td>
<td style="width: 1%; text-align: justify"> </td>
<td style="width: 9%; text-align: justify"> </td>
<td style="width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="padding-bottom: 1pt; text-align: justify"><font style="font-size: 10pt">Granted July 1, 2013</font></td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: right"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">50,000</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"> </td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">0.60</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">12/31/15</font></td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="padding-bottom: 1pt; text-align: justify"><font style="font-size: 10pt">Outstanding 09/30/2013</font></td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">50,000</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"> </td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">0.60</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="padding-bottom: 1pt; text-align: justify"><font style="font-size: 10pt">Granted February 3, 2014</font></td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">70,000</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"> </td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">1.55</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">12/31/16</font></td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="padding-bottom: 1pt; text-align: justify"><font style="font-size: 10pt">Outstanding 09/30/2014</font></td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">120,000</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"> </td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">1.15</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="padding-bottom: 1pt; text-align: justify"><font style="font-size: 10pt">Exercisable at September 30, 2014</font></td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">50,000</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"> </td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="padding-bottom: 1pt; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="padding-bottom: 1pt; text-align: justify"><font style="font-size: 10pt">Expected to vest at September 30, 2014</font></td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">120,000</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"> </td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="padding-bottom: 1pt; text-align: justify"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">The value of
the options granted during the various periods was estimated at the date of grant using the Black-Scholes option-pricing model
and the following assumptions:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>2014</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>2013</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 10pt">Year Options were granted</font></td>
<td style="text-align: justify"> </td>
<td colspan="2"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 10pt">Market value of stock on grant date</font></td>
<td style="width: 1%; text-align: justify"> </td>
<td style="width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 10pt">1.55</font></td>
<td style="width: 1%; text-align: justify"> </td>
<td style="width: 1%; text-align: justify"> </td>
<td style="width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 10pt">0.60</font></td>
<td style="width: 1%; text-align: justify"> </td>
<td style="width: 1%; text-align: justify"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify"><font style="font-size: 10pt">Risk-free interest rate</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: right"><font style="font-size: 10pt">.30</font></td>
<td style="text-align: justify"><font style="font-size: 10pt">%</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: right"><font style="font-size: 10pt">.61</font></td>
<td style="text-align: justify"><font style="font-size: 10pt">%</font></td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 10pt">Dividend Yield</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: right"><font style="font-size: 10pt">0</font></td>
<td style="text-align: justify"><font style="font-size: 10pt">%</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: right"><font style="font-size: 10pt">0</font></td>
<td style="text-align: justify"><font style="font-size: 10pt">%</font></td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify"><font style="font-size: 10pt">Volatility Factor</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: right"><font style="font-size: 10pt">100</font></td>
<td style="text-align: justify"><font style="font-size: 10pt">%</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: right"><font style="font-size: 10pt">36</font></td>
<td style="text-align: justify"><font style="font-size: 10pt">%</font></td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 10pt">Weighted average expected life</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: right"><font style="font-size: 10pt"> 2 years</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: right"><font style="font-size: 10pt"> 2 years</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify"><font style="font-size: 10pt">Expected forfeiture rate</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: right"><font style="font-size: 10pt">0</font></td>
<td style="text-align: justify"><font style="font-size: 10pt">%</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: right"><font style="font-size: 10pt">0</font></td>
<td style="text-align: justify"><font style="font-size: 10pt">%</font></td>
<td style="text-align: justify"> </td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">The Company recognized stock compensation expense
as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr>
<td> </td>
<td> </td>
<td colspan="2" id="ffc" style="vertical-align: bottom; text-align: center"><font style="font-size: 10pt"><b>Year Ended</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="vertical-align: bottom; text-align: center"><font style="font-size: 10pt"><b>Year Ended</b></font></td>
<td> </td></tr>
<tr>
<td> </td>
<td> </td>
<td colspan="2" style="vertical-align: bottom; text-align: center"><font style="font-size: 10pt"><b>September 30</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="vertical-align: bottom; text-align: center"><font style="font-size: 10pt"><b>September 30</b></font></td>
<td> </td></tr>
<tr>
<td> </td>
<td> </td>
<td colspan="2" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center"><font style="font-size: 10pt"><b>2014</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center"><font style="font-size: 10pt"><b>2013</b></font></td>
<td> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="padding-bottom: 1pt; text-align: justify"><font style="font-size: 10pt">Stock Option Expense</font></td>
<td style="width: 1%; padding-bottom: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; border-bottom: black 1pt solid"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">56,630</font></td>
<td style="vertical-align: bottom; width: 1%; padding-bottom: 1pt; text-align: justify"> </td>
<td style="width: 1%; border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; border-bottom: black 1pt solid"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">6,613</font></td>
<td style="vertical-align: bottom; width: 1%; padding-bottom: 1pt; text-align: justify"> </td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">The tax years subject
to examination by major tax jurisdictions include the years 2010 and forward by the U.S. Internal Revenue Service, and the years
2009 and forward for various states.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 22.5pt"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>September 30,</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>September 30,</b></font></td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>2014</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>2013</b></font></td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 10pt">Deferred tax assets:</font></td>
<td style="text-align: justify"> </td>
<td colspan="2" style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="text-align: justify"> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: justify; text-indent: 22.5pt"><font style="font-size: 10pt">Short-term</font></td>
<td style="width: 1%; text-align: justify"> </td>
<td style="width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 10pt">48,723</font></td>
<td style="width: 1%; text-align: justify"> </td>
<td style="width: 1%; text-align: justify"> </td>
<td style="width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 10pt">1,058</font></td>
<td style="width: 1%; text-align: justify"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify; text-indent: 22.5pt"><font style="font-size: 10pt">Long-term</font></td>
<td style="text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">-0-</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">-0-</font></td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: justify; text-indent: 45pt"><font style="font-size: 10pt">Total deferred tax asset</font></td>
<td style="text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">48,723</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">1,058</font></td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td colspan="4" style="text-align: justify"><font style="font-size: 10pt">Deferred tax liabilities:</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify; text-indent: 22.5pt"><font style="font-size: 10pt">Short-term</font></td>
<td style="text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(27,780</font></td>
<td style="text-align: justify"><font style="font-size: 10pt">) </font></td>
<td style="text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">-0-</font></td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: justify; text-indent: 22.5pt"><font style="font-size: 10pt">Long-term</font></td>
<td style="text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">-0-</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">-0-</font></td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify; text-indent: 45pt"><font style="font-size: 10pt">Total deferred tax liabilities</font></td>
<td style="text-align: justify"> </td>
<td style="border-bottom: black 1pt solid"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(27,780</font></td>
<td><font style="font-size: 10pt">)</font></td>
<td style="text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">-0-</font></td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: justify; text-indent: 45pt"><font style="font-size: 10pt">Total deferred tax assets</font></td>
<td style="text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">48,723</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">1,058</font></td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify; text-indent: 45pt"><font style="font-size: 10pt">Net deferred tax assets (liability)</font></td>
<td style="text-align: justify"> </td>
<td style="border-bottom: black 2.25pt double; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">20,943</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="border-bottom: black 2.25pt double; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">1,058</font></td>
<td style="text-align: justify"> </td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">The components of the provisions for income
taxes for fiscal years 2014 and 2013 are as follows:</p>
<p style="font: 10pt 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>
<td> </td>
<td> </td>
<td> </td>
<td colspan="2" id="ffc" style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>2014</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center"><font style="font-size: 10pt"><b>2013</b></font></td>
<td> </td></tr>
<tr>
<td colspan="2"><font style="font-size: 10pt">Current:</font></td>
<td> </td>
<td colspan="2" style="vertical-align: bottom"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="vertical-align: bottom"> </td>
<td> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="width: 2%"> </td>
<td style="text-align: justify"><font style="font-size: 10pt">Federal</font></td>
<td style="width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">489,188</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">10,884</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="padding-bottom: 1pt"> </td>
<td style="text-align: justify; padding-bottom: 1pt"><font style="font-size: 10pt">State</font></td>
<td style="text-align: justify; padding-bottom: 1pt"> </td>
<td style="vertical-align: bottom; text-align: justify; border-bottom: Black 1pt solid"> </td>
<td style="vertical-align: bottom; text-align: right; border-bottom: Black 1pt solid"><font style="font-size: 10pt">82,822</font></td>
<td style="vertical-align: bottom; text-align: justify; padding-bottom: 1pt"> </td>
<td style="text-align: justify; padding-bottom: 1pt"> </td>
<td style="vertical-align: bottom; text-align: justify; border-bottom: Black 1pt solid"> </td>
<td style="vertical-align: bottom; text-align: right; border-bottom: Black 1pt solid"><font style="font-size: 10pt">2,247</font></td>
<td style="vertical-align: bottom; text-align: justify; padding-bottom: 1pt"> </td></tr>
<tr style="background-color: #CCEEFF">
<td colspan="2" style="text-align: justify; padding-bottom: 2.5pt"><font style="font-size: 10pt">Total current provision</font></td>
<td style="text-align: justify; padding-bottom: 2.5pt"> </td>
<td style="vertical-align: bottom; text-align: justify; border-bottom: Black 2.5pt double"> </td>
<td style="vertical-align: bottom; text-align: right; border-bottom: Black 2.5pt double"><font style="font-size: 10pt">572,010</font></td>
<td style="vertical-align: bottom; text-align: justify; padding-bottom: 2.5pt"> </td>
<td style="text-align: justify; padding-bottom: 2.5pt"> </td>
<td style="vertical-align: bottom; text-align: justify; border-bottom: Black 2.5pt double"> </td>
<td style="vertical-align: bottom; text-align: right; border-bottom: Black 2.5pt double"><font style="font-size: 10pt">13,131</font></td>
<td style="vertical-align: bottom; text-align: justify; padding-bottom: 2.5pt"> </td></tr>
<tr style="background-color: white">
<td> </td>
<td> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td colspan="2" style="text-align: justify"><font style="font-size: 10pt">Deferred:</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="text-align: justify"> </td></tr>
<tr style="background-color: white">
<td> </td>
<td style="text-align: justify"><font style="font-size: 10pt">Federal</font></td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(20,943</font></td>
<td style="vertical-align: bottom"><font style="font-size: 10pt">)</font></td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(1,058</font></td>
<td style="vertical-align: bottom"><font style="font-size: 10pt">)</font></td></tr>
<tr style="background-color: #CCEEFF">
<td> </td>
<td style="text-align: justify"><font style="font-size: 10pt">State</font></td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td colspan="2" style="text-align: justify; padding-bottom: 1pt"><font style="font-size: 10pt">Total deferred provision</font></td>
<td style="text-align: justify; padding-bottom: 1pt"> </td>
<td style="vertical-align: bottom; border-bottom: Black 1pt solid"> </td>
<td style="vertical-align: bottom; text-align: right; border-bottom: Black 1pt solid"><font style="font-size: 10pt">(20,943</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td>
<td style="text-align: justify; padding-bottom: 1pt"> </td>
<td style="vertical-align: bottom; border-bottom: Black 1pt solid"> </td>
<td style="vertical-align: bottom; text-align: right; border-bottom: Black 1pt solid"><font style="font-size: 10pt">(1,058</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td></tr>
<tr style="background-color: #CCEEFF">
<td colspan="2" style="text-align: justify; padding-bottom: 2.5pt"><font style="font-size: 10pt">Total provision</font></td>
<td style="text-align: justify; padding-bottom: 2.5pt"> </td>
<td style="vertical-align: bottom; border-bottom: Black 2.5pt double"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; text-align: right; border-bottom: Black 2.5pt double"><font style="font-size: 10pt">551,067</font></td>
<td style="vertical-align: bottom; text-align: justify; padding-bottom: 2.5pt"> </td>
<td style="text-align: justify; padding-bottom: 2.5pt"> </td>
<td style="vertical-align: bottom; border-bottom: Black 2.5pt double"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; text-align: right; border-bottom: Black 2.5pt double"><font style="font-size: 10pt">12,073</font></td>
<td style="vertical-align: bottom; text-align: justify; padding-bottom: 2.5pt"> </td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">The income tax provision differs from that
computed using the federal statutory rate applied to income before taxes as follows for fiscal years 2014 and 2013:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr>
<td> </td>
<td> </td>
<td> </td>
<td colspan="6" style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>2014</b></font></td>
<td style="vertical-align: bottom"> </td>
<td> </td>
<td colspan="6" style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>2013</b></font></td>
<td style="vertical-align: bottom"> </td></tr>
<tr>
<td> </td>
<td> </td>
<td> </td>
<td colspan="2" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center"><font style="font-size: 10pt"><b>Amount</b></font></td>
<td> </td>
<td style="vertical-align: bottom"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center"><font style="font-size: 10pt"><b>%</b></font></td>
<td style="vertical-align: bottom"> </td>
<td> </td>
<td colspan="2" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center"><font style="font-size: 10pt"><b>Amount</b></font></td>
<td> </td>
<td style="vertical-align: bottom"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center"><font style="font-size: 10pt"><b>%</b></font></td>
<td style="vertical-align: bottom"> </td></tr>
<tr style="background-color: #CCEEFF">
<td colspan="2" style="text-align: justify"><font style="font-size: 10pt">Provision at statutory rates</font></td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">489,188</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">32.13</font></td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">%</font></td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">10,884</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">17.13</font></td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">%</font></td></tr>
<tr style="background-color: white">
<td colspan="2" style="text-align: justify"><font style="font-size: 10pt">State income tax, net of federal benefit</font></td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">82,822</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">5.50</font></td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">%</font></td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">2,247</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">3.54</font></td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">%</font></td></tr>
<tr style="background-color: #CCEEFF">
<td colspan="2" style="text-align: justify"><font style="font-size: 10pt">Other temporary items</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="width: 2%"> </td>
<td style="text-align: justify"><font style="font-size: 10pt">Bad Debt</font></td>
<td style="width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">(16,195</font></td>
<td style="vertical-align: bottom; width: 1%"><font style="font-size: 10pt">)</font></td>
<td style="width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">1.10</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font-size: 10pt">%</font></td>
<td style="width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="width: 1%; text-align: justify"> </td>
<td style="width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 9%; text-align: right"> </td>
<td style="width: 1%; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td> </td>
<td style="text-align: justify"><font style="font-size: 10pt">Florida income tax</font></td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(32,528</font></td>
<td style="vertical-align: bottom"><font style="font-size: 10pt">)</font></td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">2.20</font></td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">%</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="text-align: justify"> </td></tr>
<tr style="background-color: white">
<td> </td>
<td style="text-align: justify"><font style="font-size: 10pt">Depreciation</font></td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">27,780</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">1.90</font></td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">%</font></td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(1,058</font></td>
<td style="vertical-align: bottom"><font style="font-size: 10pt">)</font></td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">1.70</font></td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">%</font></td></tr>
<tr style="background-color: #CCEEFF">
<td colspan="2" style="padding-bottom: 1pt; text-align: justify"><font style="font-size: 10pt">Other permanent items</font></td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"> </td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"> </td>
<td style="border-bottom: black 1pt solid; padding-bottom: 0.75pt; text-align: justify"> </td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"> </td>
<td style="border-bottom: black 1pt solid; padding-bottom: 0.75pt; text-align: justify"> </td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"> </td>
<td style="border-bottom: black 1pt solid; padding-bottom: 0.75pt; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td colspan="2" style="padding-bottom: 1pt; text-align: justify"><font style="font-size: 10pt">Total income tax provision</font></td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">551,067</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt; text-align: justify"> </td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double; text-align: justify"> </td>
<td style="border-bottom: black 2.25pt double; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">36.23</font></td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid; padding-bottom: 2.25pt; text-align: justify"><font style="font-size: 10pt">%</font></td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">12,073</font></td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid; padding-bottom: 2.25pt; text-align: justify"> </td>
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double; text-align: justify"> </td>
<td style="border-bottom: black 2.25pt double; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">19.00</font></td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid; padding-bottom: 2.25pt; text-align: justify"><font style="font-size: 10pt">%</font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">The following table sets
for the computation of basic and diluted net income (loss) per share:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr>
<td> </td>
<td> </td>
<td colspan="6" rowspan="2" id="ffc" style="vertical-align: bottom; border-bottom: black 1pt solid">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Year ended</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>September 30</b></p></td>
<td style="text-align: center"> </td></tr>
<tr>
<td> </td>
<td> </td>
<td> </td></tr>
<tr>
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center"><font style="font-size: 10pt"><b>2014</b></font></td>
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center"><font style="font-size: 10pt"><b>2013</b></font></td>
<td style="text-align: center"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="text-align: justify; padding-bottom: 1pt"><font style="font-size: 10pt">Net income attributed to common stockholders</font></td>
<td style="width: 1%; text-align: justify; padding-bottom: 1pt"> </td>
<td style="vertical-align: bottom; width: 1%; border-bottom: Black 1pt solid"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: Black 1pt solid; vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">865,439</font></td>
<td style="width: 1%; text-align: justify; padding-bottom: 1pt"> </td>
<td style="width: 1%; text-align: justify; padding-bottom: 1pt"> </td>
<td style="vertical-align: bottom; width: 1%; border-bottom: Black 1pt solid"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: Black 1pt solid; vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">947,956</font></td>
<td style="width: 1%; text-align: justify; padding-bottom: 1pt"> </td></tr>
<tr style="background-color: white">
<td style="text-align: justify"><font style="font-size: 10pt">Basic weighted average outstanding shares of common stock</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">11,812,861</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">11,675,102</font></td>
<td style="text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 10pt">Dilutive effect of common stock equivalents (options of 50,252 and stock of 6,905) as of September 30, 2014.</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">57,157</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">3,771</font></td>
<td style="text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="text-align: justify; padding-bottom: 1pt"><font style="font-size: 10pt">Dilutive weighted average common stock equivalents</font></td>
<td style="text-align: justify; padding-bottom: 1pt"> </td>
<td style="text-align: justify; border-bottom: Black 1pt solid"> </td>
<td style="border-bottom: Black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">11,870,018</font></td>
<td style="text-align: justify; padding-bottom: 1pt"> </td>
<td style="text-align: justify; padding-bottom: 1pt"> </td>
<td style="text-align: justify; border-bottom: Black 1pt solid"> </td>
<td style="border-bottom: Black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">11,678,873</font></td>
<td style="text-align: justify; padding-bottom: 1pt"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="text-align: justify; padding-bottom: 2.5pt"><font style="font-size: 10pt">Net earnings per share of common stock Basic</font></td>
<td style="text-align: justify; padding-bottom: 2.5pt"> </td>
<td style="vertical-align: bottom; border-bottom: Black 2.5pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: Black 2.5pt double; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">0.07</font></td>
<td style="text-align: justify; padding-bottom: 2.5pt"> </td>
<td style="text-align: justify; padding-bottom: 2.5pt"> </td>
<td style="vertical-align: bottom; border-bottom: Black 2.5pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: Black 2.5pt double; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">0.08</font></td>
<td style="text-align: justify; padding-bottom: 2.5pt"> </td></tr>
<tr style="background-color: white">
<td style="text-align: justify; padding-bottom: 1pt"><font style="font-size: 10pt">Net earnings per share of common stock Diluted</font></td>
<td style="text-align: justify; padding-bottom: 1pt"> </td>
<td style="vertical-align: bottom; border-bottom: Black 1pt solid"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: Black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">0.07</font></td>
<td style="text-align: justify; padding-bottom: 1pt"> </td>
<td style="text-align: justify; padding-bottom: 1pt"> </td>
<td style="vertical-align: bottom; border-bottom: Black 1pt solid"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: Black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">0.08</font></td>
<td style="text-align: justify; padding-bottom: 1pt"> </td></tr></table>
5550
1904193
3061458
12000
0
0
35900
920000
445000
100754
180009
616061
493127
289061
248127
244000
137000
83000
108000
33109
44930
57654
75351
233615
233615
30558
30558
354936
384454
294863
286216
36443
77474
48550
-46990
126339
67749
131792
194088
22729
100754
180009
20000
0
20000
20000
8857
2225
20000
20000
1
35000
10000
17500
5800
0.50
0.58
35000
5000
15000
21000
3000
9000
0.60
0.60
0.60
50000
120000
50000
70000
50000
120000
0.60
1.15
0.60
1.55
2015-12-31
2016-12-31
56630
6613
1.55
0.6
0.003
0.0061
0
0
1
0.36
P2Y
P2Y
0
0
380
584
210
15
34
210
175
21
15
-6
-5
-2
28500
28500
26600
83600
18106
49131
55000
1058
48723
0
0
1058
48723
53021
20943
3084
1058
0
-5550
22230
0
-27780
1058
48723
22230
0
0
3084
1058
41000
16195
0
0
82350
32528
0
0
123350
48723
3084
1058
-70329
-27780
0
0
-70329
-27780
0
0
489188
10884
82822
2247
572010
13131
-20943
-1058
-20943
-1058
1058
20943
489188
10884
82822
2247
-16195
-32528
27780
-1058
0.3213
0.1713
0.0550
0.0354
0.0110
0.0220
0.0190
0.0170
0.3623
0.1900
551067
12073
907000
64000
1416506
57157
3771
865439
947956
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">Property and equipment
are stated at cost. Depreciation is calculated using the straight-line method over the estimated useful lives of the related assets,
which range from three to forty 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>
108280
23000
26300
147600
56630
-18335
-7553
-56629
31000
11036
39915
30267
1311812
1115952
35900
-13131
13131
-23264
72501
27780
79255
10599
1228
-35900
-13105
358269
-2363
-5690
-47665
-1058
3575
17619
-37396
-28778
-75843
-7024
9890
-23972
-125703
-79255
-87915
-152791
70000
40425
10000
56800
118340
25991
2004947
3061458
1157265
963161
-66632
40000
6632
20000
455
4882
533031
15618
20000
26300
6000
24900
4774
62700
23300
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">FASB ASC Topic 260, Earnings
Per Share, requires a reconciliation of the numerator denominator of the basic and diluted earnings (loss) per share (EPS) computations.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">Basic earnings per share
are computed by dividing the net earnings available to common shareholders by the weighted average number of common shares outstanding
during the period. Diluted earnings per share is computed similar to basic earnings per share except that the denominator is increased
to include the number of additional common shares that would have been outstanding if the potential common shares had been issued
and if the additional common shares are dilutive. Dilutive common stock equivalents at September 30, 2014 were stock options and
stock to be issued under accrued stock based compensation. Dilutive common stock equivalents at September 30, 2013 were stock options.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">The following table sets
for the computation of basic and diluted net income (loss) per share:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr>
<td> </td>
<td> </td>
<td colspan="6" rowspan="2" id="ffc" style="vertical-align: bottom; border-bottom: black 1pt solid">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Year ended</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>September 30</b></p></td>
<td style="text-align: center"> </td></tr>
<tr>
<td> </td>
<td> </td>
<td> </td></tr>
<tr>
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center"><font style="font-size: 10pt"><b>2014</b></font></td>
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center"><font style="font-size: 10pt"><b>2013</b></font></td>
<td style="text-align: center"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="text-align: justify; padding-bottom: 1pt"><font style="font-size: 10pt">Net income attributed to common stockholders</font></td>
<td style="width: 1%; text-align: justify; padding-bottom: 1pt"> </td>
<td style="vertical-align: bottom; width: 1%; border-bottom: Black 1pt solid"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: Black 1pt solid; vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">865,439</font></td>
<td style="width: 1%; text-align: justify; padding-bottom: 1pt"> </td>
<td style="width: 1%; text-align: justify; padding-bottom: 1pt"> </td>
<td style="vertical-align: bottom; width: 1%; border-bottom: Black 1pt solid"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: Black 1pt solid; vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">947,956</font></td>
<td style="width: 1%; text-align: justify; padding-bottom: 1pt"> </td></tr>
<tr style="background-color: white">
<td style="text-align: justify"><font style="font-size: 10pt">Basic weighted average outstanding shares of common stock</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">11,812,861</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">11,675,102</font></td>
<td style="text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 10pt">Dilutive effect of common stock equivalents (options of 50,252 and stock of 6,905) as of September 30, 2014.</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">57,157</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">3,771</font></td>
<td style="text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="text-align: justify; padding-bottom: 1pt"><font style="font-size: 10pt">Dilutive weighted average common stock equivalents</font></td>
<td style="text-align: justify; padding-bottom: 1pt"> </td>
<td style="text-align: justify; border-bottom: Black 1pt solid"> </td>
<td style="border-bottom: Black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">11,870,018</font></td>
<td style="text-align: justify; padding-bottom: 1pt"> </td>
<td style="text-align: justify; padding-bottom: 1pt"> </td>
<td style="text-align: justify; border-bottom: Black 1pt solid"> </td>
<td style="border-bottom: Black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">11,678,873</font></td>
<td style="text-align: justify; padding-bottom: 1pt"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="text-align: justify; padding-bottom: 2.5pt"><font style="font-size: 10pt">Net earnings per share of common stock Basic</font></td>
<td style="text-align: justify; padding-bottom: 2.5pt"> </td>
<td style="vertical-align: bottom; border-bottom: Black 2.5pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: Black 2.5pt double; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">0.07</font></td>
<td style="text-align: justify; padding-bottom: 2.5pt"> </td>
<td style="text-align: justify; padding-bottom: 2.5pt"> </td>
<td style="vertical-align: bottom; border-bottom: Black 2.5pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: Black 2.5pt double; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">0.08</font></td>
<td style="text-align: justify; padding-bottom: 2.5pt"> </td></tr>
<tr style="background-color: white">
<td style="text-align: justify; padding-bottom: 1pt"><font style="font-size: 10pt">Net earnings per share of common stock Diluted</font></td>
<td style="text-align: justify; padding-bottom: 1pt"> </td>
<td style="vertical-align: bottom; border-bottom: Black 1pt solid"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: Black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">0.07</font></td>
<td style="text-align: justify; padding-bottom: 1pt"> </td>
<td style="text-align: justify; padding-bottom: 1pt"> </td>
<td style="vertical-align: bottom; border-bottom: Black 1pt solid"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: Black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">0.08</font></td>
<td style="text-align: justify; padding-bottom: 1pt"> </td></tr>
</table>
1904193
1041786