2. UNCERTAINTY OF ABILITY TO CONTINUE AS A GOING CONCERN

The Group's consolidated financial statements are prepared using the generally accepted accounting principles applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Group has not generated significant revenues since inception and has never paid any dividends and is unlikely to pay dividends or generate significant earnings in the immediate or foreseeable future. The continuation of the Group as a going concern is dependent upon the ability of the Group to obtain necessary equity or capital financing to continue operations and the attainment of profitable operations. The management will seek to raise funds from strategic investors and or the shareholders.

For the three months ended June 30, 2011, the Group has generated a net loss of $1,096,500 and has incurred an accumulated deficit $3,246,229. As of June 30, 2011, its current liabilities exceed its current assets by $5,593,836, which may not be sufficient to pay for the operating expenses in the next 12 months. These consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Group be unable to continue as a going concern. These factors noted above raise substantial doubts regarding the Group' s ability to continue as a going concern.