Note 4 -Liquidity and Management’s Plan

As of January 31, 2015, the Company had cash and cash equivalents of $28,049 and an accumulated deficit of $13,157,420. The Company also incurred a net loss of $1,737,024 and had net cash used in operating activities of $731,254 for the six months ended January 31, 2015. Given the Company’s negative cash flow from operations management anticipated its cash constraints and, therefore, took measures to meet its obligations.

On December 18, 2014, the Company effectuated a Securities Purchase Agreement with an accredited investor for the purchase and sale of up to $285,000 of the Company’s original issue discount convertible debentures. The first debenture, in the principal amount of $160,000, was issued on December 18, 2014.

On February 20, 2015, the Company effectuated a Convertible Note Agreement with an accredited investor for the purchase and sale of up to $400,000 of the Company’s original issue discount convertible notes. The first note, in the principal amount of $100,000, was issued on February 20, 2015 (Note 12- Subsequent Events).

On March 4, 2015, the Company effectuated a Convertible Note Agreement with an accredited investor for the purchase and sale of up to $100,000 of the Company’s original issue discount convertible note. The note, in the principal amount of $100,000, was issued on March 4, 2015 (Note 12- Subsequent Events).

Additionally, the Company has access to an equity investment line pursuant to the investment agreement with Kodiak Capital Group, LLC. The investment agreement provides for common stock investments in the Company in increments of $25,000 up to a total investment balance of $1 million, of which $225,000 have already been invested.

Management expects its new business for automated optimization of software applications will start generating revenue in the quarter ending April 30, 2015 and continue to grow. There can be no assurances that management will be able to successfully implement a long-term solution, and accordingly, the Company continues to explore debt and equity financing options. These conditions raise substantial doubt about the Company’s ability to continue as a going concern through January 31, 2016.

The Company believes in the viability of its strategy to increase revenue, cash flows, and profitability and in its ability to raise additional funds, and believes that the actions presently being taken by the Company will provide the Company with sufficient liquidity to continue to finance its operations.