NOTE 2. Going Concern

The accompanying financial statements have been presented in accordance with GAAP, which assumes the continuity of the Company as a going concern. However, the Company has incurred significant losses since its inception and has no material revenues to date and continues to rely on financing and the issuance of shares to raise capital to fund its business operations. Management’s plans with regard to this matter are as follows:

The Company has been actively engaged in creating and implementing its new business model. In connection with this process, management of the Company has raised $884,750 under SEC Rule 506 during the nine months ended June 30, 2013, and retained the services of new corporate advisors and consultants.

The Company plans to continue to fund its operations through capital fundraising activities in 2013 until the new commercial facilities generate sufficient revenue to support its operations.

The Company applies ASC 260, “Earnings per Share” to calculate loss per share. In accordance with ASC 260, basic net loss per share has been computed based on the weighted average of common shares outstanding during the periods presented. Effects of the notes convertible into shares of common stock, has been excluded from the calculation of loss per share because their inclusion would be antidilutive.

Net loss per share is computed as follows:

	Three Months Ending June 30,						Nine Months Ending June 30
	2013			2012			2013			2012
Net Loss	$	(321,905	)	$	(293,676	)	$	(851,932	)	$	(864,738	)

Weighted average shares outstanding		29,856,282			27,684,824			28,902,802			27,161,256

Basic & fully diluted net earnings (loss) per common share	$	(0.01	)	$	(0.01	)	$	(0.03	)	$	(0.03	)