0000704366
2012-01-01
2012-03-31
0000704366
2012-03-31
0000704366
2011-12-31
0000704366
2011-01-01
2011-03-31
0000704366
2010-12-31
0000704366
2011-03-31
0000704366
2012-05-18
iso4217:USD
xbrli:shares
iso4217:USD
xbrli:shares
DYNAMIC ENERGY ALLIANCE CORPORATION
0000704366
10-Q
2012-03-31
false
--12-31
No
No
Yes
Smaller Reporting Company
Q1
2012
6502
7652
6502
7652
1405177
1307613
1025768
996414
106537
89584
3500
15500
269372
206115
3776745
3636745
8130
8130
773
773
-5184323
-4945609
6502
7652
301704
523465
453762
118574
75762
255500
378000
149391
-221761
-453762
16953
15210
-238714
-468972
-238714
-468972
0
-0.01
81304504
75739176
-1150
16470
7652
3955
6502
20425
12000
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Dynamic Energy Alliance Corporation
(“DEAC”) was formerly Mammatech Corporation (“MAMM”) (or the “Company”), and was incorporated
in the State of Florida on November 23, 1981 as Mammatech Corporation. The fiscal year end of the Company was changed to December
31 from August 31. The Company formally changed its name to Dynamic Energy Alliance Corporation, having amended its Articles of
Incorporation effective September 15, 2011.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Through its wholly owned subsidiary,
Dynamic Energy Development Corporation (“DEDC”), the Company has under way implementation of a business to develop,
commercialize, and sell innovative technologies in the recoverable energy sector. Specifically, it is focused on identifying, combining
and enhancing existing industry technologies with proprietary recoverable production and finishing processes to produce synthetic
oil, carbon black, gas, and carbon steel from waste feedstock. This process will be accomplished with limited residual waste product
and significant reductions in greenhouse gases, compared to traditional processing. To maximize this opportunity, the Company has
developed a scalable, commercial development strategy to build "Energy Campuses" with low operational costs and long-term,
recurring revenues.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In conjunction with the acquisition
of DEDC, the Company acquired Transformation Consulting (‘TC”), a wholly-owned subsidiary of DEDC.  TC provides
business development, marketing and administrative consulting services.  Through a January 2010 management services and
agency agreement (“Agency Agreement”), TC receives revenues from a related party based on billings received from certain
of TC’s direct to consumer membership club products that were transferred to the related party under the Agency Agreement.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Merger Acquisition by way of Share
Exchange</i></b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On March 9, 2011, the Company effectively
completed a merger acquisition transaction whereby it entered into a Share Exchange Agreement (“SEA”) with DEDC, a
privately held corporation, with DEDC becoming a wholly-owned subsidiary of the Company. All of the shares of DEDC were transferred
to Dynamic Development Corporation, a Delaware corporation. This company was then merged with the Company. The share transactions
to complete the merger transaction are hereinafter collectively referred to as the “Merger.” All costs incurred in
connection with the Merger have been expensed.  Following the Merger, the Company abandoned its prior business and concurrently
adopted DEDC’s business plan as its principal business.  In addition, the director and officer of MAMM were replaced
by the directors and officers of DEDC.</p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
<td style="width: 2%; font: italic bold 10pt/115% Times New Roman, Times, Serif; text-align: center">(a)</td>
<td style="width: 98%; font: italic bold 10pt/115% Times New Roman, Times, Serif">Description of the Merger</td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">This merger acquisition was transacted
as follows (The Company’s shares of common stock disclosures in this note have been presented on a post forward stock split
basis.):</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company, DEDC and Verdad Telecom
(“MAMM Controlling Shareholder”) entered into a Share Exchange Agreement, pursuant to which MAMM Controlling Shareholder,
owning an aggregate of 44,786,188 shares of common stock, $.0001 par value per share, of the Company (“Common Stock”),
equivalent to 85.5% of the issued and outstanding Common Stock (the “Old MAMM Shares”) would return its shares to treasury
and DEDC shareholders would exchange 17,622,692 DEDC shares on a one for one basis of newly issued shares of the Company.  On
return of such shares to treasury, the MAMM Controlling Shareholder received a cash payment of $322,000 (the “Purchase Price”).</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">  </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In addition, prior to the effective
time of the Merger, 6,000,000 shares of the Company’s common stock were issued to a debenture holder pursuant to an investment
bonus feature in the convertibility of debenture notes.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Immediately prior to the effective time
of the Merger, 22,871,100 shares of the Company’s common stock were issued and outstanding. Upon completion of the Merger,
the DEDC shareholders owned approximately 69.8% of the Company’s issued and outstanding common stock.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">All references to share and per share
amounts in these financial statements have been restated to retroactively reflect the number of common shares of MAMM common stock
issued pursuant to the Merger.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
<td style="width: 3%; font: italic bold 10pt/115% Times New Roman, Times, Serif; text-align: center">(b)</td>
<td style="width: 97%; font: italic bold 10pt/115% Times New Roman, Times, Serif">Accounting Treatment of the Merger; Financial Statement Presentation</td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Merger was accounted for as a reverse
acquisition pursuant to Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”)
Topic 805-40-25.1, which provides that the merger of a private operating company into a non-operating public shell corporation
without significant net assets typically results in the owners and management of the private company having actual or effective
operating control of the combined company after the transaction, with the shareholders of the former public corporation continuing
only as passive investors.  </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">These transactions are considered by
the Securities and Exchange Commission to be capital transactions in substance, rather than business combinations. That is, the
transaction is equivalent to the issuance of stock by the private company for the net monetary assets of the shell corporation,
accompanied by a recapitalization.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Accordingly, the Merger has been accounted
for as a recapitalization, and, for accounting purposes, DEDC is considered the accounting acquirer in a reverse acquisition.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company’s historical
accumulated deficit for periods prior to March 9, 2011, in the amount of $3,075,165 was eliminated by offset against additional-paid-in-capital,
and the accompanying financial statements present the previously issued shares of MAMM common stock as having been issued pursuant
to the Merger on March 9, 2011.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The shares of common stock of the Company
issued to the DEDC stockholders in the Merger are presented as having been outstanding since December 13, 2010, the month when
DEDC first sold its equity securities.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Because the Merger was accounted for
as a reverse acquisition under Generally Accepted Accounting Principles (“GAAP”), the financial statements for
periods prior to March 9, 2011 reflect only the operations of DEDC.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On March 9, 2011, DEDC acquired all
of the outstanding shares, of Transformation Consulting (“TC”) pursuant to a Stock Purchase Agreement dated February
25, 2011 and Amendment No. 1 to Stock Purchase Agreement, dated December 30, 2011.  The purchase price for the Shares
was $2,000,000, payable from the gross revenues (pre-tax) of TC, as received, subject to the following contingent reduction or
increase of the purchase price.  If TC’s gross revenues during the two years following the closing are less than
$2,000,000, then the purchase price for the shares shall be reduced to the actual revenue received by TC during the two year period.  If
TC’s revenues during the same two year period exceed $2,000,000, then the purchase price for the shares shall be increased
by one-half of the excess revenues over $2,000,000 (“contingent consideration”). At the time of the acquisition, TC
had minimal tangible assets and the entire $2,000,000 purchase price was allocated to a customers’ list intangible asset.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
50000000
50000000
0.0001
0.0001
7732824
7732824
7732824
7732824
81304504
81304504
81304504
81304504
300000000
300000000
0.0001
0.0001
-1398675
-1299691
-255058
140000
428000
-30504
-164321
16953
-133167
-12000
249667
63257
15209
29354
180791
277391
225400
29354
322000
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The accompanying unaudited condensed
consolidated financial statements of Dynamic Energy Alliance Corporation are presented in accordance with the requirements for
Form 10-Q and Regulation S-X. Accordingly, they do not include all of the disclosures required by generally accepted accounting
principles. In the opinion of management, all adjustments (all of which were of a normal recurring nature) considered necessary
to fairly present the financial position, results of operations, and cash flows of the Company on a consistent basis, have been
made.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">These financial statements should be
read in conjunction with the Company’s financial statements and notes thereto included in the Company’s Form 10-K The
Company assumes that the users of the interim financial information herein have read, or have access to, the audited financial
statements for the preceding fiscal year, and that the adequacy of additional disclosure needed for a fair presentation may be
determined in that context. Accordingly, footnote disclosure, which would substantially duplicate the disclosure contained in the
Company’s financial statements for the fiscal year ended December 31, 2011, has been omitted. The results of operations for
the three month period ended March 31, 2012 are not necessarily indicative of results for the entire year ending December 31, 2012.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Going Concern</i></b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Since inception, the Company has a
cumulative net loss of $5,184,323. The Company currently has only limited working capital with which to continue its operating
activities. The amount of capital required to sustain operations is subject to future events and uncertainties. The Company must
secure additional working capital through loans, sale of equity securities, or a combination, in order to implement its business
plans. There can be no assurance that such funding will be available in the future, or available on commercially reasonable terms.
These conditions raise substantial doubt about the Company's ability to continue as a going concern. </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The accompanying financial statements
have been presented on the basis of the continuation of the Company as a going concern and do not include any adjustments relating
to the recoverability and classification of recorded asset amounts or the amounts and classifications of liabilities that might
be necessary should the Company be unable to continue as a going concern.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has generated revenue in
the amount of $301,704 in the first quarter of 2012. Management has continued to manage its burn rate, budget versus actual results
for 2012 to ensure appropriate funding is on hand for its operation. If the Company's 2012 projections are not expected to be met,
the company will be required to decrease expenses and raise additional equity and/or debt financing. </p>
<p style="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Basis of Presentation</i></b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">These unaudited condensed consolidated
financial statements include the accounts of the Company and its subsidiaries, Dynamic Energy Development Corporation and Transformation
Consulting. All intercompany balances and transactions are eliminated on consolidation.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Use of Estimates</i></b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Preparation of the Company's financial
statements in conformity with United States GAAP requires management to make estimates and assumptions that affect certain reported
amounts of assets and liabilities and disclosures of contingent assets and liabilities as well as the reported amounts of revenues
and expenses. Accordingly, actual results could differ from those estimates.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Development Costs</i></b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Development costs are expensed in the
period they are incurred unless they meet specific criteria related to technical, market and financial feasibility, as determined
by management, including but not limited to the establishment of a clearly defined future market for the product, and the availability
of adequate resources to complete the project. If all criteria are met, the costs are deferred and amortized over the expected
useful life, or written off if a product is abandoned. For the three months ended March 31, 2012 and 2011, total development costs
amounted to $149,391 and $0, respectively. At March 31, 2012 and December 31, 2011, the Company had no deferred product development
costs.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Cash and Cash Equivalents</i></b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Cash and cash equivalents, if any, include
all highly liquid instruments with an original maturity of three months or less at the date of purchase. At March 31, 2012 and
2011, the Company had no cash equivalents.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Financial Instruments and Concentration
of Risk</i></b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The fair values of financial instruments,
which include cash, accounts payable and accrued liabilities and convertible notes, were estimated to approximate their carrying
values due to the immediate or relatively short maturity of these instruments. Management does not believe that the Company is
subject to significant interest, currency or credit risks arising from these financial instruments. During the period ended March
31, 2012, the company earned all revenues from one customer.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Fair Value of Financial Instruments</i></b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company accounts for the fair value
of financial instruments in accordance with the FASB ASC Topic 820, Fair Value Measurements and Disclosures ("Topic 820").
Topic 820 defines fair value, establishes a three-level valuation hierarchy for disclosures of fair value measurement and enhances
disclosure requirements for fair value measures.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The three levels are defined as follows:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font-size: 10pt">
<tr style="vertical-align: top">
<td style="width: 9%; line-height: 115%; font-family: Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font-family: Symbol">· </font><font style="font-family: Times New Roman, Times, Serif">Level 1</font></td>
<td style="width: 91%; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: justify">inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.</td></tr>
<tr style="vertical-align: top">
<td style="line-height: 115%; font-family: Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font-family: Symbol">· </font><font style="font-family: Times New Roman, Times, Serif">Level 2</font></td>
<td style="line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: justify">inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.</td></tr>
<tr style="vertical-align: top">
<td style="line-height: 115%; font-family: Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font-family: Symbol">· </font><font style="font-family: Times New Roman, Times, Serif">Level 3</font></td>
<td style="line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: justify">inputs to valuation methodology are unobservable and significant to the fair measurement.</td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The fair value of the Company's cash
and cash equivalents, accrued liabilities and accounts payable approximate carrying value because of the short-term nature of these
items.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Management believes it is not practical
to estimate the fair value of loan to related parties because the transactions cannot be assumed at arm's length, the terms are
not deemed to be market terms, there are no quoted values avaialble for these instruments, and an independent valuation would not
be practical due to the lack of data regarding similar instruments, if any, and the associated potential costs.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Intangible Assets and Impairment
of Long-lived Assets</i></b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has adopted the provision
codified in ASC 350, <i>Intangibles – Goodwill and Other </i>which revises the accounting for purchased goodwill and intangible
assets. Under ASC 350, goodwill and intangible assets with indefinite lives are no longer amortized and are tested for impairment
annually. The determination of any impairment would include a comparison of estimated future operating cash flows anticipated during
the remaining life with the net carrying value of the asset as well as a comparison of the fair value to book value of the Company.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Intangible assets comprised the customer
lists purchased in connection with the acquisition of Transformation Consulting on March 9, 2011. The intangible assets were reported
at acquisition cost and were to be amortized on the basis of management’s estimate of the future cash flows from this asset
over approximately five years, which was management’s initial estimate of the useful life of the customer lists.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In accordance with ASC Topic 360-10-15
(prior authoritative literature: SFAS 144), the Company performed an assessment as of December 31, 2011. The Company assessed the
recoverability of the carrying value of its intangible assets based on estimated undiscounted cash flows to be generated from this
asset. For the year ended December 31, 2011, the Company determined that, based on estimated future cash flows, the intangible
asset was fully impaired; accordingly, an impairment loss of the carrying amount of $2,000,000 was recognized and is included in
impairment loss on intangibles.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Revenue Recognition</i></b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company recognizes revenue in accordance
with the FASB ASC Section 605-10-S99, Revenue Recognition, Overall, SEC Materials ("Section 605-10-S99"). Section 605-10-S99
requires that four basic criteria must be met before revenue can be recognized: (1) persuasive evidence of an arrangement exists;
(2) delivery has occurred or services rendered; (3) the fee is fixed and determinable; and (4) collectability is reasonably assured.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Specifically with respect to TC, commission
revenue is earned on consulting services provided to a company controlled by a director of the Company. TC earns these commissions
based on this company’s revenues from certain direct to consumer membership club products. Commissions earned are recorded
when deposited into an escrow account, effectively allowing for uncertainty of collectability and bad debt issues.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i> </i></b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Loss Per Common Share</i></b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Basic loss per common
share (“EPS”) is calculated by dividing the net loss available to common shareholders by the weighted average
number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if
securities or other contracts to issue common stock were exercised or converted into common stock. The number of common
shares that are exercisable or converted into common stock is not material to effect diluted EPS results. Further, since the
Company shows losses for the periods presented, basic and diluted loss per share are the same for all periods presented. As
of March 31, 2012 and 2011, there were no outstandings dilutive securities.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Income Taxes</i></b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Potential benefits of income tax losses
are not recognized in the accounts until realization is more likely than not. The Company has adopted the accounting standards
codified in ASC 740, Income Taxes as of its inception. Pursuant to those standards, the Company is required to compute tax asset
benefits for net operating losses carried forward. Potential benefit of net operating losses have not been recognized in these
financial statements because the Company cannot be assured it is more likely than not that it will utilize the net operating losses
carried forward in future years.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">ASC 740-10-25 prescribes recognition
thresholds that must be met before a tax position is recognized in the financial statements and provides guidance on de-recognition,
classification, interest and penalties, accounting in interim periods, disclosure, and transition. An entity may only recognize
or continue to recognize tax positions that meet a "more likely than not" threshold. Based on its evaluation, the Company
has concluded that there are no significant uncertain tax positions requiring recognition in its financial statements.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company does not have any unrecognized
tax benefits as of December 31, 2011 that, if recognized, would affect the Company's effective income tax rate.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company's policy is to recognize
interest and penalties related to income tax issues as components of income tax expense. The Company did not recognize or have
any accrual for interest and penalties relating to income taxes as of March 31, 2012 and December 31, 2011.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Common Share Non-Monetary Consideration</i></b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In situations where common shares are
issued and the fair value of the goods or services received is not readily determinable, the fair value of the common shares is
used to measure and record the transaction. The fair value of the common shares issued in exchange for the receipt of goods and
services is based on the stock price as of the earliest of the date at which:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">i) the counterparty’s performance
is complete;</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">ii) a commitment for performance by
the counterparty to earn the common shares is reached; or</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">iii) the common shares are issued if
they are fully vested and non-forfeitable at that date.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i> </i></b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Stock-Based Compensation</i></b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On December 1, 2005, the Company adopted
the fair value recognition provisions codified in ASC 718, Compensation-Stock Compensation. The Company adopted those provisions
using the modified-prospective-transition method. Under this method, compensation cost recognized for all periods prior to December
1, 2005 includes: a) compensation cost for all share-based payments granted prior to, but not yet vested as of November 30, 2005,
based on the grant-date fair value and b) compensation cost for all share-based payments granted subsequent to November 30, 2005,
based on the grant-date fair value. In addition, deferred stock compensation related to non-vested options is required to be eliminated
against additional paid-in capital. The results for periods prior to December 1, 2005 were not restated.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company accounts for equity instruments
issued in exchange for the receipt of goods or services from parties other than employees in accordance with ASC 505, Equity. Costs
are measured at the estimated fair market value of the consideration received or the estimated fair value of the equity instruments
issued, whichever is more reliably measurable. The value of equity instruments issued for consideration other than employee services
is determined on the earliest of a performance commitment or completion of performance by the counterparty.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Share Purchase Warrants</i></b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company accounts for common share
purchase warrants at fair value in accordance with ASC 815, Derivatives and Hedging. The Black-Scholes option pricing valuation
method is used to determine fair value of these warrants. Use of this method requires that the Company make assumptions regarding
stock volatility, dividend yields, expected term of the warrants and risk-free interest rates.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Recently Issued Accounting
Pronouncements</i></b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Adopted - </i></b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In May 2011, the FASB issued
Accounting Standards Update (“ASU”) No. 2011-04: “Fair Value Measurement (Topic 820) – Amendments to
Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs”. This is a new accounting
standard on fair value measurements that clarifies the application of existing guidance and disclosure requirements, changes
certain fair value measurement principles and requires additional disclosures about fair value measurements. The standard is
effective for interim and annual periods beginning after December 15, 2011. The adoption of this accounting standard does not
have a material impact on the Company's consolidated financial statements and related disclosures.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In June 2011, the FASB issued ASU 2011-05,
Comprehensive Income (Topic 220): Presentation of Comprehensive Income<i>.</i> This update will require the presentation of the
components of net income and other comprehensive income either in a single continuous statement or in two separate but consecutive
statements. In addition, companies are also required to present reclassification adjustments for items that are reclassified from
other comprehensive income to net income on the face of the financial statements. The update is effective for fiscal years and
interim periods beginning after December 15, 2011. The adoption of this update did not have a material impact on the Company's consolidated
financial statements.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In September 2011, the FASB issued an
update that allows companies to assess qualitative factors to determine whether they need to perform the two-step quantitative
goodwill impairment test. Under the option, an entity no longer would be required to calculate the fair value of a reporting unit
unless it determines, based on that qualitative assessment, that it is more likely than not that its fair value is less than its
carrying amount. The guidance is effective for interim and annual goodwill impairment tests performed for fiscal years beginning
after December 15, 2011 although early adoption is permitted. The adoptation of this guidance did not have a material impact on
the Company's consolidated financial statements.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Not Adopted -</i></b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In December 2011, the FASB issued ASU
No. 2011-11 “Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities<i>”</i>. This accounting
update requires that an entity disclose information about offsetting and related arrangements to enable users of its financial
statements to understand the effect of those arrangements on its financial position. The accounting update is effective for annual
periods beginning on or after January 1, 2013. The Company is currently evaluating the provisions of this accounting update and
assessing the impact, if any, it may have on its financial position and results of operations.</p>
<p style="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
<td style="width: 3%; font: italic bold 10pt/115% Times New Roman, Times, Serif; text-align: center">a)</td>
<td style="width: 97%; font: italic bold 10pt/115% Times New Roman, Times, Serif">Loans payable to related party</td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The amounts due to a related party at
March 31, 2012 and December 31, 2011 of $106,537 and $89,584, respectively, represent an unsecured promissory note due to a shareholder
and director of the Company. These amounts are unsecured, bear interest at 15% per annum and are repayable on demand, with accumulated
interest.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
<td style="width: 3%; font: italic bold 10pt/115% Times New Roman, Times, Serif; text-align: justify">b)</td>
<td style="width: 97%; font: italic bold 10pt/115% Times New Roman, Times, Serif; text-align: justify">Contingent consideration payable to related party</td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Pursuant to Stock Purchase Agreement
between a director of the company (“the Director”) and DEDC, dated February 25, 2011 and Amendments No. 1 and No. 2
to Stock Purchase Agreement, dated December 30, 2011 and March 31, 2012, respectively, DEDC acquired all of the outstanding shares,
of Transformation Consulting (“TC”). The purchase price for the shares was $2,000,000, payable from the gross revenues
of TC, subject to the following contingent reduction or increase of the purchase price. If TC’s gross revenues during the
two years following the closing are less than $2,000,000, then the purchase price for the shares shall be reduced to the actual
revenue received by TC during the two year period. If TC’s revenues during the same two year period exceed $2,000,000, then
the purchase price for the shares shall be increased by one-half of the excess revenues over $2,000,000 (“contingent consideration”).</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">TC’s revenues are primarily related
to revenues received from an entity controlled by the Director (“related entity”) under a January 2010, Management
Services and Agency Agreement (“Agency Agreement”). Under the Agency Agreement, TC receives revenues based on billings
received from certain of TC’s direct to consumer membership club products that were transferred to the related entity under
the Agency Agreement. Pursuant to the Agency Agreement, TC agreed to (1) transfer to the related entity the ownership of certain
TC current direct to consumer membership products upon TC receiving a total of $1,000,000 in revenues; (2) introduce the related
entity to TC’s existing and potential vendors for use in managing the TC current programs on behalf of TC; and (3) have the
related entity act as TC’s sales agent for new product sales. In consideration, TC receives all gross receipts of existing
sales, less the related entity’s management fee of 20% of gross sales. Separately, TC and the related entity would each be
entitled to 50% of new business sales. After total payments of $2,000,000 to TC from all related revenues under the Agency Agreement,
the related entity would no longer be obligated to pay TC any further compensation.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Pursuant to the contingent consideration
of $2,000,000 due to the Director from TC, all revenues generated by TC under the Agency Agreement are disbursed to Director. All
cash management services, pertaining to the revenues generated by TC under the Agency Agreement are managed by the Director directly
from an escrow account, including deposits of revenues and payment disbursements to the Director. As a result, the Company does
not have access to the cash flow from such revenues, which are administered from said escrow account. Contingency consideration
is payable based on a payment schedule as follows:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
<td style="width: 100%">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 9pt">-<font style="color: black; letter-spacing: 9pt">
</font>Payment one: the first $900,000 of gross revenues paid on receipt;</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 9pt">-<font style="color: black; letter-spacing: 9pt">
</font>Payment two: the next $400,000 of gross revenues paid at the later of 90 days of receipt or June 30, 2012;</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 9pt">-<font style="color: black; letter-spacing: 9pt">
</font>Payment three: the next $400,000 of gross revenues paid at the later of 90 days of receipt or September 30, 2012;</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 9pt">-<font style="color: black; letter-spacing: 9pt">
</font>Payment four: the next $300,000 of gross revenues paid at the later of 90 days of receipt or December 31, 2012.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">For the three months ended March 31,
2012 and 2011, TC gross revenues totaled $301,704 and $0, respectively.</p></td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Through March 31, 2012, payments, net
of refunds, made to Director totaled $974,232. At March 31, 2012 and December 31, 2011, contingency consideration payable to Director
is $1,025,768 and $996,414, respectively, as follows:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: bottom">
<td colspan="2" style="padding-bottom: 1.2pt"> </td>
<td style="padding-bottom: 1.2pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>As of </b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>March 31,</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2012</b></p></td>
<td nowrap="nowrap" style="padding-bottom: 1.2pt"> </td>
<td style="padding-bottom: 1.2pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>As of</b></font><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>December 31,</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2011</b></p></td>
<td nowrap="nowrap" style="padding-bottom: 1.2pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td colspan="2" style="font: 10pt/115% Times New Roman, Times, Serif">Contingency consideration due</td>
<td> </td>
<td style="font: 10pt/115% Times New Roman, Times, Serif">$</td>
<td style="font: 10pt/115% Times New Roman, Times, Serif; text-align: right">2,000,000</td>
<td nowrap="nowrap"> </td>
<td> </td>
<td style="font: 10pt/115% Times New Roman, Times, Serif">$</td>
<td style="font: 10pt/115% Times New Roman, Times, Serif; text-align: right">2,000,000</td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td colspan="2" style="font: 10pt/115% Times New Roman, Times, Serif">Less: payments, net of refunds, to Director</td>
<td style="padding-bottom: 1.2pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; font: 10pt/115% Times New Roman, Times, Serif; text-align: right">974,232</td>
<td nowrap="nowrap" style="padding-bottom: 1.2pt"> </td>
<td style="padding-bottom: 1.2pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; font: 10pt/115% Times New Roman, Times, Serif; text-align: right">1,003,586</td>
<td nowrap="nowrap" style="padding-bottom: 1.2pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td colspan="2" style="padding-bottom: 2.4pt"> </td>
<td style="padding-bottom: 2.4pt"> </td>
<td style="border-bottom: black 2.25pt double; font: 10pt/115% Times New Roman, Times, Serif">$</td>
<td style="border-bottom: black 2.25pt double; font: 10pt/115% Times New Roman, Times, Serif; text-align: right">1,025,768</td>
<td nowrap="nowrap" style="padding-bottom: 2.4pt"> </td>
<td style="padding-bottom: 2.4pt"> </td>
<td style="border-bottom: black 2.25pt double; font: 10pt/115% Times New Roman, Times, Serif">$</td>
<td style="border-bottom: black 2.25pt double; font: 10pt/115% Times New Roman, Times, Serif; text-align: right">996,414</td>
<td nowrap="nowrap" style="padding-bottom: 2.4pt"> </td></tr>
<tr style="vertical-align: top">
<td style="font: italic bold 10pt/115% Times New Roman, Times, Serif; text-align: center">c)</td>
<td colspan="9" style="font: italic bold 10pt/115% Times New Roman, Times, Serif">Transactions with related parties</td></tr>
<tr>
<td> </td>
<td style="width: 544px"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Related party transactions were in the
normal course of operations and were measured at the exchange amount, which is the amount of consideration established and agreed
to by the related parties.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">For the three months ended March 31, 2012 and 2011, the Company
incurred expenses as follows:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
<td style="width: 8%; font: 10pt/115% Times New Roman, Times, Serif; text-align: right">(i)</td>
<td style="width: 92%; font: 10pt/115% Times New Roman, Times, Serif; text-align: justify">Consulting services for development and construction of the Company’s energy campus project, provided by a company related through common shareholdings, in the amount of $60,000 and $0, respectively. At March 31, 2012 and December 31, 2011, the Company has an accounts payable balance of $46,863 and $46,863, respectively to this related party.</td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt/115% Times New Roman, Times, Serif; text-align: right">(ii)</td>
<td style="font: 10pt/115% Times New Roman, Times, Serif; text-align: justify">Strategic business and legal services provided by a company related through common shareholdings in the amount of $10,500 and $0, respectively. There are not amounts owing to this related party at March 31, 2012 and December 31, 2011.</td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On or about July 9, 2011, and as further
amended on December 30, 2011, the Company executed a contractor agreement (the “Contractor Agreement”), with an entity
controlled by a director and shareholder of the Company (the “Contractor”), in which the Company is obligated to issue
one or more warrants to acquire a total of 1,000,000 shares of restricted common stock of the Company (the “Shares”)
every 90 days during the term of the Contractor Agreement (the “Warrant”). During the first quarter of 2012, the Company
recorded the issuance of a Warrant for 1,000,000 Shares to this Contractor. As of March 31, 2012, the Company was obligated to
issue one or more Warrants totaling 7,000,000 Shares to this Contractor under the Contractor Agreement, in addition to 1,000,000
Shares every 90 days for a total of five (5) years. All warrants are exercisable at $0.0001 per share, and have a 60 month term
from the date each issuance, and are exercisable at the sole discretion of the Contractor. The amount of consideration for the
services rendered by the Contractor to the Company shall be determined on the fair market value of the Shares on the date of each
issuance.</p>
<p style="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">As of March 31, 2012 and December 31,
2011, the Company had $0 convertible debentures payable. During the fourth quarter of 2011, all convertible debentures payable
had been converted to common stock.</p>
<p style="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b>Authorized</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company is authorized to issue 50,000,000
shares (previously 200,000,000 shares) of preferred stock, having a par value of $0.0001 per share, and 300,000,000 shares (previously
150,000,000 shares) of common stock having a par value of $0.0001 per share.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b><i>Forward Stock Split and Authorized Capital Stock</i></b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">Effective September 15, 2011, by Articles of Amendment, the
Company effected the following changes:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
<td style="width: 8%; font: 10pt/115% Times New Roman, Times, Serif">(1)</td>
<td style="width: 92%; font: 10pt/115% Times New Roman, Times, Serif; text-align: justify">forward split all outstanding shares of the Corporation’s common stock on a 3 for 1 basis. Accordingly, common share disclosure has been presented on a post split basis, except where noted.</td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt/115% Times New Roman, Times, Serif">(2)</td>
<td style="font: 10pt/115% Times New Roman, Times, Serif; text-align: justify">increased authorized capital stock to 500,000,000 shares, of which 300,000,000 shares shall be common stock, par value $0.0001, and 200,000,000 shares shall be preferred stock, par value $0.0001, and to give the Board of Directors the power to fix by resolution the rights, preferences and privileges of preferred stock.</td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On October 5, 2011, by approval of shareholders
of the Company and the Florida Secretary of State, the authorized number of Series A Convertible Preferred Stock was changed to
50,000,000 shares from the previously authorized 200,000,000 shares of preferred stock. The Certificate of Designation for these
shares provides among other rights and privileges the requirement that 75% of the outstanding Series A Convertible Preferred must
give their prior consent, before the Company can elect members to the Board of Directors, issue any securities of the Company or
affect any fundamental transaction (defined as acquisitions, mergers, sale or purchase of substantially all assets, etc.).</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">The Company effectuated these amendments during the fourth
fiscal quarter of 2011.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The shareholders of convertible preferred
stock are voted equally with the shares of the Company’s common stock. Each share of the convertible preferred stock is convertible
into two fully paid and non-assessable shares of common stock, subject to certain adjustments, as follows:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 9%; line-height: 115%">(i)</td>
<td style="width: 91%; line-height: 115%; text-align: justify">during the period commencing on September 15, 2013 and terminating on September 15, 2015 (“the quarterly conversion period”), each holder of convertible preferred stock may elect to convert, on each March 31, June 30, September 30 and December 31 occurring during the quarterly conversion period, that number of shares of convertible preferred stock equal to 25% of the total number of shares of convertible preferred stock initially issued to such Holder into full paid and non-assessable shares of common stock; and</td></tr>
<tr style="vertical-align: top">
<td style="line-height: 115%">(ii)</td>
<td style="line-height: 115%; text-align: justify">after the quarterly conversion period, each Holder may elect to convert all or any portion of its shares of convertible preferred stock then outstanding into full paid and non-assessable shares of common stock.</td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Issued and Outstanding</i></b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Preferred Stock</i></b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">There were 7,732,824 preferred shares
issued and outstanding as of March 31, 2012 and December 31, 2011.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On October 10, 2011, the Company issued
a total of 8,340,000 shares of series A convertible preferred stock, par value $0.0001, in exchange for the purchase and cancellation
of certain convertible debentures and other outstanding obligations of DEDC, a subsidiary of the Company, to four debenture holders,
all directors of the Company, in the total amount of $1,146,565.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On December 30, 2011, the original issuance
total was adjusted to 7,732,824 shares, in order to reflect certain payments in the amount of $121,435 made to one of the debenture
holders during the period ending December 31, 2011. As a result, the total amount of the debt cancelled was adjusted to $1,146,565,
in exchange for a total issuance of 7,732,824 shares of Series A convertible preferred stock.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i> </i></b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Common Stock</i></b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">There were 81,304,504 common shares
issued and outstanding as of March 31, 2012 and December 31, 2011.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">During the three month period ended
March 31, 2012, there were no common share transactions.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">During the year ended December 31, 2011,
the following share transactions occurred, presented on a retroactive post forward split basis:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
<td style="font: 10pt/115% Times New Roman, Times, Serif">(1)</td>
<td colspan="2" style="font: 10pt/115% Times New Roman, Times, Serif">Prior to the reverse merger and in connection to the reverse merger and recapitalization -</td></tr>
<tr style="vertical-align: top">
<td colspan="2" style="font: 10pt/115% Times New Roman, Times, Serif">(i)</td>
<td style="font: 10pt/115% Times New Roman, Times, Serif">158,141,439 shares had been issued prior to the reverse merger;</td></tr>
<tr style="vertical-align: top">
<td colspan="2" style="font: 10pt/115% Times New Roman, Times, Serif">(ii)</td>
<td style="font: 10pt/115% Times New Roman, Times, Serif">134,358,566 shares were acquired for cash payment of $322,000 and returned to treasury;</td></tr>
<tr style="vertical-align: top">
<td colspan="2" style="font: 10pt/115% Times New Roman, Times, Serif">(iii)</td>
<td style="font: 10pt/115% Times New Roman, Times, Serif">45,110,076 shares were issued in connection with the reverse merger;</td></tr>
<tr>
<td> </td>
<td style="width: 19px"> </td>
<td> </td></tr>
</table>
<p style="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0"></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 8%; line-height: 115%">(iv)</td>
<td style="width: 92%; line-height: 115%">6,000,000 shares were issued to a convertible debenture holder as an investment bonus for investment;</td></tr>
<tr style="vertical-align: top">
<td style="line-height: 115%">(v)</td>
<td style="line-height: 115%; text-align: justify">22,871,100 shares were issued on recapitalization, i.e. immediately prior to the effective time of the merger.</td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company's reverse merger transaction
has been accounted for as a recapitalization of the Company whereby the historical financial statements and operations of the acquired
company become the historical financial statements of the Company, with no adjustment of the carrying value of the assets and liabilities.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The financial statements have been prepared
as if the reverse merger transactions had occurred retroactively as of the periods presented. Share and share amounts reflect the
effects of the recapitalization for all periods presented. Accordingly, all of the outstanding shares of the acquired company's
common stock at the completion date of the reverse merger transaction have been exchanged for the Company's common stock for all
periods presented.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
<td style="font: 10pt/115% Times New Roman, Times, Serif; text-align: right">(2)</td>
<td colspan="2" style="font: 10pt/115% Times New Roman, Times, Serif">Subsequent to the reverse merger -</td></tr>
<tr style="vertical-align: top">
<td colspan="2" style="font: 10pt/115% Times New Roman, Times, Serif; text-align: right">(i)</td>
<td style="font: 10pt/115% Times New Roman, Times, Serif">1,728,000 shares were issued as settlement of debt of $275,000;</td></tr>
<tr>
<td> </td>
<td style="width: 19px"> </td>
<td> </td></tr>
</table>
<p style="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
<td style="width: 8%; font: 10pt/115% Times New Roman, Times, Serif; text-align: right">(ii)</td>
<td style="width: 92%; font: 10pt/115% Times New Roman, Times, Serif; text-align: justify">3,000,000 shares and an additional 1,065,226 shares under anti-dilutive provisions were issued for strategic business services rendered.</td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On December 29, 2011, the Company executed
separate securities exchange agreements with thirteen certain non-related debenture holders regarding debentures owed by DEDC,
a subsidiary of the Company, in the aggregate amount of $226,500, plus accrued interest of $45,300, for a total of $271,800. These
debentures were acquired, as well as accrued interest due to the debenture holders in exchange for the private issuance to the
thirteen debenture holders as a group of 1,494,909 shares of restricted common stock. The fair value of the share compensation
was calculated as $179,389.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">During the first quarter of 2012, the
Company issued a total of two Warrants for the purchase of a total of 1,500,000 Shares with a total fair value of $140,000 as follows:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">(1) On January 17, 2012, the Company
issued a Warrant for the purchase of 1,000,000 Shares to TMDS, LLC ("TMDS"'), a company controlled by a director of the
Company, as consideration for services rendered per a Contractor Agreement, dated July 9, 2011, and as further amended December
30, 2011. TMDS receives a Warrant to purchase 1,000,000 Shares every ninety days during the term of the Contractor Agreement for
a total of five (5) years. The Warrants are exercisable at $0.0001 per share, and have term expiring on the fifth anniversary date
from the date of each issuance. A total of 25 million stock purchase warrants are issuable over the term of the agreement. The
fair value of the stock purchase warrants issued in the first quarter is $70,000, based on Black-Scholes option-pricing model using
risk free interest rate of 0.79%, expected life of 5 years and expected volatility of 473.82%.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">(2) On March 17, 2012, the Company issued
a Warrant for the purchase of 500,000 Shares, at an exercise price of $0.001 per share, with a term expiring on the fifth anniversary
date from the date of issuance, to a departing Chief Financial Officer, who resigned effective March 14, 2012. The fair value of
these stock purchase warrants is $70,000, based on Black-Scholes option-pricing model using risk free interest rate of 1.13%, expected
life of 5 years and expected volatility of 460.03%.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.2pt"> </td>
<td style="padding-bottom: 1.2pt"> </td>
<td colspan="18" style="border-bottom: black 1.5pt solid; font: bold 10pt/115% Times New Roman, Times, Serif; text-align: center">Outstanding Warrants</td>
<td nowrap="nowrap" style="padding-bottom: 1.2pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.2pt"> </td>
<td style="padding-bottom: 1.2pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; font: bold 10pt/115% Times New Roman, Times, Serif; text-align: center">Number of Shares</td>
<td nowrap="nowrap" style="padding-bottom: 1.2pt"> </td>
<td style="padding-bottom: 1.2pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; font: bold 10pt/115% Times New Roman, Times, Serif; text-align: center">Exercise Price</td>
<td nowrap="nowrap" style="padding-bottom: 1.2pt"> </td>
<td style="padding-bottom: 1.2pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; font: bold 10pt/115% Times New Roman, Times, Serif; text-align: center">Fair Value</td>
<td nowrap="nowrap" style="padding-bottom: 1.2pt"> </td>
<td style="padding-bottom: 1.2pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; font: bold 10pt/115% Times New Roman, Times, Serif; text-align: center">Remaining Contractual Term (Years)</td>
<td nowrap="nowrap" style="padding-bottom: 1.2pt"> </td>
<td style="padding-bottom: 1.2pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; font: bold 10pt/115% Times New Roman, Times, Serif; text-align: center">Financing Expense</td>
<td nowrap="nowrap" style="padding-bottom: 1.2pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font: bold 10pt/115% Times New Roman, Times, Serif">Issued in 2011</td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 40%; font: 10pt/115% Times New Roman, Times, Serif">Issued July 9, 2011</td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%; font: 10pt/115% Times New Roman, Times, Serif; text-align: right">9,000,000</td>
<td nowrap="nowrap" style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%; font: 10pt/115% Times New Roman, Times, Serif">$</td>
<td style="width: 9%; font: 10pt/115% Times New Roman, Times, Serif; text-align: right">0.0330</td>
<td nowrap="nowrap" style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%; font: 10pt/115% Times New Roman, Times, Serif">$</td>
<td style="width: 9%; font: 10pt/115% Times New Roman, Times, Serif; text-align: right">0.107</td>
<td nowrap="nowrap" style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%; font: 10pt/115% Times New Roman, Times, Serif; text-align: right">3.28</td>
<td nowrap="nowrap" style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%; font: 10pt/115% Times New Roman, Times, Serif">$</td>
<td style="width: 9%; font: 10pt/115% Times New Roman, Times, Serif; text-align: right">964,297</td>
<td nowrap="nowrap" style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="font: 10pt/115% Times New Roman, Times, Serif">Issued July 21, 2011</td>
<td> </td>
<td> </td>
<td style="font: 10pt/115% Times New Roman, Times, Serif; text-align: right">3,000,000</td>
<td nowrap="nowrap"> </td>
<td> </td>
<td style="font: 10pt/115% Times New Roman, Times, Serif">$</td>
<td style="font: 10pt/115% Times New Roman, Times, Serif; text-align: right">0.0001</td>
<td nowrap="nowrap"> </td>
<td> </td>
<td style="font: 10pt/115% Times New Roman, Times, Serif">$</td>
<td style="font: 10pt/115% Times New Roman, Times, Serif; text-align: right">0.110</td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="font: 10pt/115% Times New Roman, Times, Serif; text-align: right">3.31</td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="font: 10pt/115% Times New Roman, Times, Serif">Issued October 19, 2011</td>
<td style="padding-bottom: 1.2pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; font: 10pt/115% Times New Roman, Times, Serif; text-align: right">3,000,000</td>
<td nowrap="nowrap" style="padding-bottom: 1.2pt"> </td>
<td style="padding-bottom: 1.2pt"> </td>
<td style="font: 10pt/115% Times New Roman, Times, Serif">$</td>
<td style="font: 10pt/115% Times New Roman, Times, Serif; text-align: right">0.0001</td>
<td nowrap="nowrap" style="padding-bottom: 1.2pt"> </td>
<td style="padding-bottom: 1.2pt"> </td>
<td style="font: 10pt/115% Times New Roman, Times, Serif">$</td>
<td style="font: 10pt/115% Times New Roman, Times, Serif; text-align: right">0.110</td>
<td nowrap="nowrap" style="padding-bottom: 1.2pt"> </td>
<td style="padding-bottom: 1.2pt"> </td>
<td> </td>
<td style="font: 10pt/115% Times New Roman, Times, Serif; text-align: right">3.55</td>
<td nowrap="nowrap" style="padding-bottom: 1.2pt"> </td>
<td style="padding-bottom: 1.2pt"> </td>
<td style="font: 10pt/115% Times New Roman, Times, Serif">$</td>
<td style="font: 10pt/115% Times New Roman, Times, Serif; text-align: right">659,755</td>
<td nowrap="nowrap" style="padding-bottom: 1.2pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="font: bold 10pt/115% Times New Roman, Times, Serif">Outstanding at Dec. 31, 2011</td>
<td> </td>
<td> </td>
<td style="font: 10pt/115% Times New Roman, Times, Serif; text-align: right">15,000,000</td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="font: bold 10pt/115% Times New Roman, Times, Serif">Issued in 2012</td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="font: 10pt/115% Times New Roman, Times, Serif">Issued January 17, 2012</td>
<td> </td>
<td> </td>
<td style="font: 10pt/115% Times New Roman, Times, Serif; text-align: right">1,000,000</td>
<td nowrap="nowrap"> </td>
<td> </td>
<td style="font: 10pt/115% Times New Roman, Times, Serif">$</td>
<td style="font: 10pt/115% Times New Roman, Times, Serif; text-align: right">0.0001</td>
<td nowrap="nowrap"> </td>
<td> </td>
<td style="font: 10pt/115% Times New Roman, Times, Serif">$</td>
<td style="font: 10pt/115% Times New Roman, Times, Serif; text-align: right">0.070</td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="font: 10pt/115% Times New Roman, Times, Serif; text-align: right">4.80</td>
<td nowrap="nowrap"> </td>
<td> </td>
<td style="font: 10pt/115% Times New Roman, Times, Serif">$</td>
<td style="font: 10pt/115% Times New Roman, Times, Serif; text-align: right">70,000</td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="font: 10pt/115% Times New Roman, Times, Serif; padding-bottom: 1pt">Issued March 17, 2012</td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt/115% Times New Roman, Times, Serif; text-align: right">500,000</td>
<td nowrap="nowrap" style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="font: 10pt/115% Times New Roman, Times, Serif; border-bottom: Black 1pt solid">$</td>
<td style="font: 10pt/115% Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid">0.0010</td>
<td nowrap="nowrap" style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="font: 10pt/115% Times New Roman, Times, Serif; border-bottom: Black 1pt solid">$</td>
<td style="font: 10pt/115% Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid">0.140</td>
<td nowrap="nowrap" style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="font: 10pt/115% Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid">4.96</td>
<td nowrap="nowrap" style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt/115% Times New Roman, Times, Serif; text-align: right">70,000</td>
<td nowrap="nowrap" style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="font: bold 10pt/115% Times New Roman, Times, Serif; padding-bottom: 2.5pt">Outstanding at Mar. 31, 2012</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="font: 10pt/115% Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2.5pt double">16,500,000</td>
<td nowrap="nowrap" style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double"> </td>
<td style="border-bottom: Black 2.5pt double"> </td>
<td nowrap="nowrap" style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double"> </td>
<td style="border-bottom: Black 2.5pt double"> </td>
<td nowrap="nowrap" style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double"> </td>
<td nowrap="nowrap" style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="font: 10pt/115% Times New Roman, Times, Serif; border-bottom: Black 2.5pt double">$</td>
<td style="font: 10pt/115% Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2.5pt double">140,000</td>
<td nowrap="nowrap" style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">________</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">* Includes warrants issued July 21,2011.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">Warrants outstanding and currently exercisable at March 31,
2012 are as follows:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.2pt"> </td>
<td style="padding-bottom: 1.2pt"> </td>
<td colspan="6" style="border-bottom: black 1.5pt solid; font: bold 10pt/115% Times New Roman, Times, Serif; text-align: center">Warrants Outstanding</td>
<td nowrap="nowrap" style="padding-bottom: 1.2pt"> </td>
<td style="padding-bottom: 1.2pt"> </td>
<td colspan="10" style="border-bottom: black 1.5pt solid; font: bold 10pt/115% Times New Roman, Times, Serif; text-align: center">Warrants Exercisable</td>
<td nowrap="nowrap" style="padding-bottom: 1.2pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.2pt"> </td>
<td style="padding-bottom: 1.2pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; font: bold 10pt/115% Times New Roman, Times, Serif; text-align: center">Outstanding</td>
<td nowrap="nowrap" style="padding-bottom: 1.2pt"> </td>
<td style="padding-bottom: 1.2pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; font: bold 10pt/115% Times New Roman, Times, Serif; text-align: center">Remaining Life (Years)</td>
<td nowrap="nowrap" style="padding-bottom: 1.2pt"> </td>
<td style="padding-bottom: 1.2pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; font: bold 10pt/115% Times New Roman, Times, Serif; text-align: center">Exercise Price</td>
<td nowrap="nowrap" style="padding-bottom: 1.2pt"> </td>
<td style="padding-bottom: 1.2pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; font: bold 10pt/115% Times New Roman, Times, Serif; text-align: center">Outstanding</td>
<td nowrap="nowrap" style="padding-bottom: 1.2pt"> </td>
<td style="padding-bottom: 1.2pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; font: bold 10pt/115% Times New Roman, Times, Serif; text-align: center">Exercise Price</td>
<td nowrap="nowrap" style="padding-bottom: 1.2pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 40%; font: 10pt/115% Times New Roman, Times, Serif">Issued July 9, 2011</td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%; font: 10pt/115% Times New Roman, Times, Serif; text-align: right">9,000,000</td>
<td nowrap="nowrap" style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%; font: 10pt/115% Times New Roman, Times, Serif; text-align: right">3.28</td>
<td nowrap="nowrap" style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%; font: 10pt/115% Times New Roman, Times, Serif">$</td>
<td style="width: 9%; font: 10pt/115% Times New Roman, Times, Serif; text-align: right">0.0330</td>
<td nowrap="nowrap" style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%; font: 10pt/115% Times New Roman, Times, Serif; text-align: right">3,000,000</td>
<td nowrap="nowrap" style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%; font: 10pt/115% Times New Roman, Times, Serif">$</td>
<td style="width: 9%; font: 10pt/115% Times New Roman, Times, Serif; text-align: right">0.0330</td>
<td nowrap="nowrap" style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="font: 10pt/115% Times New Roman, Times, Serif">Issued July 21, 2011</td>
<td> </td>
<td> </td>
<td style="font: 10pt/115% Times New Roman, Times, Serif; text-align: right">3,000,000</td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="font: 10pt/115% Times New Roman, Times, Serif; text-align: right">3.31</td>
<td nowrap="nowrap"> </td>
<td> </td>
<td style="font: 10pt/115% Times New Roman, Times, Serif">$</td>
<td style="font: 10pt/115% Times New Roman, Times, Serif; text-align: right">0.0001</td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="font: 10pt/115% Times New Roman, Times, Serif; text-align: right">3,000,000</td>
<td nowrap="nowrap"> </td>
<td> </td>
<td style="font: 10pt/115% Times New Roman, Times, Serif">$</td>
<td style="font: 10pt/115% Times New Roman, Times, Serif; text-align: right">0.0001</td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="font: 10pt/115% Times New Roman, Times, Serif">Issued October 19, 2011</td>
<td> </td>
<td> </td>
<td style="font: 10pt/115% Times New Roman, Times, Serif; text-align: right">3,000,000</td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="font: 10pt/115% Times New Roman, Times, Serif; text-align: right">3.55</td>
<td nowrap="nowrap"> </td>
<td> </td>
<td style="font: 10pt/115% Times New Roman, Times, Serif">$</td>
<td style="font: 10pt/115% Times New Roman, Times, Serif; text-align: right">0.0001</td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="font: 10pt/115% Times New Roman, Times, Serif; text-align: right">3,000,000</td>
<td nowrap="nowrap"> </td>
<td> </td>
<td style="font: 10pt/115% Times New Roman, Times, Serif">$</td>
<td style="font: 10pt/115% Times New Roman, Times, Serif; text-align: right">0.0001</td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="font: 10pt/115% Times New Roman, Times, Serif">Issued January 17, 2012</td>
<td> </td>
<td> </td>
<td style="font: 10pt/115% Times New Roman, Times, Serif; text-align: right">1,000,000</td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="font: 10pt/115% Times New Roman, Times, Serif; text-align: right">4.80</td>
<td nowrap="nowrap"> </td>
<td> </td>
<td style="font: 10pt/115% Times New Roman, Times, Serif">$</td>
<td style="font: 10pt/115% Times New Roman, Times, Serif; text-align: right">0.0001</td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="font: 10pt/115% Times New Roman, Times, Serif; text-align: right">1,000,000</td>
<td nowrap="nowrap"> </td>
<td> </td>
<td style="font: 10pt/115% Times New Roman, Times, Serif">$</td>
<td style="font: 10pt/115% Times New Roman, Times, Serif; text-align: right">0.0001</td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="font: 10pt/115% Times New Roman, Times, Serif">Issued March 17, 2012</td>
<td style="padding-bottom: 1.2pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; font: 10pt/115% Times New Roman, Times, Serif; text-align: right">500,000</td>
<td nowrap="nowrap" style="padding-bottom: 1.2pt"> </td>
<td style="padding-bottom: 1.2pt"> </td>
<td> </td>
<td style="font: 10pt/115% Times New Roman, Times, Serif; text-align: right">4.96</td>
<td nowrap="nowrap" style="padding-bottom: 1.2pt"> </td>
<td style="padding-bottom: 1.2pt"> </td>
<td style="font: 10pt/115% Times New Roman, Times, Serif">$</td>
<td style="font: 10pt/115% Times New Roman, Times, Serif; text-align: right">0.0010</td>
<td nowrap="nowrap" style="padding-bottom: 1.2pt"> </td>
<td style="padding-bottom: 1.2pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; font: 10pt/115% Times New Roman, Times, Serif; text-align: right">-</td>
<td nowrap="nowrap" style="padding-bottom: 1.2pt"> </td>
<td style="padding-bottom: 1.2pt"> </td>
<td> </td>
<td style="padding-bottom: 1.2pt"> </td>
<td nowrap="nowrap" style="padding-bottom: 1.2pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 2.4pt"> </td>
<td style="padding-bottom: 2.4pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; font: 10pt/115% Times New Roman, Times, Serif; text-align: right">16,500,000</td>
<td nowrap="nowrap" style="padding-bottom: 2.4pt"> </td>
<td style="padding-bottom: 2.4pt"> </td>
<td style="padding-bottom: 2.4pt"> </td>
<td style="padding-bottom: 2.4pt"> </td>
<td nowrap="nowrap" style="padding-bottom: 2.4pt"> </td>
<td style="padding-bottom: 2.4pt"> </td>
<td style="padding-bottom: 2.4pt"> </td>
<td style="padding-bottom: 2.4pt"> </td>
<td nowrap="nowrap" style="padding-bottom: 2.4pt"> </td>
<td style="padding-bottom: 2.4pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; font: 10pt/115% Times New Roman, Times, Serif; text-align: right">10,000,000</td>
<td nowrap="nowrap" style="padding-bottom: 2.4pt"> </td>
<td style="padding-bottom: 2.4pt"> </td>
<td style="padding-bottom: 2.4pt"> </td>
<td style="padding-bottom: 2.4pt"> </td>
<td nowrap="nowrap" style="padding-bottom: 2.4pt"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
<td style="width: 2%; font: italic bold 10pt/115% Times New Roman, Times, Serif; text-align: justify">a)</td>
<td style="width: 98%; font: italic bold 10pt/115% Times New Roman, Times, Serif; text-align: justify">Strategic Business and Legal Services Agreement</td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On April 25, 2011 the Company entered
into an agreement with NBN Enterprises, Inc. (“NBN”), through to May 1, 2013, whereby NBN provides strategic business
services to the Company and pays the cost of outside legal counsel who will advise the Company on securities, corporate and contract
matters. The agreement provides for compensation to NBN in the form of issuance of restricted Company common stock equal to 5%
of outstanding shares, with anti-dilution protection through the issuance of additional shares through the term and for the succeeding
12 months, and a non-accountable expense allowance of $3,500 per month. During the first quarter of 2012, the Company incurred
legal expenses of $10,500 under this agreement and remains obligated to issue 1,065,226 shares of common stock pursuant to the
original terms of the agreement..</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
<td style="width: 2%; font: italic bold 10pt/115% Times New Roman, Times, Serif; text-align: justify">b)</td>
<td style="width: 98%; font: italic bold 10pt/115% Times New Roman, Times, Serif; text-align: justify">Line of Credit</td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On July 9, 2011, the Company established
a revolving line of credit bearing interest at 15% per annum, with Charles R. Cronin, a director of the Company, (the “Lender”),
with advances to be requested in writing by Company on dates and in amounts up to the credit limit, and in the case of each advance,
to be made only upon approval the Lender. On September 11, 2011 and October 5, 2011, the Board of Directors of the Company approved
and the Company executed approvals of credit limit amendments to increase the Company’s outstanding line of credit to $300,000.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On March 31, 2012, and December 31,
2011 the Company owed the Lender $106,537 and $89,584, respectively. During the first quarter of 2012, the Company recorded interest
expense of $16,953 and $15,210, respectively, related to the line of credit.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
<td style="width: 2%; font: italic bold 10pt/115% Times New Roman, Times, Serif; text-align: justify">c)</td>
<td style="width: 98%; font: italic bold 10pt/115% Times New Roman, Times, Serif; text-align: justify">Consulting Agreement – Key Services, Inc.</td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On July 9, 2011, the Company executed
a consulting agreement with Key Services, Inc. (“Key”), whereby Key will locate and assist in the Company’s development
and construction of an energy campus project to be undertaken by the Company in the future. The Consulting Agreement is non-exclusive
and runs for a period of five years. As consideration, the Company has agreed to pay compensation to Key in the form of cash in
an amount equal to $20,000 per month or at the Company’s option (if funds are not available), restricted shares of the Company’s
common stock, valued at the average closing price of Company’s common stock over the preceding 20 trading days. In addition,
Key is entitled to additional fees, including but not limited to, joint venture, partnership, consulting, developer, contractor
and/or project management fees, to be negotiated separately, and agreed to in writing on a project-by-project basis.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On March 31, 2012 and December 31,
2011, the Company owed Key $46,863 and $46,863, respectively. During the first quarter of 2012, the Company recorded consulting
expenses of $60,000 and paid Key $60,000 related to this agreement.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
<td style="width: 2%; font: italic bold 10pt/115% Times New Roman, Times, Serif; text-align: justify">d)</td>
<td style="width: 98%; font: italic bold 10pt/115% Times New Roman, Times, Serif; text-align: justify">Consulting Agreement – TMDS, LLC</td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On July 9, 2011, as amended December
30, 2011, Company executed a consulting agreement with TMDS, LLC (“TMDS”), whereby TMDS will locate and assist in the
Company’s development and construction of energy campus projects to be undertaken by the Company in the future. The consulting
agreement is non-exclusive and runs for a period of five years. As consideration, the Company has agreed to pay compensation to
TMDS in the form of one or more Warrants for the purchase of 1,000,000 shares of restricted common stock of the Company every 90
days, exercisable at $0.0001 per share, with an exercise term of five (5) years from the date of each issuance. In addition, TMDS
is entitled to additional fees, including but not limited to, joint venture, partnership, consulting, developer, contractor and/or
project management fees, to be negotiated separately, and agreed to in writing on a project-by-project basis.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">During the first quarter of 2012, the
Company issued a Warrant for a total of 1,000,000 Shares with a value of $70,000 to TMDS under this agreement. (See Note 8.)</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
<td style="width: 2%; font: italic bold 10pt/115% Times New Roman, Times, Serif; text-align: justify">e)</td>
<td style="width: 98%; font: italic bold 10pt/115% Times New Roman, Times, Serif; text-align: justify">Consulting Agreement – Investor and Broker Dealer Relations and Financing Alternatives</td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On March 14, 2012, the Company executed
a consulting agreement with Undiscovered Equities, Inc. (“UEI”), pursuant to which UEI has agreed to provide various
consulting services, including retention and supervision of various public relations services and investor relations services,
strategic business planning, broker dealer relations, financing alternatives and sources, and due diligence meetings for the investor
community. The agreement has a 6 month term, but may be terminated early after 60 days, and provides for the Company to pay consulting
fees as follows: (i) the sum of $25,000 per month over the term of the agreement (the “Cash Payments”) and (ii) a signing
bonus in the form of immediate issuance of 125,000 shares of the Company’s restricted Common stock (the “Stock Payments”),
which was issued March 19, 2012. On May 3, 2012, the Company and UEI executed a letter of execution (the “Letter of Extension”)
of the consulting agreement to extend the payment terms of Cash Payments and Stock Payments from the May 7, 2012 to June 15, 2012.
The shares will be issued on the revised payment date.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
<td style="width: 3%; font: italic bold 10pt/115% Times New Roman, Times, Serif; text-align: justify">f)</td>
<td style="width: 97%; font: italic bold 10pt/115% Times New Roman, Times, Serif; text-align: justify">Stock Purchase Agreement – C.C. Crawford Retreading Company, Inc.</td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On March 20, 2011, the Company, through
its wholly owned subsidiary, DEDC, entered into a stock purchase agreement (the “Stock Purchase Agreement”) with C.C.
Crawford Tire Company, Inc. (the “Seller”), pursuant to which DEDC agreed to acquire 100% of the issued and outstanding
common shares of C.C. Crawford Retreading Company, Inc., a Texas corporation (“CTR”), for an aggregate purchase price
of $600,000 in cash, due and payable upon the date of closing, on or before April 20, 2012, subject to the completion of certain
closing conditions precedent, to be performed by both the Seller and DEDC.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">As of the date of this filing, the closing
had not commenced due to certain outstanding closing conditions of executed Stock Purchase Agreement. Both parties continue to
work closely together to complete these outstanding closing conditions, but there is no guarantee the parties will be able to come
to agreement on such items. However, the Company anticipates that the parties will complete the transaction within the second quarter
2012.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Management projects that CTR will have
on its books (unaudited) on the date of closing approximately $838,000 in assets, approximately $418,000 in liabilities, and approximately
$420,000 in equity. As part of the agreement, DED and DEAC agree to assume and immediately cause to be paid off approximately $350,000
of the CTR liabilities immediately after the closing.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">It is a condition of closing that DED
provide either a funding commitment for $1,000,000 or proof of $1,000,000 in cash in its accounts, which funds will be needed to
close the transaction and provide working capital to CTR after the closing. Neither DED nor DEAC have sufficient funds to meet
this condition at this date, and as a result, closing of the acquisition transaction remains contingent on DEAC’s raising
of $1,000,000 in capital by the closing date. Whether such capital can be obtained, or obtained on commercially reasonable terms,
remains uncertain at this date. If such funds cannot be obtained on a timely basis, then the transaction will not proceed.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The agreement contains customary warranties
and representations and indemnification and confidentiality provisions, as well as a three-year non-compete by the selling shareholders
and their affiliates. Either party may terminate the Agreement if it has not closed by April 20, 2012, without penalty.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">DEAC is still conducting its due diligence
investigation of CTR and its business at this time, prior to close. CTR collects and recycles approximately 4 million pounds of
waste tires annually. The assets of the CTR entity include the ownership of the 10-acre site and 35,000 square feet of buildings
that management believes could provide the basis for a future waste tire pyrolysis energy campus. During its last fiscal year ended
September 30, 2011, CTR reported (unaudited) $1,231,000 in revenues, and net income before tax of $138,000.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
<td style="width: 3%; font: 10pt/115% Times New Roman, Times, Serif; text-align: justify">g<b><i>)</i></b></td>
<td style="width: 97%; font: italic bold 10pt/115% Times New Roman, Times, Serif; text-align: justify">Non-binding Term Sheet – R.F.B., LLC</td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On March 31, 2012, DEDC entered into
a non-binding term sheet with R.F.B., LLC (“RFB”), pursuant to which RFB agreed to license and assign to DEDC a Non-Provisional
Patent Application (the “Application”), for a confidential aggregate purchase price to be paid in the form of the issuance
of shares of the Company’s restricted common stock, contingent upon preparation and execution of a definitive agreement covering
the transaction, and the completion of certain other closing conditions to be performed by both RFB and DEDC.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The definitive agreement was to be executed
on or before April 30, 2012, with a subsequent date of closing, to be mutually agreed to by RFB and DEDC. As of the date of this
filing, the parties have not executed a definitive agreement and there is no guarantee that such definitive agreement will be executed.
However, the Company anticipates that the parties will complete the transaction within the second quarter 2012.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Pursuant to the term sheet, RFB will
assign and grant to DEDC, an exclusive, worldwide license and right in and to RFB’s catalyst(s) and reactor technology relating
to the recovery of high value organics from the processing of scrap tires (the “RFB Technology”). RFB consents that
DEDC may utilize the RFB Technology in (a) the development and manufacture of goods and products; and (b) the design, construction
and modification of plants (new and existing). Further, RFB will allow DEDC to sell to third parties (i) goods and products produced
by utilization of RFB Technology; and (ii) plants utilizing RFB Technology.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">As additional consideration, RFB will
also receive a revenue share of the high-value organic compounds produced by DEDC and/or its assigns, utilizing the RFB catalysts(s)
and reactor technology; and (b) a percentage of the net profits realized from the recovery of energy products recovered from oil
sands or tar sands. The anticipated term of the license will be the greater of (i) 25 years and (ii) 20 years from the notice of
allowance relative to the Application. The specific compensation terms of the license are based on trade secrets that are considered
confidential and therefore are not being released.</p>
81304504
8130
301704
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Potential benefits of income tax losses and other tax assets
are not recognized in the accounts until realization is more likely than not. As of March 31, 2012, the Company has net operating
losses carried forward of $1,121,179 (December 31, 2011 – $1,022,465) for tax purposes in various jurisdictions subject to
expiration as described below. Pursuant to ASC 740, <i>Income Taxes</i>, the Company is required to compute tax asset benefits
for net operating losses carried forward and other items giving rise to deferred tax assets. Future tax benefits which may arise
as a result of these losses and other items have not been recognized in these financial statements, as their realization is determined
not likely to occur and accordingly, the Company has recorded a valuation allowance for the deferred tax asset relating to these
items.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The actual income tax provisions differ from the expected
amounts calculated by applying the combined income tax statutory rates applicable in each jurisdiction to the Company’s loss
before income taxes and non-controlling interest. The components of these differences are as follows:</p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: black 1.5pt solid; font: bold 10pt/115% Times New Roman, Times, Serif; text-align: center">As of March 31,</td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; font: bold 10pt/115% Times New Roman, Times, Serif; text-align: center">2012</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; font: bold 10pt/115% Times New Roman, Times, Serif; text-align: center">2011</td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 76%; font: 10pt/115% Times New Roman, Times, Serif">Corporate income tax rate</td>
<td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="width: 1%; border-bottom: black 1.5pt solid"> </td>
<td style="width: 9%; border-bottom: black 1.5pt solid; font: bold 10pt/115% Times New Roman, Times, Serif; text-align: center">34%</td>
<td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="width: 1%; border-bottom: black 1.5pt solid"> </td>
<td style="width: 9%; border-bottom: black 1.5pt solid; font: bold 10pt/115% Times New Roman, Times, Serif; text-align: center">34%</td>
<td style="width: 1%; padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="font: 10pt/115% Times New Roman, Times, Serif">Expected income tax (recovery)</td>
<td> </td>
<td style="font: 10pt/115% Times New Roman, Times, Serif">$</td>
<td style="font: 10pt/115% Times New Roman, Times, Serif; text-align: right">(81,163</td>
<td style="font: 10pt/115% Times New Roman, Times, Serif">)</td>
<td> </td>
<td style="font: 10pt/115% Times New Roman, Times, Serif">$</td>
<td style="font: 10pt/115% Times New Roman, Times, Serif; text-align: right">-</td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="font: 10pt/115% Times New Roman, Times, Serif">Goodwill impairment</td>
<td> </td>
<td> </td>
<td style="font: 10pt/115% Times New Roman, Times, Serif; text-align: right">-</td>
<td> </td>
<td> </td>
<td> </td>
<td style="font: 10pt/115% Times New Roman, Times, Serif; text-align: right">-</td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="font: 10pt/115% Times New Roman, Times, Serif">Non-deductible finance costs and other</td>
<td> </td>
<td> </td>
<td style="font: 10pt/115% Times New Roman, Times, Serif; text-align: right">47,600</td>
<td> </td>
<td> </td>
<td> </td>
<td style="font: 10pt/115% Times New Roman, Times, Serif; text-align: right">-</td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="font: 10pt/115% Times New Roman, Times, Serif">Change in valuation allowance</td>
<td> </td>
<td> </td>
<td style="font: 10pt/115% Times New Roman, Times, Serif; text-align: right">(33,563</td>
<td style="font: 10pt/115% Times New Roman, Times, Serif">)</td>
<td> </td>
<td> </td>
<td style="font: 10pt/115% Times New Roman, Times, Serif; text-align: right">-</td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="font: 10pt/115% Times New Roman, Times, Serif">State income tax net of federal benefit</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; font: 10pt/115% Times New Roman, Times, Serif; text-align: right">-</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; font: 10pt/115% Times New Roman, Times, Serif; text-align: right">-</td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="font: 10pt/115% Times New Roman, Times, Serif">Income tax provision</td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 2.25pt double; font: 10pt/115% Times New Roman, Times, Serif">$</td>
<td style="border-bottom: black 2.25pt double; font: 10pt/115% Times New Roman, Times, Serif; text-align: right">-</td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 2.25pt double; font: 10pt/115% Times New Roman, Times, Serif">$</td>
<td style="border-bottom: black 2.25pt double; font: 10pt/115% Times New Roman, Times, Serif; text-align: right">-</td>
<td style="padding-bottom: 3pt"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">The Company’s tax-effected deferred income tax assets
and liabilities are estimated as follows:</p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>March 31,</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2012</b></p></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>December 31,</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2011</b></p></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 76%; font: 10pt/115% Times New Roman, Times, Serif">Net operating loss carryforward</td>
<td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="width: 1%; border-bottom: black 1.5pt solid; font: 10pt/115% Times New Roman, Times, Serif">$</td>
<td style="width: 9%; border-bottom: black 1.5pt solid; font: 10pt/115% Times New Roman, Times, Serif; text-align: right">381,201</td>
<td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="width: 1%; border-bottom: black 1.5pt solid; font: 10pt/115% Times New Roman, Times, Serif">$</td>
<td style="width: 9%; border-bottom: black 1.5pt solid; font: 10pt/115% Times New Roman, Times, Serif; text-align: right">347,638</td>
<td style="width: 1%; padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="font: 10pt/115% Times New Roman, Times, Serif">Total deferred tax assets</td>
<td> </td>
<td> </td>
<td style="font: 10pt/115% Times New Roman, Times, Serif; text-align: right">381,201</td>
<td> </td>
<td> </td>
<td> </td>
<td style="font: 10pt/115% Times New Roman, Times, Serif; text-align: right">347,368</td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="font: 10pt/115% Times New Roman, Times, Serif">Less: Valuation allowance</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; font: 10pt/115% Times New Roman, Times, Serif; text-align: right">(381,201</td>
<td style="font: 10pt/115% Times New Roman, Times, Serif">)</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; font: 10pt/115% Times New Roman, Times, Serif; text-align: right">(347,368</td>
<td style="font: 10pt/115% Times New Roman, Times, Serif">)</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="font: 10pt/115% Times New Roman, Times, Serif">Net deferred tax assets recognized</td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 2.25pt double; font: bold 10pt/115% Times New Roman, Times, Serif">$</td>
<td style="border-bottom: black 2.25pt double; font: bold 10pt/115% Times New Roman, Times, Serif; text-align: right">-</td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 2.25pt double; font: 10pt/115% Times New Roman, Times, Serif">$</td>
<td style="border-bottom: black 2.25pt double; font: 10pt/115% Times New Roman, Times, Serif; text-align: right">-</td>
<td style="padding-bottom: 3pt"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has approximately $1,121,179 in net operating
losses carried forward for United States income tax purposes which will expire, if not utilized, in 2030.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company follows FASB ASC 280, Segment Reporting, and
currently has two reportable segments as follows:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
<td style="width: 3%; font: italic bold 10pt/115% Times New Roman, Times, Serif; text-align: justify">a)</td>
<td style="width: 97%; font: italic bold 10pt/115% Times New Roman, Times, Serif; text-align: justify">Consulting Services</td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Through its wholly owned subsidiary TC, the Company receives
revenues from a related party based on billings received from certain of its direct to consumer membership club products after
merger on March 9, 2011. During the first quarter of 2012 and 2011 TC gross revenues totaled $301,704 and $0, respectively.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
<td style="width: 3%; font: italic bold 10pt/115% Times New Roman, Times, Serif; text-align: justify">b)</td>
<td style="width: 97%; font: italic bold 10pt/115% Times New Roman, Times, Serif; text-align: justify">Recoverable Energy</td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Through its wholly owned subsidiary DEDC, the Company’s
energy sector involves a plan for commencement of a business to develop, commercialize, and sell innovative technologies in the
recoverable energy industry.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Financial information for each segment is presented in the
following table. The accounting policies of each reportable segment are the same as those of the consolidated company, as described
in Note 5, Summary of Significant Accounting Policies.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: black 1.5pt solid; font: bold 10pt/115% Times New Roman, Times, Serif; text-align: center">Three Months Ended March 31,</td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; font: bold 10pt/115% Times New Roman, Times, Serif; text-align: center">2012</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; font: bold 10pt/115% Times New Roman, Times, Serif; text-align: center">2011</td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font: 10pt/115% Times New Roman, Times, Serif">Operating income (loss)</td>
<td> </td>
<td colspan="2"> </td>
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 76%; font: 10pt/115% Times New Roman, Times, Serif; text-indent: 0.25in">Consulting services</td>
<td style="width: 1%"> </td>
<td style="width: 1%; font: bold 10pt/115% Times New Roman, Times, Serif">$</td>
<td style="width: 9%; font: 10pt/115% Times New Roman, Times, Serif; text-align: right">197,298</td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%; font: 10pt/115% Times New Roman, Times, Serif">$</td>
<td style="width: 9%; font: 10pt/115% Times New Roman, Times, Serif; text-align: right">-</td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="font: 10pt/115% Times New Roman, Times, Serif; text-indent: 0.25in">Recoverable energy</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; font: 10pt/115% Times New Roman, Times, Serif; text-align: right">(419,059</td>
<td style="font: 10pt/115% Times New Roman, Times, Serif">)</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; font: 10pt/115% Times New Roman, Times, Serif; text-align: right">(453,762</td>
<td style="font: 10pt/115% Times New Roman, Times, Serif">)</td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="font: 10pt/115% Times New Roman, Times, Serif">Total</td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 2.25pt double; font: bold 10pt/115% Times New Roman, Times, Serif">$</td>
<td style="border-bottom: black 2.25pt double; font: 10pt/115% Times New Roman, Times, Serif; text-align: right">(221,761</td>
<td style="font: 10pt/115% Times New Roman, Times, Serif">)</td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 2.25pt double; font: 10pt/115% Times New Roman, Times, Serif">$</td>
<td style="border-bottom: black 2.25pt double; font: 10pt/115% Times New Roman, Times, Serif; text-align: right">(453,762</td>
<td style="font: 10pt/115% Times New Roman, Times, Serif">)</td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In preparing these condensed consolidated financial statements,
the Company has evaluated events and transactions for potential recognition or disclosure through May 18, 2012, the date the condensed
consolidated financial statements were available to be issued.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On May 3, 2012, the Company and UEI executed a letter of
execution (the “Letter of Extension”) of the consulting agreement to extend the agreed to payment terms of the agreement
from the May 7, 2012 to June 15, 2012, as previously disclosed in herein (see Note 9(e)).</p>