During the three months ended July 31, 2012, Inova
purchased the intellectual property from Southbase International Limited (Southbase), a related party
due to ownership in Southbase by Inovas CEO. The intellectual
property purchased is a license to use ShopInova, an iPhone application,
and its related intellectual property rights. Inova issued 12,315,270
shares of common stock for the intellectual property, for a total value of $73,892, based on
the Inova stock trading price on the closing date.