Subsequent to September 30, 2012, Kouei
Industries agreed to extend the second payment due date to June 30, 2013 and the third payment due date to September 30, 2013.
All other terms of the agreement remain the same.
In accordance with ASC Topic 855-10, the
Company has analyzed its operations subsequent to July 31, 2012 to the date these financial statements
were issued, and has determined that it does not have any material subsequent events to disclose in these financial statements
other than the events described above.