The financial statements of the Company have been prepared
on the basis of accounting principles applicable to a going concern, which contemplates the realization of assets and the satisfaction
of liabilities in the normal course of business. The Company had negative working capital of $1,116,443 and an accumulated deficit
of $1,911,430 at September 30, 2012, and a net loss of $276,598 and negative operating cash flows of $80,059 for the three months
ended September 30, 2012. These matters raise substantial doubt about the Companys ability to continue as a going
concern. The financial statements do not include any adjustments relating to the recoverability and classification of asset
carrying amounts, or the amount and classification of liabilities that might result should the Company be unable to continue as
a going concern.
The Company has primarily funded its operations through the
net proceeds received from the Company's issuance of stock to investors. The Company plans to issue additional equity and/or
debt to fund its future operations.
Based on the Companys current liquidity position, the
Company plans to raise additional capital through debt or equity funding within the next twelve months. There is no assurance
that any such financing will be available on acceptable terms or at all. Should continuing funding requirements not be met,
the Companys operations may cease to exist.