On October 12th, 2012, the Company issued 500,000
shares of common stock to Hong Kong Alliance Fund Limited for investment banking and public relations services to be rendered over
a six month period.
On October 9, 2012, the Company entered into
a material definitive agreement (the Agreement) to acquire all the issued and outstanding shares of Omanson Precision
Engineering, Inc. (the Shares) from Judith A. Omanson and Dwight A. Omanson (the Vendors). The aggregate
consideration to be received by the Vendors for the Shares will consist of: (i) 200,000 shares in the Common Stock of the registrant;
(ii) cash in the amount of $750,000; (iii) the cash in hand in bank at settlement; and (iv) the receivable cash, minus payable
inventory cost as at date of settlement. The acquisition of the Shares will complete on before December 19, 2012. Omanson Precision
Engineering, Inc. is a company existing under the laws of the State of California, with operations based in Torrance, California.
Rental expense for facilities operating leases
was $46,438 for the period ended September 30, 2012. Future minimum rental commitments under non-cancellable facilities operating
leases in place as of September 30, 2012 are as follows:
|Period Ending September 30