NOTE 10. ACQUISITION COSTS
During the year ended August 31, 2012, the Company incurred approximately
$343,000 of acquisition costs for various Japanese companies in the restaurant, beauty, and advertising industry, among others.
Certain costs were incurred in the due diligence process as it relates to auditing the accounting records of these companies. These
proposed acquisitions turned out to be inefficient, mobility-wise and cost-wise, among other reasons. The Company therefore has
decided not to pursue these acquisitions.