NOTE 3 - GOING CONCERN
The accompanying consolidated
financial statements have been prepared assuming the Company will continue as a going concern. The Company has incurred losses
from operations over the past several years and anticipates additional losses in fiscal 2012 and prior to achieving breakeven.
As of the date of this
report, we will need approximately $200,000 to fund operations for the next twelve (12) months, without regard to repaying any
outstanding accounts payable, convertible or non-convertible notes payable as well as funding the marketing for our joint venture
with IUTM as described in Notes 5 and 9. This funding will allow us to maintain basic operations and to keep our public filings
current. Our Company has never been profitable and we have had to rely on debt and equity financings to fund operations. Significant
delays in development could affect the ability to obtain future debt and equity funding. These factors raise substantial doubt
about the Companys ability to continue as a going concern. After auditing our financial statements, our independent auditor
issued a going concern opinion and our ability to continue is dependent on our ability to raise additional capital. Currently there
is a substantial doubt in the Companys ability to continue as a going concern.