Note 5 - License Agreement
On January 12, 2009, the
Company entered into a Licensing Agreement with an unrelated party. The Licensing Agreement gives the Company the right
to manufacture, have manufactured, use, import, and offer to sell, lease, distribute or otherwise exploit certain technology rights
and intellectual rights. The License Agreement has a term of ten years. As consideration for the License
Agreement, the Company issued 57,143 shares of its common stock and paid $1,000 in cash. The Company determined the
fair value of the License Agreement to be $7,429 based on the market value of its common stock on the date of the agreement plus
the $1,000, for a total acquisition cost of $8,429, which is included in the accompanying consolidated balance sheet.
The Company recorded amortization
expense related to the licensing agreement of $632 and $632 for the years ended September 30, 2012 and 2011, respectively.