As at September 30, 2010, the Company had cash and cash equivalents totaling $19,572,
other current assets of $332,023 and non-current assets totaling $5,192,955 which were
represented by $18,184 in fixed assets, $138,000 in distribution rights and $5,036,771 in
goodwill. The total assets of the Company were $5,544,550 as of September 30, 2010. We
also had current liabilities of $2,710,775 which were represented by $856,582 in accruals,
$114,591 in short term debt, $100,000 in convertible loan, $1,087,471 due to related
parties, $379,680 due to a shareholder, $172,451 in option liabilities as of September 30,
2010. We also had $2,000,000 in long-term shareholders loan and $128,982 in minority
interests as of September 30, 2010, made our total liabilities $4,839,757.
At present the Company does not
have sufficient cash resources to provide for all general corporate operations in the
foreseeable future. The Company will be required to raise additional capital in order to
continue to operate in fiscal 2010.