As at June 30, 2011, the Company had cash and cash equivalents totaling $29,376, other
current assets of $587,030 and non-current assets totaling $227,799 which were represented
by $8,243 in fixed assets, $138,000 in distribution rights and $81,556 in investment in
shares. The total assets of the Company were $844,205 as of June 30, 2011. We also had
current liabilities of $2,954,114 which were represented by $487,351 in accruals, $214,591
in short term debt, $452,760 due to directors and officers, $1,562,908 due to related
parties, $236,504 in option liabilities as of June 30, 2011. We also had $2,000,000 in
long-term shareholders loan and $124,122 in uncontrolled interest as of June 30, 2011,
making our total liabilities $5,078,236.
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 2011.